Intellectual Property Rights in Global Markets

Intellectual Property Rights in Global Markets 1. What are Intellectual Property Rights? - Intangible Assets - Right to Use and Prevent Others from Using - Source of Competitive Advantage

2. Manifestation of Intellectual Property Rights - Patents - Trade Marks - Industrial Design - Trade Secrets - Copy Rights

3. International Protection of Intellectual Property Rights - IPR Regulated by National Law - Bilateral Agreements and International Conventions WIPO: Surveillance over most Multinational Agreements Extension of National Treatment to Foreigners Lack of Enforcement Power - Multilateral Agreements TRIPS: Multilateral Agreement under WTO Surveillance Sets Minimum Standards Extension of Most Favored Nation Treatment to All WTO Members Provides Enforcement and Dispute Settlement Mechanism

- Inefficient Legal Framework for New Technologies 4. The Battle Continues - Inefficient Legal Framework for New Technologies Internet Biotechnology - Lack of Enforcement  5-8% of all Goods are Counterfeit  U.S. Business Looses $200 Billion Annually  750 000 Jobs Lost in U.S.  75% of all Medicines are Counterfeit in India - High Demand for Counterfeit Goods  Price Incentive  “Robin Hood Mentality” - Cultural Differences

Patent Law The United States vs. Japan Protects individual inventors. Patent applications are secret. Patents granted in up to 24 months. Patents valid for 17 years from date issued. Promotes technology sharing. Patent applications are public. Patents granted in 4 to 6 years. Patents valid 20 years from application date.

5. Differences in Underlying Philosophies - Position of Most Developed Nations “Protection of IPR is a means to encourage creative activity, industrialization, investment, and honest trade.” - Position of Many Less Developed Nations: “Intellectual property should be considered the common property of mankind and relevant laws should facilitate access to intellectual property as a development tool rather than place restrictions on it.”

- Potential Functions of IPR Laws Protection of Consumers from Deception and Confusion Protection of Companies From Unfair Competition Incentives for Investments in Research and Development Encouragement of Direct Investment

6. Potential Drivers of Consumer Demand for Pirated Goods* Economic Factors Knowledge Societal Consequences Fear of Legal Prosecution Access to Pirated Goods Attitudes Towards Piracy Social Norms Culture Demographics * See: Moores, Trevor, Alexander Nill, and Marcus Rothenberger (2009). “Knowledge of Software Piracy as an Antecedent to Reducing Piracy Behavior”. Journal of Computer Information Systems, 50(1):82-90.

7. Traditional Remedies Against Infringements of IPR - Legal Pressure - Diplomatic Pressure - Technological Devices - Awareness Advertising Inform Consumer about Counterfeits - Anti-Counterfeit-Advertising Persuade Consumer not to Buy Supply Demand

8. Potential Strategic Responses to Piracy* *See: Nill, Alexander and Clifford Shultz (2009). “Global software piracy: Trends and strategic considerations”. Business Horizons, 53(3): 289-298.