UK to Retain UK+ IP Exhaustion Regime

The UK Government has confirmed that it will maintain the current ‘UK+ exhaustion regime’ for IP rights. This decision offers clarity and continuity for businesses navigating post-Brexit IP rules.

The UK+ regime has been in place since January 2021, when the UK formally exited the EU. Under this framework, IP rights in goods are considered “exhausted” in the UK if those goods were first marketed in either the UK or the European Economic Area (“EEA”). In practical terms, this allows most goods legally placed on the market in the EEA to be parallel imported into the UK without the rights holder’s permission.

After considering a range of alternatives, the Government has concluded that nothing provided a better balance of interests or a justifiable reason to change course. The regime is well-understood and promotes the interests of British businesses.

The Decision

The Government reviewed three alternative models for managing parallel imports:

· National exhaustion: This was deemed incompatible with the UK’s obligations under the Windsor Framework, which governs trade with Northern Ireland.

· International exhaustion: While theoretically promoting wider competition, there wasn’t enough evidence that potential savings would benefit UK consumers.

· Mixed exhaustion: Customising rules by sector or IP type was ruled out due to likely regulatory complexity and administrative burden.

Each option was found lacking in its ability to improve on the current regime without introducing significant challenges.

Certainty for Trade Mark Owners and Businesses

One of the most immediate benefits of sticking with the UK+ regime is avoiding disruption. Businesses don’t need to alter their licensing agreements or parallel import strategies, and there’s no implementation period required.