In an increasingly volatile global scenario, concepts such as “economic sovereignty” and “strategic autonomy” have moved from political discourse to tangible regulation. On December 27, 2023, Regulation (EU) 2023/2675, known as the EU Anti-Coercion Instrument (ACI), entered into force.
Although much of the media analysis has focused on tariffs, this mechanism introduces a crucial novelty that has gone unnoticed by the general public, but not by innovative companies: the use of Intellectual and Industrial Property (IP) as a defense and countermeasure tool.
What is the EU Anti-Coercion Instrument?
The EU Anti-Coercion Instrument is a legislative tool designed to deter third countries (non-EU members) from restricting or threatening European trade or investment in order to force a change in EU policies.
Until now, the Union lacked an agile mechanism to respond to this type of economic blackmail. With this new regulation, Brussels provides itself with legal “teeth” to impose trade and investment countermeasures and, herein lies the novelty, measures relating to intellectual property rights.
Industrial Property: from technical asset to strategic weapon
Traditionally, economic coercion was associated with the blocking of goods at customs or tariff hikes. However, the digital and technological reality has changed the game board. The EU now recognizes that pressure is also exerted through intangibles.
Practices such as the systematic blocking of patent grants to European companies, unjustified delays in trademark registrations, forced technology transfers, or governmental tolerance of piracy are, in reality, tools of political pressure.
How does the ACI (EU Anti-Coercion Instrument) affect trademarks, patents, and designs?
The new regulation allows the European Commission to adopt countermeasures that directly affect the recognition and protection of foreign-origin IP on European soil. Among the measures contemplated in the EU Anti-Coercion Instrument, the following stand out:
- Suspension of obligations: the EU could stop applying certain international obligations regarding the intellectual property rights of nationals of the coercive country.
- Registration restrictions: new applications for trademarks, patents, or designs from entities of the sanctioned country could be limited or prohibited.
- Commercial impact: these measures seek to hit modern economies where it hurts most; in their ability to innovate and exploit their assets in the Single Market.
It is an absolute paradigm shift: Industrial Property ceases to be a purely administrative and technical space to be recognized as a national security and foreign policy asset.
The geopolitical context: lessons from the Russia case
We are not talking about a theoretical hypothesis. The recent neutralization of IP rights of countries considered “belligerent” by Russia (the famous Decree 299), following the conflict in Ukraine, proved that intangible assets are vulnerable to geopolitics.
In that context, patents of Western companies were de facto unprotected, allowing their use without compensation. The EU Anti-Coercion Instrument was created precisely so that Europe does not remain defenseless against similar maneuvers in the future, whether by Eastern powers or any other global actor.
A new roadmap for companies
For rights holders, the entry into force of this instrument requires a review of their protection strategies. The question is no longer just how to register a patent, but to understand what geopolitical risks affect their asset portfolio.
From ISERN Patents and Trademarks we recommend:
- Risk audit: evaluate in which “hot” markets the company has assets.
- Diversification: do not rely exclusively on protection in jurisdictions with a history of economic coercion.
- Active monitoring: monitor not only market infringements, but also legislative changes in third countries that may indicate a political use of IP.
We continue to analyze these regulatory developments to ensure that our clients’ innovation is protected not only legally, but also strategically against new global challenges.
Are you concerned about the security of your assets abroad? The international stage changes fast. At ISERN we help you map out a global and secure protection strategy.