Tackling grey market goods in Brazil

By Paula Mena Barreto

Brazil has no legal definition of ‘parallel imports’, despite this being an issue that blights many international brands. However, rights holders can take measures to combat this practice in the Brazilian marketplace

Consider the following scenario: a foreign company which manufactures a product and owns the related trademark sells the product in the Brazilian market through a network of licensees and authorised distributors. However, it discovers that its product is also being sold in the country by parties outside its official network at lower prices – an undesirable situation. These goods reach the domestic market as parallel imports, a particular channel of the so-called ‘grey market’. What can the foreign manufacturer do in these cases? Can companies combat this practice in the Brazilian market? If so, by what means?

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