Parallel imports are products imported into a country without the permission of the intellectual property owner, often involving software, publications, and music. They are not knockoffs but legitimate products intended for sale in another country. Laws regarding their legality vary, and attention to this type of import activity is increasing.
A parallel import is a product created in an international location and imported into a country without the express permission of the intellectual property owner. Sometimes known as gray goods, imports of this type often involve software, print and electronic publications, and even music. The increasing frequency of offering products of this type has led to some problems related to international trade laws, as well as the proper use of intellectual property.
It is important to note that a parallel import is not a knockoff or some type of copycat product that tries to pass off as the original product. Often, the intellectual property owner will issue products intended for sale only in one country or countries, issuing alternative versions for other countries. When a product intended for sale in one country is protected and sold in a different country, this is considered a parallel product.
An example of a parallel product is a magazine with an international presence. The publisher can prepare one version of the publication intended for readers in the United States and a different version tailored for readers in France. Both products are non-counterfeit products as the same publisher produces them. If the French version is sold in the United States or the American version in France, each of these legitimate products will be considered a parallel import.
In situations involving software, a parallel import situation can arise due to differences in the cost of programs sold in different countries. For example, if some type of sales database software is manufactured with versions for different countries, and an importer perceives that the cost of one of these versions is less than the version sold in his country, the importer can choose to buy copies of that cheaper version and resell them internally. The end result is that the two versions compete against each other in the same market, something the manufacturer never intended to happen.
Laws regarding the legality of parallel import activity vary. In some nations, trade regulations prohibit this type of activity for specific products, such as video games, but allow the importation of foreign versions of a journal. Other nations do not have laws to govern the acquisition and sale of parallel imports within their borders. Thanks to the advent of online shopping and the ease of ordering large quantities of goods for sale in multiple countries, attention to this type of import activity is increasing, with many countries expected to develop specific regulations on parallel purchases and sales. of imports, establish activity limits or charge tariffs that encourage or inhibit this type of commercial transaction.
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