Transcript Slide 1

Intellectual Property Protection
in a
Global Economy
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What is Intellectual Property?
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1. Literary, artistic and scientific works;
2. Performances of performing artists,
phonograms, and broadcasts;
3. Inventions in all fields of human endeavor;
4. Scientific discoveries;
5. Industrial designs;
6. Marks and commercial names;
7. Protection against unfair competition;
8. All other rights resulting from intellectual
activities in the industrial
scientific literary and artistic filed.
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Patent
• A patent is an exclusive right granted for an invention to the
inventor
• A patent provides protection to an individual for the invention for a
limited period, generally 20 years form the filing date, in the country
or countries in which it is patented, in exchange for the inventor’s
public disclosure of the invention.
• A patent owner has the right to decide who may or may not use
the patented invention, and may give permission (license) to
others to use the invention on mutually agreed terms.
• The patent owner may also sell the right to the invention to
someone else, who will then become the new owner of the patent.
Once the patent expires, the protection ends, and the invention may
be used by anyone.
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Trademarks
• A trademark or “mark” is a distinctive name, logo, or sign
identifying the source of goods or services.
Trademarks help consumers distinguish a product or
service from one source form those produced by
another source.
• A mark provides protection to its owner by preventing
confusion as to source in connection with the distribution
of goods or services or licensing others to use them.
• The period of protection varies, but a mark can remain
valid indefinitely through continued commercial use or a
registration and renewal process.
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Copyright
• Copyrights consist of a bundle of rights given to
creators for their literary and artistic works.
These creators, and their heirs, hold the
exclusive rights to use or license to others to use
the work on agreed terms.
• Copyright applies to many different types of
artistic works, including paintings, music, poems,
plays, books, architecture, and choreography, as
well as to works that are generally not
considered artistic such as computer software,
maps and technical drawings.
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Copyright, cont.
• The creator of a work can prohibit or authorize,
for example:
– its reproduction in various forms, such as a printed
publication or a phonorecord;
– its public performance, as in a play or musical work;
– its broadcasting, including by radio, television, or
satellite;
– its translation into other languages, or its adaptation,
such as the adaptation of a novel into a screenplay
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Trade Secret
• No registered protection, but internal
agreements binding on employees who
need to know, not to divulge the secret.
• The definition of the secret is usually
deposited in an escrow account.
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The most commonly applied for
patents are in the areas of
• Information and communication
technologies,
• biomedical research and development of
new drugs,
• digital technology,
• high performance materials,
• artificial intelligence, and
• virtual marketing in cyberspace.
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Sector
Advanced
Materials
App. No.of
Utility Patents per Year
1982
1996
250
% Growth
1,200
333 %
Information
Technology
4,000
16,000
305 %
Health
2,000
4,700
189 %
Automotive
1,300
2,700
105 %
All US Patents
58,000
111,000
89%
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The adaptation of IP protection of
biotechnology posed many profound
challenges
• In the special case of biotechnology, the
advent of new tools for research in genetic
engineering has had a strong impact on
agricultural and biotechnical research
programs.
• Biotechnology, however, is increasingly
private-sector driven and increasingly
relies on IP.
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Cyberspace
• Combined application of computer and
telecommunication technologies, as reflected by
the Internet, poses problems for IP regimes.
• With a few key strokes one can anonymously
download copyrighted material form numerous
websites around the world.
• The scope and extent of liabilities between
providers of information on the Internet and
content right holders need to be better
understood.
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WTO
World Trade Organization
• An international body dealing with the rules of
trade between nations. At its heart are
agreements negotiated and signed by the bulk
of the world’s trading nations. These documents
provide the legal ground for international
commerce.
• The three main purposes of the WTO are
– to help trade flow as freely as possible,
– to serve as a forum for trade negotiations, and
– to provide settlement of disputes.
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• In the 1990’s, the rapid expansion of a
new global trading regime following the
establishment of the World Trade
Organization (WTO) triggered an
increasing demand for IP protection,
especially in the high technology and other
knowledge-intense industry sectors.
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Trade-Related aspects of Intellectual Property (TRIPS)
• The relationship between international
economic activities and IP for developing
countries is the subject matter the
TRIPS AGREEMENT
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• In the 1990’s an increasing number of
policy-makers in countries with emerging
economies recognized the role of the IP
system as an important element of the
institutional infrastructure for encouraging
private investment in R&D, especially in
the industrial and scientific fields
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Foreign Direct Investment (FID)
• Studies concerning the link between stronger IP
protection and import/export including technology
transfer show that if a country offers strong protection of
any IP, IP owners are more willing to export or transfer
technology abroad.
• One number that is particularly striking even to the nontechnical community is the losses that the U.S. incurs
due to piracy of entertainment works:
– For copyrighted entertainment works alone, estimated of
losses to US Industries from piracy total approximately 1822 Billion Dollars/Year! (www.IIPA.com; also Eric Smith,
President of Int’l. Intel. Property Alliance (Jan 1, 1999)
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IP VALUE
Assets of Fortune 100 Companies:
1982 -- IP Value amounted to 30%
2000 -- IP Value 70%
General Corp Assets:
1982 -- 62 % physical assets,
2000 -- 30% physical assets.
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History of IP
1473 Venetian Law recognized individual’s rights to their
creations
1700 Catholic Church in England/ France monopoliesed
the printing press to such an extent that in 1700
The Statute of Anne was enacted which diminishes
the control over publishers/ printers and gave
individual author rights. Specifically, the author
was given 14 years after publication to do with
his/her works whatever he/she wanted.
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History, cont.
1790 First US Patent Act: “An act to promote the
Progress of Useful Arts”
1791
Age of Enlightenment brought many inventions along
and several laws were enacted :
France enacted its FIRST Patent Law
In many countries, these new rights to inventors
followed on the footsteps of Declarations of Rights of
Man and of Citizens, such as in France after the
French Revolution
1793 The 1790 act was replaced, subject entitled to
protection was redefined
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History, cont.
1883
Paris Convention for the protection of IP:
Invention date of a patent filed in one country is
recognized in all member countries for up to one year;
Right to protection are upheld in all member countries.
1886
Bern Convention
for protection of Literary and Artistic Works
(copyright)
For length of “life of author plus 50 years”;
1887
1930
US joins Paris Convention
Plant Patent Act:
Protection for sexually reproduced plants
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History, cont.
1967 World Intellectual Property Organization (WIPO)
was formed
1970 Patent Cooperation Agreement (PCT)w/35
members –today over 120 Nations
1974 World Intellectual Property Organization (WIPO)
became an appendage of the United Nations
1978 European Patent Office
Patent Cooperation Treaty
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History, cont.
1984 US causes inclusion of IP issues into GATT
(General Agreement of Tariffs and Trade
Agreement)
1994 GATT now includes an agreement on Trade
Related Aspects of Intellectual Property Rights
(TRIPPS)
(= a minimum standards for patent protection must
be upheld)
WTO Agreement
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Examples
• Product knock-off
– TM violations
(mostly jeans, watches, handbags, glasses)
– Patent violations
(mostly high ticket industrial items, methods, drugs)
– Copyright violations
(mostly videos, DVDs, CDs, downloading)
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US Pharma
employs 400,000 directly
creates 2.7 Mill jobs
contributes $172 Bill to US
economy
Investments
2003 US Pharma invested $33.2 Bill in research
NIH spent $30 Bill
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Pirated & Counterfeited Goods
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Software codes
Chemical processes
Car designs
Digital files
90%of all software on Chinese computers is pirated
and bought openly in stores for $3/copy
Response: Raids of shops, fines $6,900
($132 per offender)
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