Trade Overview

The Closer Economics Relations agreement with Australia has lowered trade barriers between both New Zealand and Australia. This type of freedom of goods movement has been known to make seizure or control of infringing goods crossing the border a more difficult task. While NZ Customs can be notified to watch for specific articles or consignments there are practical difficulties involved. Any intellectual property strategy should therefore consider appropriate protection in both countries - ie both NZ and Australia.

Parallel importation of goods is permitted in New Zealand. There are a number of situations where it is possible to halt or control such importation. This includes where importation would infringe a patent or registered design. Use of copyright and trade mark registration to prevent parallel importation is very limited, and raises a number of issues not yet the subject of a Court's consideration. A parallel importer that misleads the public as to the origin of the goods, as to whether local warranties apply, whether it complies with regulations for that type of goods in the local market, that it is suitable for use in the local market, or in any other manner may face actions initiated under the Fair Trading Act, the Consumer's Guarantee Act, or common law rights of passing off. Preventing parallel importation of goods into New Zealand can be difficult and careful consideration should be given to any intellectual property strategy, the recorded applicants, and any licensing and distribution agreements which are put in place.