Lecture 8 ib 404 institutional framework for international business
- 1. Trade Related Aspects of Intellectual Property Rights (TRIPS) Agreement WTO TRIPS AGREEMENTS 1
- 2. Intellectual Property: Protection and Enforcement • Agreement concerned: • TRIPS: Agreement on Trade-Related Aspects of Intellectual Property Rights • Coverage: products lies in the amount of invention, innovation, research, design and testing involved • Objective (Article 7): The protection and enforcement of intellectual property rights should contribute to the promotion of technological innovation and to the transfer and dissemination of technology, to the mutual advantage of producers and users of technological knowledge and in a manner conducive to social and economic welfare, and to a balance of rights and obligations.
- 3. What is “intellectual property rights” ? • Definition: • The right given to the creators to prevent others from using their inventions, designs or other creations — and to use that right to negotiate payment in return for others using them. • Forms: • Copyright , patent, registered trademarks, and so on • Role/Significanc: • As a way to introduce more order and predictability, and for disputes to be settled more systematically
- 4. Intellectual property rights Intellectual property rights are the rights given to persons over the creations of their minds. They usually give the creator an exclusive right over the use of his/her creation for a certain period of time Linkage between Intellectual Property (IP) and trade: broadly through following two premises: (I)Widespread piracy, counterfeiting and infringements of intellectual property rights constituted a barrier to trade (II) IPRs transfer agreements 4
- 5. Issues covered 1. how basic principles of the trading system and other international intellectual property agreements should be applied 2. how to give adequate protection to intellectual property rights 3. how countries should enforce those rights adequately in their own territories 4. how to settle disputes on intellectual property between members of the WTO 5. special transitional arrangements during the period when the new system is being introduced.
- 6. Objectives • To reduce distortions and impediments to international trade and take into account the need to promote competent as well as adequate protection of IPRs • To ensure that measures and procedures to enforce IPRs do not themselves become barriers to legitimate trade • To reduce tensions by reaching strengthened commitment to resolve disputes on trade-related IP issues through multilateral procedures • To establish a mutually supportive relationship between the World Trade Organisation (WTO) and World Intellectual Property Organisation (WIPO) 6
- 7. Protection Of Intellectual and Inherited Assets Have Various Dimensions. They include both Intellectual Assets And Bio-Assets. • Intellectual Property Protection • Patents • Trade Marks • Copy Rights • Designs • Trade Secrets (undisclosed information) • Bio-Assets Protection • Biodiversity • Germ Plasms • Geographical indications • Plant varieties 7
- 8. Basic principles: national treatment, MFN and balanced protection • Non-discrimination features prominently in TRIPS, similar to GATT and GATS,by following principles of: • National Treatment (Article 3): Equal treatment for foreign and domestic individuals and companies • Most Favoured Nation (Article 4): Equal treatment for nationals of all trading partners in the WTO • TRIPS Agreement has additional important principle: Intellectual property protection should contribute to technical innovation and transfer of technology 8
- 9. Relationship between TRIPS agreement and other IP treaties • Respects the standards and complies with the multilateral conventions administered by World Intellectual Property Organization (WIPO) • Incorporation of explicit provision of various conventions in WIPO into TRIPS agreement allows WTO panels to interpret them 9
- 10. Acquisition and maintenance of IP • Member countries must create office and operate governmental offices for the acquisition and maintenance of IPRs • Procedures for granting and registration of IPR must be reasonable • Member country's law must provide for opposition, revocation and cancellation • Member country may adopt measures to protect public health and the public interest 10
- 11. Types of IPRs: Copyright and related rights • Copyright grants exclusive rights to the creator of original scientific, artistic and literary works • ‘Original’ is key in defining a work that qualifies for copyright protection • The term of protection • Countries to confine limitations/ exceptions to exclusive rights to certain special cases which do not conflict with exploitation of the work and not prejudicial to right holder 11
- 12. Copyrights • Article 9: Relation to the Berne Convention 1. Members shall comply with Articles 1 through 21 of the Berne Convention (1971) and the Appendix thereto. However, Members shall not have rights/ obligations under this Agreement in respect of the rights conferred under Article 6bis of that Convention or of the rights derived therefrom. 2. Copyright protection shall extend to expressions and not to ideas, procedures, methods of operation or mathematical concepts as such. • The Berne Convention for the Protection of Literary and Artistic Works, usually known as the Berne Convention, is an international agreement governing copyright, which was first accepted in Berne, Switzerland, in 1886. 12
