Introduction to Parallel Import in Patent
As the name suggest Parallel import in Patent means once the patented production is sold by the patent holder or any person authorized by him in the foreign market and that has been imported to some other country from that country without the consent of the patent holder.
The main objective of this is to help the consumers avail benefit of the patented product. this mainly helps in medicine and pharmaceuticals.
Doctrine of exhaustion
The concept of parallel import in patent is similar to the doctrine or exhaustion. The doctrine of exhaustion which is also known as doctrine of first sale means that once a patent holder has sold or distribute a patented product, he does not have right to control the sell or distribution of that product.
This is the method to control the price of the intellectual property rights. The reason behind this is that the patent holder after selling his product cannot ask for the money again and again.
Types of exhaustion:
- National exhaustion:
The right to import is only limited to the nation and not in foreign country.
- International exhaustion:
The right to import can be in different country and at the international level.
- Regional exhaustion
It means the right to import can only be at a particular region.
Parallel Import in India
Prior to patent (Amendment)Act, 2002 there was no provision for the parallel import buy after Doha Declaration this issue came into limelight. Thid declaration led to the birth of parallel imports under Indian law and in 2002 an Amendment is done in the patent act which brings section 107(b) of the Patents Act,1970.
Section 107(A) (b) of the act states that importation of nay product for the purpose of sell or distribute the product with the authorization of the owner of the patent shall not amount to infringement of the patent. But the biggest here is that it causes the interference of the owner of the patent and is limited.
To remove this lacuna in 2005 the new Amendment was made to the Patent Act this is the Patent (Amendment) Act,2005 and which amended the sec 107 (b) of the Patent Act. Section 107(A) (b) of the Patent Act now states that the importation of any patented product for the purpose of sell or distribute who is authorized under the law to sell or distribute does not causes infringement of the patent.
Thus, the first implication of the product to any authorized person will make him an authorized person for Importation of patent under the law and hence not liable for infringement.
