Brussels, 20/04/2001 (Agence Europe) - The European Parliament organised on 10 April a hearing on the "international exhaustion of trade mark rights", or, in other words, the right of manufacturers to impose a price on products of their brand imported from third countries and resold in Europe. This hearing, organised for preparing the own initiative report by German Christian Democrat Hans-Peter Mayer, confirmed the divergence that exists consumers, distributors and manufacturers over the question of parallel imports.
Consumers, represented by Philippe Evans for the " Consumer Association", urged for a system that guarantees greater competition between distributors and freedom of choice for consumers. Christopher Scott-Wilson, from the association of brand name industries, took up the arguments set out in the "Nera" study carried out in London, whereby the price difference between goods from Europe and those imported would not exceed 2.2% to 3%. The association of brand name industries believes the current legislation on trade marks must be kept as it is and the specific cases of anti-competitive behaviour must be communicated to the relevant authorities. Georges Bonnet, Professor at University Paris II and president of the intellectual property research institute, insisted on the fundamental difference between the free movement of goods within the EU and international exhaustion of trade names, the economic effects of which are not known. Among other things, he insisted on the fact that the trademark holders may find it difficult to control and guarantee the quality of their products introduced on the market through parallel imports - an argument taken up by part of the MEPs, who fear the threat of piracy.
The rapporteur confirmed, on the other hand, that he hopes European legislation will be amended to introduce the international exhaustion of trademark rights. This concept would withdraw from the holder of a trademark the control on resale of his products, from the time when these products have been placed on the market for the first time with his agreement. The German MEP had already presented his position early that year, invoking the free competition and the interest of consumers (see EUROPE of 3 February, p.11).
For the time being, the Commission has only presented a "working document" on this subject, but eight Member States have called on Commissioner Frits Bolkestein to present proposals (Sweden, Finland, Netherlands, Luxembourg, Germany, Ireland, UK and Belgium), it was recalled during the hearing. France is reportedly the Member State the most opposed to amending the legislation. The Advocate General at the Court of Justice of the EC, Stix-Hackl, issued a mitigated opinion on the question early this month, in a case concerning parallel imports of Levi-Strauss jeans (see EUROPE of 11 April, p.14).