Parallel Importation and Intellectual Property Law

The arguments raised by opponents of parallel importation can be divided into two broad categories: an economic argument relating to the detrimental effect of intra-brand competition and an intellectual property (IP) argument relating to the interpretation of the relevant IP statutes to prohibit parallel importation. As a vehicle for controlling or prohibiting parallel importation it is not at all clear that IP law was specifically intended to address the issue of parallel importation. Statutory protection of IP did not arise out of any concept of natural justice or any related theory underlying property ownership at common law but rather, out of a conscious policy decision on the part of Government. Increased IP protection has become integral to the US and Canada's perceptions of their future economic growth. The law of restitution68 or the development of misappropriation/unfair competition principles have been suggested as viable means of offering some form of protection to right-holders and distributors without broadening the IP monopoly.

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