Overview of Intellectual Property and Intellectual Property

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					 Overview of Intellectual
Property and Intellectual
    Property Rights

         Atty. Adrian S. Cristobal Jr.
               Director General
Intellectual Property Office of the Philippines
               (IP Philippines)
“ There is no doubt that
  creativity is the most
  important human resource of
  all. Without creativity there
  would be no progress, and
  we would forever be
  repeating the same
  patterns.”

            – Edward de Bono
Intellectual Property
 describes ideas, inventions,
 technologies, artworks, music
 and literature, that are
 intangible when first created,
 but become valuable in tangible
 form as products

                  - Dr. Kamil Idris
I.   Importance of IP in the
          Economy
   Total worldwide revenues for patent
    licensing increased from U.S. $15 billion to
    U.S. $110 billion between 1990-2000
    (Source: Kamil Idris IP: A Power Tool for
    Economic Growth)

   IT industry alone employs more than nine
    (9) million people, raises more than U.S.
    $700 billion in taxes per year, and grew
    by 26% between 1996-2000, creating 2.6
    million new jobs and contributing US$6
    trillion to economies worldwide.
    (Source: Business Software Alliance)
    IP in the U.S today is valued at US $5
    trillion to US $5.5 trillion – equivalent to
    about 45% of the U.S. GDP and greater
    than the GDP of other countries
    (Robert J. Shapiro and Kevin Hasset, The
    Economic Value of Intellectual Propert, 2005)

   Revenues from the U.S. biotechnology
    industry increased from U.S. $8.billion in
    1992 to U.S. $39.2 billion in 2003, and the
    industry employed 198,300 as of
    December 2003
    (Source: Biotechnology Industry Organization)
   European Union: copyright industry
    contributed more than 1,200B Euro to the
    economy, produced value added of 450B
    Euro, employed more than 5.2 million

   Coca Cola’s estimated brand value is $
    67 Billion.Total brand valuation of 52
    US companies in top 100 corporations
    nearly $ 722 Billion

   Disney borrowed $ 400 million using its
    copyright assets and $480 million using its
    trademarks
“ In recent decades, the fraction of the
  total output of the US economy that is
  essentially conceptual rather than
  physical has been rising. The trend has,
  of necessity, shifted the emphasis in
  asset valuation from physical property
  to intellectual property and to the legal
  rights inherent in intellectual property.”
                   (Chairman Alan Greenspan,
             US Federal Reserve, 27 Feb 2004)
Correlation between IPR and Trade
 Positive two way relationship – data
  show that trade in patents grew
  almost as fast as trade in goods
  between 1988 and 1996 ( IMF)
Correlation between IPR and national
  competitiveness
 20 countries perceived with strong IP
  systems - the top 27 in growth
  competitiveness index
 20 countries perceived weak IP
  systems ranked among the bottom
  36 countries
             (WEF,Global Competitiveness
                         Report,2004-05)
II. Forms of IP
               PATENTS




NOVELTY                          INVENTIVE STEP

          INDUSTRIAL APPLICABILITY
UTILITY MODELS
INDUSTRIAL DESIGNS
LAYOUT DESIGN OF
INTEGRATED
CIRCUIT
TRADEMARKS
COPYRIGHT
COPYRIGHT
COPYRIGHT
  TRADE SECRETS/
SECRET FORMULATION
     III. Importance and
Potential of IP in the Philippines
  OUR INTANGIBLE WEALTH

