The UK government has announced it will maintain its existing intellectual property (“IP”) rights exhaustion regime, known as the “UK+” model, following an extensive consultation with stakeholders across a range of sectors. This decision provides welcome certainty for businesses and ensures consumers continue to enjoy access to a broad range of goods at competitive prices.
Under the UK+ regime, intellectual property rights are considered “exhausted” once a product has been lawfully placed on the market in either the UK or a country within the European Economic Area (“EEA”). This means that genuine goods can be imported into the UK from the EEA without the need for additional consent from the IP rights holder. In practical terms, this allows UK businesses to continue sourcing and reselling EEA goods freely, which supports supply chain flexibility and price competitiveness.
The decision follows a public consultation launched in 2021, during which the government examined potential alternatives, including adopting a national, international, or mixed exhaustion model. However, it concluded that retaining the current approach would best support the UK’s wider economic and innovation objectives while minimising disruption for businesses and consumers.
The UK+ model provides an important safeguard for businesses involved in distribution and retail, especially in sectors that rely heavily on parallel trade, such as pharmaceuticals, automotive parts, consumer electronics, and branded goods. It enables companies to offer lower-cost alternatives to consumers and mitigates risks associated with shortages, pricing disparities, and limited availability of certain goods.
In contrast, the European Union does not recognise exhaustion based on a first sale in the UK. As a result, UK-origin goods cannot be parallel exported into the EU without authorisation from the IP holder. While this asymmetry places some limits on UK exporters, the government has opted not to mirror the EU’s more restrictive stance, choosing instead to prioritise domestic market resilience and consumer choice.
The decision supports the government’s ambition to reduce regulatory burdens following Brexit. By preserving the familiar and well-established UK+ framework, businesses benefit from legal clarity and reduced administrative complexity. This continuity is particularly valuable for small and medium-sized enterprises, which may lack the resources to navigate a more restrictive or fragmented IP regime.
Consumer interests were also a central consideration in the government’s analysis. The ability to parallel import genuine goods contributes to a diverse and competitive market, helping to keep prices down and ensuring access to a wide range of products. The government noted that restricting parallel trade could have unintended consequences, including increased costs and reduced availability of certain goods, particularly in sensitive sectors such as healthcare.
While the government has left the door open for future policy developments, it has committed to ongoing monitoring of the regime’s impact and remains open to stakeholder engagement. Any future changes would likely be subject to further consultation and impact assessment, ensuring that business and consumer interests remain protected.
In confirming its decision, the UK has reinforced its commitment to a balanced and pragmatic IP framework — one that supports innovation and creativity, while recognising the importance of market access and consumer welfare. For now, the continuation of the UK+ regime offers a stable foundation for businesses operating across the UK and EEA markets, and a clear signal that the UK remains open to trade and competition.
