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Intellectual Property Rights(IPR)          TRIPS/TRIMS             Submitted by     Madhumitha Udaykumar 30     S Vignesh ...
Agenda• Introduction• History and Treaties• Types of IPR• Why do we need IPR?• TRIPS• TRIMS• Limitations of IPR• Current I...
What is Intellectual Property and IPR?• Intellectual property (IP) is a term referring to a number of distinct   types of ...
History• The need for a system arose when foreign exhibitors refused to attend an   International Exhibition of Inventions...
Treaties• There are 21 international treaties in the field of intellectual property, which      are administered by WIPO.•...
Types of IPRIntellectual property is divided into two categoriesIndustrial property which includes• patents for inventions...
Common types of IPR2/20/2012      Group 20   7
• Copyrights - a legal concept giving the creator of an original  work exclusive rights to it, usually for a limited time....
Piracy rates in 2010• Developed countries have less    piracy• Poor countries are more prone to    piracy due to lack of r...
“We can copy everything except your mother”1. Chinese IP laws are unsophisticated.2.     The IP rights in China are of poo...
Why do we need IPR?• Incentive to produce• Protects the Creator    Protects innovators from theft.    Individuals have a...
THE TRIPS            AGREEMENT2/20/2012       Group 20   12
TRIPS• Negotiated in the 1986-94 Uruguay Round• Trade Related Aspects of Intellectual Property Rights (TRIPS) is a World  ...
Broad Issues dealt in the Agreement• How basic principles of the trading system and other international  intellectual prop...
TRIPS:Standards for IIPPatent•   Patents shall be granted for any inventions, whether products or processes,    provided t...
TRIPS:Standards for IIPIndustrial Designs• Protection should be conferred on designs which are new or original.• Exclusive...
Provision on basic principles• National treatment ”each Member shall accord to the nationals of other Members  treatment n...
Other provisionsENFORCEMENT PROVISIONS• General obligations like enforcement procedures must be available;   procedures to...
IMPLEMENTATION & IMPACT• Transition period     Developing countries (2005)     Least developed countries to implement TR...
Diff b/w TRIPS and Indian Patent Act2/20/2012         Group 20             20
THE TRIMS            AGREEMENT2/20/2012       Group 20   21
TRIMS• Agreement on Trade Related Investment Measures (Uruguay round )• TRIMs are rules that apply to the domestic regulat...
Legal Framework• The TRIMs agreement does not provide any new language• It focusses on two Articles that were identified i...
Aims of the Agreement• Desiring      to promote the expansion and progressive liberalisaiton of            world trade an...
Notification• Governments of WTO members, or countries entitled to be    members within 2 years after 1 January, 1995 shou...
India’s notified TRIMs• TRIMs Agreement India had notified three trade related   investment measures as inconsistent with ...
Transition periods • Members are obliged to eliminate TRIMs which have been     notified. Such elimination is to take plac...
Implementation Difficulties • Difficulties in identifying TRIMs that violate the agreement • Difficulties in identifying a...
Patent filings rebound in 2010• Patent filings worldwide grew by 7.2% in 2010.• China and the US, which accounted for four...
Patent filings rebound in 2010                                 Source: WIPO                                 Report 20112/2...
Source: WIPO Report 20112/20/2012   Group 20                      31
Source: WIPO Report 20112/20/2012   Group 20                      32
Limitations• Monopoly On Creation     Creator holds a monopoly over his creation.     Power in the hands of one person o...
Current Issues• IPL brands - intellectual   property bouquets (2009)• Delhis Nehru Place among   IPR infringing IT markets...
Implications for MNEs• MNEs should invest in countries where IPR laws are properly   enforced• No technology diffusion wil...
