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Trade in counterfeit & pirated goods is $.5 trillion – 2.5% of all imports

“Fakes,” or counterfeit products, are a growing menace that deplete resources, threaten jobs and endanger lives. 

A report compiled by the Organization for Economic Cooperation and Development (OECD) says that imports of counterfeit and pirated goods are worth nearly half a trillion dollars a year, or around 2.5% of global imports. That is about the entire GDP of Austria, or of Ireland and the Czech Republic combined.

The U.S., Italian and French brands have been the hardest hit, and “many of the proceeds going to organised crime.” The 2016 report was co-authored by the EU’s Intellectual Property Office. China also is in the top 12 (see graph below).

Five-percent are Fakes

Trade in Counterfeit and Pirated Goods: Mapping the Economic Impact puts the value of imported fake goods worldwide at $461 billion in 2013, compared with total imports in world trade of $17.9 trillion.

Up to 5% of goods imported into the European Union are fakes, the report stated. Most originate in middle-income or emerging countries, with China the top producer.

“Transit points include economies with very weak governance and having a strong presence of organized crime or even terrorist networks (e.g. Afghanistan or Syria).”

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“Given the fundamental economic importance of IP, counterfeiting and piracy must be directly targeted as a threat to sustainable IP-based business models,” concludes the OECD report.

China may be making great strides in domestic patent protection (see China is Poised to Overtake the U.S. as the Leading Patent System) with low injunction hurdles and high respect for foreign-held rights, but as of 2013, it was responsible for almost two-thirds of global counterfeits, based on the percent of seizures documented.

Missing: Content and Invention Theft

Ironically, the Trade in Counterfeit and Pirated Goods: Mapping the Economic Impact, does not mention content sharing or copying, copyright violations, as a global threat.

It also does not address the economic impact of products being falsely sold as original that are infringing other businesses’ patents.

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For those interested, the 2017 OECD Global Anti-Corruption and Integrity Forum will be held this year in Paris, March 30-31. For more information go here.

 

Image source: OECD report

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Experts: Void from U.S. patent “train wreck” is being filled by China’s patent system

In a few short years China’s patent system has gone from an IP rights wannabe to one of the most responsive and patent-friendly systems in the world.

Leading U.S. IP experts say that underlying this rapid evolution is a desire for China to become a science and technology powerhouse, with the ability to create new and formidable industries that employ many of its 1.4 billion people.

“China wants to be an innovation leader for multiple reasons,” Irv Rappaport, former Chief Patent Counsel at Apple and National Semiconductor, who served on the Uruguay Round of GATT, told IP CloseUp recently. “It is fascinating to see how the U.S. patent system is imploding, while the Chinese system is exploding with activity and purpose.

“For more than a decade the U.S. has been emasculating its patent system, while the Chinese have been studying it and adopting the benefits of a well-coordinated and fast-moving one. The U.S. has gone from being on the global cutting edge in IP in the 1990s, to becoming a patent backwater, because of a well-heeled, anti-patent faction among technology companies that want to stifle competition.

“Train Wreck”

“China has watched the U.S. train wreck and is moving fast to fill the void,”continues Rappaport. “It wants to become the world’s ‘Eastern District of TX,’ that is, a fair and fast adjudicator of disputes that respects patent holders’ rights. China will soon be the world’s largest economy with the biggest population and a middle class the size of England, France and Germany combined. Their commitment to innovation can not be ignored.”

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Peter Holden, CEO of ipCreate and former managing director with London-based Collar Capital and a founding executive with IP Value, has worked extensively with Asian companies and patents. He has traveled to Korea, China and Japan more than 100 times over the past twenty years. “The Chinese have learned from the U.S. and are sincere about making their IP system the best — one that will encourage innovation and help their nation to become the economic leader. It is not merely a thought. It’s an idea that they are dedicated to.

“China’s attitude towards foreign patent enforcement may not always be as generous as it is currently. It knows that it needs to bend over backwards to be fair if it is to be taken seriously on a global scale. To encourage competition there needs to be a level playing field.”

