From Collision to Collaboration
- Elgar International Investment Law series
Chapter 4: Intellectual property right investments and the standard of protection against indirect expropriation
Property rights are generally recognized and guaranteed by Constitutions of most democratic states. However, investors should be aware of ‘the sovereign right of expropriation or nationalisation that every sovereign State possesses’ which is internationally recognized: ‘[t]he State being the State, it can organise its economic self as it pleases and consequently define the rules which govern property rights’. This consideration is especially important in the context of foreign direct investments (FDIs) in which the investor and its property are at the mercy of the Host State.
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