Intellectual Property Rights in the Era of Protectionism: The Possibility of Trump's Re-election and Allied Nations' Response Strategies

Greetings from Pine Patent Law Firm.

As the trend of protectionism intensifies in the global trade environment, the importance of intellectual property rights (IPR) is becoming more prominent. By securing IPRs such as patents, trademarks, and designs, companies can enhance the competitiveness of their products and technologies and strengthen their market dominance. Especially in a situation where protectionist measures are frequent, global companies are striving to protect their interests through securing IPRs.

However, the IPR system itself is also used as a means of protectionism. Developed countries tend to actively utilize the patent system to protect their advanced technologies and industries, and in this process, there may be a purpose to suppress technological catch-up of developing country companies.

For example, during the tenure of former U.S. President Donald Trump, the United States strengthened its protectionist stance and clashed with major trading partners. In particular, IPR issues emerged as a key point of contention in trade disputes with China, which can be interpreted as having a strong character of strategic competition between the U.S. and China over the hegemony of advanced technologies, beyond simple trade imbalance problems.

The Trump administration imposed strong sanctions on Chinese companies for patent and trademark infringements and theft of trade secrets. It mobilized various means such as imposing high tariffs on Chinese imports, sanctioning Chinese companies, and restricting investments, which can be seen as an attempt to implement "America First" by protecting domestic technologies and IPRs.

Furthermore, the United States also had IPR disputes with its allies. In the case of South Korea, patent disputes were raised with U.S. companies in key industries such as smartphones, semiconductors, displays, and batteries. This can be interpreted as the U.S. trying to use IPRs as a means of pressure against trade surplus countries. The Trump administration's aggressive stance has been partially eased under the Biden administration, as it emphasizes cooperation with allies and seeks a multilateral approach.

The problem is that there is a possibility that former President Trump may return to power in the 2024 presidential election. In this election campaign, Trump also emphasized the correction of China's unfair trade practices, particularly focusing on IPR infringement issues. If his return to power becomes a reality, it is certain that he will announce stronger sanctions against China, citing the protection of IPRs.

This may also affect U.S. allies. Countries that record trade surpluses with the U.S., including South Korea, may face friction with the U.S. over IPR issues. This is because the U.S. may pressure its counterparts on the pretext of protecting the patent rights of American companies. For our companies that are making their mark in advanced technology fields such as IT and biotechnology, it is difficult to rule out the possibility of patent disputes with the United States.

Therefore, we need to prepare more strategic countermeasures in preparation for the scenario of Trump's return to power. At the government level, efforts should be made to manage potential disputes in advance through close consultations between trade authorities and to ensure fairness in technological cooperation.

For companies, in addition to R&D investment, they should reorganize their patent portfolios to fit the global market and consider aggressive patent strategies. They should proactively prepare for trade pressure by advancing the overall IPR governance system, including patent applications, license agreements, and trade secret management.

In the mid to long term, a strategy is required to establish a position as an IPR powerhouse by lowering external dependence through the localization of core technologies. It is necessary to strengthen industry-academia-research cooperation to secure original technologies and advance the IPR ecosystem through the establishment and strategic utilization of national-level patent big data. Based on this, we can also seek a role in leading the global IPR order while countering unfair IPR disputes by leading the establishment of new trade norms.

Amid the changing international situation, the United States' strategic approach surrounding IPRs is expected to continue for the time being. Considering the variable of Trump's return to power, the repercussions will inevitably be even greater. We should take this challenge as a new opportunity to further enhance our technological competitiveness and IPR capabilities, thereby gaining a competitive edge in uncertain times and laying the foundation for sustainable growth. If the government and companies closely cooperate and respond wisely, we can expect to lay the groundwork for leaping forward as an IPR powerhouse.

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