Counterfeits Still Rule

But China’s record on counterfeits is poor, with everything from luxury goods to pharmaceuticals sold domestically and exported globally. According the U.S. International Trade Commission, Chinese theft of U.S. IP in 2009 alone cost almost one million U.S. jobs and caused $48 billion in U.S. economic losses.

“Counterfeit goods are still an issue for China,” says Erick Robinson, a patent attorney in Beijing and author of Defending a patent case in the brave new world of Chinese patent litigation, in the current issue of IAM magazine. “However, sales of fake goods are no longer openly accepted and the government has been on the war path trying to stop them in different ways. Authorities know that in order to be taken seriously about IP rights, they cannot ignore the problem of counterfeit goods.”

For a prior IP CloseUp post summarizing the Robinson article, go here.

“Go-To” Jurisdiction

China is just beginning to build its giant tech companies. They have succeed with Alibaba and Huawei, and acquired Lenovo from IBM, which is now a $45 billion (USD) business. Their big businesses currently have less to lose from strong patents and quick dispute resolution than those in the U.S. and Europe. To create successful businesses and attract investment, incentives need to be provided, and strong patents and a reliable legal system for adjudicating disputes are great for encouraging that.

Perhaps when China has as many big tech players as the U.S. it will start to think more defensively, but for now it is the perfect setting for encouraging new ideas with strong patents and courts that make it easy to obtain injunctions.

“It’s interesting that the Chinese are encouraging large foreign corporations to sue non-Chinese companies in China,” opines Rappaport. “This suggests that they are looking to become the patent litigation go-to jurisdiction.” As their innovation grows and becomes more complex, I believe they will have less interest in exporting cheap knock-
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offs.  Their IP path is similar to that followed by many of today’s developed economies, such as Japan and South Korea.  You start off copying others and gradually move to internal innovation.”

Despite China’s success in facilitating stronger patents and more decisive courts, a huge question is just how prominent a role will patents play in new companies in a data-driven information age.

“Given the accelerating pace of technology development and nature of discoveries, which are frequently software driven, it’s not clear whether existing patent systems can remain relevant in the longer term,” says Rappaport. ” This effect may partially explain why patents currently seem to be less relevant in the U.S.  It remains to be seen whether this is a longer term development. It is a development that needs to watched.”

“100% Win Rate”

“Trust the Chinese government to do what is best for the Chinese people,” reminds Beijing-based Robinson. “It’s less about assisting foreign patent holders than establishing a really viable IP system that encourages innovation and growth, and that attracts foreign investment. Forty-percent of the smart phones in India are currently manufactured by Chinese companies. Innovation coupled with enforcement will drive China’s new businesses and help them grow.”

As reported by Robinson in IAM, “foreign plaintiffs notched a 100% win rate [65 – 0] in civil cases heard by the Beijing IP Court last year, according to a judge who has been on its roster since it was established in 2014.”

Wake-Up Call

A decade of weakening has taken its toll on the U.S. patent system and patent holders. It will not be quick to recover unless a concerted effort can be made to take IP rights seriously. Allowing U.S. patent policy to be dictated by those with the greatest financial success and market share may be appealing to shareholders, but it is not necessarily what is needed for the nation to remain competitive in a global economy, and to generate new businesses and jobs.

Hopefully, the wake-up call comes soon for the U.S. and it can retain the title of innovation leader it has held since the 19th Century but is slipping away.

Image source: insideiim.com; chinapatentblog.com; wsj.com

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China is poised to overtake the U.S. as the leading patent system

A few years ago a company whose patents were violated in China had little or no chance of defending its rights. 

Determined to move beyond its role as a low-cost provider of look-alike consumer products, and establish itself as an innovation leader, China has learned from the successes – and mistakes – of other intellectual property systems, especially the U.S. The nation of 1.4 billion inhabitants has rapidly emerged as what is currently among the fairest and most patent holder-friendly systems in the world.

Chinese patent courts second only, perhaps, to Germany in quickly and fairly adjudicating disputes.

A fascinating article in the current IAM magazine, “Defending a patent case in the brave new world of Chinese patent litigation,” details China’s rapid rise from low-cost copier to a patent power, and a nation that has caught the attention of major global technology powers who are often defendants.

