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Parallel imports (or gray market goods) refer to branded goods that are imported into a market and sold there without the trademark owner’s consent in that market.

The goods have been manufactured by or under license of the brand owner and therefore are not counterfeit, but they may have been formulated or packaged for a particular jurisdiction and are imported into a different jurisdiction in contradiction to the brand owner’s intention.

Source: https://www.inta.org/topics/parallel-imports/

Video: https://www.youtube.com/watch?v=_RTA1Q9Kx_c

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Parallel Imports / Gray Market - International Trademark Association

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The material differences approach is similar to the international exhaustion system but prohibits the sale of parallel imports if they are materially different from the goods that the trademark owner has authorized to be put on the market in a given country. What is considered "material" may vary from jurisdiction to jurisdiction.

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Parallel importing isn’t a one-size-fits-all operation. Different players engage in this practice for various reasons. Here are the main types of parallel importers:

1. Intentional Diverters

2. Excess Inventory Clearers

3. Opportunistic Sellers

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Parallel Imports (Grey Market Goods): A Global Challenge

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Discover how Parallel Imports impact brands globally. Learn the risks, legal gaps, and how to protect your supply chain from grey market threats.

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Challenges of parallel imports include a loss of brand control for the manufacturer, potential for reduced investment in R&D, issues with warranty and after-sales service, difficulties in ensuring regulatory compliance, and the risk of consumers receiving counterfeit or non-compliant products. These challenges affect manufacturers, consumers, and regulators who must navigate issues like intellectual property rights and varying international laws.

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More consumers are buying luxury goods brought into the country through “parallel importing” and taking the risk of purchasing counterfeit products to get the benefit of cheaper deals.

https://koreajoongangdaily.joins.com/2015/09/29/economy/Risks-aside-more-consumers-buying-parallel-imports/3009685.html

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A good example of a parallel import of international alcohol is when a Russian retailer sells a brand like Johnnie Walker Blue Label that was originally purchased in another country for a lower price and then resold in Russia without the local distributor's authorization.

https://madeinrussia.ru/en/news/15497

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How to Prevent Parallel Imports

To prevent parallel import challenges, brands can implement strategic business practices like establishing consistent pricing, strengthening distributor relationships through collaboration, and reinforcing brand value through service-based differentiation rather than relying on price cuts.

Strategic and operational measures

·       Implement consistent pricing: Maintain consistent pricing across different markets to reduce the incentive for parallel imports, which are often driven by price differentials.

·       Strengthen distribution agreements: Create clear and legally binding distribution agreements with authorized partners that define territories and prevent unauthorized sales.

https://www.google.com/search?q=how+can+we+prevent+the+challenges+of+parallel+import&oq=How+&gs_lcrp=EgZjaHJvbWUqBggBECMYJzIGCAAQRRg5MgYIARAjGCcyBggCECMYJzINCAMQABiRAhiABBiKBTISCAQQABhDGLEDGMkDGIAEGIoFMgYIBRAAGAMyBggGEAAYAzINCAcQABiSAxiABBiKBTINCAgQABiSAxiABBiKBTIGCAkQABgD0gEIMzc3MmowajeoAgCwAgA&sourceid=chrome&ie=UTF-8