The exhaustion of IP rights is a legal principle that limits the control of rights after a product has been lawfully sold. Once an IP-protected item, such as a patented product, copyrighted work, or trade marked good, is sold by the rights holder (or with their consent), their exclusive rights to control the distribution or resale of that item are said to be “exhausted”.
CIPA has long argued against the introduction of international exhaustion, as differing national rules can complicate global business operations. Also, the introduction of “choice” from other markets imposes arbitrary constraints that are not necessarily beneficial to the consumer.
In her announcement, the Minister said: “This is an important step in maintaining the strength of our world-leading intellectual property framework. The decision we’ve taken not only gives businesses the certainty they’ve been calling for, but ensures consumers have choice and fair access to a wide range of goods.”
Bobby wrote to the Minister to congratulate her on the announcement, which he said was supported by the facts and the evidence.
He said: “We have recommended a maintenance of the status quo in relation to the UK’s exhaustion regime both in our response to the government consultation on the subject in 2021 and in a letter to the then Secretary of State in 2023, when there were concerns that the previous government might move to an international regime. In that letter we stated:
“This is a complex issue with the potential to unleash harmful unintended consequences for the UK should an international regime be adopted. We would urge you and your Ministerial colleagues to listen to the many stakeholders working in this area who have spent time responding to the Government’s consultation on the UK’s future regime for the exhaustion of IP rights and who oppose any shift to an international regime.”
“I personally advocated against a possible move to international exhaustion before the All-Party Parliamentary Group on IP in 2021 when the consultation was undertaken. So I am delighted that the government is aligned with this position, which is fully supported by the facts and evidence.”
Read the government’s full announcement on Gov.uk.
Date published: 19 May 2025
