How does Brexit affect this?
Brexit has the potential to affect exhaustion of rights in trade marks, particularly with regard to the UK’s relationship with the European Union.
Prior to Brexit, the exhaustion of rights principle in the UK was governed by EU law. This meant that once a trade mark owner had placed a product on the market in the EU, they could not use their trade mark to prevent further distribution or resale of that product within the EU. This was known as “EU-wide exhaustion” of rights.
However, following Brexit, the UK has left the EU and is no longer bound by EU law. This means that the exhaustion of rights principle in the UK may be subject to change. In particular, it’s possible that the UK may adopt a different exhaustion of rights regime than the EU, which could affect the ability of trade mark owners to control the distribution and resale of their products in the UK and the EU.
At present, the UK government has indicated that it intends to maintain the principle of exhaustion of rights after Brexit, but it remains to be seen how this will be implemented in practice. The UK government may choose to adopt a national exhaustion regime, which would allow trade mark owners to prevent parallel imports of their products from other countries, or it may choose to adopt an international exhaustion regime, which would allow parallel imports from anywhere in the world.
It’s also worth noting that the UK’s post-Brexit relationship with the EU may have an impact on exhaustion of rights. If the UK and the EU do not agree on a common exhaustion regime, trade mark owners may face additional legal complexity and uncertainty when dealing with cross-border trade in goods.
In conclusion, Brexit has the potential to affect exhaustion of rights in trade marks, particularly with regard to the UK’s relationship with the EU. It’s important for businesses to stay informed about any changes to exhaustion of rights law in the UK and the EU, and to seek the advice of legal professionals to ensure compliance with trade mark law.
Michael Coyle is the director of the Trademarkroom and is contactable on 02380 000190 or tmr@trademarkroom.com
