importation, without authorisation of the patent holder, into a country of a product from a third country, where this product has been marketed
The World Trade Organisation defines parallel importation as follows:
“.. refers to the importation, without authorisation of the patent holder, into a country of a product from a third country, where this product has been marketed by the patent holder or in another legitimate manner”.
The goods so imported are referred to as “Grey Goods”. These goods are not counterfeit or illegal, and are precisely in terms of the manufacturer's specification. Should an importer alter the slightest on such goods, it will be tampered with and he may be charged with infringement of copy right.
Should grey goods become second hand within the parallel imports cycle, the goods are referred to as “green goods”.
The World Trade Organisation, to which South Africa is a Member issued and adopted the Agreement on Trade Related Aspects of Intellectual Property (TRIP's).
It appears that TRIPS, does not prohibit parallel importation, and it seems that the EU actually supports it as it broadens competition.
TRIPS, and other relevant agreements, seem to place the responsibility of governing these practices on the individual countries, which must enact their own legislation and regulations.
The South African Department of Trade and Industry set up the Consumer Affair Committee in terms of the Unfair Business Act, 1988.
The CAC was tasked to investigate Parallel Imports etc. and concluded a report which, seemingly was published as regulations in the Government Gazette, 1077 of 1993.
The notice contains the following conditions:
Ian Mc Laren