Exhaustion of intellectual property rights
Intellectual property (IP) protected goods may involve parallel trade, such as the import and export of those 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. This is because the uk runs o the UK+ regime which is an asymmetric flow system: This means goods can be freely imported from the EEA to the UK, but IP rights are not automatically exhausted in the EEA for goods originating in the UK.
In terms of the relationship between the EU and the UK, goods placed on the UK market by, or with the consent of, the right holder may no longer be considered exhausted in the EEA. This means that businesses exporting these IP-protected goods from the UK to the EEA might need the right holder’s consent.
Guidance on Exhaustion of IP rights and parallel trade
The UK operates an asymmetric " UK+" exhaustion of intellectual property (IP) rights regime, confirmed in May 2025 to continue post-Brexit. Under this regime, IP rights are considered exhausted—meaning the owner cannot prevent resale—once goods are placed on the market in the UK or the European Economic Area (EEA). This allows for the free, parallel importation of genuine goods from the EEA to the UK.
Key Aspects of the UK+ Regime are:
- Asymmetric Flow: Goods can be freely imported from the EEA to the UK, but IP rights are not automatically exhausted in the EEA for goods originating in the UK.
- Purpose: This system maintains the status quo, providing stability for businesses, ensuring the, continued supply of goods (e.g., medicines), and supporting competitive pricing.
- Scope: It applies to IP-protected goods such as books, toiletries, automotive parts, and medicines.
- Exceptions: IP owners may still prevent parallel imports if the goods have been modified or if the trademark reputation is damaged.
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