{"id":6755,"date":"2021-07-09T09:46:35","date_gmt":"2021-07-09T09:46:35","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=6755"},"modified":"2021-07-09T09:46:38","modified_gmt":"2021-07-09T09:46:38","slug":"intellectual-property-rights-protection-under-international-investment-law","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/intellectual-property-rights-protection-under-international-investment-law\/","title":{"rendered":"How Will You Safeguard Your Intellectual Property Rights Under International Investment Law?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The expansion of <strong><em>FDI or Foreign Direct Investment<\/em><\/strong>, which played a progressively vital role in global economic development and activity, has reinforced the field of International Investment Law. Another similar crucial area that has been exponential growth is Intellectual Property, which has become the primary aspect underlying international and national business, investment, and trade.<\/p>\n\n\n\n<p>When\nit came to the four most successful companies globally in 2019 \u2013 Apple,\nMicrosoft, Amazon, and Alphabet (which is owned by Google) \u2013 their essential\nworth is not based on real estate ownership and physical assets. Instead, their\nvalue is determined by their creativity, inventions, ideas or concepts and\nother knowledge-based goods, all of which are safeguarded by different types of\n<strong><em>IPRs\n(Intellectual Property Rights).<\/em><\/strong><\/p>\n\n\n\n<p>In\nthis blog, we will look at some problems that have emerged as a result of\nIntellectual Property Protection under the International Investment Law.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4ebc4a926e6\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4ebc4a926e6\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/intellectual-property-rights-protection-under-international-investment-law\/#Definition_of_Intellectual_Property_Rights\" title=\"Definition\nof Intellectual Property Rights\">Definition\nof Intellectual Property Rights<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/intellectual-property-rights-protection-under-international-investment-law\/#What_is_the_Meaning_of_International_Investment_Law\" title=\"What is the Meaning of International Investment Law?\">What is the Meaning of International Investment Law?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/intellectual-property-rights-protection-under-international-investment-law\/#Provisions_of_Intellectual_Property_in_International_Investment_Law_Arrangements\" title=\"Provisions of Intellectual Property in International Investment Law Arrangements\">Provisions of Intellectual Property in International Investment Law Arrangements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/intellectual-property-rights-protection-under-international-investment-law\/#Intellectual_Property_as_Investment_in_BITs_%E2%80%93_IPRs_Under_International_Investment_Law\" title=\"Intellectual Property as Investment in BITs \u2013 IPRs Under International Investment Law\">Intellectual Property as Investment in BITs \u2013 IPRs Under International Investment Law<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/intellectual-property-rights-protection-under-international-investment-law\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Definition_of_Intellectual_Property_Rights\"><\/span>Definition\nof Intellectual Property Rights<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>IPR\nor Intellectual Property Rights are the rights that refer to the minds&#8217; creation.\nThey usually permit the distinctive inventor rights to use their creativity for\na limited period. Some IP Rights consist of:<\/p>\n\n\n\n<ul><li>Patent;<\/li><li>Industrial Designs;<\/li><li>Trade Secrets;<\/li><li>Geographical Indications;<\/li><li>Copyright;<\/li><li>Trademark.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Meaning_of_International_Investment_Law\"><\/span>What is the Meaning of International Investment Law?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>International\nInvestment Law is the body of law that controls alliances between foreign\ninvestors and states. There is no centralised deal or institution in the\nInternational Investment Law System. There are 3200 BITs (Bilateral Investment\nTreaties) and investment chapters in preferential trade agreements in this law\nfield (collectively mentioned here as &#8220;Investment Treaties&#8221;). Such\ntreaties are augmented by a plethora of investment contracts between foreign\ninvestors &amp; government bodies and domestic investment regulations.