Parallel Imports And Intellectual Property Protection Of The Law

How to regulate and control legally parallel import is a question that needs to be solved urgently in the field of international trade and law with china's entering in WTO, it is unavoidable that parallel import will take on more and more in international trade. Parallel import is becoming a very important issue in the process of global economic integration. Parallel import is not merely a question of intellectual property, because it is closely related to the law of the importer's country and therefore reflecting the country's foreign trade policy and often used as one way of tariff wall. But because goods imported through such channel is good, cheap and legal product, not of poor quality, they are not only popular with consumers, but also good to importer's country's economic prosperity. With both advantages and disadvantages, the legality of parallel import is questioned. This thesis undertakes an extensive study on the issue of parallel importation. The focus of it is directed to provide comprehensive theoretical basis and foreign legal experience for our legislative body, judicial organs and other departments concerned to perfectly handle the forthcoming parallel importation disputes.Firstly, the thesis deeply analyzes the controversial concept of parallel import and induces possible causes for and various patterns of parallel import. Secondly, the thesis deeply analyzes the economic cause and the economic influence of parallel import. The economic cause of parallel import is the price difference of the same commodity between countries, and the economic influence of parallel import is likely to differentiate the microcosmic economic influence and the macrocosmic economic influence. To approach the legality, the theories are developed: Right exhaustion's universality principle and Right exhaustion's Region principle. Right exhaustion's Region principle is the theory foundation against parallel import, it declare which is a violation of right of the owner of the intellectual property in theimporter's country and therefore is bad to the normal development of their national Industry. Right exhaustion's university principle is the theory foundation in sustaining parallel import. It declares only one use of right by owner. That is to say, intellectual property owner has lost its right after permission of one sale of the good and now has no right to interfere in resale by others. Though internationally accepted as a principle for intellectual property, people have different understanding of Right exhaustion principle in the extent. Generally speaking, there are three Right exhaustion principles: domestic exhaustion, regional exhaustion and international exhaustion. Countries have adopted their mechanism of intellectual property right exhaustion, according to their legal systems and economy strategies. For example, European Union adopted regional principle, that is, right exhaustion in EU.For the present, parallel import is not an important issue in our country, but considering that most products are manufactured, at low processing cost in China, by many enterprises or joint ventures using foreign patent technology, trademark or exclusive technology. And quite a proportion of such products will be exported to countries including those of the intellectual property owners. These products are very likely to be banned in the excuse of parallel import. Consequently, we shall become acquainted with other countries' rules on parallel import and concerned development so as to effectively protect our own interest by timely adjusting our marketing strategy.