Parallel Imports
Parallel imports, known as gray-market goods, refer to goods imported into a jurisdiction without the consent of the intellectual property rights holder. In essence, parallel imports are imported versions of a product, which are not sold by the owners of the products intellectual property rights in the importing nation. Generally, such imports are imported to the jurisdiction via third countries, and can be substantially cheaper, due to a variety of factors such as the greater savings on taxes.
Parallel imports often involve goods which have been specifically intended for one consumer marketplace, but are legally purchased in another. In the simplest case, a manufacturer or wholesaler simply exports a product to a second consumer marketplace and sells it there. In a more complicated scenario, a importer-retailers based in the importing jurisdiction purchases the goods from an international intermediary, and then resells them in the importing jurisdiction.
In terms of intellectual property rights, parallel imports represent a contentious issue, after all, the persons to which these rights are afforded have not given permission for the imported goods to be sold in the importing jurisdiction. To some this move is seen as tantamount to intellectual piracy and does not honor the rights of intellectual property owners.
On the other hand, proponents of parallel imports claim that the fundamentally global nature of modern industry and commerce should be allowed to logically flow through to consumers, without hindrance from restrictions which inhibit adequate price competition and the effective operation of global market forces. This can serve to lower prices in importing countries, and reduce the likelihood of consumers being subject to potentially unscrupulous price inflation by monopolistic or Cartel-like arrangements. They also cite the fact that strict conformance to IP rights can deny the even distribution of goods, and access to products available on the global market.
In many parts of the world, there is no doubt that the effectiveness of parallel imports should be re-examined, which can lead to greater access to goods, at lower prices, whilst maintaining an equitable system of IP rights. In many cases, current legislation serves to maintain a stymied marketplace, which can lead to unreasonably high prices.
From the standpoint of the manufacturer, it is often necessary to take steps to halt the importation of goods. Trademark and copyright laws are often used as the cornerstone for action. However, for a nation such as the United States, it is necessary to seek the aid of international partners in order to halt the unauthorised importation of goods.
In conclusion, it is evident that the issue of parallel imports is very complex and involves competing interests. It is necessary to assess the merits of the regulation of such activity, and make specific changes to address situations where there appears to be significant detriment to the interests of both the intellectual property holder, and consumers, as a result of any law or situation which exists. Therefore, any solutions must fully account for the interests of both parties.
