Intellectual PropertyDelivered by Olena Goroshko

and

Ganna Molodykh

Topics under Review

Definition Short History Examples Issues & Challenges

Self-Assessment Test

Why are intellectual properties important?Industrial/economic competitiveness is "knowledge-based.' 4 million + active patents worldwide; 700,000 new applications for patents submitted annually; $100 billion from the sale of licenses for patented items during 2000 (ten times more than in 1990). During 2000 U.S. Copyright Office received 588,000

claims to copyright more than 800,000 works and registered 515,000.

Development of knowledge intensive industries is the majorway to increase citizen's incomes and standards of living.

Main Definitions from IP Area Patents - inventionsof products, processes, formulas and plants. Copyrights - original works of authorship

printed, written, recorded and performedmaterials; industrial and commercial designs.

Trademarks - distinctive elementsto designate identity of companies and brands Trade Secrets – inventions withheld from exposure in

"public domain" Licenses – agreements for rights to use any of the above.

Ukraine - Memberships and Treaties The Paris Convention-The International Union protecting Industrial

Property; The Berne Convention-The International Union for the protection of Literary and Artistic Works; The Nairobi Treaty on the protection of the Olympic symbol; The Patent Cooperation Treaty – PCT; The Budapest Treaty-international recognition of microorganisms patent procedures; The Madrid Agreement concerning International Registration of

Trademarks; The Rome Convention - protection of performers & producers of

phonograms; Trademark Laws Treaty - TLT.

UKRAINIAN IP CONNECTEDNESSUkraine uses the following standards: The International Patent Classification The International Classification of Goods and Services for the

Registration of TrademarksUkrainian Patent Office is: cooperating with World Intellectual Property Organization (WIPO) cooperating with European Union (European Patent Organization) developing bilateral & multi-lateral cooperation and joint activity

with NGOs member of International Industrial Property Protection Association

(AIPPI) developing relations with: International Trademark Specialists Association (INTA) International Federation of Inventors Associations (AFIA)

ISSUES AND CHALLENGES:

IP infringement is illegally using another's property.

Market-based economies and societies have respect for the rule of law and property rights.

Figures provided by the Interior Ministry of Ukraine show that every second (one half) of 12,000 enterprises checked Ukraine-wide during nine months of 2001 violated the established rules of edition and circulation of intellectual property items.

Issues and Challenges IP infringement acts against development of: market economies / marketing concepts which require

fair exchanges for valuable properties; product, process and concept development; international trade - reduces incentives for trade; Exported technology less valuable - can't protect!

Imported technology not accessible - can't protect! economic growth of country - prevents investment; IP infringement promotes "brain drain" - diminished

return on intellectual efforts vs. the rest of the world Adherence and enforcement conditions of EC and WTO membership.

Issues and Challenges Law Enforcement (police) and Judicial

responsibilities: prevent entry of infringing goods into commercial

channels; preserve relevant evidence regarding alleged

infringement; unbiased prosecution of offenders.Customs responsibilities: border measures to prevent entry; effective methods for conservation of evidence.

ECONOMIC CONSIDERATIONS: Business Software Alliance estimates that more than

$12 billion of sales lost during 2000 to software piracy.

The U.S. economy loses $22 billion each year among all copyrighted industries.

$60 billion in sales is lost by US companies eachyear to unauthorized use of US patents, trademarksand copyrights - about 1 million jobs.

From the press:

COLIN POWELL: DEMOCRACY AND FREE MARKET ARE PREREQUISITES FOR SUCCESS IN THE XXI CENTURY

Yulia MOSTOVAYA, Zerkalo Nedeli № 25 (349), 7 -13 July 2001 year COLIN POWELL: Protection of intellectual property rights remains a

problem in Ukraine - and Ukraine suffers most from the consequences. Ukraine has enormous high tech potential. But many companies simply will not invest in high tech industries because they believe, with good reason, that their copyrights will be violated and their intellectual property stolen. Experience elsewhere has shown that countries develop more rapidly and attract more investment when they have put in place effective intellectual property laws ... (without which) the population as a whole foregoes the benefits of legitimate economic growth and a positive investment climate. That's why we maintain that, first and foremost, protecting intellectual property is in Ukraine's interest.

From the press:

PEACEFULL TALKS IN TIME OF WARYulia MOSTOVAYA Zerkalo Nedeli № 43 (367) ,3-9 November 2001 ANATOLIY KINAHK, Ukrainian Prime Minister: We had a very tough

discussion with trade representative of the United States of America. We still have to go a long uphill way in this direction. It is not only about optical disks. It is about Ukraine's capability to create and maintain conditions for fair market competition. Ukraine's integrity is not at stake, but we have to cooperate with our partners on a transparent and systematic basis, which refers, of course, to the investment market as well. I am very glad that we managed to reach a compromise here: the sanctions will not be imposed on November 1, but the Ukrainian Parliament and government will have to do their best to adopt the respective law in the second reading, so that the intellectual property in Ukraine is effectively protected.

From the press: UKRAINE AND WTO: HOW TO MAKE THE PLUSES

LARGER AND THE MINUSES SMALLER Vladimir SIDENKO, Olexander BARANOVSKY Zerkalo

Nedeli № 26 (401) ,13-19 July 2002 Joining the WTO is a prerequisite for Ukraine's real, not

simply declarative, integration with the European Union. Within a civilized environment of competition and a transparent legal field, structural reforms could gain momentum, competition and innovations could receive fresh impetus. This would be facilitated by the adjustment of the national legislation (on taxation, customs, standardization and certification, services, competition, intellectual property) to the WTO standards and rules.

From the press: FOREIGN POLICY FOR DOMESTIC USE Valery CHALY, Mikhail PASHKOV Zerkalo Nedeli 23

November, 2002 It is naive to hope for reciprocal steps in response to our loud

calls for granting Ukraine the status of an associated EU member, if we are still unable to fully implement the 1994 [EU Ldraine] Agreement on Partnership and Cooperation. Ukraine has breached its provisions more than 20 times in the last three years. Ukraine is still accused of violating intellectual property rights; there are unresolved problems involving trade in vehicles and exports of scrap metal. It is because of these obstacles that the EU won't grant Ukraine market economy status.

From the press: Vladimir Sidenko article in "Zerkalo

Nedeli" "... urgent need to conduct campaign ... aimed at developing legal culture ... to respect intellectual property ... obtaining fundamental knowledge of the rights of owners of intellectual products ... and mechanisms of their protection".

Good-bye!

Remember about the importance of Intellectual Property

Issues!!!