Exhaustion of IP rights and parallel trade

This guidance is for businesses trading in parallel goods in the EEA and owners of intellectual property rights.

Parallel trade is the import and export of genuine intellectual property (IP) protected goods. Parallel trade occurs when the intellectual property rights in those goods are ‘exhausted’. This means they have been placed on the market within a specific territory by, or with the permission of, the rights holder. The exhaustion of IP rights means that IP rights cannot be used to stop the further distribution or resale of those goods.

Parallel exports from the UK to the EEA

Goods placed on the UK market by, or with the consent of, the right holder may no longer be considered exhausted in the EEA.

Actions for parallel exporters of IP-protected goods to the EEA

Check whether you export IP-protected goods to the EEA (for example, goods branded with a trade mark) that have already been placed on the UK market.

You may need to contact the rights holder to get permission to export those goods. The IP rights holder may not provide permission for their IP-protected goods to be parallel exported to the EEA.

You may need to review your business arrangements, business model or supply chain based on the outcome of the discussion with the IP rights holder.

Actions for IP rights holders

Businesses that own IP rights (for example, a trade mark) may wish to seek legal advice if their IP-protected goods are parallel exported from the UK to the EEA. You will need to consider if you want to allow parallel exports of your IP-protected goods from the UK to the EEA.

Decision on the UK’s future exhaustion of IP rights regime

In 2021, the previous government consulted on what the UK’s future exhaustion of intellectual property rights regime (“exhaustion regime”) should be and, if there was to be a change, how a new regime should be implemented. 

The government received 150 responses to the consultation from across UK industry. After careful consideration, the government has decided to maintain the UK+ exhaustion regime. This means that businesses will not need to make any practical changes when parallel importing goods into the UK.

Read the government’s response to the consultation on the UK’s future exhaustion of intellectual property rights regime.

Parallel imports from the EEA to the UK

The government’s decision to maintain the UK+ regime means that, in general terms, the IP rights in goods placed on the EEA market by, or with the consent of the right holder continue to be considered exhausted in the UK. This means that businesses can parallel import goods into the UK from the EEA without usually requiring the permission of the owner of the IP right(s) in those goods.

Before you parallel import goods into the UK, make sure you check other relevant rules such as: 

• see which taxes, duties and customs procedures may apply when bringing goods into the UK
• if importing medicines, check the specific rules that apply