The main developments are that
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no legislative changes means businesses can continue operating under the existing exhaustion of intellectual property rights regime without any new requirements
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the UK+ regime protects creators and innovators, while ensuring fair competition in the marketplace and greater choice for British consumers – growing the economy and supporting the government’s Plan for Change.
UK businesses will avoid additional red tape and consumers will continue to benefit from a choice of goods from across Europe, as the government confirms it will maintain the UK’s current exhaustion of intellectual property (IP) rights regime, known as “UK+”.
Today’s news – a result of extensive consultation with stakeholders – means the UK can keep buying genuine goods from across the European Economic Area (EEA) and resell them in the UK without any extra permissions.
A balanced, innovation-friendly IP framework will support the government’s delivery of its Plan for Change. It will encourage stable and competitive markets, and ensure consumers can continue to benefit from a wide range of products and goods.
Our exhaustion regime governs our parallel importation laws, which regulates the importing of genuine goods that are lawfully sold in other countries before coming into the UK for resale. Parallel importation occurs in many sectors, from medicines to automotive parts to fast-moving consumer goods – all vital areas of growth for the UK economy.
In general terms, today’s decision means that once a product protected by an IP right (for example, biscuits, books or toiletries) has been legitimately sold in either the UK or European Economic Area (EEA), the IP owner may not subsequently prevent it from being re-sold in the UK. This means that businesses can buy genuine goods from EEA suppliers and sell them in the UK without needing permission from the IP owner, giving consumers continued, ready access to these products.
The decision clarifies the law in this area, providing certainty and stability for UK businesses that undertake parallel trade in these markets, while ensuring competition in the marketplace and fair access to IP-protected goods. By providing long-term certainty to everyone who interacts with our world-leading IP framework, the UK+ regime incentivises innovation, creativity, and helps unlock economic growth.
Minister for AI and Digital Government, Feryal Clark, said
This is an important step in maintaining the strength of our world-leading intellectual property framework. The decision we’ve taken not only gives businesses the certainty they’ve been calling for, but ensures consumers have choice and fair access to a wide range of goods.
This is our Plan for Change in action – driving long-term growth through a fairer, more innovative economy for all.
Dan Guthrie, Director General of the Alliance for Intellectual Property, said
We wholeheartedly welcome today’s announcement from the government in relation to the UK’s exhaustion regime. The decision provides the stability needed to ensure IP-rich businesses can continue to invest, grow their exports, provide the public with the products and content they love and contribute to UK economic growth. The decision will be welcomed by creators, designers, and businesses in every region of the UK.
The government has published its full response to the consultation today, detailing the extensive analysis and stakeholder engagement that informed this decision. A majority of consultation respondents reported the UK+ regime is working well, whereas there was not robust quantitative evidence to support changing to any of the alternative options.
The decision to maintain the current UK+ regime is effective immediately. It confirms the current law, and no further legislation is required for it to come into force.
Additional information
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The UK’s exhaustion regime affects various intellectual property rights including patents, trade marks, designs and copyright.
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The UK+ (plus) regime is a well-understood exhaustion regime that offers stability for Britain’s IP-rich businesses to continue operating their business practices. This is demonstrated by submissions to the consultation, which showed significant support for the UK+ regime.
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There has been little change to the UK+ regime since the consultation was launched. A statutory instrument in 2023 (‘The Intellectual Property (Exhaustion of Rights) (Amendment) Regulations 2023’) ensured the continued operation of the UK+ exhaustion regime without making substantive policy changes. This meant that businesses, investors, and IP rights holders could continue to operate on the basis of the UK’s current parallel importation rules.
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the full Government response to the consultation on the UK’s future exhaustion of intellectual property rights regime.
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The Intellectual Property Office has produced a video explaining exhaustion of rights and parallel trade, aimed at businesses who trade in parallel goods across borders
Exhaustion of IP rights and parallel trade – explained – YouTube
(This video was first published at the consultation’s launch in 2021).
