It is good news for companies and rights holders that the UK government has formally announced its intention to maintain the existing IP rights exhaustion framework, also known as the “UK+” regime. This announcement, released in a press release by the Intellectual Property Office on May 15, 2025, provides much-needed certainty for businesses involved in parallel trade and the transportation of IP-protected goods.
How Does an Exhaustion Regime Work?
Since the UK’s exit from the EU, laws pertaining to parallel imports and the exhaustion of intellectual property rights have undergone changes. In the UK, under the “UK+” regime, intellectual property rights are considered exhausted once goods are placed on the market anywhere in the European Economic Area (EEA) with the owner’s permission. This suggests that businesses can enter the UK legally with IP-protected goods from the EEA without infringing on any rights.
Nevertheless, the reverse is not true. This kind of asymmetric exhaustion has been temporarily upheld thus far, and UK rights holders can protest parallel exports from the UK into the EEA.
What Makes the Announcement Vital
The UK government’s confirmation of the current UK+ regime removes a lot of uncertainty for:
- Importers and distributors can now move forward since it is now evident that EEA products can be lawfully imported into the UK without requiring additional licencing.
- Customers gain from ongoing availability of reasonably priced goods, particularly in industries like electronics, fashion, pharmaceuticals, and auto parts.
- Owners of rights, who are still able to regulate exports into the EEA and, if needed, take enforcement action.
The government’s overarching goal of promoting consumer choice and guaranteeing that companies can function with assurance within a stable environment is in line with this policy.
Impact on Rights Holders and Brand Owners
Brand owners should exercise caution even though the UK+ model’s continuation offers commercial stability. Genuine goods meant for sale in EEA markets but lacking localisation or after-sales support are more likely to be imported into the UK under the regime.
This raises issues with consumer protection as well as brand management. Businesses should think about looking at:
- Agreements for territorial licencing
- Safety, labelling, and compliance requirements
- Strategies for trademark and design enforcement
Additionally, rights holders should be informed that the government’s decision is subject to review and may change in response to trade negotiations or advancements in international intellectual property law.
The Long-Term Scene
The May 15, 2025, announcement offers much-needed clarity in the short term, but businesses should remain mindful of any changes that may occur. According to the UKIPO, it will keep an eye on the regime’s effects and welcomes input from interested parties.
The government has chosen stability and continuity, at least for the time being, despite lobbying from certain industry groups for a national or international exhaustion model (which would further liberalise imports).
Next Actions for Companies
- In order to benefit from the streamlined legal environment, importers should make sure supply chains stay compliant.
- Exporters need to understand that EEA rights holders still have the ability to enforce intellectual property rights when exporting to the EEA.
- In addition to auditing current agreements, legal and intellectual property teams should get ready for any future modifications to the exhaustion framework.
We at Lawdit Solicitors are here to help clients with their import/export plans, IP portfolio management, and business operations as they relate to this policy.
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