<\/p>\n\n\n\n<p>Investment\ntreaties seek to attract Foreign Direct Investment to boost the development of\nthe economy by furnishing certain protections to foreign investors &amp; their\ninvestments, consisting of some that go far from those available to local\ninvestors. These may entail responsibilities on the part of the home state not\nto confiscate property, not to differentiate against the investor and to treat\nthe investor in a <strong><em>\u201cFair and Equitable\u201d<\/em><\/strong> fashion. Through a process is known as <strong><em>ISDS\n(Investor-State Dispute Settlement)<\/em><\/strong>, investment agreements often permit\nforeign investors to directly bring lawful issues against the Government of\nState in which their investment is held.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Provisions_of_Intellectual_Property_in_International_Investment_Law_Arrangements\"><\/span>Provisions of Intellectual Property in International Investment Law Arrangements<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following\nare some provisions of Property in International Investment Law Arrangements:<\/p>\n\n\n\n<ol><li>There are many multilateral treaties on Intellectual Property;<\/li><li>Intellectual Property related provisions are also common in <strong><em>BITs (Bilateral Investment Treaties)<\/em><\/strong> and PTIAs <strong><em>(Preferential Trade and Investment Treaties)<\/em><\/strong>;<\/li><li>The most famous is <strong><em>the WTO (World Trade Organisation) Agreement<\/em><\/strong> on <strong><em>TRIPS Agreement (Trade-Related Aspects of Intellectual Property Rights)<\/em><\/strong> which was reached at the time of the Uruguay Round of trade talks. This agreement sets ups necessities that World Trade Organisation members should follow, with a few exceptions;<\/li><li>The Registration of Intellectual Property-related clauses in PTIAs and BITs highlights the significance of <strong><a href=\"https:\/\/swaritadvisors.com\/patent-registration\" class=\"text-primary\">Patent Registration<\/a><\/strong>, <strong><a href=\"https:\/\/swaritadvisors.com\/copyright-registration\" class=\"text-primary\">Copyright Registration<\/a><\/strong>, Trade Secrets, <strong><a href=\"https:\/\/swaritadvisors.com\/trademark-registration\" class=\"text-primary\">Trademark Registration<\/a><\/strong> and other Intellectual Property Rights registrations in International Trade Relations. It is also an important area where fierce bargaining takes place.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Intellectual_Property_as_Investment_in_BITs_%E2%80%93_IPRs_Under_International_Investment_Law\"><\/span>Intellectual Property as Investment in BITs \u2013 IPRs Under International Investment Law<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Intellectual\nProperty Rights are mostly covered under the meaning of investment in most\nBilateral Investment Treaties (BITs). It represents how vital it is to\nsafeguard one\u2019s intangible assets from the inclusion of Intellectual Property\nRights in the meaning of investment in Bilateral Investment Treaties.\nIntellectual Property can be a precious strategic asset, which is especially\nvital given the rapid development of advanced industries like pharmaceuticals\n&amp; biotechnology, which react on Trade Secrets, Patents, and know-how\nprotection.<\/p>\n\n\n\n<p>The\nclear words referring to Intellectual Property Rights in the meaning of\nBilateral Investment Treaties investment has developed over time. From the\n1960s to the 1980s, Bilateral Investment Treaties regularly distinguished\nbetween Copyrights &amp; Industrial Property Rights and other concerning\nsubject matter like technical processes. Currently, Bilateral Investment\nTreaties usually refer to \u201cIntellectual Property Rights\u201d in a specific list of\nassets to be safeguarded. <\/p>\n\n\n\n<p><strong>Following are some vital\nclauses in the Bilateral Investment Treaties (BITs):<\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"140\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/07\/image001-7-1024x140.png\" alt=\"Intellectual Property as Investment in BITs\" class=\"wp-image-6759\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/07\/image001-7-1024x140.png 1024w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/07\/image001-7-300x41.png 300w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/07\/image001-7-768x105.png 768w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/07\/image001-7.png 1451w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<ol><li><strong>MFN Treatment (Most-Favoured Nation): <\/strong>Most-Favoured Nation clauses are standard in almost all Bilateral Investment Treaties. This clause permits an investor to assert any beneficial right available to any other state that has a Bilateral Investment Treaty with the host state. Investors have used provisions of MFN to state the benefit of more useful procedural and substantive protects founds in the host nation&#8217;s BIT with other nations, with mixed outcomes.