Intellectual Property Rights Protection in International Investment: Legal Risks and Strategic Responses for Multinational Companies

Abstract

Against the backdrop of ongoing globalisation and the rapid development of the digital economy, the protection of intellectual property rights (IPRs) has become a key factor in the overseas investment decisions of multinational companies (MNCs). This paper first reviews the evolution of international IPR regimes and their essential status in investment agreements. It then takes the Eli Lilly v Canada case as a core example to deeply analyse three significant difficulties currently faced in the protection of IPRs in cross-border investment: first, the uneven enforcement of laws across countries, which leads to inconsistent effectiveness in IPRs protection; second, the vague, outdated, and insufficiently adaptive provisions in existing investment and trade agreements, which fail to cover emerging technological fields effectively; third, the divergence between the application of international agreements and domestic legal systems, which increases legal uncertainty and compliance costs for multinational enterprises. Finally, the paper puts forward recommendations from both state and corporate perspectives, including strengthening international cooperation, improving the dynamic adjustment mechanisms of agreements, and urging enterprises to establish localised IPR strategies and compliance management systems. The article emphasises the need to construct a more coordinated, efficient, and forward-looking international IPR governance system to balance the protection of innovation with national sovereignty and corporate interests.