"Overview of Intellectual Property and Intellectual Property"
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