Thank you!!!2/20/2012       Group 20   36
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Ipr trips&trims

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Ipr trips&trims

  1. 1. Intellectual Property Rights(IPR) TRIPS/TRIMS Submitted by Madhumitha Udaykumar 30 S Vignesh 43 Sabarinathan S 45 PGDM A Group 20
  2. 2. Agenda• Introduction• History and Treaties• Types of IPR• Why do we need IPR?• TRIPS• TRIMS• Limitations of IPR• Current Issues• Implications for MNEs 2/20/2012 Group 20 2
  3. 3. What is Intellectual Property and IPR?• Intellectual property (IP) is a term referring to a number of distinct types of creations of the mind for which a set of exclusive rights are recognized and the corresponding fields of law.• Under IPR, owners are granted certain exclusive rights to a variety of intangible assets, such as musical, literary, and artistic works; discoveries and inventions; and words, phrases, symbols, and designs.• Monitored by World Intellectual Property Organization (WIPO), Switzerland. 2/20/2012 Group 20 3
  4. 4. History• The need for a system arose when foreign exhibitors refused to attend an International Exhibition of Inventions in Vienna in 1873 because they were afraid that their ideas would be stolen and will be emulated in other countries.• 1883 - Paris Convention for the Protection of Industrial Property.• 1886 - Berne Convention for the Protection of Literary and Artistic Works. It gave rights to control, and receive payment for, the use of literary and artistic works.• Both Conventions set up International Bureaus to carry out administrative tasks, such as organizing meetings of the Member States.• 1893 - United International Bureaus for the Protection of Intellectual Property - best known by its French acronym, BIRPI.• BIRPI was the predecessor of what is today known as the World Intellectual Property Organization or WIPO. Source: http://www.wto.org/ 2/20/2012 Group 20 4
  5. 5. Treaties• There are 21 international treaties in the field of intellectual property, which are administered by WIPO.• The treaties fall into three groups namely• treaties, which establish international protection• treaties, which facilitate international protection and• treaties, which establish classification systems.• 1994 Uruguay round - Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs) and Agreement on Trade Related Investment Measures (TRIMs) by WTO (then GATT).• 1996 - An Agreement between WIPO and the WTO provides for cooperation concerning the implementation of the TRIPS Agreement, such as notification of laws and regulations, and legislative assistance to member countries. Source: http://www.wipo.int 2/20/2012 Group 20 5
  6. 6. Types of IPRIntellectual property is divided into two categoriesIndustrial property which includes• patents for inventions,• trademarks,• industrial designs and• geographical indicationsCopyright and related rights which cover• literary and artistic expressions (e.g. books, films, music, architecture, art),• rights of performing artists in their performances, producers of phonograms in their recordings, and broadcasters in their radio and television broadcasts which are also referred to as neighbouring rights. 2/20/2012 Group 20 6
  7. 7. Common types of IPR2/20/2012 Group 20 7
  8. 8. • Copyrights - a legal concept giving the creator of an original work exclusive rights to it, usually for a limited time.• Trademarks - a distinctive sign or indicator used by an individual, business organization, or other legal entity to identify those products or services to consumers• Patents - a set of exclusive rights granted by a sovereign state to an inventor for a limited period of time in exchange for the public disclosure of an invention.• Industrial design rights - protects the visual design of objects that are not purely utilitarian.• Geographical Indication - place names (in some countries also words associated with a place) used to identify the origin and quality, reputation or other characteristics of products• Trade Secrets 2/20/2012 Group 20 8
  9. 9. Piracy rates in 2010• Developed countries have less piracy• Poor countries are more prone to piracy due to lack of resources• China in top 25 pirated nations due to lack of IPR lawsSource: http://newsbytes.ph/2011/05/12/ph-piracy-rate-in- 2010-steady-at-69-but-losses-rise-to-278m/ 2/20/2012 Group 20 9
  10. 10. “We can copy everything except your mother”1. Chinese IP laws are unsophisticated.2. The IP rights in China are of poor quality.3. IP Laws and poor enforcement favour domestic interests.4. Foreign parties cannot access the enforcement system.5. Chinese patent office only came into existence by 1984.• Reason- The combination of deteriorating IPR enforcement, domestic protectionism and human resource constraints• 212 cases filed in Chinese courts between 2006 and spring 2011.• The main allegation was of patent, trademark, copyright, or trade dress infringement. Source: http://www.chinaipr.gov.cn & Intellectual Property Rights in China (e3g Report) 2/20/2012 Group 20 10
