Parallel Imports & Distribution

Parallel imports are genuine goods placed on the market by or with the consent of the rights holder, then imported and resold outside the channel the brand owner has authorised. They are not counterfeits, which is precisely what makes them difficult: the product is real, the trademark is the owner's own, and the complaint is about the route the goods travelled, the terms they are sold on and the condition in which they arrive.

Apex Law Chamber advises brand owners, exclusive distributors, importers and retailers on how goods of this kind are treated and on what can be done about them. We assess the position under the trademark and related rights the client holds, the terms of its distribution and licence agreements, the labelling and product-information requirements the goods must meet, and the customs recordal and border measures available under the Customs Act 2007 where interception at the border is the practical remedy.

Much of this work is preventive and belongs in the distribution arrangements themselves. We draft and negotiate exclusive and non-exclusive distribution, supply, agency and reseller agreements, settling territory, exclusivity, minimum purchase and stock obligations, pricing and rebate structures, the sales channels a partner may use including online marketplaces, quality control, after-sales and warranty responsibility, audit rights, and termination and post-termination obligations, including what becomes of stock in hand.

Restrictions on where, and to whom, a distributor may sell are assessed under the Competition Promotion and Market Protection Act 2063 as well as under the contract. We advise on territorial and customer restrictions, exclusivity and resale pricing with that framework in view, rather than drafting terms that achieve a commercial purpose and create a different exposure in its place.

Parallel imported goods also raise consumer-facing questions. Products that are repackaged or relabelled, or supplied without the product information, warranty or after-sales support the brand normally provides, can attract complaints under the Consumer Protection Act 2018, and can cost a brand more in reputation than the diverted margin is worth. We advise on labelling and product-information compliance, on warranty and returns positions, and on what may be communicated to customers and channel partners about which goods are supported.

Where a matter has to be pursued, we act on trademark infringement, passing off and unfair competition claims, on customs notification and seizure, on marketplace takedowns, and on breach of distribution terms by a channel partner. This practice runs alongside our trademark, enforcement and IP contracts work.