ASEAN Economic Community and Intellectual Property Rights … · · 2017-12-28ASEAN Economic Community and Intellectual Property Rights Hidetoshi Nishimura ... Myanmar IPR Symposium

ASEAN Economic Community and Intellectual Property Rights

Hidetoshi NishimuraExecutive Director

Economic Research Institute for ASEAN and East Asia (ERIA)18 November 2014, Tokyo

Contents of Keynote Speech

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I. AEC and IPRII. What ASEAN and ERIA have

achieved.III.What ASEAN and ERIA are doing

toward 2015IV.Conclusion

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ASEAN Progress • ASEAN: Growing Investment Hotspot:

–ASEAN: USD 50 b (2008) USD 126 b (2013)–China: USD 108 b (2008) USD 124 b (2013)–India: USD 47 b (2008) USD 28 b (2013)

I. AEC and IPR

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ASEAN commits the establishment of AEC by 2015.Key characteristics of AEC are;a) a single market and production baseb) a highly competitive economic regionc) a region of equitable economic developmentd) a region fully integrated into global economy

↓IPR is one of the core elements of AEC

ASEAN Economic Community (AEC)I. AEC and IPR

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Milestones in the Past1995 ASEAN Framework Agreement on IP Cooperation

Establishment of ASEAN Working Group for IP Cooperation (AWGIPC)

-Exploring possibility of ASEAN Trademark/ Patent system

1996

1998 Hanoi Plan of Action (1999-2004)

ASEAN IPR Action Plan 2004-20102004

-Study of the effect of accession to Patent Cooperation Treaty (PCT)-Comparing the effect of Regional Trademark system and accession to Madrid Protocol-Exploring possibility of regional industrial design system

2007 ASEAN Economic Community Blueprint

- Implementation of ASEAN IPR Action Plan- Accession to Madrid Protocol as much as possible- Regional Industrial design filing system

ASEAN IPR Action Plan 2011-20152011

- ASEAN Trademark/Patent filing system by 2000-Regional Trademark/Patent registration system or Regional Trademark/Patent Office

- Participation in Global IP System-Closer relationship with dialog partners and institutions

II. What ASEAN and ERIA have Achieved

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Being mindful of the international obligations under TRIPS, implement intra-ASEAN intellectual property arrangements in a manner in line with the objectives, principles, and norms set out in TRIPS. (Article 2.2)Explore the possibility of setting up of an ASEAN patent system, including an ASEAN Patent Office, if feasible. (Article 1.4)

↓ASEAN Frame work agreement is the core of the ASEAN IPR cooperation. It consists of;Implementing TRIPS and Harmonization of IPR System.

ASEAN Framework Agreement onIP Cooperation


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ASENA Working Group for IP Cooperation (AWGIPC)

Meeting 3 times a year. (Usually, March, July and November)

Composed of the IP offices of AMSs. The heads of delegations are the heads of the IP offices.

1 Meeting takes about 1 week, including dialogs with the partners (Japan, Australia, WIPO, etc.).


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Fully implement the ASEAN IPR Action Plan 2004-2010

Consideration of issues in accession to PCTComparing the effect of Regional Trademark system andaccession to Madrid Protocol etc.

Establish an ASEAN filing system for designAccession to the Madrid Protocol, where possibleInformation exchanges among nationalenforcement agencies

ASEAN Economic Community BlueprintII. What ASEAN and ERIA have Achieved

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ASEAN IPR Action Plan 2004-2010 wasimplemented to a reasonable degree.

However, the current level of IPR environment(e.g., local innovation, piracy rates) lags behindother emerging economies.

Mid Term Review of AEC Blueprintby ERIA (2012)


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Local InnovationResident share of patent applications

Note: Thai data in 2010 and 2011 are affected by a temporary factor (PCT accession).Source: WIPO

5.8% 8.4% 9.3% 10.8%16.7% 20.9% 23.6%

63.3%

79.0%

36.2%

0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%

Patent applications in China are dominated by residents.Although ASEAN has increased resident application ratios, it is far below the

levels of middle-income countries (even when China is excluded).


