Intellectual Property-Related Local Content Requirements in International Trade Law: An Evolving Concept Amid Persisting Questions

Abstract

Despite the challenges they pose under international trade law, recent discussions and cases at the World Trade Organization (WTO) demonstrate that local content requirements (LCRs) have enjoyed continued success among both developed and developing countries. This article focuses on a specific type of LCRs, intellectual property-related LCRs (IP-related LCRs). The article argues that the concept and related regulation of LCRs concerning IP rights have undergone a remarkable evolution under international trade law. The notion and regulation of IP-related LCRs, in particular, have changed from the 1883 Paris Convention on the Protection of Industrial Property (Paris Convention) and the 1886 Berne Convention on the Protection of Literary and Artistic Works (Berne Convention) to the General Agreement on Tariffs and Trade of 1947 and, later, the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement) and other Agreements at the WTO. Indeed, while the Paris Convention and the Berne Convention are still in force, the General Agreement on Tariffs and Trade (GATT) 1947 and the WTO Agreements have reframed the debate and implications of IP-related LCRs. Nevertheless, some questions on what is permissible under international trade law remain open at the WTO. Given LCRs continued success, some clarifications on their consistency with WTO law may be further needed. Local Content Requirements (LCRs), Agreement of Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement), General Agreement on Tariffs and Trade of 1994 (GATT 1994), World Trade Organization (WTO), Intellectual Property Rights