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In the traditional “brick-and-mortar” industry, the principle of exhaustion is well established by case law, as well as by legislation in both European Union and Belgian laws. However, with new marketing and business models emerging and goods and services being increasingly distributed online (in the broadest sense), the traditional boundaries of the principle of exhaustion are put into question. As a consequence, the question “To what extent does the principle of exhaustion of IP rights apply to the on-line industry?” (the “Question”), which this report discusses, is of great importance as it determines the extent to which a user is free to use and to distribute onwards the “goods” that he/she purchased online.
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