Use Requirements in Intangible Franchises

Abstract

The requirement that a grantee of a government-granted franchise use that franchise was a widespread assumption in all western legal regimes since the thirteenth century. In particular, intellectual property (IP) had reduction to practice or working requirements which have now faded from the fundamental understanding of IP. The loss of these requirements and the reasons for their existence has resulted in widespread abuse of IP rights. Now international trade practitioners are beginning to rediscover some of these requirement mechanisms. Accordingly, this article provides an overview of various use requirement mechanisms, their trade offs, and their relative conformity with the TRIPS agreement.