Bangladesh should modernise IP rules to attract more FDI: US diplomat

• Bangladesh needs stronger IP laws to attract more FDI.
• More reforms are needed to meet global IP standards.
• Joining global IP systems could help local businesses expand abroad.
• Weak IP enforcement discourages multinational companies.

As Bangladesh prepares to graduate from least developed country (LDC) status, the country needs to modernise its intellectual property (IP) laws to attract more foreign investment, particularly from the United States, and strengthen confidence among global businesses, a US diplomat said today.

Shilpi Jha, senior commercial specialist and IP policy advisor for South Asia at the US embassy in New Delhi, made the comment at a roundtable titled "Advancing the IPR Framework and the Way Forward".

The American Chamber of Commerce in Bangladesh organised the breakfast session at The Westin Dhaka.

She said stronger and internationally aligned IP protection is no longer just a legal requirement but an economic necessity.

Jha said an updated IP framework would help Bangladesh integrate more effectively into the global economy, boost exports, encourage innovation, and attract foreign direct investment.

According to experts, Bangladesh has already taken important steps by enacting the Patent Act 2023 and introducing a new Design Act. However, she said further reforms are needed to align the country’s IP system with international standards and best practices.

Bangladesh currently enjoys certain flexibilities under international agreements because of its LDC status, which has delayed the full implementation of some reforms.

Nevertheless, policymakers and businesses increasingly recognise the importance of stronger IP protection for long-term economic growth, she said.

Under the newly introduced Design Act, innovators can now register unique industrial designs that differ from products already available in the market.

At the same time, efforts are underway to update trademark laws to meet international standards.

Experts believe these reforms could pave the way for Bangladesh to join major international IP systems such as the Madrid Protocol and the Patent Cooperation Treaty (PCT).

Joining the Madrid Protocol would allow Bangladeshi businesses and entrepreneurs to apply for trademark protection in multiple countries, including the United States, India, and Nepal, through a simplified process from within Bangladesh.

Similarly, becoming a member of the PCT would enable Bangladeshi inventors to seek patent protection in numerous countries through a single international application.

Industry insiders argue that effective IP protection is not only important for attracting foreign investors but also essential for supporting local industries, encouraging innovation, and helping businesses compete globally.

Weak enforcement, they warn, discourages multinational companies from introducing advanced technologies and premium products in Bangladesh due to fears of counterfeiting and misuse.

Syed Ershad Ahmed, president of the American Chamber of Commerce in Bangladesh, underscored the strategic necessity of robust IPR enforcement for the nation’s future.

He emphasised that a secure IPR framework is vital to attracting increased FDI while giving global importers and promoters the confidence to source products from Bangladesh.