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2004 2005 2006 2007 2008 2009 2010 2011World Average 35% 35% 35% 38% 41% 43% 42% 42%Asia Pacific Average 53% 54% 55% 59% 61% 59% 60% 60%Brunei 67% 68% 67% 66% 67%Indonesia 87% 87% 85% 84% 85% 86% 87% 86%Malaysia 61% 60% 60% 59% 59% 58% 56% 55%Philippines 72% 71% 71% 69% 69% 69% 69% 70%Singapore 42% 40% 39% 37% 36% 35% 34% 33%Thailand 79% 80% 80% 78% 76% 75% 73% 72%Vietnam 92% 90% 88% 85% 85% 85% 83% 81%China 90% 86% 82% 82% 80% 79% 78% 77%India 74% 72% 71% 69% 68% 65% 64% 63%

Piracy Rates (BSA Survey)All the ASEAN countries (covered in the study) have made steady progresses in

anti-piracy from 2004 to 2011. However, the piracy rates of most ASEAN countries are much higher than the

world average.

Note: This data reflect piracy of software products, thus copyright, patents and trademarks. Source: Business Software Alliance


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ERIA’s recommendations on the Way Forwardtoward 2015 are;

the full implementation of the ASEAN IPR Action Plan2011-2015,Introduction of special treatment for SMEs to enhancelocal innovationintroduction of numerical targets to monitoradministration qualitysharing of best practices on organization issues facing IPagenciesacceleration of accession to key IP conventions

Mid Term Review of AEC Blueprintby ERIA (2012) (Continued)


Chairman’s Statement of the 21st ASEAN summit November 28, 2012, Cambodia

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(Excerption)30. ……….. We agree to intensify our efforts inthose areas under the AEC in order to achieve AECgoals by 2015. We welcome the prioritization ofAEC measures undertaken by the AEC Council, aswell as the recommendations of the AEC BlueprintMid-term Review, on taking forward the timely, fulland consistent realization of our AECcommitments.


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Changing the Approach for Harmonization of Patent System

Document Goals, Directions

ASEAN Framework Agreement on IP Cooperation (1995)

an ASEAN patent system, an ASEAN Patent Office,

Hanoi Plan of Action (1997) ASEAN Regional Patent Filing System by the year 2000, an ASEAN Common Form for Patent Applications, Establish a regional patent registration system, establish a regional patent office (on voluntary basis)

ASEAN IPR Action Plan 2004-2010 (2004)AEC Blueprint (2007)

Analysis and working out simplified and harmonized procedure, Consideration of issues in accession to PCT

ASEAN IPR Action Plan 2011-2015 (2011)

Accession to PCT by all AMS by 2015“Instead of trying to formulate a single set of laws and designing a harmonized regional system in IP, the AWGIPC has crafted its own means of integrating through a higher level of cooperation…”


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1. Diversity of the respective national laws

2. Growing demand for international protection mechanism rather than regional protection mechanism

3. Need to participate in global IP system

Reasons of Changing the ApproachII. What ASEAN and ERIA have Achieved

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Five

strategic

Goals

Adopted at AEM in August, 2011, Manado, Indonesia

A balanced IP system to enable IP offices to deliver timely, quality and accessible services

Reduction of average turnaround time for TM to 6 month

Implementations of ASEAN Patent Examination Cooperation (ASPEC) (Utilized at least 5%)

Development and implementation of a Regional Action Plan on IPR enforcement

Establishment of collective management societies in AMSs

Collaboration to enhance human and institutional capacity of IP offices

Structured training programs for patent examiners based on training needs.

Digitalization of Patent and Trademark documents.

Participation in global IP system

Accession to Madrid Protocol, Hague Agreement and PCT by 2015

Systematic promotion for IP creation, awareness and utilization

Establishment of a regional network of patent libraries in AMSs.

Development of a region-wide IP promotion campaign to raise awareness.

Closer relationships with dialog partners and institutions

A structured cooperation with WIPO on a regional level.

Enhancement of cooperation with dialog partners such as ANZ, USPTO, EPO, JPO.

Regular participation in international fora such as WIPO, WTO.

ASEAN IPR Action Plan 2011-2015 III. What ASEAN and ERIA is doing toward 2015

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Accession to Global IPR Protection System

Number ofParties in theWorld

Number of Parties in ASEAN ASEANTarget By 2015

PCT 148/186

Brunei (July 2012)Thailand (December 2009)Malaysia (August 2006)Laos (June 2006)Philippine (August 2001)Indonesia (September 1997)Singapore (February 1995)Vietnam (March 1993)

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Madrid Protocol 92/186

Philippine (July 2012)Vietnam (July 2006) Singapore (October 2000)

10Hague

Agreement 61/186Brunei (December 2013)Singapore (April 2005) 7

8/10

3/10

2/10

III. What ASEAN and ERIA is doing toward 2015

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ASEAN Patent Examination Cooperation(ASPEC)

Search /Examination

Request for ASPECApplication

First IP OfficesApplication

- Reduced work and faster turnaround time

- Better search and examination

Second IP Offices Claim Correspondence

ASPEC is the first regional patent work-sharing program among 9 ASEAN Member States except for Myanmar.


