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PARALLEL IMPORTS IN PHARMACEUTICALS: …

1 PARALLEL IMPORTS IN PHARMACEUTICALS: implications FORCOMPETITION AND PRICES IN DEVELOPING COUNTRIESK eith E. MaskusProfessor of EconomicsUniversity of Colorado at BoulderUCB 256, Boulder CO 80309-0256 Report to World Intellectual Property OrganizationUnder terms of Special Service AgreementDraft: April 200121. IntroductionParallel IMPORTS (PI), also called gray-market IMPORTS , are goods producedgenuinely under protection of a trademark, patent, or copyright, placed into circulation inone market, and then imported into a second market without the authorization of the localowner of the intellectual property right. This owner is typically a licensed local example, it is permissible for a trading firm to purchase quantities of prescriptiondrugs in Spain and import them into Sweden or Germany without the approval of thelocal distributor owning licensed patent rights.

1 PARALLEL IMPORTS IN PHARMACEUTICALS: IMPLICATIONS FOR COMPETITION AND PRICES IN DEVELOPING COUNTRIES Keith E. Maskus Professor of Economics University of Colorado at Boulder

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