Statement
Our parallel importation laws, which regulate the common practice of importing genuine physical goods that are first sold in other countries into the UK for re-sale, play an important role in many sectors of the UK’s economy. These laws are governed by the UK’s choice of an exhaustion of intellectual property (IP) rights regime. Or what is commonly referred to as an “IP exhaustion regime”.
An exhaustion regime determines the geographical scope of foreign territory in which an importer must seek the IP rights holders’ (e.g. a trade mark, patent, design or copyright owner) permission to parallel import a good that is protected by their IP right(s) into the UK for re-sale.
Businesses have been waiting for clarity on what the UK’s parallel importation laws will be for too long and are rightly seeking certainty on this matter.
I am therefore pleased to announce to the House that the Government has taken a clear decision on this matter. Today we will publish the Government’s response to the 2021 consultation on the UK’s future exhaustion regime. It confirms that the UK will be maintaining its bespoke exhaustion regime – which we have called the “UK+ regime” – and sets out the extensive analysis and stakeholder engagement which underpins our decision. This provides the clarity that stakeholders across the UK have been calling for, helping to provide confidence to businesses, investors, and consumers that the UK will continue our balanced IP framework.
As part of the Government’s response, we have set out how the UK+ regime reflects and supports the many different parts of our modern, IP-rich economy. This exhaustion regime ensures that our world-leading inventors and creators can invest their time and energy in developing new products and technologies knowing that our parallel importation laws will help to support them make a living from their IP assets. In turn, it will support competition in the marketplace and fair access to IP-protected goods.
No legislative changes, or adjustment to businesses’ operations, are required as the UK will be maintaining its bespoke exhaustion regime.
If we are to unlock economic growth, then we must incentivise innovation and creativity by providing long-term certainty and stability to all who interact with our world leading IP framework. The UK+ regime achieves this goal by providing balanced, well-designed parallel importation laws.
A copy of the Government’s response to the 2021 consultation on the UK's future exhaustion regime has been laid in both Houses.
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This statement has also been made in the House of Lords