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ARTICLE · 02 MAY 2012

How to stop parallel imports

The tip is to only license your overseas manufacturers to apply the trademarks to products for sale within their region.

AustraliaIntellectual Property

Nobody likes a freeloader. Problem is, globalisation and the internet has made freeloading really easy and profitable. In the retail world, you just source branded, non-counterfeit products from somewhere cheap and offshore and rely on the local distributor's marketing to promote the product. Great margins, free advertising, and often it's perfectly legal. Voila! Megabucks!

If you're a brand owner, you're probably not so keen on the freeloaders. You make a lot more money if you can control your regional markets. And local distribution rights are more valuable if you can protect exclusivity. This would be easy if there were a blanket prohibition on parallel importation of trade marked goods. But there's not.

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