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Intellectual Property, Trade and Development Dr. Burcu Kilic Global Access to Medicines Program October, 2012

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Presentation on theme: "Intellectual Property, Trade and Development Dr. Burcu Kilic Global Access to Medicines Program October, 2012"— Presentation transcript:

1 Intellectual Property, Trade and Development Dr. Burcu Kilic Global Access to Medicines Program bkilic@citizen.org October, 2012 www.citizen.org/access

2 Intellectual Property Eminently political in the global knowledge structure Competing demands from the developed and developing worlds The rights of companies against the rights of society Decisions about IP are not so much about simply finding ways to stimulate & reward innovation …

3 The TRIPS Agreement Powerful symbol of the globalisation of IP Establishes the minimum standards for IP protection Provides ample opportunities for creative interpretations Raised great deal of public controversy and debate Businesses are no longer satisfied – “Outliving its purpose”

4 Trans-Pacific Partnership Agreement Promoted as “high standard 21 st century agreement” A living agreement; remains relevant to emerging issues What could not be obtained through TRIPS is sought in TPP Promoted as addressing the weaknesses of TRIPS Aims for “golden rules” for the future of IP “Biggest threat to free speech and intellectual property that you’ve never heard of” American Civil Liberties Union

5 Different visions for the 21 st century Lack of transparency A negotiation chip in a wider geopolitical context Highly constraining and protectionist IP provisions Sets a system up to maximise the benefits from IP ownership and pulls up the ladder for low and middle- income countries

6 Different visions for the 21 st century Re-emergence of ‘citizen innovator’. Open innovation IP touches human life No one should die of HIV/AIDS, tuberculosis, malaria The public is now at the IP table Call for broader participation in policy making Information is the root and infrastructure of freedom in 21 st century. The freedom to understand, study, tinker with, improve, modify, share, keep and teach others what we know

7 Deep politics of IP Post-TRIPS experiences Deadweight losses & costs and side effects Balance between legitimate IP rights and continuous supply of competitively- priced medicines We can end AIDS: treatment as prevention Indonesia: licenses for 7 HIV/AIDS and Hepatitis B medicines

8 Kicking Away the Ladder IP propaganda: praise the strong IP protection IP fundamentalist view – “IP piracy is inimical to development” – “Strong IP rules promote innovation and investment” Restrict freedom to tailor national or regional IP regulations Good policies of the past became bad policies today

9 Imitation to Innovation Historical evidence Freedom to design national IP policies conducive to development Imitate first, innovate later Copying essential part of the learning process

10 COSI FAN TUTTE Transformation from ‘developing’ to ‘developed’ within a relatively weak patent system, which allowed for local absorption of foreign innovations. German Dye Industry- Had the German patent law arrived earlier, fewer firms would have entered into the industry “ The US experience during the nineteenth century suggests that appropriate intellectual property institutions are not independent of the level of economic and social development”. Khan B.Z South Korea –” Only after countries have accumulated sufficient indigenous capabilities with extensive science and technology infrastructure to undertake creative imitation in the later stage that IPR protection becomes an important element in technology transfer and industrial activities”. KIM South Korea –” Only after countries have accumulated sufficient indigenous capabilities with extensive science and technology infrastructure to undertake creative imitation in the later stage that IPR protection becomes an important element in technology transfer and industrial activities”. KIM Swiss Pharmaceutical Companies: Excluded chemical processes from patentability until 1954

11 Economic Research Eicher et al. (2006)- Impact of IPR on innovation is variable depending on the level of economic development Thomson &Rushing (1999)- cost of strengthening the IPRs regime comes at the expense of developing countries Chen & Puttitanun (2008)- U-shaped relationship between IPRs & a country’s level of development - stronger impact on innovation in countries with a higher level of development Lerner (2009) –examines UK patent filing around the world. No relationship between strengthened IP policy and innovation Schneider (2006) – uses patent data as a proxy for innovation. Increased IPR enforcement leads to more innovation in developed countries but less in developing countries. Falvey et al (2004)- Impact of levels of strong IP protection: Middle-income countries- bear the cost of discouraging imitation

12 TRIPS-Plus FTA provisions Neither theory nor available studies provide much guidance on the likely innovation or development outcomes of implementing in trade agreements the strictest IP rules or none at all. World Bank (2005)- Stricter TRIPS-plus clauses do not have positive developmental effects. “ Countries have to develop an IPR strategy appropriate to their level of development, and then analyze carefully which if any IPR provisions ought to be contained in trade treaties or RTAs.”

13 The Sun Rises in the East Internationalization of science, technology and innovation Changing balances & competing ambitions Following manufacturing, R&D is now moving East Asian markets demanding regional responses to regional needs. “Within the next 40 years, some of the most major innovations in the world will come from elsewhere – outside of the West. For the moment the West is lucky that they don’t have sufficient IP protection, they don’t have a culture of innovation. But within 40 years, you can imagine that the great scientific cures and the great IT innovations are going to come from other regions…” Ken Cukier, the Economist,

14 The present situation may be short-lived. Moving from unipolar to multipolar world. “Now, if the [West has] incredibly strong IP rules, we are going to be binding our hands and feet because we are going to suffer under the same regimes that we are being accused of using to inflict suffering on others. That’s why balance is important: it’s in our own self-interest.” Ken Cukier, the Economist Never forget where you came from -- it might save you from where you could end up! Will the US government be so pro-patent when the proportion of domestic patents granted to Indian and Chinese inventors increase dramatically ?

15 Thank You!! Any Questions? Dr. Burcu Kilic Public Citizen - Washington, D.C. bkilic@citizen.org +1 202 588 1000 www.citizen.org/access


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