In today’s tense global trade environment - marked by surprise US tariffs on BRICS, China’s rare earth controls, and retaliatory EU measures - there’s a less visible but equally powerful force at play: intellectual property. Recent shifts suggest that IP isn’t just a legal matter, it's policy currency.
What's going on?
Tariffs are a form of IP protection
US tariffs imposed under Section 301 and the International Emergency Economic Powers Act have been explicitly tied to combatting IP theft. They're not just economic levers; they're enforcement tools when IP rights are violated.
China’s export controls on critical tech
Beijing’s rare-earth licensing regime and broader export controls are designed to protect domestic IP and tech advantages including in AI and semiconductors.
The EU’s strategic ‘anti-coercion’ response
The European Commission is preparing to retaliate not only with tariffs but also through IP rights restrictions, export controls, and investment curbs - signalling that IP may be weaponised in broader geopolitical struggles.
What this means for businesses doing international trade
Global IP rights are fragile, not abstract
IP laws are no longer just legal mechanisms, they are geopolitical tools. Even compliant companies may find themselves caught in shifting trade winds.
Contracts must go beyond basic licensing terms
You now need to address:
- Export-control compliance
- Contingencies for sudden tariffs or government orders
- Clauses for force majeure triggered by geopolitical shifts
- IP ownership and licensing tied to specific regions or product lines
Structured risk management becomes non-negotiable
Companies must map where IP is vulnerable from supply chains to manufacturing hubs and build robust plans involving legal, trade, finance, IT, and procurement teams.
The takeaway (and what you should be asking)
- Is your IP strategy truly global and resilient to sudden policy shifts?
- Are your cross-border agreements flexible enough to accommodate tariffs, export controls, or IP enforcement action?
- Do you have the contingency clauses you need if trade partners impose IP-linked restrictions?
Why this should matter to you
This is about more than software patents or packaging designs. For sectors like medtech, pharma, AI, or manufacturing, IP-linked trade policies can disrupt R&D, licensing, joint ventures, and distribution on short notice.
If this raises more questions than answers, you’re not alone and that’s where we can help. Let’s sit down and navigate IP in a world where trade tensions and policy often overshadow legal certainty. It’s not just about protecting your IP; it’s about future-proofing your business.
The information provided in this article is provided for general information purposes only, and does not provide definitive advice. It does not amount to legal or other professional advice and so you should not rely on any information contained here as if it were such advice.
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The information published across our Knowledge Base is correct at the time of going to press.