- 13. Copyrights • Article 10: Computer Programs and Compilations of Data • 1. Computer programs, whether in source or object code, shall be protected as literary works under the Berne Convention (1971). 2. Compilations of data or other material, whether in machine readable or other form, which by reason of the selection or arrangement of their contents constitute intellectual creations shall be protected as such. Such protection, which shall not extend to the data or material itself, shall be without prejudice to any copyright subsisting in the data or material itself. 13
- 14. Copyrights • Article 11: Rental Rights • In respect of at least computer programs and cinematographic works, a Member shall provide authors and their successors in title the right to authorize/ to prohibit the commercial rental to the public of originals/ copies of their copyright works. A Member shall be excepted from this obligation in respect of cinematographic works unless such rental has led to widespread copying of such works which is materially impairing the exclusive right of reproduction conferred in that Member on authors and their successors in title. In respect of computer programs, this obligation does not apply to rentals where the program itself is not the essential object of the rental. 14
- 15. Copyrights • Article 12: Term of Protection • Whenever the term of protection of a work, other than a photographic work or a work of applied art, is calculated on a basis other than the life of a natural person, such term shall be no less than 50 years from the end of the calendar year of authorized publication, or, failing such authorized publication within 50 years from the making of the work, 50 years from the end of the calendar year of making. 15
- 16. Trademarks (Article 17 -21) Trademark protects any word, name, logo or device used to identify, distinguish or indicate the source of goods or services Includes trade dress (the total image and overall appearance of a product) and product configuration (the shape if non functional) The purpose is to safeguard the integrity of products and to prevent product confusion and unfair competition The term of protection (initial registration and each renewal of registration of a trademark shall be for a term of no less than 7 years) 16
- 17. Geographical Indications (GIs) GIs are denominations that identify a good as originating in a region or locality, where the reputation and quality of good is essentially attributable to its geographical origin (for example: Darjeeling tea of India) TRIPS prohibits the use of GIs in such a way as to cause deception and provides for injunctive relief, refusal of trademark registration, etc Exceptions such as Countries are not obliged to bring a geographical indication under protection, where it has become a generic term for describing the product in question 17
- 18. Article 22: Protection of Geographical Indications 1. Geographical indications are, for the purposes of this Agreement, indications which identify a good as originating in the territory of a Member, or a region or locality in that territory, where a given quality, reputation or other characteristic of the good is essentially attributable to its geographical origin. 2. In respect of geographical indications, Members shall provide the legal means for interested parties to prevent: a) the use of any means in the designation or presentation of a good that indicates or suggests that the good in question originates in a geographical area other than the true place of origin in a manner which misleads the public as to the geographical origin of the good; b) any use which constitutes an act of unfair competition within the meaning of Article 10bis of the Paris Convention (1967). 18
- 19. Article 22: Protection of Geographical Indications 1. A Member shall, ex officio if its legislation so permits or at the request of an interested party, refuse or invalidate the registration of a trademark which contains or consists of a geographical indication with respect to goods not originating in the territory indicated, if use of the indication in the trademark for such goods in that Member is of such a nature as to mislead the public as to the true place of origin. 2. The protection under paragraphs 1, 2 and 3 shall be applicable against a geographical indication which, although literally true as to the territory, region or locality in which the goods originate, falsely represents to the public that the goods originate in another territory. 19
- 20. Industrial designs • Protects the artistic aspect (namely, texture, pattern, shape) of an object instead of the technical features • The term of protection (amount to at least 10 years) • ‘Amount to’ allow the term to be divided into two periods (for example two periods of five years) • The third party is prohibited from making, selling or importing articles bearing a design which is a copy of the protected design, when such acts are undertaken for commercial purposes • Exception: optional mandate, if introduced then such exceptions do not unreasonably conflict with the normal exploitation of protected industrial designs and do not unreasonably prejudice the legitimate interests of the owner of the protected design 20
