[Upd-discuss] Re: Copyright impact in Developing Countries

Andrius Kulikauskas ms@ms.lt
Thu, 27 Mar 2008 09:27:13 +0200


I am organizing a workshop for the EU thematic network COMMUNIA for the 
Public Domain http://media.polito.it/mailman/listinfo/communia-prep and 
also I engage the Union for the Public Domain 
http://lists.essential.org/mailman/listinfo/upd-discuss and two working 
groups at my Minciu Sodas laboratory 
http://groups.yahoo.com/group/netbrotherhood/ and 
http://groups.yahoo.com/group/learningfromeachother/ Andrius Kulikauskas
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Maria Agnese Giraudo,

Thank you for shortening your statement on "Intellectual Property Rights 
protection impact in Developing Countries". I look forward to you 
leading a debate on this at our workshop Ethical Public Domain: Debate 
of Questionable Practices in Vilnius, Lithuania on March 31, 2008 
http://www.ethicalpublicdomain.org live video feed: 
http://www.internettv.lt online chat: http://www.worknets.org/chat/

Thank you for your important topic. You found some excellent references. 
However, when you present your statement, please state the ideas in your 
own words so that it is clear you understand what you are saying and we 
can, too. You consider several areas:
A) Digital content and Internet
B) Access to content for education and scientific research
C) Scientific research and economy
D) Patents in pharmaceuticals
You can mention them all (one sentence each) but please focus on one of 
these areas so that you can present your position in five minutes! and 
we can debate and discuss.

Let us know who you are criticizing and for what reason: Scientific 
publishers? the European Union? African states? Drug companies?

Agnese, you have already received your first response. I am excited 
because it is from Richard Stallman
http://en.wikipedia.org/wiki/Richard_Stallman
who is the author of the GNU software license and the founder of the 
free software movement which is the inspiration for Creative Commons, 
COMMUNIA, and our workshop Ethical Public Domain. I add his letter after 
your statement below. He urges us not to use the term "intellectual 
property" but rather to use the terms "copyright" and "patent" 
separately and not try to lump them together. I note that there are 
other topics that are relevant, such as "terms of service". Perhaps 
these might all be called "regulation of competition"?

Agnese, Thank you for bringing us this important topic! It is wonderful 
that Eric Wanjamah, Kennedy Owino, Pamela McLean, Theresa Bakalarz and 
others who care about Africa will be able to discuss with us. I will ask 
Birute Railiene and look for others who might represent an opposing 
point of view, for example, representing traditional journals and libraries.

Andrius Kulikauskas, Minciu Sodas, http://www.ms.lt, ms@ms.lt

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Intellectual Property Rights protection impact in Developing Countries
By Maria Agnese Giraudo

Treaties

Trade –Related Intellectual Property Agreements TRIPS
http://www.wto.org/english/tratop_e/trips_e/trips_e.htm
World Intellectual Property (WIPO) Copyright Treaty (WCT)
http://www.wipo.int/treaties/en/ip/wct/
WIPO Performances and Phonograms Treaty (WPPT)
http://www.wipo.int/treaties/en/ip/wct/

Digital content and Internet

Dalindyebo Shabalala, in Towards a Digital Agenda for Developing 
Countries, 2007
analyses the expansion of the international protection of Intellectual 
Property Rights to digital and Internet content by treaties, with some 
reference to national legislations. The Author considers the impact of 
the enforcement of IPR in developing countries in term of risks and on 
the contrary the development of Public Domain as a great opportunity.
http://www.southcentre.org/publications/researchpapers/ResearchPapers13.pdf
I report some actions to undertake now and next steps suggested by 
Shabalala (Chapter VI.3 The Way Forward for Developing Countries)

Shabalala says “Do not sign TRIPS-Plus, WCT and WPPT. Developing 
countries should not sign such terms in bilateral treaties with the 
United States or the EU …”
Economic Partnership Agreements (EPAs) with the European Union (EU) have 
been negotiated in the past decades with more than 30 countries. 
Recently EU is negotiating with regional blocs instead of specific 
countries. (ACP Countries: CARIFORUM/CARICOM (Caribbean); CEMAC (Central 
Africa): ECOWAS (West Africa); ESA (East Africa); the Pacific Forum; 
SADC (Southern Africa);

Controversial issues between EU and Developing Countries regard: the 
close coordination of developed counties for harmonization in the matter 
and delay in taking decision in Substantive Patent Law Treaty (SPLT). EU 
Looking at IPR enforcement as a priority and focusing on 
anti-counterfeiting and anti-piracy measures.

African Union “Nairobi Declaration on Economic Partnership Agreements” 
12-14 April 2006:
“Welcome the progress that has been made on clarification of the flexibility
available under the WTO Agreement on Trade-related Aspects of Intellectual
Property Rights, including the amendment to the Agreement’s provisions on
compulsory licensing. We urge our negotiating partners to fully respect this
progress in the context of EPA negotiations and to refrain from seeking 
obligations
that exceed those under the TRIPS Agreement. We urge the EU to expeditiously
complete the procedures necessary for the amendment to be implemented and
utilised by their producers and exporters of pharmaceutical products as 
part of the
community regime. We also reject any attempt to introduce any TRIPS plus
provisions on any intellectual property rights issues in the EPA 
negotiations”
Did African Union position sort some effect in these agreements?


