Parallel Imports In The Age Of Global E- Commerce: Reassessing IPR Exhaustion In Cross- Border Digital Marketplaces
- IJLLR Journal
- Mar 29
- 1 min read
Meghna Chatterjee, LLM, Symbiosis Law School, Pune
ABSTRACT
Intellectual Property Rights (IPR) exhaustion determines when a holder of an IP loses control over goods after their initial license and dictates how parallel import rules are formulated. But as the volume of cross-border e- commerce and e-marketplaces increases rapidly, the old principles of parallel trade are being questioned. In this paper, the concept of exhaustion is explored in the age of universal digital markets, where goods can be resold in real time by third parties through companies specialising in algorithmic and smart logistics. It compares the European Union, India, and the United States regarding the interaction between various exhaustion laws, platform rules, and the liability of online intermediaries. Analysis shows that conventional forms of territoriality in the context of exhaustion are not always able to meet the demands of modern platform-based trade, leading to new challenges such as fragmented markets and regulatory loopholes. Digital marketplaces of parallel imports may positively impact consumers on the one hand by reducing prices and increasing options. Conversely, they could interfere with the existing business models, prices and brand management. The paper concludes by suggesting that IPR exhaustion needs to be reconsidered in light of the strength of online platforms and the realities of digital markets, to strike a balance between what is optimal for consumers and innovation, and fair competition in global e-commerce.
Keywords: Intellectual Property Exhaustion, Parallel Imports, Digital Marketplaces, Trademark Exhaustion
