Abstract
Abstract Accompanying the rise of China in the world economy, intellectual property right protection comes to be the major issue apropos of international trade disputes in recent years. This paper, adopting the transaction costs paradigm and applying the contract theory, investigates and examines a form of contractual protection effectuated by market forces. The study shows that the contractual arrangement constituted by joint venture agreement with offsetting contractual arrangement is a form of intellectual property right protection driven by market forces. This contractual arrangement, though arising under the state policy of joint venture control, functions as an effective protection of intellectual property rights by fully pricing and protecting such hardly enforceable rights.
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