Damages awards are relatively small in China, with median awards currently around 35,000 Renminbi or about $5,000, but injunctions, the power to stop a likely infringing product from being sold, are now issued over 99% of the time to winning parties. NPEs, what some U.S. companies refer to as patent “trolls,” are treated fairly as long as they their patents are of sufficient quality and are the companies are generally supportive of Chinese welfare.

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Patent litigation win rates, according to the article, average around 80%. Startlingly, foreign plaintiffs fare better statistically than Chinese. 

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The U.S. effectively ended the granting of patent injunctions in 2006 with EBay v. MercExchange. Now, only operating companies can obtain them in rare circumstances. This removes most of the leverage afforded patent holders. Granted, injunction abuses are a fact of life, and dubious patents have at times been used to enjoin products, costing companies time and money. But without the power to stop a product from being sold, patents have little meaning.

Race to the Bottom

“Largely as a result of the United States’ race to the bottom in terms of patent enforcement, Germany has emerged as a go-to patent jurisdiction, with virtually guaranteed injunctions, quick time to trial and no discovery resulting in a highly efficient system,” writes Beijing-based Erick Robinson, chief patent counsel, Asia-Pacific for Rouse, a global IP strategy firm.

Patent-holder Win-Rates and Median Damages Awards 

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“Enter China. For years the laughing-stock of all things IP related, the Middle Kingdom was ridiculed for the easy availability of counterfeit handbags, software and DVDs. However, over the last 15 years, and especially in the last two to three, China has put together an extremely effective patent enforcement system. Based largely on the German system and all of its advantages, but with selected portions from US law, China has now become a top forum for patent litigation.”

Unlike most countries which enjoin making, using and selling allegedly infringed products in-country, as well as imports, Chinese law also bans infringing exports from leaving the country. So, for example, if the accused device is Apple’s iPhone, not only can sales of iPhones in China be enjoined, but also exports of the devices from China. This would enable a patent owner to achieve an effective worldwide ban, since iPhones are manufactured in China.

Slippery Slope

With U.S. patent protection significantly diminished over the past decade, and China’s on the rise, the U.S. is on a slippery slope when it comes to stimulating R&D, innovation and investment. It is well on its way to becoming a second-rate patent system, and a slip in disruptive innovation, necessary for the creation of new industries, difficult to measure in real-time, has probably started. Certainly, companies and their stakeholders are thinking twice before pursuing or relying upon USPTO-issued patent protection.

It remains to be seen if China, a continuing source of counterfeit goods that are shipped worldwide, is committed to providing its businesses, as well as those outside of the country, with a legal system that can meet the needs of all business holders, and permit fair and timely resolution of legitimate disputes.

High Win-Rates; Low Damages Awards

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China is now the second largest filer in the U.S. and, while its companies have rarely resorted to filing suits in the U.S. against U.S. companies, there is little doubt that it will do so in the future. Technology giants include Alibaba, Xiaomi, Huawei and Lenovo.

China is likely to be more aggressive enforcing its patents than U.S. frequent-filer Japan, which has been reluctant to engage in domestic or foreign patent disputes. (There are some signs that is changing.) Samsung, by far the largest holder of U.S. patents in the world, has shown a greater willingness use its patents for licensing and leverage.

China may or may not be deliberately attempting to embarrass U.S. and eventually surpass its moribund IP system, but the impact is the same. Continued lack of awareness of what IP rights achieve and for whom, and lobbying, has significantly compromised the once-exemplary U.S. patent system. The Chinese are not too new to capitalism not to see this as an opportunity to compete. For the U.S.’ sake, let’s hope it’s not too late to make invention rights a priority again.

Subscribers can access The brave new world of Chinese patent litigation here.

FUTURE POST: What patent experts believe China’s patent-friendly system means for the U.S. – Experts: Void from U.S. patent “train wreck” is being filled by China’s patent system

Image source: IAM magazine

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New venture boosts leading medical researchers & their IP rights

A unique public-private partnership provides medical research centers and the patents they generate with a more efficient and rewarding path toward commercialization.

