11: Intellectual property infringement: a persistent threat to the world economy

Overview & Synopsis

In today's globalized economies, the complexity of supply chains spans multiple countries, creating new challenges for the protection and enforcement of intellectual property (IP) rights. Innovation processes, which drive the production of increasingly sophisticated goods, rely heavily on a combination of IP rights such as patents and trademarks. These bundled IP rights not only reflect the complexity of modern products but also offer enhanced protection for rights holders. However, the participation of various economies, each with differing levels of IP respect and enforcement, leaves global supply chains vulnerable to IP infringement. Illicit trade in IP-infringing goods is a growing concern, with data showing an increase in both the scope and magnitude of this issue. IP-intensive industries are particularly affected by this threat, which exploits modern trade solutions, such as fast parcel services and containerized maritime transport, as well as the online marketplace – an issue that has been exacerbated since the COVID-19 pandemic. Patent enforcement in the context of illicit trade remains challenging, but the bundling of IP rights can offer a strategic advantage. Companies often choose to enforce the most effective IP rights, such as trademarks, to combat the infringement, as these may offer more practical enforcement mechanisms.