Are parallel imports legal under international law?
In general, parallel imports are permitted under International agreements on intellectual property. The technical issue is the so called “exhaustion” of an intellectual property right, which is also sometimes referred to as the “first sale doctrine.” Under the theory of the “first sale” or the “exhaustion of rights,” the owner of intellectual property cannot control the resale of a legally purchased good, and parallel imports are legal. Under the WTO/TRIPS rules, countries are permitted to decide for themselves how to handle parallel imports. The key section of the TRIPS is Article 6, Exhaustion, which reads: For the purposes of dispute settlement under this Agreement, subject to the provisions of Articles 35 and 46 nothing in this Agreement shall be used to address the issue of the exhaustion of intellectual property rights.” Regional trade agreements such as NAFTA or the European Union have their own rules regarding parallel imports. • Which countries have parallel imports? Every cou
