01 November 2008

Combat grey market goods in the US

Case law surrounding grey market goods is still developing in the United States, but Ronald Dove and Hope Hamilton suggest some practical strategies for successfully preventing their importation and distribution

One-minute read

So-called grey market goods are imported into a country without the consent of the IP rights owner and may be manufactured under poor conditions and without employing standard quality control measures. This can harm a company’s reputation and result in substantial lost profits. Although US law is not yet developed when it comes to enforcing IP rights over grey market goods, recent copyright and trade mark case law offers hope for IP owners and can be instructive in considering strategies for diminishing the potentially negative impact of such products. By staying informed and employing these helpful practice tips, IP owners can avoid falling prey to the gloom often cast by grey goods.

Grey market goods, also known as parallel imports, are genuine products protected by copyright, trade mark or patent rights that are imported into a country without the authority of the IP rights owner in that country. It is estimated that tens of billions of dollars are lost annually to grey market sales. The problem is exacerbated by the expanding and borderless internet marketplace and will almost certainly worsen as the global economy slips into recession. Notwithstanding this growing problem, a broad base of IP owners, including in the fields of luxury goods, information technology, publishing, software and pharmaceuticals, persist in their efforts to tackle the grey market, with notable success.

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Combat grey market goods in the US

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