Bridge Medicines is a drug discovery company launched recently in conjunction with three of the leading non-profit medical research institutions – Memorial Sloan Kettering Cancer Center, The Rockefeller University and Weill Cornell Medicine, collectively known as Tri-I TDI. This firm makes it easier for researchers to get the non-dilutive calogopital that they need to move ahead with good ideas that would otherwise require outside funding.

The partnership includes Takeda, a Japanese Pharmaceutical company, Bay City Capital, a San Francisco-based venture capital firm, and Deerfield Management, a life science analytics organization based in New York. New businesses funded by the venture will remain in New York.

From Concept to Candidate

Bridge Medicines is a unique initiative that completes an unbroken, fully funded and professionally staffed path from concept to drug candidate, in order to help develop innovative therapeutics for the treatment of human diseases.

“The goal is to move research projects further along the development path without loosing momentum or mortgaging the future of their patents,” Kathleen Denis, Associate Vice President and director of technology transfer at Rockefeller University and a past-president of the Licensing Executives Society, told IP CloseUp. “Often, research institutions must give away all of their rights for a little early help. Bridge Medicines prevents this from happening.”

Research projects accepted into the Tri-I TDI, which was launched in 2013 and currently has about 50 projects underway, will now be able to graduate to Bridge Medicines, where they will be given financial, operational and managerial support to move from validating pre-clinical studies to human clinical trials.

Retaining IP Rights

Typically, investigators behind promising early-stage discoveries must search for a bio-pharmaceutical company to purchase or license their intellectual property, or find a funding opportunity to support additional logo-tritdiresearch. This process can be time-consuming and may shift investigators’ focus away from science and onto funding. It slows progress and in some cases even ends the development path.

“The launch of Bridge Medicines is an exciting development in New York’s biotechnology space,” said Dr. Michael Foley, Sanders Director of the Tri-I TDI. “We’re offering entrepreneurs access to support what’s next in bio-pharmaceuticals. Bridge enables us to advance promising projects farther down the development pipeline, providing new therapies to patients as quickly as possible. It establishes a pathway from idea to proof of human concept with little more than a five-page application summary.”

For the Bridge Medicines announcement, go here

For more information on Bridge Medicines, go here.

For background on Tri-I TDI research partnership, go here.

Saving Time & Lives

Because Bridge Medicines projects are funded as a group, even some riskier, but potentially transformational, ideas can obtain financial support.

Participants say the arrangement could shave-off a decade or more from the typical process of going from a promising discovery to medical use.

Image source: bridgemedicines.com; tritdi.org

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Licensing deal with IP rights group ends YouTube blackout in Germany – “no more red faces”

Tens of thousands of recording artists and musicians in Germany will be receiving payment for their content under the terms of agreement struck last week between YouTube and GEMA, Germany’s leading royalty collection group.

The deal will end a seven-year YouTube ban in Germany, which had previously blocked access to the streaming site over non-payment of performance royalties. It is unclear if the pact is a harbinger of things to come in the ongoing battle between streaming sites, search engines and content providers, such as musicians, or if it includes published works, like books and photographs.

Resolution of the dispute, reports The New York Times, comes “with European officials revamping the region’s copyright rules to give more power to music labels, publishers and other content producers over the likes of Google, which owns YouTube, and Facebook.”

“We remained true to our position that authors should also get a fair remuneration in the digital age, despite the resistance we met,” Harald Heker, GEMA’s chief executive, said in a statement. He added that the agreement covered future royalties, as well as those accrued over the last seven years.

Blocking alert that German YouTube users will no longer see

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“This is a win for music artists around the world, enabling them to reach new and existing fans in Germany, while also earning money from the advertising on their videos,” YouTube’s Christophe Muller told TorrentFreak, a publication dedicated to bringing the latest news about copyright, privacy, and everything related to filesharing.

TorrentFreak also reports that “Increasingly, music groups are criticizing YouTube for ‘profiting’ from the hard work of artists without paying proper compensations, so it’s not unlikely that similar deals will follow in other countries.”

A prominent L.A.-based producer told IP CloseUp that the deal (which deal? The deals in other countries? “that such deals in other countries”) “appears to be progress,” but Google (which owns YouTube) is too big for the little record companies to fight. “Whenever they try collective action, Google runs to the anti trust authorities.”

