Intellectual property (IP) is regarded as one of the most valuable assets in the cosmetics industry. While intellectual property may be the same across various sectors, innovation drives recognition and determines consumer loyalty. Effective IP protection strategies protect formulations and branding elements vulnerable to imitation.
In celebration of World Intellectual Property Day, we will focus on intellectual property in the cosmetics industry. This comprehensive guide examines the four primary types of IP protection and navigates the complex legal frameworks governing IP rights globally.
Intellectual Property Rights in the Cosmetics Industry
The World Intellectual Property Organization (WIPO) defines intellectual property as every creation of the mind. Intellectual property in the cosmetics industry includes inventions, formulations, designs, symbols, brand names, and images that give businesses a competitive advantage.
Intellectual Property Law aims to protect the moral and economic rights of the author from being infringed upon by an unauthorized person. Exclusive rights, known as intellectual property rights (IPRs), are granted to the creator regarding the use of their creations. The rights that protect IP for a specific period.
IPRs provide companies with crucial market advantages by establishing legal barriers against competitors. IP protection in the cosmetic industry is essential for preserving unique formulations, distinct brand identities, and innovative technologies that differentiate products in this marketplace. Companies that strategically leverage these protections can continue investing in research and development, knowing their intellectual assets are secure.
Types of Intellectual Property Protection in the Cosmetics Industry
The most relevant forms of intellectual property in the cosmetics industry are patents, trademarks, trade secrets, and copyrights. Each type of IP protection offers specific advantages and limitations that make it ideal.
Patents
Patents are the most powerful forms of IP protection. They give inventors IPRs on their creations for 20 years from the filing date. Their exclusivity provides a legal monopoly system that prevents competitors from making, using, or selling the patented products without permission.
The legal requirements for patent protection include:
- Novelty – the product must be new or original
- Utility – the product must be useful
- Non-obvious – the product content should be clear, distinct, and apparent.
- The product should manufactured industrially.
In the cosmetics industry, patents cover:
- Original ingredient formulations
- Delivery systems such as liposomes, microencapsulation)
- Unique manufacturing processes
- Innovative devices and applicators
- Treatment methods
Multi-billion-dollar companies use this intellectual property in the cosmetics industry to their advantage. For example, L’Oréal files over 500 patent applications yearly for its Revitalift formula. It contains Pro-Retinol A and Centella Asiatica. Similarly, Estée Lauder holds patents for its Advanced Night Repair technology. Companies like Allergan (now AbbVie) focus on their neurotoxin formulations and delivery systems for products like Botox.
Trademarks
Trademarks are a must-have in an industry where consumer recognition and brand loyalty influence purchasing power. They legally protect signs, symbols, names, and designs that distinguish goods or services and a company’s brand identity. In other words, a company’s trademark is one of the reasons why people are more likely to buy from more popular or renowned brands than their competitors.
Unlike patents, trademarks may last forever as long as they remain in use and are appropriately maintained by filing timely renewals. In medical aesthetics and cosmetics, trademark protection typically covers:
- Brand names and logos
- Product names
- Distinctive packaging and trade dress
- Slogans and taglines
- Signature colors
The legal strength of a trademark varies. Ideally, brands with creative or arbitrary marks, like Clinique and Estée Lauder, have better protection than those with descriptive phrases. Considering how common trademark infringement cases are, this should be a standard strategy when developing new brands and products. Thoroughly reviewing trademarks before launching new products will prevent potential infringement. Aside from unplanned branding and product retraction changes, the legal damages are significant.
Over the years, brands like Chanel have taken legal action to defend their packaging and branding elements. Kylie Cosmetics also went through thorough trademark registrations for the founder’s name and peculiar lip kit packaging.
Trade Secrets
Trade secrets are best suited for formulations, manufacturing processes, and business methods that companies may not disclose publicly. Unlike patents, which require detailed public disclosure, trade secrets can be protected as long as they are kept confidential. Commercial production processes cannot be patented but may be considered valuable. In this case, intellectual property that falls into this category can be protected as trade secrets.
Trade secrets can be divided into:
- The ones intended to protect manufacturing processes that do not meet the patentability criteria. They can only be protected as trade secrets.
- The ones for inventions that fulfill the patentability criteria. They can be protected by patents instead.
