Table Of ContentINTELLECTIJAL
PROPERTY
A POWER TOOL
FOR ECONOMIC
GROWTH
Kamil ldris
Wonlo
Nrellrcrual
I
PnoprRrv
ORcaNrzRrroN
2
CONTENTS:
I NTE LLECTUAL PROPERTY
A Power Tool for Economic Growth
PREFACE
4
I
CHAPTER 7
I NTELLECTUAL PROPE RTY:
BASIC PREMISES AND HISTORICAL CONTEXT
2
CHAPTER 23
THE PROCESS OF ECONOMIC GROWTH
3
CHAPTER
SE
INTE LLECTUAL PROPERTY, KNOWLEDG
E
AND WEALTH CREMION
4
CHAPTER 77
PATENTS, RESEARCH AND DEVELOPMENT,
AND NEW TECHNOLOGIES
5
CHAPTER 147
TRADEMARKS AN D GEOGRAPH ICAL I N DICATIONS
6
CHAPTER 189
COPYRIGHT AND THE CULTURAL
AND INFORMATION INDUSTRIES
7
CHAPTER N7
TRADITIONAL KNOWLEDGE
8
CHAPTER ZOI
ACQUIS ITION AND MAINTENANCE
OF INTELLECTUAL PROPERTY RIGHTS
9
CHAPTER 299
ENFORCEMENT OF INTELLECTUAL PROPERTY RIGHTS
10
CHAPTER 335
THE ROLE OF WIPO
ABBREVIATIONS
343
INDEX
349
ACKNOWLEDGMENTS
376
AUTHOR
ABOUT THE 377
A INTELLECTUAL PROPERTY
A Power Tool for Economic GroMh
PREFACE
Intellectual property - or lP - is a term increasingly in use today, but still
little understood. To many people it remains a mystery - some obscure
legal concept of little relevance to every-day life. Using carefully chosen
cases and facts and figures this book seeks to demystify lP, settlng out to
explain the "why" and the "how" of the subject, unlike many previous
books that concentrate on the "what".
This publication is not a legaltreatise, it is a practical guide to lP as a tool
for economic groMh and wealth creation aimed at interested non-
specialists, including policy-makers in both the government and busi-
ness sectors.
Readers will discover that lP is often one of the most important assets of
large corporations, that it generates more than 100 billion dollars a year
in revenues from patent licensing alone, and that a good patent portfo-
lio can dramatically increase the valuation of an enterprise. They will also
realize that disparitles in lP assets are as great between the developed
and developing world as are disparities in other forms of wealth.
Lack of awareness about lP is understandable because, in the past, it was
an esoteric field of law, the preserve of technical specialists and corpo-
rate lawyers. However, times have changed: the information technology
revolution, and the increasing pace, impact, and importance of invention
and innovation, linked to rapid globalization, have brought lP onto cen-
ter stage. From being a backwater issue, it is now a key factor in govern-
ment policy-making and in corporate strategic planning.
This publication iswritten from a definite perspective-that lP is good. lt
is based on the belief that lP is a "power tool" for economic develop-
ment that is not yet being used to optimal effect in all countries, partic-
ularly in the developing world. lt offers the possibility of gromh and eco-
nomic development in a way that is not a "zero sum game", where if
some win, others will lose. On the contrary international acceptance and
utilization of lP tools means that there will be more innovation and there-
fore more creative change and cultural and economic growth.
The mission of the World lntellectual Property Organization (WIPO) is to
promote the protection of lP rights worldwide, and to help extend the
reach of the benefits of the international lP system to all its Member
States. These goals are complementary for without lP protection and
enforcement, the lP system will not work; and without broad appreciation
of the system, and participation in its benefits, it will not be accepted and
supported. I am privileged to work with the excellent staff of WIPO
towards achieving these twin goals.