Agreement that the Internet has been bad for the music business is not universal. Factors that influence “free” distribution depend on a label’s size, the popularity of its artists and their point-of-view about how best to generate income. Sony has said that impeding YouTube costs the music industry millions of dollars.

One of the people who embraces this positive view of streaming is Edgar Berger, Sony Music’s CEO of international business. In a recent interview he stressed the importance of the Internet, while noting that the increase in Internet sales almost makes up for the decline in physical sales. See a summary of the interview, here.

“There is absolutely nothing to complain about. The Internet is a great stroke of luck for the music industry, or better: the Internet is a blessing for us,” Berger said.

No More Red Faces

“The [GEMA] deal means YouTube will unblock thousands of clips in Germany for the first time in seven years,” wrote Bloomberg News. “When German music fans in the past tried to watch videos of their favorite songs they only got an youtube-sad-face-300x159error message showing a red YouTube sad face with a line saying the content was banned from the portal for copyright reasons.”

The parties did not disclose financial details of the agreement. YouTube has, in the past, struck similar deals with dozens of groups around the world, including one in 2009 with the U.K.’s PRS for Music.

The groups also did not say if YouTube’s familiar sad red face would be replaced with a happy green one.

Image source: theheureka.com

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New measure of success challenges traditional brand valuations

Measures of a brand’s power can differ dramatically, depending on performance criteria.

A new success index believes that in an increasingly connected world, traditional measures of brand equity are outdated. Criteria like social media strength can be overlooked and under-rated.

The D100, a new brand index from a division of a global advertising agency, believes that some strong brands are less meaningful, while others are not receiving the recognition they deserve.

IPG Mediabrands, the media holding arm of Interpublic Group (NYSE:IPG), in partnership with Jonah Berger, Associate Professor, The Wharton School at The University of Pennsylvania and New York Times best-selling author of Contagious: Why Things Catch On, has launched the inaugural D100, ranking the 100 most dynamic companies in the world using new world metrics.

USA

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The D100 marks the first time that brand success is measured with “new world” metrics, specifically:

  • AGILITY: the degree to which brands adapt to changing market conditions.
  • RESPONSIVENESS: the degree to which a brand listens and responds to customer needs and feedback.
  • INNOVATION: the degree to which brands leverage new technology and creates innovative products and services
  • SOCIABILITY: How large and engaged a brand’s audience is on social media.

Global

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Counter-Intuitive 

There are some notable disconnects within the D100, whose ranking can be viewed nationally or globally. For example, Ben & Jerry’s ice cream, has a dynamic score of 59.89, ranking it 20 globally. Its USA score is just 94. Fitbit is 15 globally, with a 62.75 D rating, and just 62 in the USA.

BMW is ranked 7 globally, 16 in the USA and a lowly 99 in Germany.

Each one of these surprises raises questions about methodology and value.

Germany

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It is interesting to compare the D100 top 10 with InterBrand’s and Forbes’. They are somewhat similar with a few surprises. Those rankings focus more on value. When we get farther down the list we begin to see more significant disruption. Rather than focus on corporate brand, the D100 metrics places more emphasis on brand names associated with specific products.

A branded product may have greater performance value at a given point in time than say an established corporate brand, which may have a high financial valuation.

InterBrand

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To see the global D100, as well as some national rankings, go here. (Tap on the upper right of the screen to pull down the menu.)

UK-based InterBrand’s ranking valuation-oriented brand rankings can be seen here.

Forbes’ top 100 brand values can be found here.

Forbes Top 100

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1,200+ Brands Examined

To construct the D100, over 10,000 consumers were surveyed across four global regions in five major markets including the United States, United Kingdom, Germany, China, and India. Consumers were asked questions on both global brands and market specific brands; in total over 1,200 brands were examined.

Image source: various websites associated with indices

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Can small businesses afford weaker U.S. patents?

Can businesses and entrepreneurs compete with weaker U.S. patents in an innovation-driven global economy?

An event featuring a broad range of IP thought-leaders on October 26 in Silicon Valley will attempt to find out.