- 21. INDUSTRIAL DESIGNS Article 25: Requirements for Protection 1. Members shall provide for the protection of independently created industrial designs that are new or original. Members may provide that designs are not new or original if they do not significantly differ from known designs or combinations of known design features. Members may provide that such protection shall not extend to designs dictated essentially by technical or functional considerations. 2. Each Member shall ensure that requirements for securing protection for textile designs, in particular in regard to any cost, examination or publication, do not unreasonably impair the opportunity to seek and obtain such protection. Members shall be free to meet this obligation through industrial design law or through copyright law. 21
- 22. INDUSTRIAL DESIGNS Article 26 Protection 1. The owner of a protected industrial design shall have the right to prevent third parties not having the owner’s consent from making, selling or importing articles bearing or embodying a design which is a copy, or substantially a copy, of the protected design, when such acts are undertaken for commercial purposes. 2. Members may provide limited exceptions to the protection of industrial designs, provided that such exceptions do not unreasonably conflict with the normal exploitation of protected industrial designs and do not unreasonably prejudice the legitimate interests of the owner of the protected design, taking account of the legitimate interests of third parties. 3. The duration of protection available shall amount to at least 10 years. 22
- 23. PATENT Article 27: Patentable Subject Mater • 1. Subject to the provisions of paragraphs 2 and 3, patents shall be available for any inventions, whether products or processes, in all fields of technology, provided that they are new, involve an inventive step and are capable of industrial application.5 Subject to paragraph 4 of Article 65, paragraph 8 of Article 70 and paragraph 3 of this Article, patents shall be available and patent rights enjoyable without discrimination as to the place of invention, the field of technology and whether products are imported or locally produced. • 2. Members may exclude from patentability inventions, the prevention within their territory of the commercial exploitation of which is necessary to protect ordre public or morality, including to protect human, animal or plant life or health or to avoid serious prejudice to the environment, provided that such exclusion is not made merely because the exploitation is prohibited by their law. 23
- 24. PATENT Article 27: Patentable Subject Mater • 3. Members may also exclude from patentability: • (a) diagnostic, therapeutic and surgical methods for the treatment of humans or animals; • (b) plants and animals other than micro-organisms, and essentially biological processes for the production of plants or animals other than non-biological and microbiological processes. However, Members shall provide for the protection of plant varieties either by patents or by an effective sui generis system or by any combination thereof. The provisions of this subparagraph shall be reviewed four years after the date of entry into force of the WTO Agreement. 24
- 25. Right to restrain any unauthorised third party importing manufacturing selling using Stocking for sale Depends on law, harmonized rights PATENT RIGHTS (Common To All Sectors) 25
- 26. PATENT Article 28: Rights Conferred • 1. A patent shall confer on its owner the following exclusive rights: • (a) where the subject matter of a patent is a product, to prevent third parties not having the owner’s consent from the acts of: making, using, offering for sale, selling, or importing6 for these purposes that product; • (b) where the subject matter of a patent is a process, to prevent third parties not having the owner’s consent from the act of using the process, and from the acts of: using, offering for sale, selling, or importing for these purposes at least the product obtained directly by that process. • 2. Patent owners shall also have the right to assign, or transfer by succession, the patent and to conclude licensing contracts. 26
- 27. PATENT • Article 33 Term of Protection • The term of protection available shall not end before the expiration of a period of twenty years counted from the filing date 27
- 28. Layout-designs of integrated circuits and trade secrets (Article 35 -38) • It refers to mask works (topographies) of the integrated circuits, the stencils used to etch or encode an electrical circuit on a semiconductor chip • Protection conferred to “original” layout- design/topographies • Exclusive rights include the right of reproduction and the right of importation, sale and other distribution for commercial purposes • The term of protection (ten years form the date of first commercial exploitation) 28
- 29. Protection of undisclosed information • The protection must apply to information that is secret, that has commercial value because it is secret and that has been subject to reasonable steps to keep it secret • Trade secrets consist of formulae, patterns, process or compilation of information. (for example the formula for a sports drink) • In most countries, they are not subject to registration but are protected through laws against unfair competition 29