The Impact of Intellectual Property Protection in Developed Countries - Case Study Example

Assessment of the impact and effectiveness of Intellectual Property Protection in developed and developing countries Introduction In law, the possession of intangible assets such as information, knowledge, ideas, etc by an individual or organization acknowledged to have tangible value is considered as Intellectual Property (IP). This acknowledgement is protected by the statute. The owner of such property such as creator, inventor, designer, etc enjoys a number of exclusive rights for his intellectual work. Intellectual Property laws differ from one jurisdiction to another and efforts are therefore being made to harmonize these laws through international treaties like the 1994 World Trade Organization (WTO), Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs), etc. This sort of a legal protection expels others to utilize the owner’s right without consent. It provides the owner a sort of monopoly by law making the protection economic. Major IP laws are: Copyright which exists in case of creative works such as books, movies, music, paintings, and grants the owner to have complete permission to control, reproduce or adjust his work upto a specified period of time. Patent is provided in case of inventions where the inventor enjoys the exclusive right to exploit his invention for a particular period of time. Trademarks are signs allotted to various products and services of different businesses for discriminating them from others. Industrial design right safeguards the style, design, or appearance of an industrial commodity. Trade secret is confidential information regarding trade practices the leakage of which is sometimes considered illegal. Other IP laws include service marks, rights in performances, plant breeders’ rights, utility models, appellations of origins, topography, etc. Intellectual Property Protection in the developed and the developing nations Lot of controversies have been taking place in respect to the implementation of the IP rights. The imbalance in the financial and technological capacities between the advanced and the less advanced economies comes into light while discussing the impact of IP rights on a global scale. Due to the unequal distribution of investment and technological resources between the developed and the developing countries the discussion of IP rights splits the countries into two uncompromising blocs. The developing countries are endowed with maximum biodiversity but the technology for tapping that diversity exists in developed countries. Various commentators in India, the People’s Republic of China, Russia, and others have strongly opposed the status of intellectual property (“Intellectual Property”, 2006). Among the developed countries the United States and the UK are the two major supporters of IP protections who have remained consistent throughout (“Intellectual Property”, 2006). These two countries are the regular recipient of net balance of payment benefits from IPs (“Intellectual Property”, 2006). The developed countries have been found to be the maximum applicants for patents in 2000 such as the United States (42%), Germany (13.2%), Japan (10%), UK (6.1%), France (4%), Sweden (3.4%), (Netherlands 2.8%) whereas less developed regions such as Africa (0.4%) and Latin America (0.3%) are found to be far lagging behind (Kameri-Mbote , 2005). Investments in establishing IP rights regimes in developing economies have not yet revealed any progress of the countries. Commentators from Africa speak of the hindrances to entry to proprietary technology and essential medicines required for disease like HIV-AIDS (Kameri-Mbote, 2005). The exclusion of IP rights from access to medicines and foods is still the hottest debatable issue. In high technology area safeguard of intellectual property plays one of the pivotal role around which the entire economic growth and advancement revolves. In any debate where the impact of protecting intellectual property is put forward between the developed and the developing economies, the former has consistently favoured the safeguard of such intangible assets. In their opinion, such protection is ideal for businesses and acts as crucial factor for technical up-gradation. The developed world enjoying the advantages of unlimited wealth and superb infrastructure has finely tuned themselves to such implementations. Due to this advantage the developed countries supporting IP safeguard sometimes overlook its overall negative consequences faced by the rest of the world. Many a times when the disadvantages surpass the advantages the developed nations backed-up by the national economic power and established legal mechanisms are found ignorant about the consequences. The unchallenging technical and investment power enables them to withstand all disadvantages. However, this kind of approach holds true for neither the developing nor the under-developed nations. It is considered as self-centred which is against the interest of global advancement. Developed nations consider the transmission of technical know-how as a portion of the bargain where they have