Intellectual Property I: Why Have Intellectual Property Laws? CSUCI2008 BIOL503 K. Pessin

Intellectual Property I: Why Have Intellectual Property Laws? Source of Laws Effects of Laws

Source of Laws

Effects of Laws

Intellectual Property I: Why have intellectual property laws?

Intellectual Property I: Why have intellectual property laws? Natural rights – inherent in the individual Economic rights-granted by societies Moral rights- earned and deserving of moral justice Laws tend to reflect natural, economic or moral rights

Intellectual Property I: Why have intellectual property laws? Countries Agree Treaty -- World Intellectual Property Organization The Paris Convention, international intellectual property, first-to-file

Countries Agree

Treaty -- World Intellectual Property Organization

Intellectual Property I: Why have intellectual property laws? Nations U.S. Constitution: “To promote the progress of science and useful arts, by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries” U.S. Legislation http://thomas.loc.gov/

Nations

U.S. Constitution: “To promote the progress of science and useful arts, by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries”

U.S. Legislation

Intellectual Property I: Why have intellectual property laws? Regional and local laws California Trade Secret Law

Regional and local laws

California Trade Secret Law

Intellectual Property I: Why have intellectual property laws? Effects of Laws: Economic Incentive Innovation Spread ideas

Effects of Laws: Economic Incentive

Innovation

Spread ideas

Intellectual Property I: Why have intellectual property laws? Field Trip Back to the 70’s!

Intellectual Property I: Why have intellectual property laws? Gee, the U.S. government sure pays us to make far out inventions. I wonder if an auto maker like Ford or GM will want to license our government-owned patent? No way. The law says that if the Government licenses a patent, it can’t license it to only one car company. Why would Ford want to pay to develop this car when Chevy could copy them? There should be a law….

Intellectual Property I: Why have intellectual property laws? Yes, let’s do that, Sen. Dole Sen. Bayh, shall we make a law?

Intellectual Property I: Why have intellectual property laws? http://www.promotetheprogress.com/ptpfiles/legislation/109HCR319ih.pdf ; HCON 319 IH (House measure recognizing 25 th anniversary of Bayh-Dole)

Intellectual Property I: Why have intellectual property laws? Non-profits, including universities, and small businesses may elect to retain title to innovations developed under federally-funded research programs Universities are encouraged to collaborate with commercial concerns to promote the utilization of inventions arising from federal funding Universities are expected to file patents on inventions they elect to own Universities are expected to give licensing preference to small businesses The government retains a non-exclusive license to practice the patent throughout the world The government retains march-in rights. The Bayh-Dole Act was especially instrumental in encouraging universities to participate in technology transfer activities.

Non-profits, including universities, and small businesses may elect to retain title to innovations developed under federally-funded research programs

Universities are encouraged to collaborate with commercial concerns to promote the utilization of inventions arising from federal funding

Universities are expected to file patents on inventions they elect to own

Universities are expected to give licensing preference to small businesses

The government retains a non-exclusive license to practice the patent throughout the world

The government retains march-in rights.

The Bayh-Dole Act was especially instrumental in encouraging universities to participate in technology transfer activities.

Intellectual Property I: Why have intellectual property laws?

Intellectual Property I: Why have intellectual property laws? Cohen Boyer patent, Stanford University licensor About $255MM to Stanford, 1980-1997 http://www.kauffman.org/pdf/tt/Feldman_Maryann.pdf#search='cohen%20boyer%20stanford%20license ‘

Cohen Boyer patent, Stanford University licensor

About $255MM to Stanford, 1980-1997

Intellectual Property I: Why have intellectual property laws? http://www.autm.net/events/File/04AUTMSurveySum-USpublic.pdf

Intellectual Property I: Why have intellectual property laws? http://www.autm.net/events/File/04AUTMSurveySum-USpublic.pdf

Intellectual Property I: Why have intellectual property laws? California: Proposition 71, state-funded stem cell research commercialization determined to be the fastest way to public benefit

Intellectual Property I: Why have intellectual property laws?

Intellectual Property I: Why have intellectual property laws? http://ucdiscoverygrant.org/fields/biotech.htm

Intellectual Property I: Why have intellectual property laws? Patent schmatent! What about the Salk vaccine? Dr. Salk innovated even without a patent!

Patent schmatent! What about the Salk vaccine? Dr. Salk innovated even without a patent!

