Economic Policy
DOI: 10.21070/ijppr.v8i0.327

Development of international trade in intellectual property items

Tashkent State Economic University. 3 year student EC-02 group, Economics education
innovation patent intelectual property international trade scientific research innovation development internet application


The article is based on the growing role of international trade in innovation and intellectual property in the global economy. The trends of international trade in intellectual property and the experience of developed countries are explored. Proposals and recommendations on participation in the international market of intellectual property have been developed as a target of the innovative development of Uzbekistan.


Creation of modern innovative ideas, developments and technologies and their effective transfer is considered as one of the most important strategic directions of development of Uzbekistan's economy. By the Decree of the President of the Republic of Uzbekistan dated August 21, 2018, PF-5544 "Targeted Indicators of Innovative Development of the Republic of Uzbekistan until 2030". The main emphasis on innovative development was the emphasis on human capital development. The development of human capital as a key long-term strategic goal is the development of targeted mechanisms to achieve it.

The development, creation and commercialization of intellectual property (IP) is a major factor in the innovative development of the country's economy. In the context of the globalization of the global technological structure, the global trade system is experiencing steady changes (NBIC-convergence, nano-bio-information-cognitive convergence) [1] and the share of the intellectual property market, known as the "fourth basket". About 6% of the global turnover of goods and services accounts for technology transfer. [2]

This article is related to the fact that Uzbekistan has developed its recommendations and recommendations on the use of international experience in the development of the intellectual property market, its active entry into the world market of intellectual property and development of its trade.

Research methodology

For modern companies, intellectual property trading is often one of the indicators of innovative development, which has become more profitable than selling innovative goods or services. In the context of the development and implementation of an open innovation model, companies are also focusing on the development of information technology on the basis of mutually beneficial exchanges of intellectual property due to various factors.

Currently, intellectual property sales are moving away from the commonplace and actively moving into the online space. The emergence of the global internet has not only strengthened international trade in traditional forms of intellectual property (material), but also contributed to the development of a new phase in the form and marketing of goods in digital form [14].

The products participating in the international intellectual property trading via the Internet are as follows:

- domain name;

- visual and musical works in digital format;

- Scientific publications and works of art in digital publications;

- different types of specialized databases;

- computer games;

- movies, various video and photo materials, etc.

At the present stage, the main factors contributing to the sustainable development of international trade in IP are:

• consistent growth of the main forms of e-commerce;

• penetration of telecommunications and information technologies in all spheres of life;

• cost of communication systems and services to provide Internet access [4]

• Increased computer literacy in developed and developing economies;

• Identification of key strategic directions in the implementation of international and national e-business development programs.

The study of the international trade of intellectual property and the participation of the world countries in the above-mentioned factors will enable us to identify targeted actions to enter this market. Trends in international trade of intellectual property will be studied first to determine the international trade of intellectual property and participation of countries, and to use the experience of countries actively involved in the intellectual property market. [14] The strategic orientations of the active participants in the international trade of intellectual property in the development of this market allow identifying the targeting routes to enter the market.

Results of the study

It is well-known that in recent years the share of innovations has been in the sphere of information and communication technologies. In spite of the imperfections, the protection of information and communication technologies remains a challenge not only internationally but also in our country. Increasing the number of Internet users contributes to the further expansion of websites selling goods and services, including intellectual property. At the beginning of 2018, number of Internet users in the Republic of Uzbekistan was 20 million, reaching 5.3 million. per user (growth by 36%). At the same time, the overall speed of access from Uzbekistan to international networks was 104.1 Gbps, while the growth rate for the year was over 58%. [5]

According to a report by the Council of Higher Registrars of Europe (CENTR), there are currently over 1,000 domain names (site names) in the domain market and the total number of registrations in 2018 was 348 million. [6] However, there are a number of problems in the international trade of intellectual property, which are typical for the market of the Republic of Uzbekistan.

There are serious problems with the legal protection of domains created in modern conditions, especially the acquisition and damage of well-known and commercially successful domains.

In the world economy, domain names are recognized as one of the types of intellectual property. [7] The procedure for issuing them is in two steps: through an international link (Domain Names and IP Address Management Corporation, ICANN) and national or regional domains provided by local registrars. In most cases, national or regional registrars are directly or indirectly controlled by government agencies.

There is usually a high competitive environment in the domain market as well, and users often choose names that are similar to the domain of strong brands.

The process of registering domain names containing a trademark of another person for the purpose of their subsequent resale or unauthorized use is also commonly referred to as cybersquatting.

According to the World Intellectual Property Organization (VOIS), there are approximately 2,800 disputes on international trade and safeguarding of domains in 2016, with a total of 4,364 domains being resolved. [8]

For the first time, cyber-quota began with the development of Internet technologies in the US. The national registrar of the United States has distributed the domain names free of charge, hoping to benefit greatly from the service. Thus, it has prompted the accumulation of anti-cyber resources with minimal profit by selling domain names to stakeholders.

One of the trends in the modern intellectual property market is patent control, which adversely affects the innovation environment, which may hinder further development of intellectual property. [9]

Patent offices or patent owners find and purchase patents without further development and use of their activities, and then sue major manufacturers on copyright infringement. [10]

In general, the accelerated transfer of intellectual property trade from traditional, established forms to the use of Internet technologies will provide a material basis for the rapid growth of international trade of innovations, as well as the emergence of new types.

It is noteworthy that, despite globalization and the integration of many countries into technology exchanges, the main innovation activities and the sale of ICT facilities are in the group of developed countries.

