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Legal Regulation and Prospects of Legalization of Parallel Imports in Russia

Student: Shustikova Liudmila

Supervisor: Vladislav Starzhenetsky

Faculty: Faculty of Law

Educational Programme: Jurisprudence (Bachelor)

Final Grade: 7

Year of Graduation: 2020

For a long time, the issue of legalizing parallel imports has been quite acute in the Russian Federation. For several years, the Federal Antimonopoly Service of the Russian Federation has been trying to legalize parallel imports: relevant draft laws and other ways to solve this problem are proposed. To this day, there are discussions about the need to move from the national to the international principle of exhaustion of exclusive rights. Statistics show that the import of goods from foreign countries to Russia is at a consistently high level, which raises questions about parallel imports. Is it legal to import goods into the Russian Federation that are not intended for distribution on its territory? What sanctions will follow for violating the ban on parallel imports? What are the prospects for legalizing parallel imports in Russia? This paper is devoted to the study of the phenomenon of parallel import. The main purpose of the work is to analyze the current legal regulation of parallel imports and prospects for their legalization, as well as to develop proposals for reforming the current approach to parallel imports based on the analysis. The paper highlights such issues as the essence of parallel import and its relationship to the principle of exhaustion of exclusive trademark rights, the basis of legal regulation of parallel import in the Russian Federation and abroad (namely in the EU and the United States), relevant judicial practice and its impact on subsequent enforcement. An analysis of the possibilities of legalizing parallel imports is also provided. The main arguments of supporters and opponents of legalization, as well as previously proposed bills, are examined. Based on the study, a number of conclusions are made, including that changes in the sphere of parallel imports will occur eventually, and proposals are put forward to mitigate the possible negative consequences of such changes. In particular, it is proposed to establish parallel import restrictions for goods whose analogues are produced in the territory of the Russian Federation, and to provide consumers with quality guarantees for goods imported in parallel imports, including by informing them.

Full text (added May 10, 2020)

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