Scope of A Patent in A Globalised Economy

We live in a globalized economy. This is the natural result of advancement in the scope of trade, transport, and the mere fact that the big corporations have a global foothold. After all, there's a reason we call them ‘multinationals’. We have witnessing the flow of goods, services, and capital inside and outside of national borders. That is precisely where the applicability of patent rights comes into question. Patents only have a national scope when it comes to protection.

Some may question "Is my patent protection just as effective within the confines of a globalized economy?" It is a difficult question to answer and it needs a proper examination from multiple angles to answer. Let us begin!

A Case Study

Our Canadian audience might not see the relevance of an Australian case. But, patent agents and lawyers understand how the Load and Move Pty Ltd. vs. Container Rotation Systems Pty Ltd. case stands as an excellent example to point out the limitations of a patent in a globalized economy.

Load and Move - a renowned Australian company with its fair share of registered patents – competes with other Australian companies that supply their products to overseas markets. While Load and Move believed these products are patent protected, Container Rotation Systems also deals with similar products that can be ordered via its website. Once your business goes online, people all over the world can see your product and potentially purchase it. The Load and Move and Container Rotation System case got even more complicated when it was revealed that these supposedly infringing products are manufactured at the same factory, located miles away in China.

A Complication Brews

Load and Move’s Australian patent, while potent in Australia, can be rendered less useful (in terms of potential profitability) when an entity manufactures and ships a patented product from an overseas location directly to a competitive market where no patents have been filed. Naturally, many would believe Load and Move were robbed of their right to have exclusive patent protection on purely moral counts. But, morality and legality have often clashed bitterly. In the end, the courts eventually ruled the decision against Load and Move. The courts believed Load and Move had no objective reason to believe it is entitled to any protection in a scenario where its competitor is manufacturing and supplying protected inventions from overseas location. Had the goods been manufactured in Australia or sold into Australia, the courts may have decided differently.

A Wrap

You can clearly see there are limitations associated with the protection a patent can offer to you. A patent holder’s helplessness to prevent a competitor from approaching an overseas target market goes to show the many limitations of a patent in a globalized economy where entities routinely conduct their operations from overseas locations and outsource overseas vendors to manufacture their products. Knowing this should not deter an inventor from protecting their inventions but it should be used to develop a patent strategy to suit the invention and inventor.

To understand the extent of protection a patent can provide to you, speak with a patent agent or lawyer. We specialize in matters that concern intellectual property in Canada.