Some protected trade secrets in the cosmetic industry include:
- Precise formulation details and ingredient ratios
- Manufacturing techniques and processes
- Customer lists and marketing strategies
- Testing methodologies and research data
The classic example of trade secret protection in the cosmetics industry is with Estée Lauder and Procter & Gamble, who rely heavily on trade secret protection for many of their formulations.
From a legal compliance perspective, companies must implement comprehensive confidentiality programs like:
- Non-disclosure agreements with employees and partners
- Information security protocols
- Access restrictions to sensitive information
- Clear policies regarding confidential information
The legal consequences of trade secret misappropriation can be severe. They may include injunctions, damages for lost profits, and criminal penalties.
Copyrights
Copyright laws protect a creator’s unique and original creative expressions recorded in a tangible format. Unlike patents, copyright protection usually lasts as long as the creator is alive. A creator can live for over 70 years. While intellectual property in medical aesthetics and the cosmetic industry is often overlooked, copyright safeguards brand identity and elements. Copyright protection extends to:
- Marketing materials and advertising content (including photography and videos)
- Website content and design
- Unique part of product packaging
- Instructional materials and guides for cosmetic products
Now, there are some things you need to know about copyright laws and protection. First, copyrights cover the expression of ideas, not the ideas themselves. What does this mean?
Cosmetic packaging is both aesthetically pleasing and functional. Copyright protects the visual features of cosmetics. These include typography, color, graphics, material choices, texture, and the overall design of the packaging. However, it does not cover functional components — the seal used, label, dispensing mechanism, and the quality and sustainability of the packaging.
Also, the legal principle of “fair use” states that there are exceptions to copyright protection. Parts of copyrighted materials can be used without permission, especially for criticism, comment, news reporting, teaching, and research purposes. Copyright prevents unauthorized use or distribution of the aesthetic features of a company’s promotional video or unique product packaging.
For example, a beauty blogger can use images of a cosmetic product in a review. An educator can also include packaging designs in teaching and research materials about branding. Cosmetic companies need to understand and carefully consider these exceptions before enforcing their rights in cases of potential infringements.
Laws Protecting Intellectual Property in the Cosmetic Industry
You must understand international and national laws to protect intellectual property in the cosmetic industry.
International IP Regulations
The nature of intellectual property in the cosmetics industry and medical aesthetics requires companies to navigate a complex network of regulations. These international treaties and agreements establish the minimum standards and facilitate cross-border protection.
- Trade-Related Aspects of Intellectual Property Rights (TRIPS):
The World Trade Organisation (WTO) oversees the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). It is the most comprehensive multilateral agreement on intellectual property globally. The agreement establishes the minimum standards for protecting intellectual property rights (IPRs) that all member countries must adhere to. For cosmetic companies, it provides a baseline expectation of protection across markets.
- The Paris Convention:
The Paris Convention for the Protection of Industrial Property was adopted in 1883; emphasizes the principle of national treatment. It implies that member countries must extend the same IP protections given to their citizens to foreigners. Also, this legislation establishes priority rights, which allow applicants who file in one country to use the same filing date in other member countries temporarily.
- The Patent Cooperation Treaty (PCT):
The Patent Cooperation Treaty (PCT) also simplifies seeking patent protection internationally. The process allows companies to file a single “international” patent application recognized in multiple member countries. These treaties aim to harmonize IP laws across different authorities. PCT is valuable for cosmetic brands distributed to global markets.
Medical aesthetics and cosmetic companies need legal strategies that address jurisdictional differences while optimizing protection across international IP frameworks.
National IP Laws and Requirements
Despite the efforts to have international joint regulations, IP protections in the cosmetic industry vary across countries. These differences affect everything from criteria for patentability to how IP rights are interpreted and the methods of enforcing these laws. Various countries interpret and implement these laws differently.
United States of America:
The Patent Act governs utility, design, and plant patents, while the Lanham Act regulates trademarks. The America Invents Act of 2011 moved the U.S. from a “first-to-invent” to a “first-to-file” system. This transition ensures that the United States of America is more aligned with international norms, but has changed domestic filing strategies. The Uniform Trade Secrets Act protects trade secrets in the US. This legislation provides redress against misappropriation. However, companies need to implement reasonable measures to maintain secrecy.
