Paranova imported original medicines manufactured by Bristol-Myers Squibb, repackaged them and marketed them under the proprietor’s trademark on other European markets. BMS challenged the repackaging practices as an infringement of its rights.
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The CJEU held that, in principle, repackaging of medicines imported through parallel trade is permitted. It is a consequence of the principle of free movement of goods within the EU. The proprietor cannot rely on the trademark to block parallel imports of genuine products.
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But repackaging is allowed only if it is necessary for access to the relevant market, for example because of differing pack sizes or labels, if it does not affect the original condition of the product and does not harm the reputation of the mark, and if the new packaging clearly states that the product has been repackaged and by whom.
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Failure to comply with those conditions turns a legitimate parallel-trade activity into infringement. This case law is fundamental for pharmaceutical distribution chains in Europe.