exhaustion of rights

exhaustion of rights
A key EU competition law principle (Article 30 of the EEC Treaty) is free movement of goods within the EU single market. An exception allowed under Article 36 of the Treaty technically allows imports to be restricted on grounds of intellectual property rights. In reality such powers are very limited as intellectual rights cannot be exercised if the intent or effect is to restrict trade between member states of the EU. This is of particular importance in parallel trade. Where, for instance, a licensor has granted a licence to a licensee in France, he generally cannot stop those goods being imported and sold into another Member State - the licensor is said to have exhausted his rights.

Easyform Glossary of Law Terms. — UK law terms.

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