[Ecommerce] Story in Techdaily on I Pand FTAA

[Manon Ress]

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      11-12-2003

      Intellectual Property: Americas Trade Deal May Not Cover
      Intellectual Property

While intellectual property rights may not be the top issue on the agenda
of Western Hemisphere trade ministers when they meet for negotiations in
Miami next week, it will be part of the debate.



The issue takes several shapes in free-trade agreements, but in the Free
Trade Area of the Americas (FTAA) being negotiated by 34 hemispheric
nations, it may be dropped altogether. In trade negotiations, the United
States typically pushes for stronger intellectual property protections,
and the FTAA is no different. But Brazil, the U.S. counterweight in
leading the talks, has indicated that it would like to see the topic
dropped from the FTAA, sources said.



That would fit nicely with the wishes of some nonprofit groups following
the talks, such as the Consumer Project on Technology (CPT), which on
Wednesday held an event for congressional staff and others to explain its
position.



The CPT event focused heavily on preventing exceptions from compulsory
licensing for pharmaceuticals but touched on other intellectual property
areas as well. Under compulsory licensing, an exclusive patent on a
product can be overridden to serve the public good.



In the FTAA, the United States is trying to restrict compulsory licensing
to reasons of antitrust and government use, according to CPT Director
James Love. U.S. negotiators are trying to change the compensation for
such licensing from the measure of "adequate," under World Trade
Organization rules, to the equivalent of lost profits, according to Rob
Weissman, a CPT attorney.



The message to drop intellectual property from FTAA talks will be conveyed
to ministers in their meeting with officially sanctioned nonprofits,
including CPT, next Wednesday, he said.



Nonprofits in Miami also seek to drop investment language from the FTAA.
The provisions favoring investor nations that the United States has
favored in trade agreements since the North American Free Trade Agreement
(NAFTA) have raised concerns since their inception. The provisions, which
were included in NAFTA to protect businesses from non-competitive actions
by the other governments in the treaty, have several downsides for
consumers, Weissman said.



The investor clauses effectively prohibit compulsory licensing and
prohibit government expropriation of private assets without compensation.
But they dramatically expand the definition of expropriation to cover any
action that is "tantamount" to expropriation. In addition, the clause
permits companies to sue governments directly for regulations or
legislation. Some NAFTA cases have sought tens of millions of
dollars.



The Nov. 16-21 Miami ministerial is drawing the attention of
anti-globalization protestors and may see a number of events in the
periphery. One event outside the secure negotiating area will be a
workshop on negotiating intellectual property provisions in trade
agreements that will look at issues involving patents, trademarks,
copyrights and other intellectual property.



The goal of the workshop is to give negotiators a "toolkit" of information
about basic concepts of intellectual property law, implications of
provisions in trade agreements and alternatives.



Another event scheduled for inside the negotiating area will focus on
access to information and the copyright and related rights provisions in
the FTAA.



Separately, in a Wednesday meeting with Latino business and community
leaders, U.S. Trade Representative Robert Zoellick reinforced the
objective of negotiating on investment. He also highlighted the U.S. goal
of building "networked information societies."



By William New
by William New <mailto:wnew@nationaljournal.com>

National Journal's Technology Daily



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--
Manon Anne Ress
Consumer Project on Technology
www.cptech.org
PO Box 19367, Washington, DC 20036
manon.ress@cptech.org, voice: 1.202.387.8030, fax: 1.202.234.5176