UK Government Confirms IP Exhaustion Policy

The UK government has decided to retain the UK+ exhaustion regime, which allows parallel importation of goods from the European Economic Area (EEA) into the UK without requiring the IP rights holder’s permission. This decision provides stability for businesses and supports innovation.

The consultation gathered views from businesses, organizations, and individuals across various sectors, assessing four options: the UK+ regime, national exhaustion, international exhaustion, and mixed exhaustion. Most respondents supported retaining the UK+ regime.

Reason for Decision: The government found no strong quantitative evidence to support changing the current system. The UK+ regime effectively balances competition, consumer choice, and protection of IP rights, ensuring fair access to goods while fostering economic growth.

Rejected Alternatives:

National exhaustion was deemed incompatible with international agreements, particularly the Windsor Framework.

International exhaustion was considered theoretically beneficial for competition but lacked evidence that it would lower prices or benefit consumers.

Mixed exhaustion would create a high regulatory burden and was not widely supported.

Impact on Businesses: Maintaining the UK+ regime avoids disruption and transition costs, allowing businesses to continue operating without changes to their supply chains or contracts.

Overall, the decision aims to balance innovation, market competition, and consumer access while preserving confidence in the UK’s intellectual property framework. For more information please see this page – Government response to the consultation on the UK’s future exhaustion of intellectual property rights regime – GOV.UK