Intellectual Property Right

and Economics
Report by: Mark Anthony Neri
Economics for Managers
What is Intellectual Property?
Anything that is intellectually created or manually
conceived by a person or a group

Gives them the right to have exclusive use of that idea

or creation.

Exclusivity here pertains to the right of the inventor of

the idea exclusive use to sell, appropriate and even
prohibit particular people to have access.
Inspirational Message on Piracy

Package
IPR – Short Infomercials
Infringement
Destroys Industries Piracy is a Crime

informercial3.wmv

Informercial1.wmv
Piracy Kills Creativity

Infomercial2.wmv
Why is Intellectual Property rights
Important?
Intellectual Property Rights protection is important for
the inventors/creators of ideas and products because:

1. Gives them incentive to create more ideas, inventions,

books, songs, etc.
2. Without these rights then anyone can manufacture,
copy or reproduce the idea and earn from it as well.
3. The effect would be that inventors/creators wouldn’t
have the urge to share their ideas to the world.

Intellectual Property Rights Reward Innovation

Types of Intellectual Property
TRADEMARKS:

A mark or a sign that

identifies or
distinguishes your ORIGINAL DESIGN

products from any

other brand out there.
CURRENT DESIGN
Types of Intellectual Property
WRITTEN COPYRIGHT:
WORK
Protects the authors of written
works, texts and even artworks
as well as songs.
anything that a person or a
ARTWORK group can create can be
copyrighted.
Copyright spans from the life of
the creator + 50 years, which is
the limit for you to own and
gain economic profits from your
MUSIC intellectual property.
 Types of Intellectual Property
Alexander Graham
Bell’s Telephone
Modern Telephone
Design
PATENTS:
Govern protecting inventions
and innovations
Covers things/ideas that solve
specific practical problems or
applications
Patents can only be applied to
things that have physical
representation (5 senses)
Legislature on Intellectual Property Rights:
TRIPS agreement
Agreement on Trade Related Aspects of Intellectual
Property Rights or commonly known as TRIPS
Gives the minimum standards for any form of intellectual
property legislature or regulation which will be applied to
all members nations of the WTO
3 Basic Proponents of the Agreement:

1. STANDARDS:
2. ENFORCEMENT:
3. DISPUTE SETTLEMENT:
Legislature on Intellectual Property Rights:
TRIPS agreement
STANDARDS:
Lays out the minimum standard that should be
provided by each member nation.
Each of the main elements of protection is defined,
namely by the subject-matter to be protected, the
rights to be conferred and all permissible exceptions
Legislature on Intellectual Property Rights:
TRIPS agreement
ENFORCEMENT:

 Deals with domestic procedures and remedies for the enforcement

of intellectual property rights.
 Lays down certain general principles applicable to all IPR
enforcement procedures.
 Each member country that are signatories to the agreement are
left to free to determine the most appropriate legislature in
implementing the agreed upon proponents in their respective
countries
Legislature on Intellectual Property Rights:
TRIPS agreement
DISPUTE SETTLEMENT:

The Agreement makes disputes between WTO

Members about the respect of the TRIPS obligations
subject to the WTO's dispute settlement procedures.
Legislature on Intellectual Property
Rights: Philippines Setting
Republic Act No. 8293 otherwise known as the Intellectual
Property Code of the Philippines

The Intellectual Property Code of the Philippines is

divided into five parts, to wit:

PART I - The Intellectual Property Office

PART II - The Law on Patents
PART III - The Law on Trademarks, Service Marks and Trade Names
PART IV - The Law on Copyright
PART V - Final Provisions
 Offenses Against Intellectual Property Rights
 Copyright Infringement / Piracy:

Violation of intellectual
property right referring to the
copying or unauthorized use of
copyrighted materials without
the prior consent or payment of
royalties to the creator.
Does not limit to the actual use
of the original creation, but also
through the derivatives of their
creation
Offenses Against Intellectual Property Rights

 Plagiarism:

An offense in which a person

or group copies and presents
someone else’s work as if it was
their own, without citing
appropriate sources of the
information.
 Offenses Against Intellectual Property Rights
 Counterfeiting:

Imitate an original creation

and passing it over or selling
it as if it was an original
reaping the benefits of that
original’s established worth.
It may also refer to forgeries
of currency like fake dollars
as well as document
forgeries.
IPR and its Effects on Economics and Trade
 Effects of Intellectual Property and
Foreign direct Investment:

For developed countries a strong

IPR can create “ownership
advantages” that will help in
allowing firms to try its luck to
invest overseas.

Developing countries can attract

new foreign investments if there
is a strong IPR legislature and
implementation force in their
country.
 IPR and its Effects on Economics and Trade
Effects of Intellectual Property and
Foreign direct Investment:

For developed countries that have

strong multinational presence, a strong
IPR protection can provide them the
needed incentives to increase the
quality of their investments dedicated
to developing countries, which in turn
help developing countries to progress.

There is a positive effect on the volume

of incoming FDI in developed countries
with good IPR laws, especially those
who have strong technical capabilities.
IPR and its Effects on Economics and Trade
Effects of Intellectual Property rights
and Global Trade:

There are positive effects of a strong

IPR presence in terms of international
trade

A strong IPR can possibly create an

ownership advantage to allow different
firms, especially specialized firms to
compete effectively in foreign and
international markets.

IPR agreements like TRIPS help make a

standard requirement for all members,
which will help in reducing transaction
costs associated with international
trade.
 IPR and its Effects on Economics and Trade
 Effects of Intellectual Property and
Innovation:

Stronger IPR presence is

required especially for
developing countries to
encourage domestic
innovation.
A strong IPR presence will also
help in terms of facilitating
international technology
transfer from developed to
developing countries.
CRITICS to Intellectual Property Rights

IPR in relation to Foreign Direct
Investment:

Strong IPRs can increase the market

power of multinationals in developing
countries, giving them incentives to
increase the price of their products and
to decrease their investment and sales
abroad.

IPR in relation to Global Trade:

In strengthening IPR for developing

countries, there is a chance to increase
the market power of foreign firms,
giving them incentives to increase the
price of their products and decrease
their exports to developing countries.
CRITICS to Intellectual Property Rights
 IPR in relation to Innovation:

 Strong IPRs can also possibly

limit innovation in developing
countries, by preventing reverse
engineering on products as well
as imitation using less expensive
ingredients or methodologies.

 Gives rise to the term intellectual

protectionism and intellectual
monopoly
Resources
 http://www.youtube.com/watch?v=-LkWKvMCzqA&feature=related
 http://www.youtube.com/watch?v=pI__VYuVD_A
 http://www.youtube.com/watch?v=SnSLXQ8pfvs&feature=related
 http://www.youtube.com/watch?v=l5SmrHNWhak
 Intellectual Property and Developing Countries: A review of the literature Emmanuel Hassan, Ohid
Yaqub,Stephanie Diepeveen Copyright 2010 RAND Corporation)
 http://en.wikipedia.org/wiki/Agreement_on_Trade-Related_Aspects_of_Intellectual_Property_Right
s
 http://en.wikipedia.org/wiki/Counterfeit
 http://www.wto.org/english/tratop_e/trips_e/intel2_e.htm
 http://en.wikipedia.org/wiki/Patent
The End