Protect your Intellectual Property in cross-border trade

With today’s rapid digital globalisation, intellectual property is a key asset for any business engaging in cross-border trade. As companies in Pakistan expand beyond local markets, understanding and protecting intellectual property becomes crucial for safeguarding ideas and inventions and maintaining competitive advantage. 

What is intellectual property?

Intellectual property (IP) refers to the creation of the mind, encompassing inventions, literary and artistic works, designs, symbols, names, and images utilised in trade. It is a legal concept which gives creators certain rights and privileges to their creations, aiming to promote an environment where creativity and innovation can flourish.

The importance of intellectual property protection

By protecting intellectual property, companies can establish a unique identity, which is crucial in a crowded market. By legally protecting these assets, businesses can prevent competitors from replicating or stealing their innovations, designs, or brands. This protection allows companies to maintain a competitive edge and ensures that investment in creativity and innovation is financially viable. Intellectual property drives growth, enabling businesses to profit from their proprietary knowledge while enhancing their market position.

Types of intellectual properties

These are the four main classifications of intellectual properties:

• Trademarks: These protect brand names, logos, and slogans that distinguish the goods or services of one enterprise from those of others. Trademarks are crucial in helping consumers identify products or services they trust and serve as a vital component of branding strategy.
• Patents: These are granted for inventions and provide the patent owner with exclusive rights to use, make, sell, and distribute the innovative product or process. Patents encourage inventors by giving them the right to profit from their marketable inventions without competition for a specific period.
• Copyrights: This type protects the rights of creators over their literary and artistic works, such as books, music, paintings, sculptures and films. Copyright ensures that creators can control the use of their work on various platforms, thus enabling them to receive recognition and financial rewards.
• Trade secrets: These include formulas, practices, designs, processes, recipes, or any information that provides a business with a competitive edge. Trade secrets are protected without registration if the business keeps the information confidential.

Intellectual property regulations in Pakistan

Businesses should know about the comprehensive framework of laws that protect intellectual property rights. Here are some of the relevant laws pertaining to intellectual property in Pakistan:

• Patents Ordinance, 2000: This ordinance protects new inventions that are industrially applicable, novel, and involve an inventive step. The law covers how patents are granted, the rights of patent holders, and the duration of protection.
• Copyright Ordinance, 1962: This ordinance protects the rights of creators of literary, dramatic, musical, and artistic works, as well as cinematographic films and records in Pakistan. This outlines the rights to reproduce the works, public acts, and broadcasting, ensuring that creators can control and receive compensation for the use of their creations.
• Trademarks Ordinance, 2001: This law provides for the registration and better protection of trademarks. It defines what constitutes a trademark, the process of registration, and the rights conferred upon trademark owners, including the exclusive right to use the registered trademark and to prevent others from using a similar mark deceitfully.
• Registered Designs Ordinance, 2000: This ordinance protects the original visual design of items that are not purely utilitarian. It covers the features of shape, configuration, pattern, or ornament applied to an article, provided these features give a special appearance to the product and can serve as a pattern for a product that is manufactured. This prevents third parties from applying a design to an article and from making, importing, selling, hiring or offering for sale, except those with the license or written consent of the registered proprietor.
• Geographical Indications (Registration and Protection) Act, 2020: This is a relatively new piece of legislation aimed at protecting geographical indications, which are signs used on products that have a specific geographical origin and qualities or a reputation because of that origin.

International IP Agreements and Treaties

International intellectual property agreements are crucial because they provide a cohesive structure that aligns with the approach to intellectual property across different jurisdictions. This simplifies the process of applying for the security and enforcement of intellectual property rights, reducing both the cost and complexity involved in its protection in multiple countries. Moreover, these treaties provide a safety net of international legal standards that help prevent infringement across national lines, offering a significant deterrent against the unauthorised use of intellectual property.

Adhering to these international standards fosters international trade and investment and encourages the global exchange of ideas and innovation, driving further economic development and cultural enrichment worldwide.

Key international agreements and treaties on intellectual property

1. TRIPS Agreement (Trade-Related Aspects of Intellectual Property Rights) 

The TRIPS Agreement is an intellectual property regulation administered by the World Trade Organization. It sets down the minimum standards for many forms of intellectual property policies as applied to nationals of other WTO members. Enacted on 1 January 1885, this is a comprehensive multilateral that covers the following:

• Copyright and related rights
• Trademarks
• Geographical indications
• Industrial designs
• Patents, which include the protection of new plant varieties, layout of integrated circuits, and undisclosed information

2. Paris Convention For the Protection of Industrial Property 

Dating back to 1883, the Paris Convention was one of the first intellectual property treaties, according to the World Intellectual Property Rights Organization. It establishes a union for the protection of industrial property. The convention is applicable to industrial property in the widest sense, such as patents, trademarks, industrial designs, utility models, service marks, trade names, and geographical indications.

