Parallel Import In India: Black, White Or Gray?

Parallel importation is a legitimate act of acquiring genuine goods from the rights holder and selling them through unauthorised trade channels in the same or different market at lower prices. The difference in price is due to the fluctuations in the currency rate and tax differentials in different markets which allows resale of goods by a third party in a more expensive market, at a profitable rate. A conflict therefore arises when parallel importation results in a misrepresentation of the source, reputation or quality of the trademarked goods.

- Lawz Bureau

Parallel imports are also referred to as ‘grey-market’ goods because although the goods may be genuine, they are sold through unauthorised trade channels. Parallel imports are one of the most iridescent and enigmatic phenomena of international trade. As parallel importation is essentially a trade practice, it is regulated under both IP law and competition law. The Indian judiciary has recently attempted to clarify this ‘grey’ area.

International Laws on Parallel Imports