“Entrepreneurship, Innovation and Patenting in the U.S. – Implications for the future of U.S. Competitiveness” is the topic of a presentation and networking session being held at H-P World Headquarters in Palo Alto on Wednesday October 26 at from 6:00 to 8:imgres30.

The event is open to the public and limited seating is available on a first come basis. There is a $40 charge to cover food and refreshments.

Speakers include Professor Carl J. Schramm, The Hon. Judge Randall Rader (Ret.) David J. Kappos, former USPTO Commissioner and former head of intellectual property at IBM, and Professor Adam Mossoff of George Mason University School of Law where he co-founded the Center for the Protection of Intellectual Property. Robert Aronoff is the organizer. The International IP Commercialization Center is the sponsor.

For the full list of speakers go here. To register go here.

Image source:iipcc.org

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EU copyright reform – A leap forward or step back?

Reforms to copyright law proposed last week by the European Commission would put the burden on Internet companies like Google, Facebook and YouTube to prevent online piracy and compensate content providers, like music companies and news providers. 

In a shift in policy the proposals issued by the European Commission would require websites that host video and stream music to shoulder more responsibility for rooting out copyright infringements.

Under the current rules, reports the Financial Times, YouTube, Facebook and other video platforms remove material on a case-by-case basis only after being notified by rights-holders. If adopted, the proposals would require them to run proactive software checks to determine whether content they are hosting contained copyright material.

Preventing Piracy

The European Commission proposal is intended to prevent piracy, which has haunted the music industry and recording artists which has shed more than 60% of its value since 2000, and to prop up content providers like newspapers and magazines, which have seen declines in print circulation.

leaked-copyright-communicationThe reforms aim the foundation of a long-running fight between struggling traditional media companies — from record labels to newspapers — and the technology groups that increasingly dominate online media.

Critics say the EC is seeking to shift the responsibility for identifying copyrighted content by requiring Internet companies that host user uploaded video, such as YouTube and Facebook, to proactively check for copyrighted material, rather than waiting to receive a take down request from a rights holder.

Industry trade publication TechCrunch reports that “The draft directive also includes a proposal for a new right for news publishers covering digital use of their content for 20 years. Unsurprisingly, Google is not a fan of this.”

This extended right is similar to ancillary copyright laws already enacted by governments in Germany and Spain which target search engines displaying snippets of news stories.

Mandatory Fee

The law as enacted in Spain included a mandatory fee for displaying snippets, one line summaries from publishers, and led to Google to pull its Google News service in the country. While many Germany publishers waived their rights in favor of retaining the traffic Google sends their way.

Whether YouTube’s free site is directly competing with paid services such as Apple Inc.’s Apple Music and Spotify AB is a matter of debate, reports the Wall Street Journal. According to a YouTube spokeswoman, “users come to YouTube to watch all kinds of different videos. The average YouTube user spends an average of an hour a month consuming music, far less than music-only platforms.”

The European Commission’s proposals, which come after a three-year review aimed at updating copyright law for the digital age, could take years to ratify. The proposals have been—and are likely to remain—the subject of heavy lobbying from copyright holders like record labels and newspaper publishers on one hand, and technology firms on the other.

Give-Backs?

It will be interesting to to see if the EU will be successful in rolling back what Internet users have come to believe is free content that until now has not been seriously policed.

A draft of the proposed EU reforms can be found here.

Image source:1709blog.com; openforumeurope.org

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Post-election “Patent Law & Policy” conference to be held in Washington

Many businesses are wondering what the patent terrain will look like after the U.S. elections in November.

Will further reforms will be forthcoming, or will there be a move toward stronger patents and greater certainty?

On November 15, the Tuesday following election day, at Washington DC’s Reagan Conference Center, those attending the 2016 Patent Law and Policy will be in a better position to find out.

Capitol Building in Washington DC USASpeakers assembled for this year’s IAM Patent Law and Policy conference will include senior government officials, members of the judiciary, corporate patent leaders, private practitioners and investors, who will discuss how court decisions and legislation are affecting US patent values and strategies.

The keynote speaker is US Patent and Trademark Office Director Michelle Lee. Other speakers include the chief judge of the Patent Trial and Appeal Board, David Ruschke, ex-USPTO Director David Kappos, and former Federal Circuit Chief Judge Paul Michel.

