Building Respect for IP –

Current work of WIPO

Heike Wollgast

Senior Legal Officer, Building Respect for IP Division

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Overview

The policy framework: The WIPO Development Agenda

and IP Enforcement

The current work program of the WIPO Advisory

Committee on Enforcement (ACE)

The Global Congress on Combating Counterfeiting and

Piracy

Technical assistance

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Policy framework: The WIPO Development

Agenda and IP Enforcement

Development Agenda agreed by WIPO Member States in 2007

Overall objective: To ensure that development considerations form an integral part of WIPO’s work

WIPO to support an informed policy dialogue on the way in which IP can best evolve as a tool to establish an equilibrium between

- private rights, to encourage and ensure reward for creativity and innovation, and

- the public interest to access knowledge, and to share and collaborate in cultural development

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Policy framework: The WIPO Development

Agenda and IP Enforcement

Concerning IP enforcement:

Recommendation 45: To approach IP enforcement in the context of broader

societal interests and especially development-oriented concerns, with a

view that “the protection and enforcement of IP rights should contribute to

the promotion of technological innovation and to the transfer and

dissemination of technology, to the mutual advantage of producers and

users of technological knowledge and in a manner conducive to social and

economic welfare, and to a balance of rights and obligations”, in accordance

with Article 7 of the TRIPS Agreement.

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The WIPO Advisory Committee on

Enforcement (ACE)

Established in 2002

Members: all WIPO Member States + accredited Observers

Mandate:

- Cooperation with international organizations and the private sector to

combat counterfeiting and piracy

- Technical assistance

- Public education and coordination of training

- Exchange of information

- Excludes norm-setting

Annual work program agreed by the Committee

Discussions supported by research

Working documents/studies available in English, French and Spanish at

http://www.wipo.int/enforcement/

7th session: Nov. 30 - Dec. 1, 2011, in Geneva

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Current Work of the ACE

Current work program of the ACE – a shift in focus

Three elements:

1) Better understanding scope and socio-economic effects of counterfeiting and piracy

2) Analysis of reasons that fuel counterfeiting and piracy, including consumer behavior and motivations

3) Analysis of enforcement efforts and alternative models, from an economic welfare perspective

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Current Work of the ACE

1) Better understanding the socio-economic effects of counterfeiting and

piracy

Objective: Providing guidance to Member States that seek to analyze

effects at national levels

This may help policy makers to set priorities in light of resource

constraints

First step: Review of existing studies that aim to measure scope and

impact of counterfeiting and piracy, aiming to identify gaps in the current

understanding of socio economic consequences (documents

WIPO/ACE/6/7; WIPO/ACE/6/4)

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Current Work of the ACE

Findings/recommendations for further analytical work:

Identification of shortcomings in existing studies that seek to quantify

counterfeiting and piracy, including with a view to adopted methodologies

(e.g., calculation of losses) and data (e.g., different reporting practices by

customs administrations)

Little empirical research on short- and long-term employment effects of

counterfeiting and piracy, including with a view to the informal sector

Quality of future empirical work will depend to a large extent on the quality

of underlying data. Data collection should be improved and harmonized

to ensure greater availability, consistency and transparency

Deeper analysis of counterfeiting and piracy impacts at micro-levels

recommended (e.g., industry-specific)

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Current Work of the ACE

Current research:

Review of existing statistical information relating to counterfeiting and

piracy, aiming to assess data reliability and comparability, and to make

recommendations for further improvement

Will be presented at the 7th session of the ACE

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Crurent Work of the ACE

2) Better understanding reasons that fuel counterfeiting and piracy: analysis of consumer behavior and motivations

(i) ICC-BASCAP Research Report on Consumer Motivations (document WIPO/ACE/6/6)

Based on desk research and consumer surveys in 5 countries(Mexico, Russia, UK, India, South Korea)

Identification of different consumer categories, e.g.: - “Happy purchasers”: counterfeit goods as “smart purchase” - “Struggling Consumers”: lowest income level; concentrate on basic

needs; do not question origin of goods - “Robin Hoods”: consider branded goods as overpriced and big

corporations as unethical; rejection of established order

Top drivers (average):- Low price and availability- Low risk of penalties- Social acceptance

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Crurent Work of the ACE

Top deterrents (average): - Risks for health and safety (34%)- Better service and warrants (15%)- Support of organized crime (10%)- Risks for own equipment (9%)- (I)- Risks of liability (5%)

Messaging:- Focus should be on making understanding the benefits from going

original- Negative reaction to « shocking » images and texts, question of

credibility- Most credible spokespersons: victims

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Current Work of the ACE

(ii) SSRC Media piracy (optical disk piracy) in emerging markets

(document WIPO/ACE/6/5):

Finds that enforcement and educational efforts so far had little impact on

the overall supply of pirated goods

Main factors are low incomes vs. high prices of original goods

Finds that, compared to local incomes, the average retail price of original

CDs or DVDs is five to ten times higher in emerging markets

Pirated goods perceived as main form of access to a wide range of

cultural goods and software

Focus, therefore, should be on pricing and a viable business model

debate, rather than law enforcement

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Current Work of the ACE

3) Analysis of enforcement efforts and alternative models, from an economic

welfare perspective

Responsible disposal and destruction of seized counterfeit goods:

Opportunities for building respect for IP (document WIPO/ACE/6/8)

Policy issue in many countries in light of increasing volume of seized

counterfeit goods

Costs: who has to bear costs if they cannot be recovered from infringer?

Alternative methods of funding are explored, e.g. the use of proceeds of

crime

Current practice: mainly burning

Risks to environment / public health relating to the destruction of certain

goods (e.g., counterfeit pesticides, batteries, pharmaceuticals, electrical

goods); need for technological know-how and facilities

Alternatives: Recycling? Donation of goods?

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Current Work of the ACE

Current research, to be presented at the 7th session of the ACE (examples):

Review of statistical information relating to counterfeiting and piracy

Abusive enforcement practices? A comparative study on anti-competitive

enforcement of intellectual property rights. Focus on IP rights that have

been legitimately acquired but that are abusively enforced, that is,

enforced with the mere intent of putting competitors out of the market

(“sham litigation”)

Understanding changing consumer attitudes in the digital world

Preventive/cooperation models to address online trade in counterfeit

goods

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Global Congress on Combating

Counterfeiting and Piracy

Organized in public-private cooperation: WIPO, Interpol, World Customs

Organization (WCO) and the private sector (ICC-BASCAP, INTA)

6th Congress: hosted by WIPO (Paris, February 2011)

Attracted almost 900 delegates from 105 countries

Focus in 2011 on finding sustainable solutions in response to different

levels of socio-economic development

Examples:

- The contribution of IP enforcement to sustainable development;

- The role of competition law for creating a better balance in the context of

IP enforcement;

- The impact of corporate social responsibility on building respect for IP;

- Education and awareness in building respect for IP;

- Eco-friendly and socially equitable disposal of infringing goods;

- Protecting consumer safety;

- Counterfeiting and piracy in the virtual world;

- Innovative approaches to financing effective enforcement.

Key statements, podcasts and other information at

http://www.ccapcongress.net/

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WIPO technical assistance relating to IP

enforcement

Request-driven

WIPO services include

- Legislative advice

- IP enforcement training courses

- Strategic/policy advice

Strong demand by WIPO Member States

Requests display great level of specialization

WIPO services guided by the work of the ACE

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http://

www.wipo.int/enforcement/en/