1. Intellectual Property Rights in Global Markets

2. 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

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

4. 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

5. - 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
 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

6. 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.

7. 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.”

8. - 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

9. 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.

10. 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

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