Legal position on international exhaustion

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India-principle-of-international-exhaustion-of-intellectual-property-rights-and-the-parallel-importation
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Dear Editor,

The principle of international exhaustion of intellectual property rights and the parallel importation following from it have been a contentious issue in international trade.

Notably, the so-called terms “parallel imports” and “exhaustion” have not been expressly used in the Patents Act, 1970 (amended act). However, section 107A(b) of sethe act exempts certain acts related to the import of patented products by any person from a person duly authorized under the law to produce and sell or distribute the product from being considered to be an infringement of the patent. Section 107A was introduced in the existing act by way of Patents (Amendment) Act, 2002, and was finally amended by way of the Patents (Amendment) Act, 2005.

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