Protection of Intellectual Property Rights in a Transition Economy

Market perestroika and integration into the world economy require strengthening protection of intellectual property rights (IPRs) in transition economies like Russia. This paper examines patterns and emerging trends in piracy and protection of IPRs in Russia and analyzes the economic effects of strengthening IPRs in the context of Russia's market transition. In the early 1990s, Russia brought IPR legislation up to international standards. Yet IPR enforcement remains weak, and piracy of foreign software, trademarks, audio- and videocassettes flourishes. Ineffective IPR protection stifles innovation, trade, and direct foreign investment, and may become an obstacle to Russia's future membership in the World Trade Organization.