Psychosocial History

FREE MOVEMENT OF GOODS IN THE EUROPEAN UNION 51
anti-competitive behavior in the EU.46 This risk could lead to a lessening of
intellectual property rights.47
Furthermore, within the specific scope of intellectual property rights, there
are differences between the EU and the United States. For example, in the area of
trademark law, rights to a trademark are registration-based in the EU whereas in
the United States, trademark rights are use-based.48 In total, the difference in the
law between the two trade partners has created an appreciable effect on market
prices in many areas of commerce, such as the pharmaceutical industry.49 In the
EU individual countries set pharmaceutical prices and have enacted laws that allow
governments to curb intellectual property rights to make such purchases easier.50
In contrast, stronger intellectual property rights are found in the United States,
which also allows its private sector health care system to set the prices of
pharmaceuticals.51
The EU has struggled to find a uniform, federal-style law that harmonizes
the balance between intellectual property rights and the free movement of goods
and competition law that is necessary to integrate the economies of twenty-seven
member states.52 One can only imagine the problems presented in trying to bridge
the legal gap between the entire EU and the United States on this issue. There was
an attempt by the two trade partners to resolve extraterritorial conflicts in the area
of trade law in 1991, but the ECJ struck down the agreement as an ultra vires act
by the European Commission.53 Regardless of the legal gap that remains, the two
trade partners are likely to keep significant trade relations due to geography,
culture, language, and political interests