International intellectual property issues are not uncommon. While there are clear guidelines pertaining to international intellectual property (IP), different people, organizations, and countries may have different interpretations of those guidelines. This can result in disputes, lawsuits, reputation damage, and financial loss. It is important for individuals and organizations that own international IP to have a good understanding of international IP issues and laws so that they can protect their IP assets more effectively.

What Is Intellectual Property Law?

An IP is a form of property that is derived from the fruits of mental effort. It consists of four main areas: patents, copyrights, trademarks, and trade secrets, which protect the following types of inventions, processes, ideas, or information:

  • Patent – Invention of tangible things
  • Copyright – Written and artistic works
  • Trademark – Name or symbol that identifies the source of a product or service
  • Trade secret – Secret methods, processes, and other confidential information

Issues related to IP can differ significantly depending on whether you use your own original materials or those of an external supplier. In such situations, the IP law that is most frequently cited is the “fair use” doctrine. In the U.S., the “fair use” rule allows copyrighted materials to be used to a limited extent without permission from their owners. According to the doctrine, the public has the right to use portions of copyrighted materials for the purpose of providing criticism or commentary. Some examples of purposes that are usually considered “fair use” include:

  • Comment and criticism
  • Research and scholarship
  • Non-profit educational use
  • News reporting
  • Parody

Issues Relating to International IP

Over the past two decades, the protection of IP rights has changed from an obscure domestic issue to an intensely debated global issue. IP protection is a highly complicated issue as it consists of quite a number of strands.

One of these strands is software. The world is showing steady progress in its ability to protect software through patenting, with the U.S. and Japan leading the way. However, there are opponents arguing that software should not be more patent-worthy than a mathematical formula and that protecting it will lead to a reduction in innovation. They also warn that stronger software patenting may result in the creation of monopolies for first movers.

Another strand that is raising a lot of issues is biotechnology, which requires the issuance of patents for living organisms. Such issues include religious and moral issues, perceived environmental risks, and concern among developing nations that multinational corporations may one day dominate the supply of new plant varieties. These and other strands should create an urgent need for global solutions to the complex issues of IP rights.

Knowledge and ideas are playing an increasingly vital role in trade. Many products that were previously traded as low-tech goods are now considered more valuable in terms of inventiveness and design. Books, music recordings, films, online services, computer software, clothing, food, biotech products, and many other products are usually purchased because of the creativity, identity, and information they contain, not the materials used to make them.

From 1986 to 1994, the World Trade Organization negotiated the TRIPS Agreement to impose the first IP rules on the multilateral trading system. The TRIPS Council was formed to monitor how different nations are implementing the TRIPS Agreement and address issues related to the application of the agreement. These issues include:

  • Principles – There is a need to strike the right balance between private parties' rights and ability to create and the public's ability to access and use the creations. It is also necessary to balance short-term and long-term IP protection.
  • Technology transfer – IP protection should have a positive impact on technical innovation and technology transfer. It should benefit producers and users, as well as societies and economies at large.
  • National treatment – Countries should offer the same level of IP protection for their citizens and foreigners, with limited exceptions.
  • Different legal systems – While the legal systems of countries may vary significantly, the TRIPS Agreement respect their differences. Each country is allowed to devise and implement their own methods of protecting IP and applying the agreement provisions, provided they are able to meet the minimum standards of the agreement.

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