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Intellectual Property Rights Implications for Development,Fleur Claessens,What is Intellectual Property?, books, CDs, video games, paintings, staplers, bags, fabrics, planes, food/drinks, pharmaceuticals, plant varieties, computer chips, cars, music, broadcasts, sound recordings, etcan IP right provide the right holder with an exclusive right to stop others.IP right holder may provide licensesIP rights are territorial in nature,Forms of Intellectual property Rights,PatentsTrade MarksDesignsCopyrightsGeographical IndicationsIndustrial DesignsTrade SecretsUtility ModelsTraditional Knowledge (?),Patent requirements,New/novelInventive step/non-obviousness (not obvious to someone skilled in the art)Industrial Applicability Patentable subject matter,What is patentable?,“Everything under the sun that is made by man.“ Diamond v. Chakrabarty 1980 US Supreme Court Ideas/inventions are patentable,Exclusions from patentability,Discoveries are not patentable: Einstein could not patent his celebrated law that E = mc2; nor could Newton have patented the law of gravity. Such discoveries are “manifestations of . . . nature, free to all men and reserved exclusively to none”Literary, dramatic, musical or artistic worksSchemes, rules, games, computer programs as suchMethods of medical treatmentContrary to public policy and morality: Those which by publication or exploitation might result in offensive, immoral or anti-social behavior. Current debate life patents/GM FoodPlant and animal varieties (in EU not in US),How to obtain a patent?,Domestic patent/IP office: filing, obtain priority dateEuropean patents: a bundle of patent rights at the European patent office International level: WIPO PCTApplication requirements:Description as how the invention worksClaim covering the scope of the legal monopoly claimed by the patenteeExamination and publication,Copyright,Copyrights protects the rights of authors of literary and artistic worksCopyright is in essential a negative right which prevents others from making copies of the work of an authorNo copyright in a pure idea/news/simple works/information itselfExpression/idea dichotomyIf sufficient selection, judgment and experience or labour/skill and capital copyright can be granted, even in a database (so not the content in the data base but the compilation itself), in EU separate database right, not in the US. Moral rights versus economic rights,Rationale behind IPRs,PatentsTo stimulate innovation/encourage investment the inventor receives an exclusive right to his inventionin exchange for disclosure of the invention in such a way that it allows replication, the inventor receives a limited amount of time to recoup his investmentTrademarksProtection of goodwill and reputationCopyrightProtection of creativity,Innovation: Methods and Factors,“Innovation is the development and implementation of an improved (incremental) or new (landmark) product or process with success in a business activity / society”Methods:Formal innovation Scientific method (evidence of efficacy and/or efficiency) Marketing strategies (new utility, design, process) Informal or Traditional Experience/belief intergenerational individual or collective Functional Factors: Culture, education, inventiveness/creativity, capital, enabling environment, linkages, supplychain management, marketability, etc.,Why are IPRs important?,IPRs allow control over technology, signs and creationsOriginal Purpose: to stimulate innovation and creativity by compensating the creator/innovator for their intellectual effortsLately: incentive to investment / change in market players -big multinationals,The TRIPS Agreement,sets minimum standardsis part of a package deal WTO Agreementis signed by 153 parties is subjected to dispute settlement body.contains enforcement mechanisms.is subjected to National Treatment and Most-favoured-Nation Treatment (MFN) Principles,Contemporary Challenges in IPR negotiations.,GIsCreation of a multilateral register for wines and spiritsExtending the higher level of protection beyond wines and spiritsLinkage between GIs and the agriculture negotiations clawback for terms in common usageDisclosure of Origin Measure Legal consequences: Voluntary or not, administrative or patent ability requirement (revoke or criminal sanction)Linked to CBD concepts ABS and PICLinked to WIPO or WTOImplementation of the WIPO Development AgendaEnforcement (WTO US versus China Panel Report)Ongoing norm setting activities / FTAsTechnology Transfer Technical Assistance and Cooperation,Why are IPRs controversial?,IPRs create semi-monopolies also covering goods that might be essential to society (e.g. pharmaceuticals and environmentally sound technologies) /raises prices (higher than production costs)limit access to textbooks, educational material, informationimpacts on reverse engineering and imitationexceptions are pushed to the limit/scope is widened: extension of subject matter - - patentability of life / software; extension of term of protection - 70 years of copyright protection; creation of new rights - non original databases; over relaxation of granting of patents - lack of adequate description; inclusion of IP in trade, investment and stand alone agreements; primacy of private rights of public rights,Some facts,Swift pace of technological transformation technology has become important in all economic activitiesInternational collaborations have led to the globalization of all economic and technological activitiesMuch more regulation!3 countries concentrate around 60% of applications5 countries account for above 80% of royalties and fees recipients of which above 70% relates to intra-firm payments,The Public Interest,Promotion of innovationPublic health and access to medicinesNutrition and Food security Technology transferCompetition policyHuman rightsDevelopment Fight against povertyEnvironmental protectionEducation,“Whenever there is a conflict between human rights and property rights, the former must prevail”Abraham Lincoln,Socio-economic development,Stages