IP Exhaustion

Question 1

IP Exhaustion

Answer 1

Provides that the initial authorized sale of an item
terminates/exhausts all IP rights with respect to that item - IPRs still applies to unauthorized copies of the specific
item

You cannot copy or replicate the product/process BUT you can dispose as you wish of the specific item that carries the mark/embodies the patent/copyrighted content that
you have lawfully acquired in the market

Question 2

IP rights on a specific product are “exhausted” after the first sale of the product

Answer 2

Balance between the rights of the owners of IPRs and those of consumers, retailers, second hand dealers, etc.
Dislike of restraints on alienation because of the possible consequences on the free market economy

Question 3

National exhaustion

Answer 3

goods can be distributed by unauthorized parties ONLY if they were first distributed lawfully in the national territory

Question 4

International exhaustion

Answer 4

goods can be imported regardless of where they were first distributed lawfully in the world

Question 5

Regional exhaustion

Answer 5

goods can be imported ONLY if they were first
distributed lawfully in the national territory of one of the Members of the region EU/EEA is the typical example of regional exhaustion

Question 6

When a country chooses national or regional exhaustion

Answer 6

IPRs operate as a barrier to free trade, a possible tool to protect national/regional industries, and facilitate price discrimination