Vision - May/June 2008 - (Page 24)

While China is of greatest concern to IPR defenders, Brazil, Russia and India all pose threats—often in very different ways. For example, IACC’s Johnson says that Brazil is an “interesting problem for a lot of our members.” “It’s a very large market where people are looking for cheap goods and counterfeit fills the bill there,” he explains, citing market access issues such as high tariffs. “That creates a situation where makers of legitimate goods want to get into the market, but tariffs are so high that counterfeit goods usurp the market. It’s tough for legitimate manufacturers to compete.” He cites the price of home videogame systems. Prices for legitimate systems were “so far above and beyond” the price of counterfeit contraptions that the legal version “got a zero market share,” which in turn “leads to extremely high rates of piracy.” As a result, legitimate “producers of games software won’t go into the market,” Johnson observes. Each factor in the cyclical relationship feeds off the others. High tariffs and rampant counterfeiting encourage illicit distribution. The porous border region near Chile adds to the difficult environment, he says. “We have seen some improvement in Brazil in the past few years, but the problems still are very difficult.” In Russia, IPR problems often are traced to what IACC’s Johnson calls “well-established, well-organized criminal syndicates involved in making and distributing counterfeiting goods.” He points out that some criminal rings “have the gall to [create] their own trademarks to show off that their products come from a high quality pirate.” Part of the problem stems from products called “look-alikes.” They are not outright counterfeits, but rather carry brand name packaging and product design made to resemble familiar brands. “You’re never quite sure” about the quality of such goods, says Johnson. “The biggest concern is safety standards. We’ve worked with Underwriters Lab [the U.S. certification organization]; we’ll see things like a surge protector with thin gauge wire inside, or telephone-gauge wire in a power cord.” “The final product appears identical, but it has a greater potential fire and electric shock risk,” Johnson says. “We’ve seen electronic games with counterfeit batteries or power sources that overheat and lead to potential burns.” India’s technology boom is linked to the boom in producing counterfeit products. For years, India was seen solely as a manufacturing center for export to other countries. With growing prosperity, including middle-class wealth and greater manufacturing power, has come an explosion of markets for counterfeit goods. IPOA led its first delegation to India early this year. “India has a long way to go, but they’re showing an interest in improving their patent system,” says IPOA’s Wamsley. He notes that since the Indian patent system was strengthened in 2004, U.S. companies have had more success enforcing their claims in that country. IACC’s Johnson speculates that people in India’s research and development sector that now are producing legitimate products “may have gotten their start on the more illicit part of the spectrum.” “With the rise of wealth in India, they’re at a crossroads,” Johnson says. “The legitimate sector there has come to realize the importance of protecting rights.” Moving Across Borders Much of America’s IPR protection patrolling is done through close coordination The Lingo of IPR Acronym interpretation is a pre-requisite in the global IP morass. Here is a guide to the meaning of some frequently used terms. IPR: Intellectual Property Rights are the legal processes that protect inventions, literary and artistic works, symbols, images, names and designs used in commerce. TRIPS: Trade-Related Aspects of Intellectual Property rights are based on a World Trade Organization agreement to seek (in the words of its preamble) to “reduce distortions and impediments to international trade, … promote effective and adequate protection of intellectual property rights, and … to [assure that] intellectual property rights do not themselves become barriers to legitimate trade.” USPTO: The United States Patent and Trademark Office is part of the Department of Commerce; it grants and oversees the legal process of inventions, corporate identify symbols and other IP . USTR: United States Trade Representative, a Cabinet-level Office (and the head of that Office), is delegated to negotiate with foreign governments to create trade agreements, resolve disputes and participate in global trade policy organizations. STOP: “Strategy Targeting Organized Piracy” is a collaborative venture of USPTO and U.S. government enforcement agencies. Details are available at www.StopFakes.gov and the STOP hotline phone: 866-999-HALT. ICE: Immigration and Customs Enforcement is the investigative branch of the Department of Homeland Security (DHS). It combines the law enforcement arms of the former Immigration and Naturalization Service and the former U.S. Customs Service. CBP: The U.S. Customs & Border Protection agency is part of the Department of Homeland Security; it includes the former Border Patrol and Customs Service. WTO: The World Trade Organization (WTO), based in Geneva, represents 151 countries. It is the only global organization dealing with the rules of trade between nations; it was established in 1995. WIPO: The World Intellectual Property Organization is a specialized agency of the United Nations. Established in 1967, it is dedicated to developing a balanced, accessible international intellectual property system, which rewards creativity, stimulates innovation and contributes to economic development while safeguarding the public interest. www.ce.org 24 May/June 2008 http://www.StopFakes.gov http://www.ce.org

Table of Contents Feed for the Digital Edition of Vision - May/June 2008

Vision - May/June 2008 Contents Shapiro's Spectrum In This Issue The Economist C4 Trends Visionary Making the Smartphone Truly Intelligent Shipping Strategies for CE Companies IP in BRIC Countries CEA Newsline Tech Speak Eye on Business Tech Policy Market Insider Just the Stats

Vision - May/June 2008

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