UK’s Future Exhaustion of Intellectual Property Rights Regime Consultation: Government Response

Our parallel importation laws, which regulate the common practice of importing genuine physical goods that are first sold in other countries into the UK for resale, play an important role in many sectors of the UK’s economy. These laws are governed by the UK’s choice of an exhaustion of intellectual property rights regime—or what is commonly referred to as an IP exhaustion regime.

An exhaustion regime determines the geographical scope of foreign territory in which an importer must seek the permission of the IP rights holders (e.g. a trademark, patent, design or copyright owner) to parallel import a good that is protected by their IP rights into the UK for resale.

Businesses have been waiting for clarity on what the UK’s parallel importation laws will be for too long and are rightly seeking certainty on this matter. I am therefore pleased to announce to the House that the Government have taken a clear decision on this matter. Today, we will publish the Government’s response to the 2021 consultation on the UK’s future exhaustion regime. It confirms that the UK will be maintaining its bespoke exhaustion regime—which we have called the UK+ regime—and sets out the extensive analysis and stakeholder engagement that underpins our decision. This provides the clarity that stakeholders across the UK have been calling for, helping to provide confidence to businesses, investors and consumers that the UK will continue our balanced IP framework.

As part of the Government’s response, we have set out how the UK+ regime reflects and supports the many different parts of our modern, IP-rich economy. This exhaustion regime ensures that our world-leading inventors and creators can invest their time and energy in developing new products and technologies, knowing that our parallel importation laws will help to support them to make a living from their IP assets. In turn, it will support competition in the marketplace and fair access to IP-protected goods.

No legislative changes or adjustment to businesses’ operations are required, as the UK will be maintaining its bespoke exhaustion regime.

If we are to unlock economic growth, we must incentivise innovation and creativity by providing long-term certainty and stability to all who interact with our world-leading IP framework. The UK+ regime achieves this goal by providing balanced, well-designed parallel importation laws.

A copy of the Government’s response to the 2021 consultation on the UK’s future exhaustion regime has been laid in both Houses.

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