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International Trade, Customs & Trade RemediesLEGAL ANALYSIS

Can a business import products bearing another company's registered trademark?

A business may in appropriate circumstances import and resell genuine branded goods in Pakistan without being an officially appointed distributor, but the legal answer is fact-specific and should not be confused with permission to import counterfeit products. Trademark rights, customs controls, product regulations and any enforceable supply contract must be assessed independently. The Trade Marks Ordinance, 2001 does not contain a simple universal formula settling every parallel import dispute, and Pakistani judicial decisions have addressed genuine goods differently from falsely marked or infringing products.

Identify whether goods are genuine

The threshold question is whether the products were manufactured by or with authorisation from the true brand owner. Genuine goods bearing the authentic mark differ fundamentally from counterfeits imitating the brand. Obtain supplier invoices, serial numbers, packaging and provenance documents. An importer should not rely solely on a low wholesale price or claim that every product shipped from a known distribution centre must be authentic.

Registered trademark rights

A Pakistani registered proprietor has rights under the Trade Marks Ordinance, 2001, including infringement remedies where statutory conditions are met. Those rights protect marks, but their scope in relation to genuine parallel imports needs careful interpretation. A distributor's commercial desire to retain exclusivity does not itself establish statutory infringement. The importer should inspect the actual registered mark, class and owner rather than rely on an agency letter.

Parallel import defined

Parallel importation normally means genuine goods lawfully placed on a foreign market and later imported through a channel outside the official domestic distribution network. It is often called grey-market trade, but that term should not automatically imply illegality. A product can be genuine while the importer lacks appointment from the local distributor. Contractual restrictions among foreign suppliers can raise separate issues from infringement by the independent importer.

Pakistani judicial treatment

A reported Karachi High Court decision, 2019 CLD 1060, considered sale of genuine branded luggage and stated that where goods are not counterfeit and have been procured through lawful channels, sale in Pakistan would not per se constitute trademark infringement on those facts. This demonstrates why it is unsafe to state that every unauthorised parallel import is prohibited. Other cases and particular marks, representations or statutory restrictions may alter the outcome. Counsel should review the full judgments and current law before relying on a single proposition.

The meaning of exhaustion

International trademark law distinguishes national, regional and international exhaustion. Pakistan's statute does not simply reproduce every foreign legislative model. The legal treatment should be grounded in Pakistani statutory text and judicial authority rather than an unqualified assumption that national exhaustion always defeats an importer or international exhaustion always guarantees clearance. The origin and authorised first sale of the goods can be factually important.

Counterfeit goods

Goods bearing a falsified mark or packaging can create serious infringement and customs issues. The fact that the imported product is functional or of acceptable quality does not cure use of a counterfeit trademark. A supplier statement that goods are "factory surplus" should be corroborated. Importers should investigate suspicious serial number patterns, altered labels and inconsistent invoices before shipment.

False representation as authorised dealer

A trader may be permitted to resell a genuine product without being an official distributor, but should not falsely claim brand appointment, warranty support or sponsorship. Advertising under a brand name to identify the authentic goods differs from using another company's trade identity to mislead consumers. The website should make the seller's independent status clear where relevant. Trademark and consumer protection law can both matter.

Territorial supply agreements

A brand may contractually prohibit its authorised distributors from exporting outside an assigned territory. Breach of that contract can create rights against the contracting distributor, but does not automatically establish a direct contractual claim against every independent importer. The brand would need a relevant legal basis against the particular importer. The contract's governing law and the actual source of goods require assessment.

Customs intellectual property enforcement

Pakistan Customs has powers and procedures concerning intellectual property at the border. The importer should obtain the detention or seizure grounds and relevant right-holder recordation. Customs cannot necessarily conclude that goods are counterfeit solely because they entered through an unauthorised channel. The treatment of genuine parallel goods, customs procedure and any current SRO should be analysed carefully. A rights holder's complaint is evidence, not necessarily a final judicial determination.

Product conformity and safety

Even genuine branded products may fail Pakistani regulatory requirements concerning telecommunications type approval, pharmaceuticals, food safety or electrical conformity. Genuine status under trademark law does not waive import policy or sector licences. A business importing branded mobile phones must separately examine PTA-related requirements and customs duties. The appropriate permissions depend on product category.

Warranty limitations

An overseas product may carry only a region-specific manufacturer's warranty. A parallel importer should not advertise the official Pakistani warranty if the manufacturer will not honour it. The trader may need to provide its own lawful warranty and customer support. Accurate disclosure of after-sales terms reduces consumer complaints and allegations that buyers were misled into believing the sale was officially supported.

Import valuation and duty

Parallel imports remain subject to customs classification, valuation, applicable duties and any trade remedy. A product purchased from a discounted foreign retailer may have transaction documents different from official distributor imports. Customs can assess lawful value according to the Act. The right to sell genuine goods does not justify false invoices, origin certificates or avoidance of tax.

Packaging and regulatory labels

A product manufactured for another market can have language, safety or electrical specifications inappropriate for Pakistan. Local labelling and consumer law may require additional information. The importer should not alter packaging in a way that misrepresents product origin or damages trademark integrity. Changes to goods or removal of serial numbers can complicate a genuine-goods defence.

An electronics example

A Pakistani trader buys authentic laptops from an overseas wholesaler and imports them without being the brand's local agent. The trader should preserve the entire supply chain and avoid implying official distributor status. Whether the brand can prevent the imports under trademark law requires examination of the actual Pakistani legal position and circumstances. Customs compliance and warranty disclosure remain necessary.

A counterfeit cosmetics example

A company imports perfume bearing a famous mark, but the packaging and batch codes cannot be verified and the manufacturer denies origin. This is not an ordinary genuine parallel import merely because the supplier asserts it bought stock abroad. The importer may face trademark and customs action. Authenticity evidence should be collected before asserting the grey-market defence.

Evidence for a customs challenge

Preserve purchase contracts, supplier identity, payments, shipping records, serial number photographs, authenticity correspondence and relevant trademark registry details. A legal response should separate genuineness, import admissibility and misleading presentation. If Customs detains the consignment, use the proper adjudication and appeal process within time. A blanket claim of exclusive rights by the local distributor should be tested rather than accepted automatically.

Opinion and recommendation

Genuine branded parallel imports are not necessarily unlawful in Pakistan solely because the local authorised distributor did not consent. The outcome depends on trademark law, judicial authority, authenticity, advertising and sector import controls. Obtain reliable provenance, avoid false association claims and comply with all customs and product rules.

Principal authorities: Trade Marks Ordinance, 2001, particularly relevant infringement and imported-goods provisions; Customs Act, 1969 and applicable IPR border rules; Karachi High Court, 2019 CLD 1060 (full decision and factual limits to be checked); applicable product and consumer laws.

LEGISLATION, SOURCES & CASE LAW

IPO Pakistan — intellectual property ↗

Consult the current enactment and any subsequent amendments and reported judgments for the relevant jurisdiction.
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