A grey area.(parallel imports and European Union)(Brief Article)

Economist (US), The, June, 1998

THE European Court of Justice may be about to slam the door on ''grey-market'' goods. In a case involving the sale of Austrian-made spectacles frames, the court is widely expected to establish a precedent by ruling that trademark-owners have the right to block imports into the European Union of goods they originally sold outside the EU. The decision, due to be announced soon, would stop importers and retailers from exploiting the lower prices often charged for branded goods in other parts of the world by purchasing large quantities from foreign distributors and selling them at a discount in the EU. The ruling is bound to be controversial. Some will see it as a defeat for free trade: others as a victory for intellectual-property rights.

If the court rules as...

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