The Impact of Free Trade Agreements on Information Technology Based Business

THE IMPACT OF FREE TRADE AGREEMENTS ON INFORMATION TECHNOLOGY BASED BUSINESSDR ANDRES GUADAMUZ UNIVERSITY OF SUSSEX

APOLOGIES

BACKGROUND

SOME BACKGROUND

FTAsA stage in economic integration between nations by which member states have agreed to eliminate or reduce tariffs, quotas, and preferences in some goods and services subject to international trade restrictions.Trade in goods, services, investments

Telecom, e-commerce

IPR, government procurement

Dispute settlement

Transparency

Customs procedures and facilitation

Labour, environment

DR-CAFTAAgreement signed in 2004 by US and Central American countries (joined by Dominican Republic later that year).

Ratified by all states, contains provisions on government procurement, financial services, labour, telecommunications, electronic commerce, and intellectual property rights.

Also contains dispute resolution.

Main issues regarding domain names

DR-CAFTA in Article 15.4 under the heading “Domain Names on the Internet” requires that the parties provide, for their respective ccTLDs “an appropriate procedure for the settlement of disputes based on the principles established in the Uniform Domain-Name Dispute Resolution Policy.”

The DR-CAFTA agreement requires the use of a WHOIS database, but allows for provisions dealing with privacy.

Key provisions on e-commerce

Art. 14.3.1 states that there should not be any ‘customs duties, fees, or other charges’ for importing or exporting digital products by electronic transmission.

When digital products are physically shipped across borders, Article 14.3.2 provides that the applicable customs duties must be based on the ‘carrier medium’ of the product rather than the value of the digital product contained on the medium (such as the plastic CD rather than the music contained on it).

Art. 14.3.3 accords national treatment standards (under the ‘no less favourable treatment’ formula) to digital products transmitted electronically for ‘like’ products and when the digital products are created by a non-party.

Main issues about intermediary liability

DR-CAFTA imposes similar regime to the one contained in US law through the DMCA.

The agreement provides limits on copyright liability for ISPs who meet certain procedural requirements in four areas. These areas are known as the ‘safe harbours’ both in the DR-CAFTA agreement and in the DMCA.

The agreement requires ISPs to give identifying information about their subscribers once they have received a subpoena alleging copyright infringement.

Some copyright issues

Enforcement: countries must have civil judicial procedures concerning the enforcement of ‘any intellectual property right’, which includes copyright.

Statutory damages for infringement are included.

Inclusion of DMCA-like protection of anti-circumvention measures (DRM).

WHAT HAS HAPPENED?

Other agreements

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