of developmentSophistication of their industrial base, including cultural creative industriesCoherence with related policies (national innovation systems; industrial, trade, competition, FDI policies)Sectoral policies: health, education, infrastructure,IPRs and Development an integrated model,LEVELS OF DEVELOPMENTLOW LEVELINTERMEDIATE LEVEL HIGH LEVEL,INTELLECTUAL PROPERTY RELEVANCE,LOW LEVEL,HIGH LEVEL,IMITATION APPLICATION INNOVATIONLEARNING CURVE,Development IPR Solutions,WTO Doha (Development) Round Doha Round Declaration 14 November 2001Doha Declaration on TRIPS and Public HealthWIPO Development Agenda (adopted September 2007)2004 Initiative by group of developing countries lead by Brazil and Argentina / development component in WIPO as UN agencyUse of flexibilitiesTransparency in technical assistance activitiesDevelopment aspect in all norm-setting activities,Doha Ministerial Declaration14/11/2001,“implementation and interpretation of the TRIPS in a manner supportive of public health, by promoting both access to existing medicines and research and development into new medicines” (par 17)“the TRIPS Council shall be guided by the objectives and principles set out in Articles7 and8 of the TRIPS Agreement and shall take fully into account the development dimension” (par. 19)Separate Declaration on the TRIPS Agreement and Public Health,Technical Assistance,The Doha Declaration reconfirmed that technical cooperation and capacity building are core elements of the development dimension of the multilateral trading system. 29/11/2005 TRIPS Council Declaration:requests LDCs to supply technical and financial cooperation needs in order to implement TRIPS,Sierra Leone and Uganda - communications to the WTO TRIPS Council, titled Priority Needs for Technical and Financial CooperationOverview of needs in terms of Administrative reformShort and long term goalsIP policy and regulatory frameworkAdministrative reformDevelopment of IP curriculum and general public trainingPositive IPR agenda,Promotion of traditional knowledge (museums, national gallery etc, formalization of music industry etc)Train police and judiciaryImprove cooperation between players (government departments, private sector, farmer organisations, music industry, police, customs)Value edition in food and drinksGI protection (market branding and marketing efforts)Provide management services to SMEsUse public domain knowledge, avoid reinventing the wheelFind niche / comparative advantage, “specialization is the need for civilization”,Declaration on the TRIPS Agreement and Public Health 14/11/2001,“we recognize the gravity of the public health problems afflicting many developing and least-developed countries, especially those resulting from HIV/AIDS, tuberculosis, malaria and other epidemics” (par 1)“ we recognize that IP protection is important for the development of new medicines. We also recognize its effects on prices” (par 3)“we agree that the TRIPS does not and should not prevent members from taking measures to protect public health, TRIPS should be interpreted and implemented in a manner supportive of public health and promote access to medicines” (par 4),“Each member has the right to grant compulsory licences and the freedom to determine the grounds upon which such licences are granted” (par 5b)“each member has the right to determine what constitutes a national emergency or other circumstance of extreme urgency (par 5c) “leave each member free to establish its own regime for exhaustion without challenge, subject to the MFN and national treatment” (par 5d),Compulsory license: Right to use the patent without permission of the patent holder subject to certain conditions (Art. 31 TRIPS),Compulsory Licensing Article 31 TRIPS,(a)authorization of such use shall be considered on its individual merits;(b)such use may only be permitted if, prior to such use, the proposed user has made efforts to obtain authorization from the right holder on reasonable commercial terms and conditions and that such efforts have not been successful within a reasonable period of time. This requirement may be waived by a Member in the case of a national emergency or other circumstances of extreme urgency or in cases of public non-commercial use.,Article 31 TRIPS,(c)the scope and duration of such use shall be limited to the purpose for which it was authorized(d)such use shall be non-exclusive;(e)such use shall be non-assignable(f)any such use shall be authorized predominantly for the supply of the domestic market of the Member authorizing such use;,Paragraph 6 TRIPS Declaration of TRIPS and Public Health addressed the difficulties WTO Members with limited pharmaceutical production capacity have in making effective use of the compulsory licensing: “We recognize that WTO Members with insufficient or no manufacturing capacities in the pharmaceutical sector could face difficulties in making effective use of compulsory licensing under the TRIPS Agreement. We instruct the Council for TRIPS to find an expeditious solution to this problem and to report to the General Council before the end of 2002”,Contentious points: -countries eligible to export the generic medicine -the limited scope of the diseases being allowed for CL-anti-diversion measures to prevent parallel import of medicines to other countries rather than the intended beneficiary,Waiver Decision: 30/8/2003Article 31bis TRIPS Agreement : 6/12/2005(first TRIPS amendment)allowing countries with inadequate production facilities to import medicines produced under compulsory license in third countries.under certain cumbersome conditions,Compulsory licenses are controversial but,1000 United States600 Europe300 Japan1-5 Developing countries,Transition Periods,Developed countries had 1 year (1/1/1996)Developing countries had 4 additional years (1/1/2000) to apply the TRIPS provisions following date of entry into force (1/1/1995)plus 5 additional years to comply with the TRIPS Agreement provisions on pharmaceutical patents (1/1/2005) In view of special
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