favoured protection of intellectual property rights. The TRIPs Agreement indicates various provisions in this regard such as the jurisdiction of the developed nations to offer inducements for their companies to facilitate technical know-how transmission to under-developed countries (“Intellectual Property”, n.d.). Exchange between countries and the swift advancement of technology have laid down greater emphasis on the significance of intellectual property safeguard especially for small and medium-sized enterprises (SMEs). The Biotechnology Industry Organization strongly favours intellectual property protection. Even in developing economies an efficient IP safeguard is mandatory for the success and sometimes even the endurance of biotechnology companies (Vaidya, n.d.). The patent system is supported as it gives way to the introduction of latest drugs and diagnostics for cure. It also ensures enhanced production of agricultural goods thereby meeting the requirements of the world. Instead of just safeguarding the interest of the companies, public health should be first considered as a matter of prime importance. Presently in the era of digital age, the superstructure of products and services such as the Internet lie on the backbone of intense knowledge and incredible information. Hence it becomes inevitable to safeguard these valuable intangible assets from duplication thereby preserving their uniqueness. Here, the IP protection acts as a weapon to combat the evils of piracy which eradicates the value built in the intellectual works of the content producers. It is important to protect the trademarks and brand- names of companies who have earned the confidence of the consumers due to their efficiency and genuineness. This goodwill and reputation must be safeguarded by discouraging infringement of the intellectual property. Patents benefit the creator of IP enhancing the values of commercial laboratory inventions. However, by discouraging free Research and Development (R&D), it has brought great concerns for less developed economies (Vaidya, n.d.). Insufficiency of wealth and poor infrastructural facilities are the key factors for discouraging protection of IP by the developing countries like India, Pakistan, Sri Lanka, Kenya, etc. Their weak economic position creates the hindrance for accommodating themselves to such IP protections. Another vital drawback for less privileged economies is the insufficient awareness of IP rights among all sections of people. These less developed economies have not yet become that self-sufficient to actively participate in the protection of IP rights. Infringement of copyright takes place mostly in nations such as Thailand, India, Russia and China (“Intellectual Property”, 2006). Some important facts On the commencement of WTO agreements on 1st January, 1995, the developed nations were provided 1 year to accommodate themselves with the TRIPs Agreement (“Intellectual Property”, n.d.). The developing nations were granted 5 years to match their legal policies with the TRIPs Agreement until 2000 (“Intellectual Property”, n.d.). The under-developed nations were provided 11 years until 2006 which has now been extended to 2016 for pharmaceutical patents (“Intellectual Property”, n.d.). On the implementation of TRIPs Agreement those developing economies which could not offer product patent production in a technological field was granted 10 years to provide the protection (“Intellectual Property”, n.d.). The World Intellectual Property Organization (WIPO) was strongly criticized in 2004 The Geneva Declaration on the Future of the World Intellectual Property Organization as when WIPO was asked to “focus more on the needs of developing countries, and to view IP as one of many tools for development – not as an end in itself” (“Intellectual Property”, 2006). The EU’s idea of covering databases in exclusive rights opposed by the United States Supreme Court did not come up with any fruitful result for the economy (“Intellectual Property”, 2006). Majority of the acts of the world are in compliance with the TRIPs Agreement. However, a number of amendments should be considered for making alterations in a number of areas. The IP rights by way of providing exclusive rights to the owner of the information protect his investment in his intellectual property from such evils like piracy, misuse or duplication. The supporters of IP mainly the developed nations are of the opinion that insufficiency of such system will discourage the intellectual property owner from sharing his knowledge due to the risk of losing it. It will be certainly unfair if any other individual uses the same idea without providing credit to the introducer of the idea. These economies put their point further stating that the protection of IP rights preserves the uniqueness of the valuable information. However, it has also been argued that such knowledge does not reduce once it is shared. One cannot be ignorant of the right of the commune to contact and reap the advantages of the intellectual properties. Free trade agreements in international trade relations are an example of various rules (Kameri-Mbote, 2005). In this regard