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Brexit – are you prepared? Parallel Trade: key points

United KingdomScotland
18/12/2020
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The UK left the EU at the beginning of this year and the transition period during which the UK is treated as if it was still a member of the EU is coming to an end on 31 December 2020, 11pm (UK time). As of 1 January 2021, some of the parallel trade rules (i.e. the rules on importing and exporting IP protected goods) will change:

  • there will not be any change to parallel import rules for goods entering the UK from the EEA/EU. IP rights used in respect of goods legitimately put onto the market of the EEA/EU by the IP right holder or with the IP right holder’s consent will be considered exhausted in the UK. These goods can enter the UK. An IP right cannot be used to stop the import of these goods into the UK or their resale in the UK;
  • there will likely be a change to rules for goods exported from the UK into the EEA/EU. IP rights used in respect of goods legitimately put onto the market in the UK (including Northern Ireland) by the IP right holder or with the IP right holder’s consent may not be considered exhausted in the EEA/EU. The lack of ‘exhaustion’ of IP rights means that there is a chance that these IP rights can be used to stop the distribution or resale of these goods in the EEA/EU. The IP right holder’s consent may be required to export such goods from the UK to the EEA/EU;
  • Check:
    • Are you an IP right holder? Do you permit parallel exports from the UK into the EEA/EU?
    • Are you exporting goods for which a third party owns the IP rights? Do you need the IP right holder’s permission to export goods from the UK into the EEA/EU?

The UK Government has already announced that it will review the exhaustion of rights rules in the New Year and so these may change in due course.

Please do get in touch with us if you have any questions relating to Brexit and parallel trade.

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