Legal Definitions - parallel imports

Parallel imports, also known as gray-market goods, refer to genuine, trademarked products that are manufactured abroad and legally purchased in one country, then imported into another country (such as the United States) without the express permission or authorization of the trademark owner in the importing country. These goods are authentic, not counterfeit, but they enter the market through distribution channels unintended by the trademark owner for that specific region. They often compete with the same brand's products that are officially distributed or manufactured domestically by the authorized trademark holder.

Here are a few examples to illustrate parallel imports:

• Example 1: Skincare Products

  A popular European skincare brand, "Lumière," sells its products in both Europe and the United States. The official U.S. distributor, "Lumière USA," imports products directly from the European manufacturer and sells them through authorized retailers at a specific price point. An independent online seller discovers that "Lumière" products are significantly cheaper in a particular European country due to different market conditions. This seller then purchases a large quantity of authentic "Lumière" products from a European wholesaler, imports them into the U.S., and sells them online at a lower price than "Lumière USA."

  This illustrates parallel imports because the products are genuine "Lumière" brand, manufactured abroad (Europe), and imported into the U.S. by a party not authorized by "Lumière USA," creating competition for the official U.S. distributor.

• Example 2: Consumer Electronics

  A global electronics company, "TechSound," manufactures a specific model of noise-canceling headphones. "TechSound Japan" sells these headphones in Japan with packaging and a warranty specifically tailored for the Japanese market. An independent electronics retailer in the U.S. identifies an opportunity to buy these authentic "TechSound" headphones in bulk from a Japanese distributor at a favorable price. This U.S. retailer then imports the headphones and sells them through its own online store, often at a discount compared to the "TechSound" headphones officially distributed by "TechSound USA."

  This demonstrates parallel imports because the headphones are authentic "TechSound" products, made abroad (Japan), and brought into the U.S. by a third party outside of "TechSound USA's" official distribution network, directly competing with their authorized sales.

• Example 3: Designer Apparel

  A high-end fashion house, "Chic Atelier," produces designer handbags in Italy. "Chic Atelier US" is the authorized distributor for the United States, selling through its exclusive boutiques and official department store partners. A separate, independent luxury goods reseller discovers that "Chic Atelier" handbags are available at a lower wholesale price in certain international markets due to different pricing strategies or currency exchange rates. This reseller purchases a quantity of these genuine "Chic Atelier" handbags from an authorized international retailer and imports them into the U.S., selling them online or in an independent boutique at a price below what "Chic Atelier US" charges.

  This is an example of parallel imports because the handbags are authentic "Chic Atelier" products, manufactured abroad (Italy), and imported into the U.S. by a party not part of the brand's official U.S. distribution channel, thereby competing with the authorized U.S. sales.