[Pharm-policy] FTAA provisions on parallel imports of trademarked goods

[James Love]

A lot of this is in brackets.  

Article XX. [Exhaustion of Rights]

[The registration of a trademark shall not entitle a right holder to
prevent a third party from trading goods that is protected by said
registration if the good in question have already been introduced in the
stream of commerce on any country by the right holder or by any other
person with the authorization of the holder or who is economically
related to, provided that goods and containers and packages and have not
been modified, altered, or deteriorated.

For purposes of this article, two persons are economically related where
one person can have a decisive influence upon the other, either directly
or indirectly, with respect to the use of the rights on the trademark,
or where a third party may have such an influence upon both persons.]

[This Agreement shall not affect the authority of Parties to determine
the conditions, if any, under which the exhaustion of rights related to
products legitimately introduced in the market by, or with the
authorization of the owner of the trademark shall apply. 

However, if a Party  recognizes the principle of domestic exhaustion or
the principle of non-exhaustion, the right holder, based on his
registration or grant, may not prevent the circulation of patented goods
or goods bearing a trademark, when legitimately introduced in the market
under a compulsory license or any other safeguard.

Parties  undertake to review their domestic legislation within a period
not exceeding 5 years after the entry into force of this Agreement, in
order to adopt, at a minimum, the principle of regional exhaustion in
regard to all countries signatories to this Agreement.]

[Parties agree to apply the principle of regional exhaustion of rights,
i.e., the holder of the intellectual property right may not prevent the
free marketing of legitimate products, once lawfully introduced into the
market in any FTAA Party, whether by the right holder himself or by a
licensee or third party authorized by the right holder, provided that
the products and the containers or packaging that have been in direct
contact with such products have not been modified or altered. 

Parties shall have two years from the entry into force of this Agreement
to incorporate this principle in their national legislation.]