The law on parallel imports is no longer res integra as a consequence of a stream of judicial pronouncements which have held that the import and sale of grey market products amounts to infringement.

While considering Dell’s case, the Delhi High Court observed that while these grey market products were genuine DELL laptops, these were unfit for the Indian Market and that it was solely Dell’s discretion to decide which of its products were suitable for a particular country.

Significantly, the Court took serious cognizance of the material differences between the grey market products and the products sold in India by Dell and observed that in the event these grey market products were found to be substandard, it would be Dell’s reputation and goodwill which would be tarnished.