This chapter describes the origin and existence of the principle of exhaustion, generally and specifically for copyright laws, by referring to the first sale doctrine or doctrine of parallel imports. Internationally, Paris and Berne convention do not take any stand on the validity or invalidity of international exhaustion. The TRIPs agreement in Article 6 leaves it to each country to adopt any regime for exhaustion of intellectual property rights. Taking from the failure of TRIPs to address exhaustion, the chapter will analyze the controversy surrounding the provisions in the Copyright Act, 1957 and proposed amendments. The chapter would further elaborate on the recent shift in exhaustion regime followed in the United States as held by the US Supreme Court in Kirtsaeng v. John Wiley & Sons, Inc. case. Finally, the chapter would examine the most suitable approach for India in the digital age.