- parallel imports
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A key EU competition law principle (Article 30 of the EEC Treaty) is free movement of goods within the EU single market. An exception allowed under Article 36 of the Treaty technically allows imports to be restricted on grounds of intellectual property rights. In reality such powers are very limited, as intellectual rights cannot be exercised if the intent or effect is to restrict trade between member states of the EU. This is of particular importance in parallel trade. Where, for instance, a licensor has granted a licence to a licensee in France, he generally cannot stop those goods being imported and sold into another Member State - the licensor is said to have exhausted his rights.
Easyform Glossary of Law Terms. — UK law terms.
- parallel imports
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Imports by third parties of licensed products, or products covered by an exclusive selling arrangement or intellectual property rights, into a licensee's or dealer's allocated sales territory, in circumstances where those products have been marketed in other territories under licence from or with the agreement of the licensor, supplier or holder of the intellectual property rights.Related links
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.