26 Communication on Protection of Intellectual
Property Rights in Third Countries
| Committee's assessment
| Politically important |
| Committee's decision | Cleared from scrutiny; further information requested; draw to the attention of the Business, Innovation and Skills Committee
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| Document details | Communication from the Commission on the strategy for the protection and enforcement of intellectual property rights in third counties (36204), 11607/14 + ADD 1, COM(14) 389
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| Legal base | Not applicable
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| Department | Business Innovation and Skills
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Summary and Committee's conclusions
26.1 Intellectual property rights (IPRs) are very
significant to the EU economy. It has been estimated that IPR-intensive
sectors account for around 39% of EU GDP.[120]
It has also been estimated that the EU loses about eight billion
euros of its GDP a year to counterfeiting and piracy;[121]
and that at least 2% of the value of all international trade is
in counterfeit and pirated goods.[122]
The importance of IP as a key driver for growth and innovation
was reaffirmed at the March 2014 European Council, which also
highlighted the need to fight against counterfeiting to enhance
the EU's industrial competitiveness globally.
26.2 In 2004 the Commission adopted a strategy for
the enforcement of IPRs in third countries, which it reviewed
in 2010. Through this Communication the Commission aims to take
a smarter approach to utilising available trade policy tools to
enforce IPS and take account of the changing world IPR environment.
This strategy accompanies the reports produced by the Commission
for the benefit of business on the potential IPR risks when trading
with specific countries.
26.3 The protection and enforcement of intellectual
property rights (IPRs) in third countries is very important to
UK economic interests. This Communication sets out the changing
economic background and the Commission's proposed "smarter
approach" in utilising the available trade policy tools available
to protect and enforce IPRs in third countries. It complements
the Communication on enforcement of IPRs within the EU, reported
at Chapter 24.
26.4 We clear the document, which does not envisage
any change in the law, but ask the Minister to confirm that there
is nothing further the Commission should be doing to protect IPRs
in third countries. We also draw this Report to the attention
of the Business, Innovation and Skills Select Committee.
Full details of the documents:
Communication from the Commission to the European Parliament,
the council and the European Economic and Social Committee: Trade,
growth and intellectual property — Strategy for the protection
and enforcement of intellectual property rights in third countries:
(36204), 11607/14 + ADD 1, COM(14) 389.
Background
26.5 The Communication from the Commission sets out
the economic significance of IPRs and the prevalence of counterfeiting,
theft and other forms of IP misappropriation, despite many developing/emerging
economies changing their approach to IPR from imitation to creation
and the increasing IPR regulatory reforms in third countries.
It notes that the EU has experienced a tripling in the number
of IPR infringing goods detained at EU borders between 2002 and
2012. In 2012 alone the value of the equivalent genuine products
was estimated to be worth nearly one billion euros.[123]
26.6 The Communication identifies the internet has
having altered the IPR environment, making it difficult to develop
timely policies, balanced between the rights of individuals and
respect for IPRs. Other specific challenges identified include:
the need to encourage research and innovation, the challenge of
access to medicines and the environmental challenge.
26.7 The Communication notes specific "ways
forward" for the Commission:
· Ensure regular interaction with all stakeholders
to raise awareness and guide policy;
· Enhance data collection and reporting,
so as to improve the understanding of the role of IPRs and the
impact of infringement; conduct regular surveys in order to maintain
a list of 'priority countries' for focused EU efforts;
· Ensure a strong and coherent role for
the EU in international IPR fora in line with the Lisbon Treaty;
· Continue multilateral efforts to improve
the international IPR framework, including by encouraging further
ratification of existing treaties; promote ratification of relevant
IPR treaties by all EU Member States;
· Ensure that IPR chapters in bilateral
trade agreements offer adequate and efficient protection for right-holders
and address key weaknesses in partner countries' IPR systems while
calibrating commitments to third countries' level of development;
· Ensure the Commission can make recourse
to dispute settlement mechanisms or other remedies where the EU's
rights under international agreements are infringed;
· Continue and where possible enhance 'IP
Dialogues' with key third countries; leverage high-level trade
and political dialogues to ensure progress on identified IPR issues;
· Provide and promote awareness of appropriate
IP-related technical assistance programmes to third countries,
including on the possible use of IP flexibilities; leverage the
expertise of relevant international organisations in implementing
technical assistance programmes;
· Establish a stronger relationship between
the Commission, Member States and EU business to directly support
economic operators in overcoming concrete difficulties on IP issues;
enhance networking and coordination of actions between EU and
Member States representations in third countries; and
· Aim at better coherence between IPR and
other policies, e.g. consider restricting participation or funding
in specific EU-funded programmes in sufficiently serious and clearly
targeted cases, and to improve coherence between the Commission
and Member States in third countries in this goal.
The Government View
26.8 In her Explanatory Memorandum of 21 July 2014,
the Minister notes that the challenges set out in the Commission
Communication, form part of a three-pronged approach to protecting
and enforcing IPRs, alongside the recently published EU Action
Plan (which focuses on the enforcement of IPRs in the single market
and is considered elsewhere in this Report), and the existing
EU Customs Action Plan (which has a specific focus on border enforcement
and developing deeper cooperation between customs authorities
in the EU and in third countries). The overall aim is to stimulate
growth and employment and reduce the incentives for the many commercial-scale
IP infringers that undermine the EU economy.
26.9 She sets out the action points for the Commission
contained in the Communication and adds that, to accompany the
strategy, every two years the Commission conducts a survey to
consider how IPRs are being enforced internationally, and produces
reports based on the results. These reports help identify those
countries where the protection and enforcement of IPRs are particularly
detrimental to EU interests, allowing the Commission to focus
resource on them. The reports also assist businesses, particularly
SMEs, by making them aware of the potential IP risks when trading
with countries outside the EU. The most recent list, published
in 2013, includes China, India, Indonesia, the Philippines, Turkey,
Argentina, Brazil, Canada, Israel, Korea, Malaysia, Mexico, Russia,
Thailand, Ukraine, USA, and Vietnam.
26.10 The Minister indicates that "there are
no direct policy implications for the UK" although the Government
welcomes the Communication. She notes that the UK's own International
Strategy for Intellectual Property identifies enforcement as a
key problem for IP intensive UK businesses operating overseas,
particularly in emerging economies where enforcement can be weak,
costly and complex. Since 2011 the Government has appointed four
specialist IP attachés in key markets (China, India, Brazil,
and South East Asia) to support UK businesses and work closely
with Governments and agencies on IP issues. The attachés
are building links with their counterparts in the diplomatic representations
of other Member States and EU Delegations in order to deliver
a strategic, coherent approach to IP issues.
Previous Committee Reports
None.
120 Intellectualpropertyrightsintensiveindustries:contributiontoeconomicperformanceandemploymentintheEuropeanUnion,Industry-LevelAnalysisReport,JointprojectbetweentheEuropeanPatentOfficeandtheOfficeforHarmonisationintheInternalMarket,MunichandAlicante,2013. Back
121
CEBR,TheimpactofcounterfeitingonfourmainsectorsintheEuropeanUnion,CentreforEconomicandBusinessResearch,London,2000. Back
122
OECD,Magnitudeofcounterfeitingandpiracyoftangibleproducts:anupdate,November2009,http://www.oecd.org/dataoecd/57/27/44088872.pdf Back
123
Report on EU customs enforcement of IPRs: results at the EU border
2012: European Commission (2013). Back
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