Will Trade Tensions and Politics Impact the Practice of IP?

I became an intellectual property (IP) lawyer somewhat by chance. The practice of IP is the best (though, not having practised in any other fields, you will have to take the “best” claim with a grain of salt). I meet interesting innovators and accompany them on their commercialization journey. Additionally, during turbulent financial times, I have observed firsthand that the practice of IP can be resilient. After all, the journey of obtaining and maintaining IP assets is a long one, and companies may pause deal-making but continue to maintain their valuable IP assets. I have seen the IP practice maintain its profitability during the 2008 financial crisis and the COVID-19 pandemic recession. Now, our world is facing trade and political tensions, and I wonder whether this time will be different and whether these tensions will negatively impact IP practice in a significant way.

Perhaps the practice of IP will continue to be resilient. I recently read Jake Schindler’s publication on “new regulations that give Beijing trade war tools while also showing a growing emphasis on protecting homegrown innovation overseas.” The article discusses China’s commitment to bolstering its IP management capabilities and addressing international IP disputes.

In March, China's State Council released the Regulation on Handling Foreign-Related Intellectual Property Disputes by the State Council, which came into force on May 1, 2025. The regulation certainly recognizes the importance of IP. Some action items include:

• Enhanced Cooperation: The regulation calls for enhanced cooperation between government bodies, industry groups, and IP service providers to better understand and navigate foreign IP systems. The departments of the State Council responsible for trademark, patent, copyright, and other intellectual property management will strengthen work coordination and information communication to jointly handle foreign-related intellectual property disputes.
• Information Dissemination: Chinese government departments are tasked with collecting and disseminating information about foreign IP laws and regulations, identifying risks, and providing assistance to those in need.
• Proactive Measures for Enterprises: Enterprises are encouraged to take proactive measures in managing their IP rights, including understanding foreign legal environments, establishing internal compliance, and protecting their IP overseas.
• Support for Law Firms and IP Service Providers: Law firms and IP service providers are asked to strengthen their support for Chinese companies operating abroad, including establishing offices or partnerships in foreign jurisdictions.

On trade issues, the regulations state:

• Countermeasures and Restrictive Measures: If foreign countries violate international law and basic principles of international relations, use intellectual property disputes as an excuse to contain and suppress China, take discriminatory restrictive measures against Chinese citizens and organizations, and interfere in China's internal affairs, China may implement countermeasures and restrictive measures.
• Coordination and Cooperation: China will strengthen coordination and cooperation and take corresponding measures according to national security laws, foreign relations laws, and anti-foreign sanctions laws when considering IP disputes that harm China's sovereignty, security, and development interests.

These regulations provide Chinese authorities with new tools to counter perceived misuse of IP laws by other nations while also emphasizing the importance of protecting homegrown innovations as Chinese companies expand globally. As trade tensions persist, the role of IP becomes increasingly significant. My practice will survive another day, but I continue to worry about the future, the rule of law, and other big picture issues. Elbows up.