  11. 11. Why do we need IPR?• Incentive to produce• Protects the Creator  Protects innovators from theft.  Individuals have all elements of control.  Easy to sort out disputes between individuals.• Document Creations  Creators document their innovations.  Provide creators the freedom to converse about their innovation. 2/20/2012 Group 20 11
  12. 12. THE TRIPS AGREEMENT2/20/2012 Group 20 12
  13. 13. TRIPS• Negotiated in the 1986-94 Uruguay Round• Trade Related Aspects of Intellectual Property Rights (TRIPS) is a World Trade Organization (WTO) agreement designed by developed countries to enforce a global minimum standard of Intellectual Property Rights.• Only one actually enforceable under GATT Arts. XXI & XXII & the WTO dispute settlement understanding.• Since TRIPS is part of the WTO agreements, developing countries that want access to the global market through the WTO must accept the TRIPS agreement, and integrate its IPR standards into their national legislation. 2/20/2012 Group 20 13
  14. 14. Broad Issues dealt in the Agreement• How basic principles of the trading system and other international intellectual property agreements should be applied• How to give adequate protection to intellectual property rights• How countries should enforce those rights adequately in their own territories• How to settle disputes on intellectual property between members of the WTO• Special transitional arrangements during the period when the new system is being introduced. 2/20/2012 Group 20 14
  15. 15. TRIPS:Standards for IIPPatent• Patents shall be granted for any inventions, whether products or processes, provided they are new, involve an inventive step, & are capable of industrial application.• Patents shall be granted in all fields of technology.Trademark• Defines what types of signs must be eligible for protection as trademarks.• Service marks protected the same way.Copyright• Protection of computer programs as literary works & of compilations of data.• The agreement says performers must also have the right to prevent unauthorized recording, reproduction and broadcast of live performances (bootlegging) for no less than 50 years. 2/20/2012 Group 20 15
  16. 16. TRIPS:Standards for IIPIndustrial Designs• Protection should be conferred on designs which are new or original.• Exclusive rights can be exercised against acts for commercial purposes, including importation.• The minimum term of protection is 10 yearsTrade Secrets• Undisclosed commercial information is to be protected against unfair commercial practices• Secret data submitted for the approval of new chemical entities for pharmaceutical & agrochemical products should be protected against unfair commercial use & disclosure by governments.Geographical Indication• The TRIPS Agreement says countries have to prevent this misuse of place names. 2/20/2012 Group 20 16
  17. 17. Provision on basic principles• National treatment ”each Member shall accord to the nationals of other Members treatment no less favourable than it accords to its own nationals with regard to the protection of intellectual property” (Art. 3)• Most-Favoured-Nation Treatment ”With regard to the protection of intellectual property, any advantage, favour, privilege or immunity granted by a Member to the nationals of any other country shall be accorded immidiately and unconditionally to the nationals of all other Members” (Art. 4) 2/20/2012 Group 20 17
  18. 18. Other provisionsENFORCEMENT PROVISIONS• General obligations like enforcement procedures must be available; procedures to be fair and equitable etc• Special obligations like enforcing provisions for enforcing civil and administrative procedures like Disposal of infringing goods, Right of information etcDISPUTE SETTLEMENT• Aims for prevention of disputes through provisions on transparency• Settlement of disputes through panel procedures and decisions and trade sanctions in case decisions are not adhered to. 2/20/2012 Group 20 18
  19. 19. IMPLEMENTATION & IMPACT• Transition period  Developing countries (2005)  Least developed countries to implement TRIPS was extended to 2013, and until 1 January 2016 for pharmaceutical patents.• Impact of TRIPs on Pharmaceutical industry in developed and developing countries• Relaxation  Doha Declaration(2001)- circumvents patent rights for access to essential medicines through compulsory licenses. 2/20/2012 Group 20 19
