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Journal Of Intellectual Property

Journal Of Intellectual Property

Author: Nigerian Institute Of Advanced Legal Studies


Date Published: Monday, 14-January-2019 3:24:25 PM

In order to maximize their profits, trademark proprietors exploit territorial monopoly by partitioning countries into different markets and thereby institute regime of price differentials in the different markets where their rights subsist. Thus, the same trademarked product sold in the UK for £10.00 may be sold in Nigeria for the equivalent of £5.00 by the same proprietor. Trademark proprietors argue that the adoption of this approach is influenced and sometimes compelled by a number of exigencies that impact on their production and distribution costs. Such exigencies include currency fluctuations in countries; differences in taxation policies; costs of labour, land, equipment, transportation; governmental product regulation, price stipulation and the operational cost of doing business in different countries. They also argue that different markets demand characteristics such as taste, culture, means as well as sophistication of customers also determine the quality of products and support services (such as warranties) they provide in different territories with direct impact on cost of production.