Application Of IPR Exhaustion In International Goods Trade

In the process of 1980s economic globalization, scientific and technological level is on the increase. High-level IPR protection in developed countries enlarges exclusive rights of intellectual property owners. The disparity of IPR protection makes divergence on issues of IPR Exhaustion between developed countries and developing countries. Most developed countries regard Principle of Territoriality as a restraint on IPR Exhaustion, and means to exclude its application in International Goods Trade. As for explanations of patent international exhaustion, there is regional exhaustion theory, especially in the US and EU. On the contrary, most developing countries admit IPR International Exhaustion and consider Principle of Territoriality, which isn't a restraint, inferior in application. Actually, setting restraints on application of IPR Exhaustion in International Goods Trade violates basic spirits of TRIPS, which goes against free circulation of International Goods Trade, especially against independent innovation technology industries in developing countries, including China. Accordingly, in author's opionion, IPR Exhaustion should be applicable in International Goods Trade. To be worth raising, Chinese Patent Law taking effect in October 2009 has clearly formulated extension of patent exhaustion, and has made patent products (especially patent pharmaceuticals) parallel import legal. All these legislative changes alleviate the contradiction between amplification of private rights and public health. Trademark Law and Copyright Law also need to formulate similar regulations to make IPR Exhaustion legitimate.