  20. 20. Diff b/w TRIPS and Indian Patent Act2/20/2012 Group 20 20
  21. 21. THE TRIMS AGREEMENT2/20/2012 Group 20 21
  22. 22. TRIMS• Agreement on Trade Related Investment Measures (Uruguay round )• TRIMs are rules that apply to the domestic regulations a country applies to foreign investors• Restrictions: 1. Include local content requirements 2. Manufacturing requirements 3. Trade balancing requirements 4. Domestic sales requirements 5. Technology transfer requirements 6. Export performance requirements 7. Local equity restrictions 8. Foreign exchange restrictions 9. Remittance restrictions 10. Licensing requirements 11. Employment restrictions 2/20/2012 Group 20 22
  23. 23. Legal Framework• The TRIMs agreement does not provide any new language• It focusses on two Articles that were identified in a previous case under the GATT – Article III (National Treatment) • National treatment of imported product, unless specified in other agreements • Subjects the purchase or use by an enterprise of imported products to less favorable conditions than the purchase or use of domestic products – Article XI (Quantitative Restrictions) • Prohibition of quantitative restrictions on imports and exports • Part of the general trend in textiles and agriculture to phase out the use of quantitative restrictions 2/20/2012 Group 20 23
  24. 24. Aims of the Agreement• Desiring  to promote the expansion and progressive liberalisaiton of world trade and to facilitate investment, while ensuring competition• Take into account  trade, development and financial needs of developing countries, particularly least developed countries• Recognising  certain investment measures can cause trade-restrictive and distorting effects2/20/2012 Group 20 24
  25. 25. Notification• Governments of WTO members, or countries entitled to be members within 2 years after 1 January, 1995 should make notifications within 90 days after the date of their acceptance of the WTO agreement.2/20/2012 Group 20 25
  26. 26. India’s notified TRIMs• TRIMs Agreement India had notified three trade related investment measures as inconsistent with the provisions of the Agreement:1. Local content (mixing) requirements in the production of News Print,2. Local content requirement in the production of Rifampicin and Penicillin – G, and3. Dividend balancing requirement in the case of investment in 22 categories consumer goods. 2/20/2012 Group 20 26
  27. 27. Transition periods • Members are obliged to eliminate TRIMs which have been notified. Such elimination is to take place within – two years for developed countries – five years for developing countries – seven years for LDC 2/20/2012 Group 20 27
  28. 28. Implementation Difficulties • Difficulties in identifying TRIMs that violate the agreement • Difficulties in identifying alternative policies to achieve the same objective • Difficulties in accounting for non-contingent outcomes such as the financial crisis in Asia and Latin America • Difficulties in meeting the transition period deadlines • LDCs lack the capacity to identify measures that are inconsistent with the TRIMs agreement and hence are unable to meet the notification deadline.2/20/2012 Group 20 28
  29. 29. Patent filings rebound in 2010• Patent filings worldwide grew by 7.2% in 2010.• China and the US, which accounted for four-fifths of worldwide growth.• Japan and the US the main contributors for patent grants worldwide• Japan and the US the main contributors for patent grants worldwide2/20/2012 Group 20 29
  30. 30. Patent filings rebound in 2010 Source: WIPO Report 20112/20/2012 Group 20 30
  31. 31. Source: WIPO Report 20112/20/2012 Group 20 31
  32. 32. Source: WIPO Report 20112/20/2012 Group 20 32
  33. 33. Limitations• Monopoly On Creation  Creator holds a monopoly over his creation.  Power in the hands of one person or company.  Companies can charge any amount they desire.• Benefit Large Businesses  benefit large corporations and businesses not individuals  New innovations, are costly.  Outdated patents to generate income rather then creating new, efficient innovations. 2/20/2012 Group 20 33
  34. 34. Current Issues• IPL brands - intellectual property bouquets (2009)• Delhis Nehru Place among IPR infringing IT markets (Dec 2011)• The Apple v Samsung Patent War (2011) 2/20/2012 Group 20 34
  35. 35. Implications for MNEs• MNEs should invest in countries where IPR laws are properly enforced• No technology diffusion will happen in the countries which complies with IPR laws.• Gives an incentive for innovative MNEs.• MNEs in developing countries with limited R&D capabilities will have a negative impact due to IPR laws.2/20/2012 Group 20 35
  36. 36. Thank you!!!2/20/2012 Group 20 36

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