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Intellectual Property Rights(IPR)
TRIPS/TRIMS
Structure
• Introduction
• History and Treaties
• Types of IPR
• Why do we need IPR?
• TRIPS
• TRIMS
• Limitations of IPR
• Current Issues
• Implications for MNEs
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.
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.
• 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.
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 .
• 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.
Intellectual property is divided into two categories
1. Industrial property which includes
• patents for inventions,
• trademarks,
• industrial designs and
• geographical indications
2. Copyright and related rights which cover
• literary and artistic expressions (e.g. books, films, music,
architecture, art),
• rights of performing artists in their performances,
recordings, and broadcasters in their radio and television
broadcasts which are also referred to as neighbouring
rights.
Types of IPR
• Copyrights - a legal concept giving the creator of an original
work exclusive rights to it, usually for a limited time.
• books, brochures and newspapers;
• theatrical works;
• oral presentations;
• choreographic works;
• music (with or without words);
• drawings, paintings, buildings and sculptures;
• designs;
• photographic works; and
• computer programs.
• Trademarks - a distinctive sign or indicator
used by an individual, business organization,
or other legal entity to identify those
products or services to consumers
Trademark Examples
Words Phrases
Trademark Examples
Symbols Designs
Industrial property
• 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.
• A right to exclude others from:
making, using, offering for sale, selling or
importing the patented invention
What Can Be Patented
 Process or Method
 Machine or Apparatus
 Article of Manufacture
 Composition of Matter
 Chemical Compounds
 Physical Mixtures
 Improvements of Any of the Above
• 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
“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.
– 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)
Why do we need IPR?
• 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.
THE TRIPS
AGREEMENT
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.
• 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.
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.
TRIPS:Standards for IIP
Patent
• 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.
TRIPS:Standards for IIP
Industrial 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 years
Trade 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.
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)
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.
Diff b/w TRIPS and Indian Patent Act
THE TRIMS
AGREEMENT
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
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
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 effects
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, and
3. Dividend balancing requirement in the case of investment in 22
categories consumer goods.
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
Implementation Difficulties
• 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.
Thank you

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Class 5 ipr trips - trims

  • 2. Structure • Introduction • History and Treaties • Types of IPR • Why do we need IPR? • TRIPS • TRIMS • Limitations of IPR • Current Issues • Implications for MNEs
  • 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.
  • 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. • 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.
  • 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 . • 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.
  • 6. Intellectual property is divided into two categories 1. Industrial property which includes • patents for inventions, • trademarks, • industrial designs and • geographical indications 2. Copyright and related rights which cover • literary and artistic expressions (e.g. books, films, music, architecture, art), • rights of performing artists in their performances, recordings, and broadcasters in their radio and television broadcasts which are also referred to as neighbouring rights. Types of IPR
  • 7. • Copyrights - a legal concept giving the creator of an original work exclusive rights to it, usually for a limited time. • books, brochures and newspapers; • theatrical works; • oral presentations; • choreographic works; • music (with or without words); • drawings, paintings, buildings and sculptures; • designs; • photographic works; and • computer programs.
  • 8.
  • 9.
  • 10. • Trademarks - a distinctive sign or indicator used by an individual, business organization, or other legal entity to identify those products or services to consumers
  • 13. Industrial property • 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. • A right to exclude others from: making, using, offering for sale, selling or importing the patented invention
  • 14. What Can Be Patented  Process or Method  Machine or Apparatus  Article of Manufacture  Composition of Matter  Chemical Compounds  Physical Mixtures  Improvements of Any of the Above
  • 15.
  • 16.
  • 17. • Industrial design rights - protects the visual design of objects that are not purely utilitarian.
  • 18.
  • 19. • 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
  • 20.
  • 21. “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. – 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)
  • 22. Why do we need IPR? • 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.
  • 24. 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. • 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.
  • 25. 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.
  • 26. TRIPS:Standards for IIP Patent • 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.
  • 27. TRIPS:Standards for IIP Industrial 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 years Trade 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.
  • 28. 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)
  • 29. 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.
  • 30. Diff b/w TRIPS and Indian Patent Act
  • 32. 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
  • 33. 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
  • 34. 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 effects
  • 35. 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, and 3. Dividend balancing requirement in the case of investment in 22 categories consumer goods.
  • 36. 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
  • 37. Implementation Difficulties • 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.