Also participating as speakers or panelists will be senior representatives from companies closely involved in the ongoing patent reform debate, including: GoogleQualcomm, Johnson & Johnson, Bristol-Myers Squibb and IBM. Lead counsel in two of the pivotal Supreme Court patent cases of the last decade, KSR v Teleflex and Cuozzo v Lee. Also present will be as several high-profile patent investors.

IP CloseUp readers are able to receive $100 off the $895 fee if they use the discount code PLAP100 (offer valid until October 7 2016).

For the complete program and speakers, go here. For registration go here.

Image source: ipo.org; ipwatchdog.com

 

 

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No Monkey Business: Animal selfie raises serious questions about copyright ownership

Who is the legitimate owner of a selfie taken by a monkey, but positioned by a nature photographer? Is it the intellectual property of the animal or the photog?

A novel law suit filed recently by PETA (People for Ethical Treatment of Animals), the animal rights advocates, asserts that a macaque monkey, Naruto, should be declared the author of a selfie, not the photographer, David Slater, who set up the shot and had included it in a book. The suit demands that the monkey receive any proceeds generated by a now-famous 2011 photograph.

PETA is seeking a court order, through a suit filed in federal district court in San Francisco, to allow it to administer all proceeds from the photos for the benefit of the six-year-old Naruto, and other crested macaques living in a reserve on the Indonesian island of Sulawesi.

The photos were taken during a 2011 trip to Sulawesi by British nature photographer Slater. Through San Francisco-based self-publishing company Blurb, reports The Daily Mail, he has published a book called Wildlife Personalities that includes the ‘monkey selfie’ photos.

However, the photos have been widely distributed elsewhere by outlets, including Wikipedia, reports the _85730600_monkey2
news outlet, “which contend that no one owns the copyright to the images because they were taken by an animal, not a person.” 

Monkey See

“‘The facts are that I was the intellect behind the photos, I set the whole thing up,'” Slater said in an email. “‘A monkey only pressed a button of a camera set up on a tripod – a tripod I positioned and held throughout the shoot.’

“‘I sincerely wish my 5-year-old daughter to be able to be proud of her father and inherit my copyrights so that she can make my work into an asset and inheritance and go to university. ‘I have very little else to offer her.'”

Last year, the US Copyright Office issued an updated compendium of its policies, including a section stipulating that it would register copyrights only for works produced by human beings.

It specified that works produced by animals, whether a photo taken by a monkey or a mural painted by an elephant, would not qualify.

Not Species-Specific

However, Jeffrey Kerr, a lawyer with PETA, said the copyright office policy ‘is only an opinion,’ and the US Copyright Act itself does not contain language limiting copyrights to humans.

‘The act grants copyright to authors of original works, with no limit on species,’ Kerr said. ‘Copyright law is clear: It’s not the person who owns the camera, it’s the being who took the photograph.’

If the court rules in Naruto’s favor, reports Quartz, PETA would manage the copyright of the photos on behalf of Naruto and license them for commercial use. “All royalties earned from these pictures would be specifically used for Naruto’s benefit and that of his extended family, who are being impacted by encroaching human development.” PETA is not asking for any compensation.

Animals can be the authors of valuable works of art, and there is a market for art created by animals. In fact, many zoos raise money by selling paintings created by the animals—just recently, the Lincoln Children’s Zoo in Nebraska sold 116 pieces of art in its semi-annual Animal Art event.

Survival of the Fittest

Now, if we can just treat inventors regarding their IP rights as fairly as PETA wishes to treat monkeys, their (inventors’) survival would be less in doubt.    

 

Image source: dailymail.co.uk, via AP; photo credit: Naruto 

 

Four timely events kick-off September IP conference season

September is back-to-school for kids. For IP rights followers it is back to keeping up with the myriad changes in law and value.

At least Four conferences – in New York, Silicon Valley and Tokyo – are worthy of serious consideration. Two of them are offer IP CloseUp readers a discount on registration.

imgresOn September 8 IPBC Japan will be held in Tokyo. IP Business Congress conferences are held globally every year and regionally, throughout the U.S., Europe and Asia.

