Exhaustion Of Intellectual Property Rights In International Trade
- IJLLR Journal
- 2 days ago
- 2 min read
Banafshe Dhar, B.A. LL.B., Law College Dehradun, Uttaranchal University
Dr. Anil Kumar Dixit, Professor, Law College Dehradun, Uttaranchal University
ABSTRACT
The doctrine of exhaustion of intellectual property rights ascertains the extent to which an intellectual property owner can control a product after its first authorized sale. The paper is an analytical study of the doctrine in the light of international trade, and its importance in a balance between the protection of intellectual property and the aims of free trade, market competition, and consumer welfare. It determines the manner in which different exhaustion regimes function and their effect on parallel imports, discriminatory pricing methods, and cross-border exchange of goods.
The paper also assesses the legal framework that the TRIPS Agreement under the World Trade Organization has provided flexibility to the member states to implement its own policies on exhaustion. This flexibility has resulted in diverse and often fragmented legal approaches in different jurisdictions causing uncertainty when it comes to international trade and difficulties in controlling parallel imports. The paper analyses critically the adoption of various exhaustion regimes by developed and developing countries depending on their economic interests, industrial capability, and policy priorities.
Through this analysis, the paper has identified that although national and regional exhaustion regimes can safeguard domestic industries, they can limit competition and affordable goods. International exhaustion, on the other hand, encourages trade liberalization and consumer welfare and can raise the issue of innovation incentives. The paper concludes that even though complete harmonisation is not feasible, modest and realistic harmonisation via transparency, sectoral flexibility and potent competition law can mitigate the trade barriers without compromising national autonomy and providing a balanced global trade system.
Keywords: Exhaustion of Intellectual Property Rights; Parallel Imports; TRIPS Agreement; International Trade; Competition Law; Consumer Welfare; Price Discrimination; Global Trade Regulation.
