The article discusses how intellectual property laws have evolved internationally over time. It explains that protecting only domestic works or inventions would lead to unfair competition from unprotected foreign works. The paper highlights two main challenges in the current phase: protecting traditional knowledge and applying copyright to the Internet. Developing countries and transition economies are now seeking better protection for traditional knowledge, while the Internet's growth is changing how copyright is used. The paper explores these challenges and suggests ways to strengthen the intellectual property system.