3. Madrid System for the International Registration of Marks 

The Madrid System for the International Registration of Marks is regulated by the Madrid Agreement, established in 1891, and the Protocol related to that Agreement, which was concluded in 1989. This system enables the protection of a trademark in numerous countries through an international registration that is effective in each of the designated contracting parties.

4. Patent Cooperation Treaty (PCT) 

The PCT enables patent protection for an invention simultaneously in numerous countries by filing a single “international” patent application instead of filing several separate national or regional ones. The national or regional offices are still in charge of overseeing the granting of patents in what is called the national phase.

Why is it important to understand the intellectual property regulations of your target country?

When you are planning on upscaling your small and medium enterprise for a global audience, knowing the country's IP regulations is crucial, especially if your product is unique. Familiarising the regulations of countries you trade with ensures compliance and maximises the protection of your assets. 

For instance, what constitutes a patentable invention or a trademarkable symbol can differ vastly between countries. An example would be Japan's criteria for patents, such as the claimed invention being based on a technical idea that uses the law of nature. Additionally, the invention should not be something that can be easily created by someone skilled in the relevant field. It must also align with public order and morality, ensuring that it does not violate societal standards or ethical norms. 

On the other hand, in the US, your invention must meet four conditions for a patent, which include real-life application, a clear description of how to make and use the invention, new or novel, and not obvious. Understanding these nuances is essential to come up with effective strategies for securing and leveraging your intellectual property rights abroad.

Applying for intellectual property protection

For Pakistani businesses looking to grow their business overseas, it’s essential to know how to secure their intellectual property rights. Here is how to apply for trademark, patent, and copyright protection:

1. Identify the type of IP protection needed: Determine whether you require a patent, trademark, copyright, or a combination based on what you are trying to protect. For example, if a business aims to patent an idea, ensuring it is novel, non-obvious, and useful is crucial.
2. Conduct a thorough search: Before applying, research to ensure the IP application does not infringe on existing rights. This can also verify the creation's uniqueness, help businesses avoid future legal complications, and strengthen their application.
3. Choose the right path: Decide whether to file directly in each country or use international agreements such as the Madrid System for trademarks or the PCT for patents, which can streamline the process for multiple countries. This decision will largely depend on where you see the potential for market expansion and where you need to protect your intellectual property.
4. Prepare and file application: Prepare a detailed application, including all necessary documentation and file it according to the chosen method. Businesses should clearly outline the scope of the IP Protection and include any specific details required by the patent, trademark, or copyright offices.
5. Follow through with registration processes: Respond to any objections or requests for additional information and pay the required fees. It’s important to actively engage with the process and provide additional documentation to support your application.

Taking action for intellectual property infringement

Protecting intellectual property rights does not end with registration; enforcement is equally crucial, especially in an international context where infringement risks can be higher. Here are a few tips on tackling trademark, copyright, and patent infringement:

1. Seek local legal counsel: Engage with attorneys specialising in intellectual property law within the country where the infringement occurred. They can offer guidance specific to the local legal environment and help take appropriate legal actions.
2. Utilise international arbitration and mediation: These are preferable alternatives to litigation for resolving cross-border intellectual property disputes. Arbitration and mediation can be faster, less expensive, and subject to international enforcement more easily than court judgments.
3. Monitoring tools and agencies: Implementing IP monitoring tools can help detect infringements early. Agencies specialising in intellectual property protection can monitor online and offline sources to track unauthorised use of your intellectual property and take swift action.

Intellectual property protection in e-commerce

The rise of e-commerce has increased the exposure of brands globally, but it also poses unique challenges for intellectual property protection. One of which is how online platforms can rapidly amplify the effects of intellectual property infringement, making unauthorised use of trademarks, designs, or patented technology difficult to control. The global nature of the internet means that intellectual property can be infringed upon easily across jurisdictions. As such, it’s important to take proactive steps in protecting your intellectual property online, especially when engaging in the e-commerce market.

Tips for businesses in protecting their intellectual property online

• Register IP in key markets: Ensure your intellectual property rights are registered and recognised in all major markets where you do business.
• Use technological tools: Employ software and services that monitor the internet for intellectual property infringement, including unauthorised sales or counterfeit products.
• Work with online platforms: Engage cooperatively with e-commerce platforms that have policies and tools in place to assist with intellectual property rights enforcement. Many platforms offer proactive protection programs to register and protect your intellectual property rights.
• Educate customers: Use your website and social media to educate customers about genuine products and how to spot fakes. This not only protects your customers but also helps safeguard your brand's reputation.