Intellectual Property I: Why have intellectual property laws? http://www.marchofdimes.com/printableArticles/789_821.asp Example of speeding publicly funded innovation to the clinic: Polio vaccine “ [The vaccine] belongs to the people.. . It would be like patenting the sun. . .” 1. Dr. Salk did not own the technology, the U.S. government did. 2. The government tightly regulated vaccine manufacturers.

Intellectual Property I: Why have intellectual property laws? Other laws for technology transfer: Stevenson-Wydler Technology Innovation Act (1980) Required federal laboratories to facilitate the transfer of federally owned and originated technology to state and local governments and the private sector. The Act includes a requirement that each federal lab spend a specified percentage of its research and development budget on transfer activities and that an Office of Research and Technology Applications (ORTA) be established to facilitate such transfer. • Small Business Innovation Development Act (1982) Established the Small Business Innovation Research (SBIR) Program within the major federal R&D agencies to increase government funding of research with commercialization potential in the small high-technology company sector. Each federal agency with an R&D budget of $100 million or more is required to set aside a certain percentage of that amount to finance the SBIR effort. National Cooperative Research Act (1984) The National Cooperative Research Act of 1984 eased antitrust penalties on cooperative research by instituting single, as opposed to treble, damages for antitrust violations in joint research. The Act also mandated a “rule of reason” standard for assessing potential antitrust violations for cooperative research. This contrasted with the per se standard by which any R&D collusion was an automatic violation, regardless of a determination of economic damage.

Other laws for technology transfer:

Stevenson-Wydler Technology Innovation Act (1980) Required federal laboratories to facilitate the transfer of federally owned and originated technology to state and local governments and the private sector. The Act includes a requirement that each federal lab spend a specified percentage of its research and development budget on transfer activities and that an Office of Research and Technology Applications (ORTA) be established to facilitate such transfer.

• Small Business Innovation Development Act (1982) Established the Small Business Innovation Research (SBIR) Program within the major federal R&D agencies to increase government funding of research with commercialization potential in the small high-technology company sector. Each federal agency with an R&D budget of $100 million or more is required to set aside a certain percentage of that amount to finance the SBIR effort.

National Cooperative Research Act (1984) The National Cooperative Research Act of 1984 eased antitrust penalties on cooperative research by instituting single, as opposed to treble, damages for antitrust violations in joint research. The Act also mandated a “rule of reason” standard for assessing potential antitrust violations for cooperative research. This contrasted with the per se standard by which any R&D collusion was an automatic violation, regardless of a determination of economic damage.

Intellectual Property I: Why have intellectual property laws? Other laws for technology transfer: Federal Technology Transfer Act (1986) Amended the Stevenson-Wydler Technology Innovation Act to authorize Cooperative Research and Development Agreements (CRADAs) between federal laboratories and other entities, including state agencies. • Omnibus Trade and Competitiveness Act (1988) In addition to establishing a Competitiveness Policy Council designed to enhance U.S. industrial competitiveness, the Act created several new programs (e.g., the Advanced Technology Program and the Manufacturing Technology Centers) housed in the Department of Commerce's National Institute of Standards and Technology and intended to help accelerate development, commercialization, and application of promising new technologies and improve manufacturing techniques of small and medium-sized manufacturers. • National Competitiveness Technology Transfer Act (1989) Part of the Department of Defense authorization bill, this act amended the Stevenson-Wydler Act to allow government-owned, contractor-operated laboratories to enter into cooperative R&D agreements.

Other laws for technology transfer:

Federal Technology Transfer Act (1986) Amended the Stevenson-Wydler Technology Innovation Act to authorize Cooperative Research and Development Agreements (CRADAs) between federal laboratories and other entities, including state agencies.

• Omnibus Trade and Competitiveness Act (1988) In addition to establishing a Competitiveness Policy Council designed to enhance U.S. industrial competitiveness, the Act created several new programs (e.g., the Advanced Technology Program and the Manufacturing Technology Centers) housed in the Department of Commerce's National Institute of Standards and Technology and intended to help accelerate development, commercialization, and application of promising new technologies and improve manufacturing techniques of small and medium-sized manufacturers.

• National Competitiveness Technology Transfer Act (1989) Part of the Department of Defense authorization bill, this act amended the Stevenson-Wydler Act to allow government-owned, contractor-operated laboratories to enter into cooperative R&D agreements.