One of the indicators of the intensity of innovation and its spread is the number of applications for intellectual property: patents, trademarks and industrial designs. ( Figure 1. )

Figure 1.

Figure 1. The number of applications for intellectual property worldwide

International trade of licenses is also an objective indicator of the global movement of intellectual property. This is inextricably linked to other forms of international economic relations, such as trade in goods and services, as well as capital movements. Transnational corporations are major players in international trade in licenses.

According to UNCTAD, in 2014, royalties and exports of licensing programs accounted for 95 percent of developed countries, 4 percent of developing countries and about 1 percent of transition economies. According to the World Trade Organization (WTO), royalties in the leading countries of the world predict dynamic growth in exports and imports and faster growth than other markets (Table 1). Uzbekistan's participation in the global intellectual property market has not yet been observed.

Table 1 Export ratios in royalties in the leading countries of the world in 2014-2018, USD million

Countries 2014 2015 2016 2017 2018 Share (%) and place
USA 130362 126212 122226 128364 130452 34,3
Europe 100522 97977 108120 151958 162506 40,6
Japan 36877 36077 39013 41761 45560 11,2
Switzerland 18111 14366 17539 22591 23888 6,0
Korea 5167 6199 6622 7138 7594 1,9
Canada 4321 4174 4468 4293 4794 1,1
Singapore 3779 3302 5340 8035 8727 2,1
China 866 1200 1235 4762 5562 1,3
Total 301790 291055 374402 394699
Europe 159716 164929 177849 206012 223894 56,0
USA 42124 39157 42743 51284 53752 13,9
China 22614 22022 23977 28575 35591 7,8
Japan 20858 16540 19672 21340 21442 5,8
Singapore 19781 17285 19276 14909 15170 4,1
Switzerland 14034 12330 12075 12240 12409 3,3
Canada 11070 9243 9684 11895 11774 3,2
Korea 10546 9831 9292 9254 9425 2,5
Russia 8021 5634 4997 5980 6288 1,6
Total 314690 302220 324706 318933 368004 100,0
Table 1.

The volume of foreign trade of intellectual property in 2018 was higher than the growth rate for 2014-2017, and the share of the developed countries remains high. About 92.1% of exports of intellectual property are made by the four countries - USA, EU, Japan and Switzerland. Out of these countries only the USA, Japan and Switzerland are exporters with the highest share: the revenue from the sale of intellectual property rights exceeds the cost of their purchase. The rest of the world, as a manufacturer and supplier of new technologies, can use technology leadership rights in a very small segment. The share of these countries in the global sale of intellectual property rights is only 7%.

The USA is the leader in revenue from international trade on intellectual property rights. Half (43%) of licensed sales and royalties account for the country. This is due to the development and operation of American companies producing products with a high share of intellectual property. In addition, US dominance is largely dependent on the stability and effectiveness of existing intellectual property rights laws. [11]

Japan has been firmly established in the years that the intellectual property was analyzed as the third largest importer and the fourth importer on the global market. Japan was far behind developed countries until the 1950s on innovation. In 1950-1969, it acquired more than two thousand licenses worth about $ 1.5 billion, which enabled them to achieve high rates of economic growth. By the 1980s, it had been equated with other developed countries using foreign gains. [12]

A distinctive feature of Switzerland, which is active in the market of intellectual property, is the high share of the private sector in the development of research and innovation.

The Republic of Korea, as a new industrialized country, is one of the most effective systems in the world, despite the priority of importing intellectual property over exports, as a country that holds an effective place in the foreign trade of intellectual property [14].

China is one of the leading countries in the field of import of intellectual property and is one of the fastest growing exports in 2014. In 2014, China adopted a program in Chinese until 2025, the goal of which is to turn the country into an innovative and environmentally responsible center for the next decade. The program aims to create 40 innovation centers in ten sectors, including smart transport, information technology and the aerospace industry.

According to the experiences of countries that are leaders in the intellectual property market, they have used the most common strategies and strategies to enter this market. These circumstances designate that Uzbekistan should choose a specific marketing strategy for the active development of the intellectual property market in order to enter the world market of intellectual property [14].

Conclusions and Suggestions.

From the experience of the above countries it is clear that active entry into the world market of intellectual property and its presence in the world depends primarily on the development of imports of intellectual property. In our opinion, effective market activity should be set, first of all, the effective use of the world's intellectual property resources.

Also, the Ministry of Innovation Development of the Republic of Uzbekistan implements a number of projects on creation of intellectual property. It is desirable to develop clear guidelines and mechanisms for encouraging these processes, first of all in training or attracting highly-skilled personnel to create innovative enterprises engaged in the search and implementation of scientific ideas.

Creation of favorable conditions for the preparation and development of creative activity of highly qualified personnel, on the one hand, with the support of the state in the field of science and education, and on the other, through the establishment of special laboratories and departments directly at the enterprises.

The Ministry of Innovative Development still uses mechanisms to finance start-up projects at its own expense. It is advisable to patent start-up projects for financing and establish targeted measures for their international trade. Appropriate to develop national strategic directions for patenting, protection and commercialization of startup projects implemented in Uzbekistan by countries that have won innovation.

Along with the above, the Ministry of Innovative Development of the Republic of Uzbekistan together with the Intellectual Property Agency should develop a long-term strategic direction and a roadmap for effective access to the global intellectual property market.

In conclusion, the experience of foreign countries in the international market of intellectual property should be taken into account in national development strategies. In order to achieve the main goal of innovative development in Uzbekistan, to become one of the leading countries in the Global Innovation Index ranking by 2030, it is necessary to ensure effective operation in the international market of intellectual property.


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