Trademark owners often try to stop grey-market and counterfeit goods while in external transit through an EU member state. However, ECJ rulings are unclear as to the extent to which this is possible. Parallel traders purchase trademarked goods outside Europe and import them into the European Community, where higher prices apply. These grey-market goods put pressure on the trademark owner’s profit margins, as they are sold at below market price.
The profits from parallel imports become even more tempting in difficult economic times. Likewise, fake and often inferior products can seriously damage the reputation of a brand. On numerous occasions trademark owners have tried to stop such goods while in external transit through an EU member state. However, European Court of Justice (ECJ) rulings on external transit have left a question mark over the extent to which trademark holders may detain such goods. This article examines the ECJ case law and takes a closer look at some of the key issues in the transit debate.
