What is the purpose of intellectual property rights in international trade?

The purpose of intellectual property rights (IPR) in international trade is to protect creators and inventors by granting them exclusive rights to their inventions and creations. This means that individuals or companies who develop new ideas, products, or artistic works can legally prevent others from using, reproducing, or distributing their creations without permission.

This protection encourages innovation and creativity, as it provides financial incentives for individuals and companies to invest time and resources into research and development. By safeguarding these intellectual assets, IPR contributes to economic growth in both domestic and international markets. It ensures that those who contribute new ideas can reap the benefits of their work, thereby fostering a competitive environment where new inventions and creative works can thrive.

In contrast, imposing taxes on imported goods focuses primarily on economic protectionism rather than intellectual property. Restricting foreign competition does not align with the foundational principles of IPR, which are about protecting creativity rather than limiting market access. Promoting open markets without regulations is also not the focus of IPR, as the rights serve to set certain regulations that are necessary for fostering innovation while still allowing global trade to occur.