Your patent stops at the border... unless it's Europe
In a series of blog posts, Marco Coolen provides insight into his work as a Dutch and European patent attorney at AOMB.
Published on November 30, 2025
Marco, a patent attorney at AOMB since 2013, shares his expertise on IO+ about patents—how they work, why they matter, and when they lose their value.
Do you think that with a patent, you have everything under control? Think again. Once your product has been sold with your permission within the European Economic Area (EEA), it can be freely traded throughout that entire area. This includes countries where you have a patent. This phenomenon, called European exhaustion, can have major consequences for your strategy.
Marco Coolen, photo © Bart van Overbeeke
What exactly is European exhaustion?
It sounds more technical than it is: if you market a product within the EEA, you have “exhausted” your right to control it. Whether you sell it yourself or through a distributor. From that moment on, anyone can trade it within the EEA, including in countries where you have protection. Think of the Netherlands, Spain, Germany, but also Liechtenstein, Norway, and Iceland.
And what is parallel import?
That is exactly what can happen. Someone buys your product in Spain, for example, because you offer it there at a lower price, and then sells it in the Netherlands. You may have a patent in the Netherlands, but you can do nothing about it. Because the product has already been legally placed on the market in the EEA. Your right is ‘exhausted’.
The World of Patents
Every Sunday, Marco Coolen shares his insights from the world of patents. Read the entire series here.
What does this mean for entrepreneurs?
It does not render your patent worthless, but it does undermine price differences between countries. Do you have a smart pricing strategy whereby you sell cheaper in certain markets in order to gain market share more quickly? This could backfire if those products end up in more expensive markets through parallel imports.
An example?
Suppose you sell your innovative product for €200 in Spain but charge €350 in the Netherlands. Someone smells a business opportunity, buys a pallet in Spain, and sells it in the Netherlands with a profit of €100 per item. You see none of that profit. And legally, there is nothing you can do about it, as long as the product was originally sold within the EEA with your permission.
What can you do?
- Patent smartly outside Europe. Outside the EEA (think China, Switzerland, the US, or Uganda), European exhaustion does not apply. There, you can stop imports with a valid patent, provided you have not yet marketed the product yourself.
- Rethink your pricing strategy. Make sure the differences between countries don't become so great that parallel imports become attractive.
- Use your patent as part of a broader strategy. Patents protect your innovation, but not your market share. Combine them with distribution agreements, trademark registrations, and pricing to strengthen your position.
In short:
Your patent is a powerful tool, but only if you understand it properly. European exhaustion may sound like a legal detail, but it touches on the core of your revenue model. So don't be caught off guard and turn your knowledge into your competitive advantage.