The retailers website also contains an explanation of the concept of parallel importing
and how it leads to cheaper prices for consumers.
Telser (1990) argued that the parallel importing
is characterized by a free-rider problem.
5 million in direct savings due to parallel importing
of drugs in 2004.
234) However, as the High Court noted, contract law could be used to prevent buyers or distributors from parallel importing
the copyright owners goods,(235) similar to the Japanese Supreme Court's recent holding in the Aluminum Wheels case.
But in fact, the Trade-Related Intellectual Property Rights (TRIPS) agreement, supervised by the World Trade Organization, allows both parallel importing
and compulsory licensing by countries faced with a national emergency.
That means the United States should not interfere in developing countries' efforts to use compulsory licensing or parallel importing
to gain access to vital drugs, period.
In 1997, South Africa adopted a Medicines Act that empowered the government to undertake both parallel importing
and compulsory licensing policies, though the government's initial purpose was only to authorize parallel importing
consists of purchasing the brand-name drugs from a third party in another country rather than directly from the manufacturer--taking advantage of the fact that drug companies sometimes charge significantly lower prices in one country than in another.
The gray market, also known as parallel importing
, exists because suppliers sometimes opt to sell products at significant discounts overseas in order to clear excess inventory or build market share, while attempting to maintain significantly higher prices and profit margins in this country.
of a medicinal product is still possible even when the authorisation for the reference product has been withdrawn and the parallel import licence may not be revoked unless such a measure is justified by reasons relating to the protection of public health, the Commission says.