• 68% increase in Trademark
  applications ( 1998-2005)
• 51% increase in Patent
  Applications for the same period
• Semiconductor and Electronics
     2004 – US$ 27B - 70% of our exports
     860 companies – 28% Filipino, 72% foreign
• ICT industry
     Outsourcing in global market est. US$140B
     BPO – US$350M offshore outsource
      software services
• Software Industry
     More than 300 firms
     2004 – exported US$ 186M
     10000 IT professionals
• Creative sector (art,music, press and
  literature, performance, design, etc)
     Contributes 4.85% of GDP
• Traditional Knowledge and Genetic
  Resources
     9,253 plant species; 1309 animal species
     Sources of medicines (ex. Erythtomycin,
      Philippine sea snail)
• Geographic Indications
     Local community and indigenous products
         STATE POLICIES
• The State shall protect and secure the
  exclusive rights of scientists,
  inventors, artists and other gifted
  citizens to their intellectual
  property and creations, particularly
  when beneficial to the people, for
  such period as may be provided by law.
  (Art. XIV, Sec.3, Philippine Constitution)
Intellectual Property Code (R.A 8293)
  Section 2. The State recognizes that an
   effective intellectual and industrial policy
   system is vital to the development of
   domestic and creative activity, facilitates
   transfer of technology, attracts foreign
   investments and ensures market access
   for products. It shall protect and secure the
   exclusive rights of scientists, inventors,
   artists and other gifted citizens to their
   intellectual property and creations…
Intellectual Property Code (cont’d)
  The use of intellectual property bears a social
    function. To this end, the State shall promote
    the diffusion of knowledge and
    information for the promotion of national
    development and progress and the
    common good.
        OTHER LAWS

 Protection of Layout Designs of
  Integrated Circuits (R.A 9150)
 Plant Varieties Act (R.A 9168 )

 Optical Media Act (9239)
MEDIUM TERM PHILIPPINE
 DEVELOPMENT PLAN (2004-2010)
  “Developing the country’s knowledge base
 provides leverage to improve local access to
 global sources of knowledge. The country’s
 innovation system will be improved to meet the
 challenges of globalization. Intellectual
 property rights will be protected in a manner
 that will both stimulate technological innovation
 and encourage technology diffusion throughout
 the economy. Scientific research in areas
 strategic to national development, such as ICT,
 biotechnology, materials science, and
 manufacturing technologies will be pursued
 based on the inputs and priorities of the private
 sector, academe, and civil society.”
MEDIUM TERM PHILIPPINE
 DEVELOPMENT PLAN (2004-2010)
  “the development of information and
 communications technology (ICT) will be
 hastened with the end in view of making
 the country a knowledge and software
 development center and an e-service hub
 of Asia. The administration is committed to
 building the physical infrastructure that will
 ensure wider, faster, reliable, and
 affordable access to ICT resources and to
 the Internet. Interconnectivity is a must.
 Legal and judicial reforms will be pursued
 to address problems related to
 intellectual property rights and in
 support of e-commerce”
MEDIUM TERM PHILIPPINE
 DEVELOPMENT PLAN (2004-2010)
 Strategies in Enhancing the policy and
 legal environment:
 “Strengthen the Intellectual Property
 Office and embark on capacity building
 programs for local enforcement agencies,
 public prosecutors and judiciary in
 Intellectual Property Protection (IPP), how it
 is applied and enforced in the global
 economy”
Constraints/Challenges
 • Low awareness and understanding of the value
   of intangible wealth or IP and the IP system
   across all sectors. (Gradual change as local
   enterprises are affected)
 • IP not yet mainstreamed in socio-economic
   policies and programs of different government
   agencies (Also gradually changing, SMEs, S&T)
 • Historically, emphasis of IPR has been on its
   legal rights, not economic advantage.
     IP Philippines: What We Do
   Patent Grants
   Utility Model Registration
   Industrial Design Registration
   Trademark Registration
   Technology Transfer Licenses
   Administrative Adjudication for IPV/IPC
   Inter-agency coordination for enforcement
   Information and Education
   Copyright Support Services
   PHILIPPINES IP POLICY STRATEGY
    • “Taking stock” of our IP Assets or
      Intangible Wealth
      (arts,design,TK,genetic resources,
      agricultural research, etc)
    • IP Education and Advocacy
    • Institutional Capacity Building
    • Commercialization of Inventions
    • Social dimension (public health)
“ Ideas and innovations have become
  the most important resource
  replacing land, energy and raw
  materials”
                   – The Economist
Thank you.
  http://ipophil.gov.ph