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ERIA – Myanmar IPR Symposium“IPR for SME Development”

Held on 9th September. 2014, in Nay Pyi Taw in cooperation with Ministry of Science and Technology (MOST) , Ministry of National Planning and Economic Development (NPED), Myanmar and Japan Patent Office


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Summary of ERIA Project “IPR Policy for SME Development” (1)A. Accelerated examination

SMEs sometimes want quick response so that they can leverage IPRs quickly.[Japan] JPO provides the services free of charge (because SMEs do not have

money).

[ASEAN] (a) SMEs tend to face longer examination period (because theirapplications are domestic).

(b) Some countries have framework for exam acceleration. But thescope is limited (no automatic eligibility for SMEs). SMEs need topay extra fee (because of extra services). Is it SME enhancing?

B. Reduction in examination/registration feeEven when SMEs invent, they sometimes lack money to apply/register.[Japan] JPO provides reduction/exemption for application/registration fee.[ASEAN] Some governments provide financial support for application andregistration, but only for a limited time period (not 20 years). Thus, Universitiesgive up patents when the support period ends.


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Summary of ERIA Project “IPR Policy for Investment Promotion in ASEAN (Phase I)” (1)

40%

38%

27%

25%

23%

22%

18%

17%

17%

15%

15%

15%

15%

15%

15%

12%

10%

10%

10%

10%

7%

7%

7%

0% 20% 40%

Implementation and enforcement of IP law

Wage level (labor cost)

Legal development concerning IPRs

Country risk

Completeness and reliability of infrastructure

Ease of procuring raw materials,…

Quality of human capital

Existence of preferential treatment system

Regulations on currency repatriation and…

Size and growth rate of the relevant market

Size and growth rate of GDP

Number of existing competitors in the…

Trade barriers or trade friction

Corporate tax rate

Size and growth of the relevant market in…

Stability of exchange rate

Ease of establishing sales channels

Price level

Requirements for operating permit

Distance from neighboring country with…

Receptiveness to foreign products by local…

Number of prior establishment of local…

Distance from home country

After (N=60)

Facing problems after establishments of local subsidiaries (N=60)

■ Conducted survey for 80 companies in Japan, Korea, China and ASEAN

■ MNCs pay greater attention to “Size and Growth of the market”, “Wage level” and “Size and Growth of GDP”, rather than IPR related issues, at the decision point of establishing subsidiary in ASEAN.

■ After establishing subsidiary in ASEAN, however, they recognize the difficulties highly on IP related issues.


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Regional Comprehensive Economic Partnership (RCEP)

Guiding Principles and Objectives for Negotiating RCEP……RCEP will cover trade in goods, trade in services, investment,economic and technical cooperation, intellectual property,competition, dispute settlement and other issues.……V. INTELLECTUAL PROPERTY

The text on intellectual property in the RCEP will aim to reduce IP-related barriers to trade and investment by promoting economicintegration and cooperation in the utilization, protection andenforcement of intellectual property rights.……..

V. Conclusion

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ASEAN RISING:ASEAN and AEC Beyond 2015by ERIA (2014)

a. Fully implement the ASEAN IPR Action Planb. Introduce special treatment for SMEs to enhance local

innovation (e.g., expedited examination and discounted fee)c. Continue cooperation in drafting legislation and enforcement

procedures in IPRd. Introduce numerical targets to monitor the administration

quality; e.g., turnaround time in patentse. Accelerate accession to key global IP conventionsf. Review existing legislation to enhance collaborative

inventions and the local participation in themg. Compile IPR-related data at the regional level in a

comparable mannerh. Strengthen cooperation in dissemination to and engagement

with stakeholders on IPR matters

V. Conclusion

Nay Pyi Taw Declaration on the ASEAN Community's Post 2015 Vision

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（excerption）

Foster robust productivity growth through innovation and technology development, which entails human resource development and intensified regional research and development with commercial application to increase ASEAN's competitive edge to move up the global value chain into higher technology-intensive manufacturing industries and knowledge intensive market services;

V. Conclusion

Thank You for Your Kind Attention.www.eria.org

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ERIA office located in Jakarta, Indonesia

ASEAN Economic Community and Intellectual Property Rights … · · 2017-12-28ASEAN Economic Community and Intellectual Property Rights Hidetoshi Nishimura ... Myanmar IPR Symposium

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