Definition

The gray market refers to the sale of genuine products outside the official distribution channels set by the trademark owner. Unlike counterfeiting (fake products), it does not involve forgeries but breaches of distribution rules, pricing policies and brand image.

Typical examples

• Products imported from a low-price country to a high-price country without authorisation
• Stock diverted by former distributors
• Resales on unauthorised online marketplaces
• Diversion of SKUs reserved for one channel (B2B resold to B2C)

Risks for the brand

• Damage to image and margins
• Conflict with official distributors
• No after-sales service, poor customer experience
• Legal complexity (exhaustion of rights in the EU, for instance)

How to defend

• Set up rigorous selective distribution contracts
• Mark every product (serial numbers, traceability codes)
• Actively monitor marketplaces and auctions
• Launch targeted enforcement actions through trademark monitoring