Editor's Notes

  1. WIPO comes under UN
  2. BIRPI - Bureaux Internationaux Reunis pour la Protection de la Propiete Intellectuelle
  3. The Uruguay Round was the 8th round of Multilateral trade negotiations (MTN) conducted within the framework of the General Agreement on Tariffs and Trade (GATT), spanning from 1986-1994 and embracing 123 countries as “contracting parties”. The Round transformed the GATT into the World Trade Organization. The Round came into effect in 1995 and has been implemented over the period to 2000 (2004 in the case of developing country contracting parties) under the administrative direction of the newly created World Trade Organization (WTO).
  4. Some examples of words that are trademarked are Crest and Coca-cola. “Just do it” is a trademarked phrase. Here is another trademarked phrase. (play video) Did you all know that “Let’s get ready to rumble” was trademarked?
  5. Examples of trademarked symbol are the Nike Swoosh and McDonald’s Golden Arches. Pepsi’s designs are an example of a trademarked design. Can you all think of any other examples of a trademark? (call on a couple of the students)
  6. http://www.chinaipr.gov.cn/newsarticle/news/chinaworld/201101/1186269_1.html Chinese patent office only came into existence by 1984
  7. Pro--Protects the Creator New innovations are often both creatively and expensive endeavours. The creation of copyright laws has protected innovators from investing huge amounts of time and money into a project, only to have it stolen. Instead, individuals have all elements of control over their property and have a legal channel to look to if another person infringes upon their rights. Copyright laws also provide courts with a legal guide when dealing with issues regarding intellectual property theft, making it easier to sort out disputes between individuals. Pro--Document Creations The establishment of the copyright laws has led to more creators documenting their innovations. Prior to copyright laws, individuals were extra secretive, sometimes choosing not to document the innovation for fear of the idea being stolen. Now, most individuals choose to register their item as soon as possible, which documents the creation of all new innovations. Copyright laws and registration provide creators the freedom to converse about their innovation without worrying that their idea be replicated without their permission.
  8. it strikes a balance between the long term benefits and possible short term costs to society. Society benefits in the long term when intellectual property protection encourages creation and invention, especially when the period of protection expires and the creations and inventions enter the public domain. Governments are allowed to reduce any short term costs through various exceptions, for example to tackle public health problems.
  9. Patent Patents shall be granted in all fields of technology. No discrimination is allowed with respect to the place of invention, or based on whether the products are locally-produced or imported. The agreement defines what types of signs must be eligible for protection as trademarks, and what the minimum rights conferred on their owners must be. It says that service marks must be protected in the same way as trademarks used for goods. Marks that have become well-known in a particular country enjoy additional protection.
  10. Industrial designs Under the TRIPS Agreement, industrial designs must be protected for at least 10 years. Owners of protected designs must be able to prevent the manufacture, sale or importation of articles bearing or embodying a design which is a copy of the protected design. Geographical indication Using the place name when the product was made elsewhere or when it does not have the usual characteristics can mislead consumers, and it can lead to unfair competition. The TRIPS Agreement says countries have to prevent this misuse of place names.
  11.  national treatment (treating one’s own nationals and foreigners equally) most-favoured-nation treatment (equal treatment for nationals of all trading partners in the WTO). National treatment is also a key principle in other intellectual property agreements outside the WTO.
  12. The obligations under TRIPS apply equally to all member states, however developing countries were allowed extra time to implement the applicable changes to their national laws, in two tiers of transition according to their level of development. The transition period for developing countries expired in 2005. The transition period for least developed countries to implement TRIPS was extended to 2013, and until 1 January 2016 for pharmaceutical patents, with the possibility of further extension. TRIPS Agreement may lead to high drug prices, low access to medicines and a weakening of pharmaceutical industries in the developing countries. It is feared that patent protection for pharmaceutical products and processes will have the effect of reducing or eliminating competition from generic production of medicines. 
  13. Came into effect from 1 Jan 1995 In favor of MNE FDI grew but with restrictions by the host country
  14. LDCs lack the capacity to identify measures that are inconsistent with the TRIMs agreement and hence are unable to meet the notification deadline.
  15. The prohibition of "local content" requirement. However the Agreement, as it is biased towards the interests of MNEs FDI has not yielded the benefits anticipated by hosts Pros: Reduce imports Increases balance of payments benefits from FDI Designed to reduce competition with domestic producers Cons: Reduce the benefits of FDI to hosts Hosts try to impose restrictions on the activities of MNEs so as to capture more of the benefits Biased towards the interests of MNEs Undesirable social impacts Local content requirements - industry will fail to improve its international competitiveness MNE wants to reduce tech diffusion and wants to maximize its profit by making its value chain efficient.