In cross-border business, legally using trade agreements and differences in national intellectual property (IP) laws to reduce the risk of infringement requires a combination of international rules, local legal compliance, and business strategy design. The following are some legal strategies and precautions, which need to be implemented under the guidance of professional legal counsel： --- ### **1. Take advantage of transitional or differentiated terms** -**Transition period for developing countries**: Certain trade agreements (such as the WTO's "TRIPS Agreement") allow developing or least developed countries to enjoy a transition period in specific areas (such as drug patents), delaying the implementation of strict IP protection rules. Companies can place part of their production or R&D links in these countries and use the transition period to reduce costs. -**Exceptions to regional agreements**: For example, some free trade agreements allow member states to implement compulsory licenses or exemptions from patents in the fields of public health and environmental protection. It is necessary to study the text of the agreement in depth to identify exceptions that can be legally used. --- ### **2. Choose a jurisdiction with weak intellectual property protection** -**Choice of place of registration**: Register a company or hold an IP in a country with loose IP law enforcement (such as some offshore jurisdictions) to isolate risks through legal entities. However, attention should be paid to the compliance requirements of “economic substance” rules (such as the EU blacklist). -Separation of production and distribution**: Non-core components are produced in countries with weak IP protection, assembled or sold in strict countries, and the “substantial change” rule is used to circumvent the responsibility of origin (subject to local customs rules). --- ### **3. Phased supply chain layout** -**Patent expiration strategy**: Carry out research and development in countries where the patent protection period is short or the “Bolar exception” (exception for generic drug trials) is allowed, and quickly enter the market after the patent of the original research drug expires. - **Modular production**: Split the product into IP-protected parts and non-protected parts, and produce non-protected modules in low-risk areas to avoid the overall risk of infringement. --- ### **4. Compulsory license and Public Interest exceptions** -**Invoking the Public health clause**: According to Article 31 of the "TRIPS Agreement", some countries may implement compulsory licensing of drug patents. Enterprises can participate in government tenders to produce generic drugs (procedures must be strictly followed). -**Localization cooperation**: Joint ventures with local companies to use their acquired compulsory licenses to produce specific products. --- ### **5. Parallel imports (gray market)** -**Differences in the principle of exhaustion of rights**: Some countries recognize “exhaustion of international rights” and allow parallel imports of genuine products (such as within the European Union). Authentic products can be purchased in low-priced countries and resold to high-priced markets, but it is necessary to ensure that the goods do not violate the regional sales restriction agreement. --- ### **6. Technology localization and adaptive modification** -**Design Around**: Modify the product design or process flow to avoid the scope of the claims of the protected patent. It is necessary to ensure non-infringement through patent map analysis. -**Open Source and Standard Necessary patents (SEP)**: Use open source technology or follow the FRAND principle (fair, reasonable, and non-discriminatory)