In intellectual property regimes, the transaction at which rights terminate. Under national exhaustion, rights end with first sale in a country, preventing parallel imports. Under international exhaustion, rights end with first sale anywhere, permitting parallel imports.
Refers to the doctrine that protection of intellectual property rights (IPR) is "exhausted" or confined to the country in which protection is granted. The exhaustion principle specifically implies that IPR holders may not seek to curb parallel imports from other countries. In Uruguay Round IPR negotiations, some LDCs have demanded international extension of the exhaustion principle in order to ensure access to industrial- country markets for goods they produce under license.
In copyright, patent, and trademark law, the "exhaustion" doctrine means that after the rightsholder has sold the good, she has "exhausted" her rights to control its distribution. In U.S. copyright law, the doctrine is called the "first sale" doctrine.