1. IP and DEVELOPMENT PETER DRAHOS Asian Regional Workshop on Bilateral FTAs KL, Malaysia 26-28 August 2005

2. Strength of IP protection W LOSSGAIN OPTIMAL

3. 1970 1986 1995 2001 2003 PATENT STRENGTH

4. FORUM SHIFTING BILATERAL KOREA, 1986, JORDAN 2001 REGIONAL NAFTA, FTAA MULTILATERAL WTO, WIPO

5. Global Intellectual property ratchet based on a principle of minimum protection that permits more extensive protection. TRIPS Article 1.1 Jordan FTA Singapore FTA

6. 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

7. BIP  BIT301  WTO Status** Albania19921998M Argentina1994YM Armenia19921996YO Azerbaijan19951997*YO Bahrain1999*YM Bangladesh1989YM (LDC) Belarus19931994*YO Bolivia1998*YM Bulgaria1991 19941994YM Cambodia1996A US IP BILATERALISM

8. BIP  BIT301  WTO Status** Cameroon1989M China1992 YM 1995 1996 Congo (Zaire)1989M Congo (Rep)1994M (LDC) Croatia19981996*M Czech Rep19901992YM Ecuador19931997YM Egypt1992YM El Salvador1999*YM

9. BIP  BIT301  WTO Status** Estonia1994*1997YM Georgia19931997M Grenada1989M Honduras1995*YM Hungary1993YM India1993YM Jamaica19941997YM Jordan2000*1997*YM Kazakhstan19921994YO Korea1986 1989YM 1990

10. BIP  BIT301  WTO Status** Kyrgyzstan19921994M Laos1997*A Latvia19951996YM Lithuania1994*1998*YM Moldova19921994YM Mongolia19911997M Morocco1991M Nicaragua19971995*YM Panama19941991YM Paraguay1998YM Peru1997YM

11. BIP  BIT301  WTO Status** Philippines1993YM Poland1994YM Romania19921994YM Russia19921992*YO Senegal1990M Singapore1987YM Slovakia1992M Sri Lanka19931991M Surinam1993M Taiwan1992 Y 1993

12. BIP  BIT301  WTO Status** Tajikstan1993Y Thailand1991YM Trinidad &Tobago19941996M Tunisia1993YM Turkey1990YM Turkmenistan1993Y Ukraine19921996YO Uzbekistan19941994*YO Vietnam1997YO

13. 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)

14. US IP Bilateralism in Africa

15. US IP Bilateralism in Europe

16. US IP Bilateralism in Asia

17. US IP Bilateralism in Oceania

18. US IP Bilateralism in Central America

19. US IP Bilateralism in South America

20. Countries without patent offices East Timor

21. US INDUSTRY OBJECTIVES TREATY THAT IMPOSES IDENTICAL STANDARDS OF PATENTABILITY SINGLE EXAMINATION MODEL (MAJOR OFFICES ONLY) WIDEST RANGE OF PATENTABLE SUBJECT MATTER

23. STRATEGIC USES OF FTAs AUSTRALIA FTA USA PBS SCHEME MODEL FOR DEVELOPING COUNTRIES

24. 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.

25. 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

26. 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.

27. 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

28. The Game After Lucas van Leyden, The Card Players, probably c. 1550/1599 National Gallery of Art, Washington, Samuel H. Kress Collection

29. The first deal United States Developing country US $40 billion

30. Developing countries work out their hand to win at this game

31. US collects half of what’s expected

32. The next deal United States Developing country US $80 billion

33. Developing countries work out their hand to win at this game

34. US collects half of what’s expected