Impact: Intellectual Property Internal

Impact: Intellectual Property Internal

A Model Agreement for Protection of Intellectual Property Rights The theft of intellectual property (IP) - including trademarks, copyrights and patents - plagues the U.S. economy, with over $200 billion in lost sales each year according to the FBI. In a global digital economy, it is essential for trade agreements to guarantee the protection and enforcement of intellectual property rights, or losses to theft will continue to grow. For IP protection, the KORUS FTA should be seen as a model for future U.S. trade agreements. It also offers the United States an opportunity to lock-in beneficial IP protections with a leading Asian economy and become an example for IP standards in other Asian countries. The KORUS FTA strengthens protection for intellectual property, including software, music, film, videos, and text. For copyrighted works: Extends copyright from life of the author plus 50 years to 70 years. Protects temporary copies of copyrighted work (music, movies, text, etc.) on the Internet. Prevents tampering with technical protection measures (TPMs). Criminalizes recording of movies in theaters. Strengthens enforcement against Internet online piracy, holding liable those who profit from unauthorized downloading, and establishing penalties for end-user IPR piracy. For patents: Provides an extension of patent terms for undue delays in granting the original patent. Abolishes the revocation of a patent due to non-usage. For trademarks: Requires the seizure, forfeiture, and destruction of counterfeit and pirated goods and the equipment used to produce them. Deters IPR violators from shipping counterfeit products through Korean ports and free trade zones through new customs enforcement rules. Sound and scent marks will receive trademark protections. Introduces "first-in, first-in-right" to trademarks. Protects Internet domain names. The importance of the KORUS FTA to the protection of intellectual property rights and to the U.S. economy should not be underestimated. The Importance of Protecting Intellectual Property Rights The impact of intellectual property theft on the global economy accounts for $500-600 billion in lost sales each year, or 5-7% of world trade. (World Customs Organization) U.S. intellectual property is worth $5-5.5 trillion - more than the gross domestic product (GDP) of any other country. ("The Economic Value of Intellectual Property," USA for Innovation) Intellectual property accounts for more than half of all U.S. exports, helping drive 40% of U.S. economic growth. (U.S. Department of Commerce)

Patents provide motivation for useful invention and help increase innovation

Mazzoleni and Nelson 12/1998, Journal of Economic Issues, Vol 32. No 4. pp 1031-1052 (Roberto M. Richard N. 12/1998 "Economic Theories about the Benefits and Costs of Patents" www.jstor.org/stable/422/385 )PHS

We propose that there are at least four different, broad theories about the principal purposes patents serve: 1. The anticipation of patents provides motivation for useful invention: we will call this the "invention motivation" theory. 2. Patents induce inventors to "disclose" their inventions when otherwise they would rely on secrecy, and in this and other ways facilitate wide knowledge about and use of inventions: we will call this the "invention dissemination" theory. 3. Patents on inventions induce the needed investments to develop and commercialize them: this we call the "induced commercialization "theory. 4. Patents enable the orderly exploration of broad prospects: we call this the "exploration Contol Theory”.

Technological innovation prevents resource wars

Mazzoleni and Nelson 4/1998- Hewlett Fellow in Science, Technology, and Society, Center for Energy and Environmental Studies, Princeton University, (Roberto M. Richard N. 4/1998 "TECHNOLOGICAL INNOVATION PREVENTS RESOURCE WARS " . http://www.thebulletin.org/issues/1991/a91/a91deudney.html )PHS

But scenarios of resource war may be diminishing in plausibility. The robust character of the world trade system means that resource dependency is no longer a major threat to a nation's military security and political autonomy. During the 1930s the world trading system had collapsed, driving states to pursue autarkic economies. In contrast, contemporary states routinely meet their resource needs without controlling the territory containing the resources.' Moreover, it is becoming more difficult for states to exploit foreign resources through territorial conquest. It is very costly for any invader, even one equipped with advanced technology, to subdue a resisting population-as France discovered in Indochina and Algeria, the United States in Vietnam, and the Soviet Union in Afghanistan. Iraq's invasion of Kuwait fits the older pattern but was based upon a truly exceptional imbalance between power (Iraq had the fourth-largest military force in the world) and wealth (Kuwait had the third-largest oil reserves and a tiny military). In addition, the world is entering what H.E. Goeller and Alvin M. Weinberg have called the "age of substitutability," in which industrial technology makes it possible to fashion virtually everything needed from substances such as iron, aluminum, silicon, and hydrocarbons which are ubiquitous and plentiful. Evidence for this trend is that prices for virtually every raw material have been stagnant or falling for the last several decades despite the continued growth in world output, and despite expectations many voiced during the 1970s that resource scarcity would drive up commodity prices to the benefit of Third World raw material suppliers.

Protection of Intellectual Property essential to Economy

BIAC Committee on Technology and Industry ’03 (BIAC, “THE IMPACT OF INTELLECTUAL PROPERTY PROTECTION

ON INNOVATION AND TECHNOLOGY DEVELOPMENT”, http://www.biac.org/statements/tech/FIN03-01-IPP_Innovation.pdf)