Intellectual Property Protection Considerations in a Global Economy Keith D. Grzelak, Chair IEEE-USA Intellectual Property Policy Committee

Are present United States intellectual property protection incentives suitable for a global economy? American competitiveness has long been attributed to innovation and the ability to secure protection for innovations. As a result of globalization, multinational companies have encouraged the United States to negotiate with trading partners in emerging markets to enhance intellectual property protection. Concurrently, these same companies have exerted political pressure within the US to relax patent protection and enforcement.

What is Intellectual Property? Patents Trademarks Copyrights Trade Secrets Trade Dress

What is Innovation? The process of making improvements by introducing something new. May refer to radical or incremental improvements. A major driver of an economy.

What is Globalization? The process of increasing global connectivity, integration and interdependence between countries. Encompasses standardization around the world. Leads to harmonization of IP laws and international treaties.

U.S. Patent System Article I, Section 8 of US Constitution – …to promote the progress of science and useful arts…. Has a 200 year history of successfully encouraging a world-leading economy. Suddenly, multinational entities claim it is broken while, at the same time, the U.S. lectures foreign countries to increase their patent protection and enforcement.

U.S. Copyright System TRIPS added 20 years to the term of copyright protection. Digital media has brought a call to increase protection and enforcement in the U.S. Internationally, the U.S. is calling for increased protection.

U.S. Multinational Companies A relatively small group of high-tech companies: want to relax patent protection and enforcement in the U.S. Have coordinated lobbying efforts on Capitol Hill. At the same time, are pushing for emerging markets and trading partners to increase their IP protection.

U.S. Patent Reform U.S. Patent & Trademark Office – Reduced the allowance rate to a record low (2006 & early 2007). USPTO Director – Promulgated restrictive rule changes. U.S. Supreme Court – Narrowed the standard for patentability. U.S. Patent Appeals Court – Also narrowed the standard. U.S. Congress – Proposed legislation limiting patents & relaxing patent enforcement.

U.S. House of Representatives Science & Technology Committee: Predicted a move to personal service jobs as high-tech jobs are offshored. Noted that policies are needed to ensure that U.S. business environment remains flexible and innovative. Acknowledged that we need support for intellectual property protection.

What will happen if we reduce U.S. patent procurement and enforcement? Fewer successful new businesses because reduced patent procurement makes it harder to carve out a successful and exclusive niche, and to procure outside funding. Reduced threat of patent litigation for large U.S. multi- national companies. Increased patent protection in foreign countries will lead to improved conditions for growing new businesses overseas.

Are present United States intellectual property protection incentives suitable for a global economy? Yes – if we want to continue to …promote the progress of science and useful arts… in the US. No – if we want to accommodate the business interests of multi-national corporations that desire to benefit financially from globalization.