Transcript Parallel importing and the TPP

Parallel
importing
and the TPP
A brief recap
The TPP in four easy steps (and one
really tough one):
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What?
Who?
Where?
When?
Why?
Potential TPP benefits
Dong, Dollars, Peso, Ringgit:
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Combined GDP = US$21 trillion.
Value to NZ = US$2.9 billion per year.
We don’t want to get left behind:
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4 of our top 10 trading partners are
negotiating the TPP.
Concerns about the IP chapter
People opposed to the TPP fear:
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Longer copyrights.
Less copyright exceptions.
More software patents.
Laws protecting TPMs.
A ban on parallel imports.
Ban on parallel imports
Article 4, IP chapter lets licensees:
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Stop the importation of books, sound
recordings, computer programs and
so on into their territory.
A footnote extends that right to “a
broader range of goods”.
About parallel imports
What is parallel importing?
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It’s the importation of lawfullymanufactured goods from overseas.
It dodges local distributors who
charge more for the same product.
It takes advantage of better retail
prices in other countries.
Different countries, different prices
Why do prices vary between countries?
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Different exchange rates.
Multinationals set different prices in
different regions.
Peaks and troughs of different
economies.
Parallel imported films
Greater variety
Better prices, quicker distribution
Samsung Galaxy Note II
Blackberry Z10
Problems with parallel imports
Common parallel import problems:
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No support from official distributors.
Repairs can take longer.
Foreign manuals; incompatible plugs.
Wiring not up to standard.
Concerns about perishable goods.
Parallel imports in a nutshell
Parallel imports offer consumers:
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Better prices.
Greater variety.
Quicker distribution.
Impact on businesses
The Warehouse:
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$1.732 billion in 2012
1st batch of parallel imports in 1998.
Trade Me:
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20,000 small businesses.
5000 of them sell parallel imports.
Making an impact
“The issues that lie behind [intellectual
property rights] are taking on a
significant political dimension in many
of our societies.”
- Leaked New Zealand response