One of the most important prerequisites for developing a knowledge-based society is protection of intellectual property, including authors' rights. Only by ensuring effective intellectual property protection, there is the prospect of flourishing creative activity and expansion of innovation in society, both of which enhance the competitiveness of the state in a global market. Authors' rights protection in Latvia has been fully harmonized with international legislation; Latvia has integrated all European Union directives in this sphere. However, lack of a reasoned and just interpretation of these provisions and their effective application persists as the main problem. In order to promote these processes, legislators should improve and simplify the comparatively complicated and convoluted legal construction of the Copyright Law, which secures the economic rights of an author. Although protection of authors' rights is regulated in great detail, the legal framework can still be improved. One of the reasons for this situation is that legal provisions cannot keep up with the rapid development of technology. Another problem is maintaining a balance between authors' rights and the public interest so that creative activities and innovations can develop and serve society. This matter still has not been successfully resolved in the European Union. The article suggests recommendations for settling and managing these issues.