IP and DEVELOPMENT PETER DRAHOS Asian Regional Workshop on Bilateral FTAs KL, Malaysia August 2005
Strength of IP protection W LOSSGAIN OPTIMAL
PATENT STRENGTH
FORUM SHIFTING BILATERAL KOREA, 1986, JORDAN 2001 REGIONAL NAFTA, FTAA MULTILATERAL WTO, WIPO
Global Intellectual property ratchet based on a principle of minimum protection that permits more extensive protection. TRIPS Article 1.1 Jordan FTA Singapore FTA
EFFECT OF RATCHET COMPULSORY LICENSING TRIPS ALLOWABLE SUBJECT TO CONDITIONS JORDAN FTA NOT ALLOWABLE EXCEPT IN THREE CIRCUMSTANCES SINGAPORE FTA THREE CIRCUMSTANCES, PLUS KNOW HOW RESTRICTION
BIP BIT301 WTO Status** Albania M Argentina1994YM Armenia YO Azerbaijan *YO Bahrain1999*YM Bangladesh1989YM (LDC) Belarus *YO Bolivia1998*YM Bulgaria YM Cambodia1996A US IP BILATERALISM
BIP BIT301 WTO Status** Cameroon1989M China1992 YM Congo (Zaire)1989M Congo (Rep)1994M (LDC) Croatia *M Czech Rep YM Ecuador YM Egypt1992YM El Salvador1999*YM
BIP BIT301 WTO Status** Estonia1994*1997YM Georgia M Grenada1989M Honduras1995*YM Hungary1993YM India1993YM Jamaica YM Jordan2000*1997*YM Kazakhstan YO Korea YM 1990
BIP BIT301 WTO Status** Kyrgyzstan M Laos1997*A Latvia YM Lithuania1994*1998*YM Moldova YM Mongolia M Morocco1991M Nicaragua *YM Panama YM Paraguay1998YM Peru1997YM
BIP BIT301 WTO Status** Philippines1993YM Poland1994YM Romania YM Russia *YO Senegal1990M Singapore1987YM Slovakia1992M Sri Lanka M Surinam1993M Taiwan1992 Y 1993
BIP BIT301 WTO Status** Tajikstan1993Y Thailand1991YM Trinidad &Tobago M Tunisia1993YM Turkey1990YM Turkmenistan1993Y Ukraine YO Uzbekistan *YO Vietnam1997YO
FREE TRADE AGREEMENTS 1.US – JORDAN (2001) 2. US-CHILE (2003) 3. US- SINGAPORE (2003) 4. US-MOROCCO (2004) 5. US-CENTRAL AMERICAN FTA (2005) 6. US-AUSTRALIA (2005)
US IP Bilateralism in Africa
US IP Bilateralism in Europe
US IP Bilateralism in Asia
US IP Bilateralism in Oceania
US IP Bilateralism in Central America
US IP Bilateralism in South America
Countries without patent offices East Timor
US INDUSTRY OBJECTIVES TREATY THAT IMPOSES IDENTICAL STANDARDS OF PATENTABILITY SINGLE EXAMINATION MODEL (MAJOR OFFICES ONLY) WIDEST RANGE OF PATENTABLE SUBJECT MATTER
STRATEGIC USES OF FTAs AUSTRALIA FTA USA PBS SCHEME MODEL FOR DEVELOPING COUNTRIES
AUSTRALIA THAI FTA Article 1302 Observance of International Obligations The Parties shall fully respect the provisions of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights and any other multilateral agreement relating to intellectual property to which both are parties.
ESTIMATED RENTS US COLLECTS (based on Maskus World Bank Study and estimates of piracy losses by IIPA) Rents from full application of TRIPS Patents - $19 Billion Copyright $21 Billion $40 Billion
RENTS AS A RATIO For the US Patents part of TRIPS is worth 13 TIMES more to US than tariff package in Uruguay Round. For China the obligation to pay IP rents is 5 TIMES its gain and for South Korea it is 18 TIMES its gain. (ratios are taken from Michael Finger, ERD Working Paper series No. 21, Asian Development Bank, 2002.
WHY THE POLITICS OF IP ENCOURAGES RENT SEEKING RENTS Diffuse InterestsConcentrated Interests Consumers Schools Old People Multinationals Local Exporters Local IP Producers Optimal IP Level
The Game After Lucas van Leyden, The Card Players, probably c. 1550/1599 National Gallery of Art, Washington, Samuel H. Kress Collection
The first deal United States Developing country US $40 billion
Developing countries work out their hand to win at this game
US collects half of what’s expected
The next deal United States Developing country US $80 billion
Developing countries work out their hand to win at this game
US collects half of what’s expected