I wish to thank the colleagues who contributed to this book, as well as
the many professionals who assisted by reviewing drafts and contribut-
ing ideas, along with helpful criticism. I hope the following chapters will
generate a better understanding of the enormous potential of the inter-
national lP system and its role in creating a better future for us all.
eUL-
-
KAMIL IDzuS
Director General
World lntellectual Property Organization
6l
INTELLECTUAL PROPERTY Z-
A Power Tool for Economic Growth
CHAPTERl
I NTE LLECTUAL P ROPE RTY:
BASIC PREMISES AND
HISTORICAL CONTEXT
E I NTE LLECTUAL PROPERTY
A Power Tool for Economic Growth
Basic Premises and Historical Context
"lmagination is more important than knowledge"
Alb e rt Ei nstei n, Scientist (1 87 9 - 1 I 55)
AO"n Einstein's preference for imagination over knowledge is a start-
ing point for this book because intellectual property is based on the
power of imagination. Although not belittling knowledge, Einstein
understood that it is the ability to stand on an existing foundation of
accepted knowledge, and yet see beyond to the next frontier of discov-
ery that is the source of personal, cultural and economic advancement.
Had Einstein been content to simply learn the rules of physics as they
were passed down to him as knowledge, he might have been a more
successful student, but he might never have developed the theory of rel-
ativity, which became the foundation for modern physics as it exists and
continues to evolve today.
The history of the human race is a history of the application of imagina-
tion, or innovation and creativity, to an existing base of knowledge in
order to solve problems. From early writing in Mesopotamia, the
Chinese abacus, the Syrian astrolabe, the ancient observatories of lndia,
the Gutenberg printing press, the internal combustion engine, penicillin,
plant medicines and cures in Southern Africa, the transistor, semicon-
ductor nanotechnology, recombinant DNA drugs, and countless other
discoveries and innovations, it has been the imagination of the worlds
creators that has enabled humanity to advance to todays levels of tech-
nological progress.
lmagination feeds progress in the arts as well as science. Music, painting,
sculpture, architecture, novels and other works of art, are created by indi-
viduals who are not content with the old, and instead see and express
ideas and emotions in new ways.
lntellectual property (lP) is the term that describes the ideas, inven-
tions, technologies, artworks, music and literature, that are intangible
when first created, but become valuable in tangible form as products.
The end of this Chapter provides short definitions and an explanation
of the classic forms of lP - patents, copyright, trademarks, and other
evolving forms. However, for purposes of this introduction, suffice it to
say that lP is the commercial application of imaginative thought to
v__
solving a technical or artistic challenge. lt is not the product itself, but the
special idea behind it, the way the idea is expressed, and the distinctive
way it is named and described.
The word "property" is used to describe this value, because the term
applies only to inventions, works and names for which a person or group
of persons claims ownership. Ownership is important because experi-
ence has shown that potential economic gain provides a powerful incen-
tive to innovate.
It is also important to note that lP results from innovation based on exist-
ing knowledge. lt is the result of creative improvements on what has
worked well in the past, or of creative new expressions of old ideas and
concepts.
The term "intellectual property" has recently become topical and, at
times, controversial. lt is easy to find articles describing recent events
related to lP. Some critics attack it as a negative force or as irrelevant to
developing countries; some others in developing countries maintain that
it stymies creativity. These beliefs have become popular myths and have
acquired a cultural momentum. This book addresses why these myths
are false and why lP is particularly important today to both developing
and developed nations.
We must acknowledge at the outset that, for most people, lP is either an
unknown, misunderstood, or mysterious term. Technology and creative
arts pervade modern society, yet few actually realize that their daily lives
are surrounded by lP creations' from which legal rights of all sorts, includ-
ing their own, arise. Building public awareness of the role of lP is key to
fostering a broad understanding of, and respect for, it and the system
that promotes and protects it. To truly convince the public, including civil
society activist groups, it is essential to engage them in such a way that
they allsee themselves as stakeholders in a healthy and robust lP system.
To do so, they must be included in an ongoing dialogue and feel
empowered by the system.
The World lntellectual Property Organization (WIPO) has proclaimed
the universal value of lP,'?and has shown that lP is native to all peoples,