Intellectual Property I: Why have intellectual property laws? Factors contributing to US innovation Strong educational system Federal funding of science Capital markets and stable government Strong intellectual property laws and enforcement systems Booyah ski daddy

Factors contributing to US innovation

Strong educational system

Federal funding of science

Capital markets and stable government

Strong intellectual property laws and enforcement systems

Intellectual Property I: Why have intellectual property laws? Hainan holds IPR lecture On September 26, more than 90 related principals from over 70 pharmaceutical enterprises of Hainan , including Asia Pharmaceutical Group (Hainan), Hainan Chang'an International Pharmaceutical Co Ltd attended Hainan's first IPR-related law lecture for pharmaceutical enterprises organized by Hainan Provincial Pharmaceutical and Health Care Products Trade Association in Haikou, capital of Hainan Province. According to China's 11th Five-Year Plan, in the period, the pharmaceutical industry shall develop a batch of new drugs with independent IPR and therefore this industry should acquire the concept of IPR protection. However, in China the IPR protection awareness has been comparatively weak for a long time and Hainan pharmaceutical industry is in the same situation. Secretary-general of Hainan Provincial Pharmaceutical and Health Care Products Trade Association Li Junling says, for the purpose of developing pharmaceutical industry and building brands of the industry, it is necessary to reinforce the popularization of IPR protection knowledge related to pharmaceuticals. One participant in the lecture, the Hainan Longqiao Law Firm, also emphasized, to strengthen IPR protection awareness is the demand and guarantee for the enterprises to become larger, stronger and internationalized . http://www.ipr.gov.cn/ipr/en/info/Article.jsp?a_no=19324&col_no=99&dir=200610

Hainan holds IPR lecture On September 26, more than 90 related principals from over 70 pharmaceutical enterprises of Hainan , including Asia Pharmaceutical Group (Hainan), Hainan Chang'an International Pharmaceutical Co Ltd attended Hainan's first IPR-related law lecture for pharmaceutical enterprises organized by Hainan Provincial Pharmaceutical and Health Care Products Trade Association in Haikou, capital of Hainan Province. According to China's 11th Five-Year Plan, in the period, the pharmaceutical industry shall develop a batch of new drugs with independent IPR and therefore this industry should acquire the concept of IPR protection. However, in China the IPR protection awareness has been comparatively weak for a long time and Hainan pharmaceutical industry is in the same situation. Secretary-general of Hainan Provincial Pharmaceutical and Health Care Products Trade Association Li Junling says, for the purpose of developing pharmaceutical industry and building brands of the industry, it is necessary to reinforce the popularization of IPR protection knowledge related to pharmaceuticals. One participant in the lecture, the Hainan Longqiao Law Firm, also emphasized, to strengthen IPR protection awareness is the demand and guarantee for the enterprises to become larger, stronger and internationalized .

Intellectual Property I: Why have intellectual property laws? According to the newly finished International Assessment Report on the University Creativity, there are no Chinese universities in the top 100. 11 universities from China are listed in the top 200, including Tsinghua University, Beijing University, Zhejiang University, Fudan University, etc.. Related experts pointed out that university should be the cradle of innovative talents and the main base of innovative achievements. However, the lacks of perfect talent training system and appraisal system of scientific research block the enhancement of innovation capability of Chinese universities. Edited and translated by IPR in China (Source: Shanghai Evening Post) http://www.ipr.gov.cn/ipr/en/info/Article.jsp?a_no=36418&col_no=929&dir=200612

Intellectual Property I: Why have intellectual property laws? Intellectual property laws encourage innovation with the promise of economic reward. Intellectual property laws encourage the flow of capital into developing innovation by legally enforceable rights. Intellectual property ensures free flow of ideas, rather than keeping secrets. A credible judicial system is a critical component of intellectual property laws.

Intellectual property laws encourage innovation with the promise of economic reward.

Intellectual property laws encourage the flow of capital into developing innovation by legally enforceable rights.

Intellectual property ensures free flow of ideas, rather than keeping secrets.

A credible judicial system is a critical component of intellectual property laws.

Quiz http://news.bbc.co.uk/2/hi/science/nature/6345557.stm http://code.google.com/android/adc.html

Intellectual Property I: Why have intellectual property laws? END CSUCI2008 BIOL503 K. Pessin Next: Tangible and Intangible Property