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VIOLATION TYPE / GREY MARKET

Grey Market & Parallel Imports

Grey market goods are genuine products that are sold through unauthorized channels or outside the territory they were licensed for. They're not fakes — but they break price-floor agreements, undermine authorized distributors, and complicate warranty and customer-service operations.

What it is

Authentic goods sold outside authorized distribution channels or territories.

Where it happens

Marketplaces, social storefronts, cross-border resellers, unauthorized B2B.

How we stop it

MAP enforcement, distribution-agreement tracing, marketplace IP escalation.

Overview

Grey market activity is one of the most operationally complex threats in brand protection because the product is real. Enforcement depends on contractual rights (MAP agreements, territorial restrictions, exclusive distribution), legitimate trademark exhaustion exceptions, and platform policies designed to enforce authorized seller programs.

Real-World Examples

Grey market patterns we address every day

  • Cross-border arbitrage reselling region-priced goods into higher-priced markets.
  • Supply-chain leakage from authorized distributors selling excess inventory to third parties.
  • MAP violations on marketplaces undercutting agreed minimum advertised price.
  • Bulk-channel diversion from B2B accounts into D2C marketplace listings.
  • Sample & tester resale on platforms like eBay, Mercari and Vinted.

How We Enforce

  • Authorized seller programs. We help operate Amazon Brand Registry, TikTok Shop authorization, and equivalent programs that allow removal of listings from unauthorized sellers.
  • MAP monitoring. Continuous price monitoring across every channel with automated violation alerts.
  • Supply-chain tracing. Test buys with batch-tracking to trace leakage back to specific distributors.
  • Distribution enforcement. Coordinated with the client's commercial team to enforce contracts.

Evidence Required

  • Authorized distributor and retailer list.
  • Territorial licensing agreements and any exclusive distribution rights.
  • MAP policies and the platforms where they apply.

Typical Timeline

  • Marketplace unauthorized-seller removal: 24–72 hours.
  • MAP violation correction: 24–96 hours.
  • Distributor-level investigation: 2–8 weeks.

FAQ

Are grey market goods illegal?
Not inherently. They may breach contracts, platform policies, or territorial trademark protection — but they're not counterfeits. We enforce the framework that applies to each specific case.
What about exhaustion doctrine in the EU?
EU trademark exhaustion limits certain restrictions on resale within the EEA. We work within the law and focus on the levers that remain available — platform policy, contract, and authorized seller programs.

Seeing this violation against your brand?

Our enforcement team can issue a takedown notice within hours of evidence submission.

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