Regulation and brand value

Abstract

IP rights are dependent on the public policy considerations which provide the justification for their granting. However, when regulation impacts on the exercise of IP rights, there is often a clash of public policy considerations. This article considers what happens when that clash occurs, concluding that, in all cases, IP rights will be trumped by the public policy considerations which underlie the regulation, often with no basis for claiming compensation notwithstanding the obvious and very real economic impact on the rights owner. Unfortunately, the markets do not always take this risk into account when valuing premium brand companies. This conclusion may have serious implications for premium brand companies, especially in heavily regulated fields like alcohol, food, pharmaceuticals and tobacco. Published in (2006) 1(10) Journal of Intellectual Property Law & Practice 645. Full text available - (2006) 1(10) Journal of Intellectual Property Law & Practice 645.