Vision - May/June 2008 - (Page 25)

between U.S. government agencies and private organizations, working with enforcement and regulatory officials worldwide. “The State Department is more involved than most people realize,” says Johnson, citing officials at U.S. embassies and consulates around the world that help keep track of counterfeiting reports. About 10 percent or IACC’s 250 members are from the technology sector, including Apple, Cisco, Lexmark and Microsoft. In all of the USTR’s watch list countries, a major problem are products that move beyond domestic borders of that nation. For example, most counterfeit products made in China are intended for export and find their way into other Asian countries and the rest of the global market. Russian-made products often end up in Eastern Europe, especially in the former Soviet satellite countries, but rarely reach the U.S. or Far East. Similarly, many Brazilian contraband goods are destined for local and regional consumption throughout South America. “Border protection should be a high concern for brand owners,” Johnson advises, noting that many illicit manufacturers consider it “not hard to get products in or out” of their country. IACC works through the U.S. government, which in turn works with the World Trade Organization (WTO). “We find it effective,” Johnson says. “WTO tends to be more responsive to government than to the private sector,” he says. “We also work with the World Customs Organization in Brussels, Interpol and agencies in each country.” He cites domestic organizations such as Brazil’s Associação Paulista de Propriedade Intelectual (IP Association) and China’s Quality Brand Protection Agency, a private sector group that has “cordial contacts” with the Chinese government. One mainstay of the global IP enforcement battle is the TRIPS agreement (Trade-Related Aspects of Intellectual Property rights), which WTO enforces. Another international agreement is the Anti-Counterfeiting Foreign Trade Agreement (ACTA), which has not yet been implemented. Some of ACTA’s signatories that have large IP interests say TRIPS is outdated, with the new agreement providing higher standards and best practices guidelines. www.ce.org Seeking Solutions Groups such as IPOA, whose members are largely big manufacturers, such as IBM, Intel, Motorola, Microsoft and Seagate, “want to use the patent systems to protect their technologies,” says IPOA chief Wamsley. He notes that patent systems in the BRIC countries “have not provided any statutory scheme that provides any legal rights.” “Some progress is being made, but it’s a gradual process,” he adds, noting that China adopted a major patent law change in 2005 and is considering more updates. China’s Patent Office also has been upgraded, adding hundreds of employees to review legal requests. “One of our goals is to promote patent law harmonization,” Wamsley says. “The laws in BRIC countries may not get better any time soon. “We are seeing a greater recognition from these countries,” says Johnson. “We’re hearing the right things, and we’re hopeful, if not optimistic, that we’ll see more action” to protect IP owners. Most BRIC countries have some sort of legislation to protect IPR owners, explains Ballman of ICE. He says that existing customs agreements with those countries helps U.S. officials crack down on illicit imports. “If a company knows it’s having trouble One of our goals is to promote patent law harmonization. — Herb Wamsley, executive director Intellectual Property Owners Association are different and regulations are different” among the countries where IPOA members file their patent applications. That situation is “especially burdensome on small companies,” he adds, noting that small manufacturers are often not able to file outside the U.S., which led to the cases where their patented technologies were used at will in other nations. He calls the need for harmonization even greater now that “the global economy” requires multi-national protection, which is “still expensive and difficult.” Unanimously, global trade experts offer the same advice to companies that plan to expand into BRIC countries: remember the “first to file” system, especially in countries viewed as high risk for IP infringement. “Make sure you register your IP rights there,” exhorts IACC’s Johnson. “Companies that were slow to register their brands in China found that local companies were already set up and shut legitimate manufacturers out of the market, then subjected them to claims.” Figuring Out What to Do Most experts agree with the gloomy acknowledgement that the IPR problems with its merchandise being pirated,” Ballman suggests contacting the National IP Rights Coordination Center, a collaboration of federal agencies to help U.S. firms protect their technologies and ideas. (Tel: 1-866 DHS 2 ICE or www.ice.gov/pi/cornerstone/ipr) Complicating enforcement is the complexity of electronic products that are manufactured with a lot of components, each covered by patents from various companies. Ballman says that ICE has advised companies to create a “group trademark” to include all the patents that are covered separately with the components of a product. Despite the scattered positive developments including the efforts of government and private industry, IPOA’s Wamsley sums up the outlook for IPR in BRIC countries as “not terribly encouraging.” He sees hope in the patent system improvements in China but also cites the conspicuous sales of counterfeit products worldwide. He recalls seeing iPhone knock-offs displayed next to “the real things” recently in Beijing. “There are so many things to do,” Wamsley says reflecting the views of government and industry officials battling the BRIC wars. • May/June 2008 25 http://www.ice.gov/pi/cornerstone/ipr 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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