the case of the United States can be cited where the country has shaken hands with Latin and Central American and Caribbean Countries on the above agreement (Kameri-Mbote, 2005). The country has also entered into contract with Australia, Morocco, the South African Customs Union (SACU) countries, Singapore and Thailand (Kameri-Mbote, 2005). WIPO is sometimes also considered as a boon to a number of less developed economy by imposing the country’s infrastructure and human resource base (Kameri-Mbote, 2005). In Kenya for example, WIPO has laid down the foundation of computers and software for supervision of intellectual property and sponsors various training courses (Kameri-Mbote, 2005). It has been the support of WIPO which has enabled Kenya to carry out research activities exhaustively by getting into contact with international IP databases online (Kameri-Mbote, 2005). However, due to the unattractive remunerations offered to staff, there prevails dearth of expert scientists in the country. This causes obstacle for the country to attain superior technical status. Weather implications of such IP acts should be added in the delicate fields of human rights to food and healthcare still exists as a heated discussion at the worldwide level (Kameri-Mbote, 2005). Such a controversy indeed deserves true mention. In this regard Africa’s example can be cited where the country deserves right to HIV and other essential medicines (Kameri-Mbote, 2005). The globalization of the safeguard of intellectual property through the World Trade Organization’s Agreement on Trade Related Aspects of Intellectual Property Rights takes care of the intangible technological assets of the owner in all fields of technology (Kameri-Mbote, 2005). Conclusion With the growth of knowledge-based society protection of the substance based on information has become inevitable. After all indomitable efforts must be made to protect the investment in valuable information by all means from the influences of evils like misuse, piracy or duplication without the true owner’s consent. Copyrights, patents and trademarks are the three most popular devices for safeguarding intellectual property. Hence to provide credit where and when required is the very core of the intellectual property rights. The International Bureau has been making repeated efforts to introduce WIPO Patent Agenda favouring treaties which overlook the priorities of developing nations and are ignorant of their access to the overall benefits of new ideas and imaginations (“Excerpts from Friends”, 2004). “To rectify this situation, WIPO should pursue a more balanced and comprehensive approach to norm-setting, emphasizing the design and negotiation of rules and standards that are guided by and fully address the development objectives and concerns of developing and least developed countries and of the international community” (“Excerpts from Friends”, 2004). One on hand where it is argued that the implementation of IP rights in nations will encourage technical advancement, motivate creativity and discovery and develop commerce thereby enhancing the country’s overall growth, it has also been discovered on the contrary that the less developed nations’ investments in such acts have not yet revealed any significant success. Protection of intellectual property has thus become a significant consideration for both the developed and the developing countries. The developed world always have positive outlook towards protecting intellectual property since long time back. On one hand where the safeguard of IP rights brings benefits like enhancing innovative culture, profitability and financial up-gradation for mostly the developed countries it also accompanies drawbacks for the less developed countries. Hence the technologically less advanced countries deserve more time to accommodate themselves to such IP protections. From all the above discussion we can therefore conclude that a judicial and fair implementation of the intellectual property rights should take place keeping in mind the umpteen numbers of inequalities among the developed and less developed sections of the world. The execution of IP rights will undoubtedly bring economic, social and cultural advancement to all economies as long as genuine efforts are directed towards the attainment of overall global success. References Excerpts from Friends of the Development Submission to WIPO IIM. (2004). Digital Rights Network. Retrieved Dec 17, 2006, from . Intellectual Property. (2006). Wikipedia. Retrieved Dec 17, 2006, from . Intellectual property: protection and enforcement. (n.d.). World Trade Organization. Retrieved Dec 17, 2006, from < http://www.wto.int/english/thewto_e/whatis_e/tif_e/agrm7_e.htm>. Kameri-Mbote, Patricia. (2005). Intellectual Property Protection in Africa: An Assessment of the Status of Laws, Research and Policy Analysis on Intellectual Property Rights in Kenya. Retrieved Dec 17, 2006, from < http://www.ielrc.org/content/w0502.pdf>. Vaidya, Vandana. (n.d.). Intellectual Property Rights – A Boon To Indian Companies. Retrieved Dec 17, 2006, from < http://www.legalserviceindia.com/articles/ipr_vandana.htm>. Read More