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.
The author, Danish economist, Kjeld Moller Pedersen, maintains that four European countries, Denmark, Germany, Sweden and the United Kingdom would together have made an estimated total of 441.5 million in direct savings due to parallel importing
of drugs in 2004.
The High Court further noted that there is no cause of action for an infringement of exclusive distributorship rights.(232) In sum, the Singapore High Court appears to adopt the international exhaustion of rights doctrine.(233) Although the case was brought under copyright infringement and passing off, the High Court's holding appears to apply regardless of the intellectual property involved.(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.(236) The actual effect of Remus Innovation remains to be seen, but it will probably have a major impact on parallel imports in Singapore.(237)
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
In response, the South African government passed a law in 1997, the Medicines and Related Substances Act, allowing compulsory licensing and parallel importing
of vital drugs like these.
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of a medicinal product is still possible even when the authorisation for the reference product has been withdrawn and the parallel import licence may not be revoked unless such a measure is justified by reasons relating to the protection of public health, the Commission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.
Trade group the British Phonographic Industry is seeking to determine whether "parallel importing
" by Amazon.com breaches copyright law.
Under pressure, the Clinton administration retreated from its longstanding, aggressive opposition to developing country efforts to undertake compulsory licensing and parallel importing
. The Bush administration has signaled it will follow the revised Clinton policy.