EU original goods and the exhaustion principle: basics for resellers

Anyone reselling branded goods operates within the framework of trademark law. A central concept here is the so-called exhaustion principle.

What does exhaustion mean?

Put simply: once goods have been placed on the market in the European Economic Area (EEA) by the trademark owner or with their consent, the owner generally can no longer prohibit the resale of those specific goods. This is set out, among others, in Article 15 of the EU Trade Mark Regulation.

Why origin is decisive

Exhaustion only applies to goods first placed on the market within the EEA. Goods originally intended for markets outside the EEA are not automatically covered. There are also exceptions, for instance where the condition of the goods has been changed.

What this means for purchasing

Look for traceable sources and documented supply chains. BESA Commerce sources and trades branded goods from established European sources and documents every delivery with an invoice.

Note: This article is for general information only and does not constitute legal or tax advice.