Question

Need a real life example of an authorised channel operating in gray market

Answer 1

Need a real life enample of an authorised channel operating in grey market Ano- Grey market is used to describe the sale of a product that has intelia lectual Property rights, without the intellectual Property owner's permission in that marked. Grey market goods are genuine salcher than counterfeit goods. They are in fact branded goods legally manufactured in accordance with the intellectual Property rights, but sold into a market withouk the consent of the intellectual Property owner in that market. The sey market has expanded due to the increasingly slokal nature of commerce, especially with e-commerce offering new channels of sale and distribution, enabling unauthosized sellers to Prochase genuine goods on- line from an authosized distribubor and resell them online as they choose. According to the enhaustion of intellectual Property rights Principle once a product has been sold into a particular jurisdiction under the authorization of the IP Power, the owner of this products intellectual Property sights can't maintain control over the re-sale of that Boduct. However, in some situations, Parallel impost may be unlawful in specific beositories. For enample, in the USA, the trademark law Principle of Beventing consumer confusion have led courts to hold that when material differences enist be- tween sey market imposts and authorized goods, the sale and distribution of grey market goods is unlawful. This held love even if the material differ- ences are subkle, such as a differences in wassanties offered for the grey masket Products. variations in tabeling Packaging or quality control can also be sufficient if they are likely to affect Purchasing decisions, grey The real life enample of an unauthorized channel operating in markets are for enample, a Jeweldy makers may choose to limit rebail to Upscale markets as part of its branding strategy, Retailers who look to sell the jewtery may buy the branded items abroad and bring them into the ter. sitory. As they are not bound by the IPR holders Pricing Policies, they may choose to sell them for a price of their choice. Another enample is a watch company that makes a strategic decision to grow its market share in menico. This com Pany may decide to introduce a new design into the menican market at a discoun. bed Rice of the same watch in the us. If the discount is substantial enough, visi selles may Purchase watches in menico and import them to the us for resale at a lower Bice than the authorized distributor.