Parallel Importation through the Lens of Exhaustion of Intellectual Property Rights: Legal Nature and Definition

Abstract

Parallel import—the importation of genuine, IP protected goods without the territorial rightholder’s express authorization—forces legal systems to balance the territorial nature of exclusive rights with the liberalisation of trade. Building on comparative doctrinal analysis, original economic modelling, and a focused case study on Uzbekistan’s 2025 reforms, this article (i) clarifies the legal nature and definition of parallel import, (ii) compares the welfare effects of national, regional and international exhaustion regimes, and (iii) proposes a calibrated policy mix for emerging economies. Results show that international or sector selective exhaustion can lower retail prices by up to 15 %, with only marginal attenuation of innovation incentives when flanked by strong quality control rules. Recommendations are made for WTO consistent legislative design.