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ARTICLE · 03 APRIL 2008

Trade Marks: Exhaustion Of Rights

Goods bearing a registered trade mark will often command a premium in the marketplace. However, the sale price of those goods may differ between countries.

United KingdomIntellectual Property
Jon Oakley
Jon Oakley

Goods bearing a registered trade mark will often command a premium in the marketplace. However, the sale price of those goods may differ between countries. For example, goods sold in the Far East, and to a lesser extent the USA, usually retail for less than they do in Europe.

Any attempt by a business to exploit these differences will need to be considered with caution. European law states that goods subject to a registered trade mark cannot be purchased from outside the European Economic Area (EEA) and imported for sale within it unless the brand owner has consented to the import and sale of those specific goods in the EEA.

Where goods subject to a registered trade mark are made available for sale within the EEA by the brand owner or with its consent, it is deemed that the brand owner's rights are "exhausted" and that those specific goods should thereafter be allowed to move freely between the EEA

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