Written by Edward Khaw
The Comprehensive and Progressive Agreement for Trans-Pacific (CPTPP) is a free-trade agreement with a key emphasis on reducing trade barriers and fostering greater economic collaboration, covering a wide range of subject matters, including the trade of goods and services, Intellectual Property Rights (IPR), labour standards, and environmental protection.
Intellectual property rights are the rights given to persons over the creations of the mind, such as:
- inventions (which can be protected by patents);
- literary and artistic works (protected by copyright and related rights);
- designs; and
- symbols, names and images used in commerce (such as trademarks).
In a knowledge-based economy, IP often underlies the products, works, technologies and services that we rely on daily and that have an impact on the way we live. Almost all businesses have some kind of IP, whether it be a brand, a design or an invention.
Malaysia’s membership and participation in the CPTPP pact are expected to eliminate a tremendous number of tariffs and trade barriers between the other member signatories and provide greater excess and opportunity to new markets of the contracting parties. The anticipation and expectation are that once trade barriers are removed, there will be closer and deeper trade of goods and services between the signatory countries and with that comes the challenges of regulatory compliance. This article will provide a brief overview and update on the impact of Intellectual Property compliance in the aftermath of the ratification and enforcement of CPTPP.
Like many trade agreements, the CPTPP contains a list of international agreements on IPR, which the signatory countries must abide by. This mandatory requirement of forcing member countries was aimed to ensure that countries would be able to harmonise and simplify international and respective domestic norms when conducting bilateral trade and investments between the member countries, which will indirectly allow for countries to be able to engage in trade based on the same set of standard, rules and guidelines thus making it easier to resolve potential disputes that may arise. This was highlighted in Chapter 18, Section B of the CPTPP.
The CPTPP contains a comprehensive chapter on IP, which sets a regional standard for the protection and enforcement of IP rights across the Asia-Pacific region. The chapter includes provisions in almost all categories of IP rights and builds on the framework established under existing international IP treaties, such as the agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) and the Berne Convention, which falls under Article 18.7 of CPTPP.
The protection and enforcement of intellectual property rights were meant to encourage and promote technological innovation and to the transfer and dissemination of technology to the mutual advantage of producers and users of technological knowledge and in a manner conducive to social and economic welfare and to a balance of rights and obligations.
It is significant to note that a total of 12 provisions, including matters on protection for biologics, data exclusivity, patent term adjustments, rights management information, copyright term of protection extension and technological protection measures, have been suspended. However, these suspended provisions can still be lifted should all parties of the CPTPP come to a consensus on its application.
The IP framework under the CPTPP strikes a nuanced equilibrium between protecting the rights of IP holders and facilitating public access to innovation. Although certain clauses were suspended, the CPTPP retains robust protections for trademarks, patents, copyrights, trade secrets, and industrial designs. These provisions will undoubtedly enhance Malaysia’s legal infrastructure, fostering a dynamic ecosystem for domestic innovation and cross-border cooperation. By adopting a phased-implementation strategy, including transitional timelines for patent linkage mechanisms, Malaysia underscores its dual commitment to prioritising public health imperatives and safeguarding the rights of IP stakeholders. This balanced approach aligns with the nation’s goals of advancing equitable access to technology while reinforcing a globally competitive IP regime.
For a brief overview on Malaysia and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) click here.
For the full text of the CPTPP, click here.
Published on 18 February 2025