<\/li><li><strong>FET (Fair &amp; Equitable Treatment): <\/strong>This is the basic idea that is commonly invoked in global law. It is also a significant treatment standard under Bilateral Investment Treaties and is registered into the <strong>TRIPS Agreement<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/TRIPS_Agreement\" class=\"text-primary\"><strong>[1]<\/strong><\/a><\/sup>. Fair &amp; Equitable Treatment of IPR enforcement processes are requested in the TRIPS Agreement. FET principle sets out the lowest treatment benchmarks that the host state should meet. A lot of optimistic investment claims have been based on an infringement of the Fair &amp; Equitable Treatment standard. In broad terms, the principle of FET needs states to have a steady and reliable lawful structuring regulating investment that fulfils investors\u2019 realistic expectations.<\/li><li><strong>Expropriation: <\/strong>It is extensively acknowledged that host nations have limited conditions under which they can expropriate foreign investment. A legal expropriation should fulfil the following criteria:<ul><li>It shouldn\u2019t be unreasonable or unjust;<\/li><li>It should be carried out in compliance with due process;<\/li><li>It should serve a public benefit;<\/li><li>It should be supported by appropriate compensation.<\/li><\/ul><\/li><\/ol>\n\n\n\n<p><strong><em>There\nare two different types of expropriation:<\/em><\/strong><\/p>\n\n\n\n<ol><li><strong><em>Direct Expropriation<\/em><\/strong>:\nIt occurs when the host state legally obtains proprietorship of the\nexpropriated asset.<\/li><li><strong><em>Indirect Expropriation<\/em><\/strong>:\nThis happens when there is vital and long-term interference with the investment\nthat removes the investor from a slew of benefits.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\namount of overseas investment in Intellectual Property Rights is increasing as\nglobal economic amalgamation grows. Nowadays, almost no overseas investment\nwill take place unless intangible assets are contained as part of the property\nvalue of the investor. The investments value in Intellectual Property Rights is\nrising, with increased international movement and the wish of many corporations\nto create internationally recognised brands. Considering the importance of\nIntellectual Property Rights as one of the most vital assets of many\nbusinesses, it is clear that safeguarding this property is of significant significance\nto businesses both locally and in their international operations.<\/p>\n\n\n\n<p>The association between International Investment Law and IP is disjointed, complex, and chiefly unresolved.\u00a0 The role of local law in determining the outlines of Intellectual Property Rights safeguarded by IIAs is unknown, as is the extent to which the use of Intellectual Property should benefit a host-state to meet the criteria as a safeguarded investment. However, current developments show an intentional effort at productive amalgamation of International investment Law and IP law. These consist of the efficient subservience of expropriation standards to rights under the Intellectual Property treaty in some current IIAs as well as the detailed and precise attaching of safeguarded Intellectual Property Rights to their survival under the Domestic Law. Such attempts are still disconnected and may only give slight clearness.  <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/start-ups-intellectual-property-protection-sipp-scheme\/\">An Overview of Start-ups Intellectual Property Protection (SIPP) Scheme<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The expansion of FDI or Foreign Direct Investment, which played a progressively vital role in global economic development and activity, has reinforced the field of International Investment Law. Another similar crucial area that has been exponential growth is Intellectual Property, which has become the primary aspect underlying international and national business, investment, and trade. When [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":6758,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[695],"tags":[744],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/6755"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=6755"}],"version-history":[{"count":5,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/6755\/revisions"}],"predecessor-version":[{"id":6764,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/6755\/revisions\/6764"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/6758"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=6755"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=6755"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=6755"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}