Access to the content for education and Scientific Research in 
Developing Countries
Infrastructural problems, content access.
Shabalala says: “ Maintain and fully implement existing exceptions and 
limitations” regarding Internet content that is vital for developing 
countries together with ISPs and P2P and Search engines, then exceptions 
for temporary, incidental and ephemeral copies.
In developing countries Internet and digital content is vital and is the 
main source of information, education for all purposes of social, 
cultural and economic development.
Online content has to be integrated with digital-optical disk and 
analogic documents and all distribution system has to be reviewed in an 
open access vision to cope with access problems.
Access to scientific knowledge: publications, databases, two-way 
exchange, validation of results,
Training, co-authorship.
Open Access movement Initiatives: Pubmed Central- Biomed Central- Public 
Library of Science- Hinari-OARE- AGORA


Scientific Research and Economy

General Trends of restriction of Public Domain in favour of IPRs
Bayh-Dole Act 1980 (shifting from Public Domain to pro-patent position)
France- Innovation and Research Law 1999.
Extension of IPR into scientific knowledge and production activities, 
connection of science with R&D, Research laboratory have commercial 
relationship with industry with increasing protection and patents.

IPRs in TRIPS are trade-related , it means that "on one hand, there is a 
strengthening of IPR that favours industrialised countries. On the 
other, there are some international trade compensations favourable to 
developing countries.” (Forero-Pineda,2006, p.813)
“[…] Trade compensations, granted by developed countries in exchange for 
more protection of IPR in developing countries, may balance the 
developing-country welfare-losses. Nonetheless, they may exacerbate 
those two negatives[in small countries], long run effects on domestic 
research. First, there is an additional stimulus to allocate investment 
resources to goods receiving incentives (traditional goods). Their 
technology content is low, and this will reorient resources away from 
domestic technology production[…]
Trade-relating intellectual property will have two main consequences: 
(a) a deeper international division of labour, and (b)[…] and increase 
or decrease of the technology sector of this 
country”(Forero-Pineda,2006, p.814)

Other disadvantages and costs of strengthening IPRs:

High prices for imported products and new technology
Loss of economic activity, by the closure of imitative activities, while 
innovation is restricted in small developing countries to transnational 
companies mainly of the pharmaceutical sector or in countries with R&D 
capability. (Lall, 2003, p.1661)
Forero-Pineda (2006, p.813) indicates that the consequence is “the 
increase in the price of manufactured goods [that] will induce a switch 
in domestic consumption from manufactured to traditional or imported goods”
Advantages for developing countries due to weak IPRs:
Imitation and reverse engineering in technological development 
(Korea,Taiwan etc.) and local farmaceutical firms (India etc.)

The discussion should perhaps focus on the human right of creating and 
of innovating and about the possibility of a low cost technology that is 
effective and innovative in all sectors from production to service 
management.


Patents in pharmaceuticals

After TRIPS agreements the most important consequence for developing 
countries has been “ the mandate to accept the patenting of 
pharmaceuticals” dismantling local industrial production.

“India legislation of 1970 and many developed countries either refused 
patenting of pharmaceutical products or patented processes [….] At the 
time of the GATT Uruguay round, almost 50 developing countries did not 
grant pharmaceutical patents.

The approval of TRIPs has reversed this tendency […]Member countries of 
WTO are required to grant both product and process patents in the 
pharmaceutical sector.” […Added to patent] trade secret protection 
“would not cover the product[…but] the clinical research. […] 
Pharmaceutical companies from developed countries fear the proliferation 
of small laboratories in developing countries dedicated to the 
production of no-patent and post-patent generics…” (Forero-Pineda,2006, 
p.815).

Developments in this sector:

Agreement in 2001 between WTO and WHO about price differentiation of drugs.
Monopoly of patented drugs and lower quality level of no-patented drugs
No benefit from research for developing countries

There is general concern for the population of developing countries 
recruited by pharmaceutical companies for clinical trials, under “trade 
secret protection”. What kind of warranties and controls can be adopted 
to prevent abuses?
How local pharmaceutical firms are coping with multinational companies? 
Is there still a market for them? What kind of market?

Sources
Forero-Pineda Clemente The impact of stronger intellectual property 
rights on science and technology in developing countries Research Policy 
2006;35:808-824.
Lall Sanjaya Indicators of the relative importance of IPRs in developing 
countries. Research Policy 2003;32(9):1657-1680.
IPRONLINE http://www.iprsonline.org/index.htm

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Richard Stallman:

It is a grave mistake to use the term "intellectual property",
because doing so lumps together unrelated laws.

Patent law and copyright law are almost completely different, and
should be treated as two separate topics. Trademark law is totally
different from those two, and should be treated as a separate topic.
To lump these topics together is a recipe for confusion.

Ms Giraudo's article is about copyright law -- plus one paragraph
about patent law which doesn't relate to the rest. Aside from that
paragraph, it makes sense as an article about copyright. But every
time it uses the term "intellectual property", it lumps in other
unrelated laws and mixes up unrelated topics.

Replacing the term "intellectual property" with "copyright", and
deleting the one extra paragraph, would make the article coherent.

See http://www.gnu.org/philosophy/not-ipr.html for more explanation.

"Protection" is also a propaganda term in the context of copyright --
see http://www.gnu.org/philosophy/words-to-avoid.html for explanation.