In the following I will give a short and general overview of the existing gray markets (definition and conditions). Furthermore, I will focus on the pharmaceutical industry which I consider the most interesting, even if dangerous. After a short description of possible gray market activities in this industry within the European Union I will enumerate some of the most important measures and regulations that are being taken against this serious problem. Finally, I will mention the negative as well as possible positive effects of gray markets, on both the producer and the consumer.
“Gray markets are significant as they now exceed $10 billion per year in North America and affect almost every major-trademarked product (Grenier, 1998). Gray markets are growing at more than 22 per cent annually (Lowe and McCrohan, 1988) and expect further growth as export operations increase (Myers, 1999).”
When reading these lines one can presume that gray market activities are an inevitable result of the export of trade marked goods. Since exports are increasing steadily there are several attempts to restrain these semi-illegal activities.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- General aspects
- Definition
- Conditions for the development of gray markets
- Gray markets in practice
- Pharmaceutical gray markets
- Parallel import of pharmaceuticals in the European Union
- Legal background
- Violations
- Consequences and effects of these ECJ decisions
- Countermeasures
- Effects resulting from the existence of gray markets
- Examples
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This seminar paper examines the phenomenon of gray market products, focusing specifically on the pharmaceutical industry within the European Union. The paper aims to provide a comprehensive overview of gray market activities, including their definition, conditions for their development, and legal implications. It explores the challenges posed by gray markets to trademark holders and examines countermeasures taken to regulate parallel trade within the European Community.
- Definition and characteristics of gray market products
- Conditions for the development of gray markets
- Legal implications of gray market activities, particularly in the pharmaceutical industry
- Countermeasures and regulations aimed at controlling gray markets within the European Union
- Potential effects of gray markets on both producers and consumers
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: The paper introduces the concept of gray market products, highlighting their significant economic impact and growth in recent years. It outlines the focus of the paper on the pharmaceutical industry within the European Union.
- General aspects: This chapter defines gray market products, distinguishing them from generic products, and discusses the legal implications associated with their distribution. The chapter also examines the key factors contributing to the development of gray markets, such as supply sources, trade barriers, and price differentials.
- Gray markets in practice: This section explores the prevalence of gray market activities in various sectors, including electronics, automobiles, and pharmaceuticals. It delves into the specific challenges faced by the pharmaceutical industry, particularly regarding parallel imports within the European Union.
- Legal background: The chapter examines legal violations associated with gray market activities, focusing on the impact of European Court of Justice (ECJ) decisions on trademark holders. It explores the consequences and effects of these decisions on the pharmaceutical industry.
- Countermeasures: This chapter discusses regulatory measures and countermeasures taken by the European Union to control parallel trade and address concerns related to gray markets.
- Effects resulting from the existence of gray markets: The chapter analyzes the potential positive and negative effects of gray markets on both producers and consumers.
- Examples: This section provides specific examples of gray market activities within the European Union.
Schlüsselwörter (Keywords)
This seminar paper focuses on key concepts related to gray market products, including: gray markets, parallel imports, pharmaceuticals, trademark law, European Union, ECJ decisions, regulation, price differentials, and trade barriers. The paper explores the challenges and complexities surrounding gray market activities, particularly within the pharmaceutical industry.
Frequently Asked Questions
What are grey market products?
Grey market products are genuine trademarked goods that are traded through distribution channels that are legal but unintended by the original manufacturer.
Why are grey markets significant in the pharmaceutical industry?
Due to price differentials between EU member states, parallel imports of pharmaceuticals have become a major economic factor, albeit a controversial one.
What are the main drivers for grey market development?
Key factors include significant price differences between countries, trade barriers, and varying supply sources for trademarked goods.
How does the European Court of Justice (ECJ) affect grey markets?
ECJ decisions often balance trademark protection with the principle of free movement of goods within the European Community, impacting how companies can control their distribution.
What are the potential effects of grey markets on consumers?
Positive effects include lower prices for consumers, while negative effects can involve confusion regarding warranties or product support.
What countermeasures can producers take?
Companies may use specific packaging, technical adjustments for different markets, or legal actions based on trademark law to limit parallel trade.
- Quote paper
- Marta Agnieszka Marciniak (Author), 2002, Crime in Business. Grey market products and EU-legislation, Munich, GRIN Verlag, https://www.grin.com/document/16102