The European Union:
The European Union operates on a dual system of national and EU-wide rights. The Unitary Patent system and the European Union Intellectual Property Office (EUIPO) for EU trademarks provide centralized registration options. However, individual countries within the EU maintain their systems.
Nigeria:
As Africa’s largest consumer market, Nigeria has a unique system for intellectual property protection in the cosmetics industry. Several key statutes govern Nigeria’s IP system:
- The Patents and Designs Act:
This act, taken from Cap P2, Laws of the Federation of Nigeria of 2004, protects advancements in formulations, delivery systems, and packaging designs. Under Nigerian law, patents are granted 20 years from filing without the possibility of extension. According to this law, strategic filing timing is crucial for cosmetic innovations.
- The Trademarks Act:
Based on Cap T13, Laws of the Federation of Nigeria of 2004, it operates on a first-to-file basis with an initial registration validity of seven years. It is also renewable indefinitely for 14 years thereafter. Nigeria’s trademark classification system follows the international Nice Classification, with most cosmetic products falling under Class 3.
- The Copyright Act:
The Cap C28 amendment to the Laws of the Federation of Nigeria of 2004 automatically protects original artistic works. The copyright act covers packaging designs and marketing materials 70 years after the author’s death.
Unfortunately, Nigeria lacks a specific trade secret legislation. Trade secrets protection is derived from common law principles and contractual obligations. This creates loopholes for cosmetic companies that may want to protect their trade secrets instead of going through patent filings. Nigeria’s IP framework is complicated by regulatory requirements from the National Agency for Food and Drug Administration and Control (NAFDAC). It might compromise trade secret protection by requiring the disclosure of specific proprietary formulations.
To understand the regulatory context surrounding these issues, explore our in-depth analysis on the Legal Regulations Controlling Organic Products in the Cosmetics Industry.
Final Thoughts
As we have explored throughout this article, intellectual property in the cosmetics industry goes beyond legal protections. It is the foundation of innovation and brand distinction that drives the sector forward. Brands that strategically utilize patents, trademarks, trade secrets, and copyrights are more likely to protect their research, product development, and marketing materials.
The complex relationship between international treaties like TRIPS and the Paris Convention, alongside country-specific regulations in the US, EU, and Nigeria, has different limitations and benefits. To be successful, cosmetic brands must recognize that intellectual property protection in the cosmetics industry is a vital business asset.
In the next part of this series, we will explore the unique challenges facing IP protection and the best strategies for protecting intellectual property in the cosmetic industry.
Sources and References
- World Intellectual Property Organization (WIPO). What Is Intellectual Property (IP)? About IP.
- World Trade Organization (WTO). Intellectual Property. What Are Intellectual Property Rights?
- McMahon AM, Kolawole OI. Intellectual property rights over ‘integrated’ medical devices: the potential health impacts and bioethical implications of rightsholders’ control. Medical Law Review. 2025;33(1):fwaf001.
- World Trade Organization (WTO). Intellectual property (TRIPs)
- World Intellectual Property Organization (WIPO). Paris Convention for the Protection of Industrial Property
- World Intellectual Property Organization (WIPO). The International Patent System (PCT).
- Bit Law. Patent Law in the United States
- World Intellectual Property Organization (WIPO). United States Code, Title 35 – Patents, United States of America. Lexology
- United States Patent and Trademark Office. The Lanham (Trademark) Act
- World Intellectual Property Organization (WIPO). The Global Impact of the America Invents Act.
- The European Commission. The Unitary Patent System.
- The European Union Intellectual Property Office (EUIPO). Trade marks.
- Laws of the Federation of Nigeria of 2004. Patents and Designs Act Cap. 344 LFN1990 Act Cap. P2 L. F. N. 2004.
- World Intellectual Property Organization (WIPO). The Patent and Design Act in Nigeria
- Laws of the Federation of Nigeria of 2004. Nigerian Trade Portal. Trademark Act
- International Comparative Legal Guides (ICLG). Trademark Laws and Regulations in Nigeria
- Laws of the Federation of Nigeria of 2004. Copyright Act
- Policy and Legal Advocacy Centre, Nigeria. Copyright Act 2022.
- Ajunwo-Choko Alfb, Edward A. Copyright Infringement and Enforcement of Rights in Nigeria. Lexology.