Legal Definitions - parallel imports

Definition: Parallel imports refer to goods that bear valid trademarks and are manufactured abroad, but are imported into the United States to compete with domestically manufactured goods bearing the same valid trademarks.

For example, a company in the United States may manufacture and sell a particular brand of shoes. However, another company may import the same brand of shoes from a foreign country and sell them in the United States at a lower price, competing with the domestic company.

Domestic parties often complain that parallel imports compete unfairly in the U.S. market. However, U.S. trademark law generally does not prohibit the sale of most parallel imports, which are also known as gray-market goods.

Example: A company in the United States manufactures and sells a popular brand of electronics. However, a retailer in another country imports the same brand of electronics and sells them in the United States at a lower price. This competes with the domestic company and may lead to a loss of sales.

This example illustrates how parallel imports can compete with domestically manufactured goods and potentially harm the sales of the domestic company.