When are Trade Mark Rights Exhausted?

Originally published January 2005

A recent case before the European Court of Justice has provided further clarification on the question of the exhaustion of trade mark rights in the European Union.

The question of the exhaustion of trade mark rights is a controversial issue and has raised great debate in the UK, as it is the legal concept which lies behind many questions concerning the parallel importation of so-called branded ‘grey goods’ around and into the EU. The most easily recognisable example of the parallel importation of goods and the controversy it raises is the importation of designer goods, in particular jeans, by many supermarket chains.

Under the European Trade Marks Directive, which is incorporated into the national trade mark laws of all EU member states, the proprietor of a trade mark registration has the exclusive right to prevent the use of a sign either identical or similar to the registered mark in relation to goods or services