Ipr trips&trims

Intellectual Property Rights(IPR) TRIPS/TRIMS

Submitted byMadhumitha Udaykumar 30S Vignesh 43Sabarinathan S 45PGDM A Group 20

04/10/2023 Group 20 2

Agenda• Introduction

• History and Treaties

• Types of IPR

• Why do we need IPR?

• TRIPS

• TRIMS

• Limitations of IPR

• Current Issues

• Implications for MNEs

04/10/2023 Group 20 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.

04/10/2023 Group 20 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/

04/10/2023 Group 20 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

04/10/2023 Group 20 6

Intellectual 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.

Types of IPR

04/10/2023 Group 20 7

Common types of IPR

PatentTrademark

Copyright

Design Registration

Trade Secret

Geographical Indications

04/10/2023 Group 20 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

04/10/2023 Group 20 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 laws

Source: http://newsbytes.ph/2011/05/12/ph-piracy-rate-in-

2010-steady-at-69-but-losses-rise-to-278m/

04/10/2023 Group 20 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)

04/10/2023 Group 20 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.

04/10/2023 Group 20 12

THE TRIPS AGREEMENT

04/10/2023 Group 20 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.

04/10/2023 Group 20 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.

04/10/2023 Group 20 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.

04/10/2023 Group 20 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.

04/10/2023 Group 20 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)

04/10/2023 Group 20 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 etc

DISPUTE 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.

04/10/2023 Group 20 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.

04/10/2023 Group 20 20

Diff b/w TRIPS and Indian Patent Act

04/10/2023 Group 20 21

THE TRIMS AGREEMENT

04/10/2023 Group 20 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

04/10/2023 Group 20 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

04/10/2023 Group 20 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 effects

04/10/2023 Group 20 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.

04/10/2023 Group 20 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, and

3. Dividend balancing requirement in the case of investment in 22

categories consumer goods.

04/10/2023 Group 20 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

04/10/2023 Group 20 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.

04/10/2023 Group 20 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

worldwide

04/10/2023 Group 20 30

Patent filings rebound in 2010

Source: WIPO Report 2011

04/10/2023 Group 20 31

Source: WIPO Report 2011

04/10/2023 Group 20 32

Source: WIPO Report 2011

04/10/2023 Group 20 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.

04/10/2023 Group 20 34

Current Issues• IPL brands - intellectual

property bouquets (2009)

• Delhi's Nehru Place among

IPR infringing IT markets (Dec

2011)

• The Apple v Samsung Patent

War (2011)

04/10/2023 Group 20 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.

04/10/2023 Group 20 36

Thank you!!!