Building on the success of regional one-day events held in Korea, Taiwan and China, IAM returns to Japan with a one-day event focusing on . “Corporate IP Best Practice.” This dedicated jurisdictional event will take place at the Hotel Okura. All sessions will be bilingual, with simultaneous Japanese-English translations, and there will be significant opportunities to network.

IP CloseUp readers use promo code IPCU2016 to receive a discount.

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The 44th Intellectual Property Owners Association Annual Meeting will take place at the New York Hilton on September 11-13. Patent, trademark and copyright issues will be featured. For the full schedule, go here.imgres

Intellectual Property Owners Association (IPO), established in 1972, is a trade association for owners of patents, trademarks, copyrights and trade secrets.  IPO serves all intellectual property owners in all industries and all fields of technology.

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A third important IP event to take place in September is In-House Strategy: Digital Media and Technology IP. Mark September 21-22 on your calendar in Santa Clara, CA, the heart of Silicon Valley. The conference agenda can be found here.

This conference is designed for counsel at companies of all sizes involved in the software and technology space. Presenters and panelists will discuss updates in trade secret, patent, and copyright law, and to hear updates about best practices and real-world advice on efficient IP protection.

IP CloseUp readers please use promo code IPCUBB to take $100 off of your registration.

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The newly enacted Defend Trade Secrets Act has been described as the most significant expansion of federal trade secret law since the Lanham Act was enacted in 1946.press-mip

On September 27 at the Crowne Plaza Palo Alto, Managing Intellectual Property is holding “MIP Trade Secrets Forum.”

$300 discount off the full delegate is available to IP CloseUp readers to attend. In-house counsel, corporate professionals, and academics attend free of charge. For the program, go here. To register, go here.

 

Image source: company websites

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“Building an Innovation Economy” is focus of latest Hoover IP² event

IP², an initiative of the Hoover Institution at Stanford University, last week hosted a more than 60 IP scholars, economists and practitioners to hear and challenge research about “Building and Innovation Economy – The Mechanics of the Patent System.” 

Hoover IP2 is a working group on intellectual property, innovation and prosperity. Its goals are to build a network of scholars from a variety of academic disciplines, to undertake research based on evidence and reason, and to disseminate the research results. Conferences, such as this, that include economists, legal experts, political scientists, and practitioners and that present original research, help achieve these goals.

Lively Discourse

Presenters, discussants and moderators participated in the sessions, to which I was invited to attend, in a room with two tiers of circular seating. The setting encourages discourse, as well as abundant audience questions in the true spirit of peer-review.

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Presenting participants included:  Jay P. Kesan (University of Illinois College of Law), F. Scott Kieff (ITC Commissioner, formerly of George Washington University School of Law and a former Senior Hoover Fellow), Colleen Chien (Santa Clara University College of Law) and Bo Heiden (the Center for IP Studies in Gothenburg, Sweden), James Pooley (former World IP Organization head), Damon Mateo (formerly IP executive with H-P and PARC), and IP2 Steering Committee Chair, Stephen Haber (Stanford School of Humanities and Sciences and a Hoover Fellow).

For the agenda and presenters, go here.

Audience participants included Irv Rappaport (formerly Chief Patent Counsel at Apple and National Semiconductor, and an expert witness), Ron Laurie (a director of WiLAN and former partner in the Palo Alto office of Paul Weiss), Suzanne Harrison (The Gathering 2.0) and Dr. Ron Katznelson (an inventor, patent analyst and scholar).

Sharing Ideas

Lively discussion and cordial debate ensued. Opinions were divided on some topics, such as patent assertion entities (PAEs) and the value of standards essential patents (SEPs). However, all of those present had an opportunity to have their perspective heard and responded to.

Hoover IP²’s goals are to:

  • ip2-logo130Build a dense network of scholars, from a variety of academic disciplines, who are engaged in research on the US patent system
  • Analyze the implications that may be drawn from those research results
  • Publish the resulting scholarship in peer-reviewed venues
  • Disseminate that scholarship to the larger public

More the this lively interaction is needed, and Pfizer and Qualcomm are to be commended for their lead support. For more information about Hoover IP² or past programs, go here.

Image source: hooverip2.org

 

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