executive summary - value ingenuity...twenty-one economies achieve a score of 70% or more of the...

RECOVERY THROUGH INGENUITY | 2021 NINTH EDITION

INTERNATIONAL

EXECUTIVE SUMMARY

2021 Ninth Edition

U.S. CHAMBER INTERNATIONAL IP INDEX 2021

EXECUTIVE SUMMARY

The COVID-19 pandemic upended life as we knew it. As global citizens adjusted to living through a global pandemic, intellectual property played an essential—if oftentimes underappreciated—role in the creation and development of technological and creative solutions.

Treatments and vaccines for coronavirus were devel-oped in record time as a result of the scientific commu-nity’s ability to make high-risk, high-capital investments in R&D. As we adjusted to the way we work, teach, and connect with others, IP-enabled digital technologies allowed us to remain connected to one another, even if in isolation. And while many of us spent much of the year in quarantine, the development of new stream-ing services and creative content provided both a wel-come escape and brought us together. Throughout

GEOGRAPHIC COVERAGE

Algeria Indonesia RussiaArgentina Ireland Saudi ArabiaAustralia Israel Singapore

Brazil Italy South AfricaBrunei Japan South Korea

Canada Jordan SpainChile Kenya SwedenChina Kuwait Switzerland

Colombia Malaysia TaiwanCosta Rica Mexico Thailand

Dominican Republic Morocco TurkeyEcuador Netherlands United States

Egypt New Zealand UAEFrance Nigeria United Kingdom

Germany Pakistan UkraineGreece Peru Venezuela

Hungary Philippines VietnamIndia Poland

the pandemic, transparent and predictable IP rights have also provided the legal and economic basis for an unprecedented level of highly successful collabo-rations between government, industry, academia, and non-governmental organizations.

In this context, being able to measure how equipped economies are to generate and safeguard innovation and creativity is more important than ever before. Now in its ninth edition, the International IP Index bench-marks the IP framework in 53 global economies across 50 unique indicators. An effective IP system, as outlined by the criteria evaluated in the Index, will be critical to rebuilding healthy communities, getting citizens back to work, and reinvigorating the global economy.

uschamber.com/ipindex

RECOVERY THROUGH INGENUITY

IP enabled the development of a pipeline of thera-peutics solutions to combat COVID-19.

• While the vaccines currently authorized for use against COVID-19 use novel technologies, they are the result of decades of scientific research – made possible by effective IP – that has now been successfully applied during the pandemic.

• Of the over 1,600 active COVID-19 clinical trials, almost two-thirds tested existing medicines regis-tered for a different indication, illustrating the ways IP enables follow-on innovation.

• Vaccines and therapeutics were developed at un-precedented speed because of the unprecedented scale of public-private partnership. As governments pivot their focus to the distribution of the vaccine, IP will be critical to facilitating licensing and technolo-gy transfer while also expediting the manufacturing and delivery of vaccines and therapeutics.

While IP was critical to the global response to COVID-19, economies took steps to undermine the framework that successfully enabled coronavirus-re-lated innovation.

• In Israel, Hungary, and Russia, governments issued compulsory licenses for COVID-19 therapeutics.

• Other economies, including Chile, Colombia, and Indonesia called for or enacted new laws that ex-pand the criteria for compulsory licensing.

• At the World Trade Organization (WTO), India and South Africa issued a proposal to waive IP rights on all COVID-19 related medicines, devices, and technologies through the TRIPS Council waiver.

KEY FINDINGSOver recent years, the international IP environment has continued to strengthen, despite some negative developments resulting from certain governments’ responses to COVID-19.

• In the 2021 report, 32 of the 53 economies bench-marked had positive improvements in their scores.

• Since the second edition of the Index in 2014, the aggregated score of the economies benchmarked has improved 6.24%.

• Of the BRICS economies included since the in-augural edition of the Index in 2012, China and India have improved the framework for IP-driv-en innovation and creativity. In that time, China’s score has increased 18.34% while India’s improved 13.44%. However, despite this positive progress, significant challenges remain for IP rightsholders in both markets.

Trade agreements continue to substantively improve national IP frameworks.

• In the 2021 edition, China achieved the largest overall increases in score – at 3.9% – as a result of legislative improvements resulting from the Jan-uary 2020 U.S.-China Trade and Economic Agree-ment. These changes, if implemented effectively, should improve China’s domestic IP framework. However, ongoing market access barriers, uneven enforcement, measures requiring forced technol-ogy transfer, and serious deficiencies in the rule of law continue to make the business environment in China highly challenging for rightsholders.

• As a result of the implementation of some com-mitments in the U.S.-Mexico-Canada Agreement (USMCA), Mexico had the second largest overall increase in score – at 3.87% – due to legislative changes to improve copyright and trademark protection and the commercialization of IP assets. However, Mexico forfeited more substantive gains for life sciences IP protection when critical protec-tions were removed from the final agreement.

2021 Ninth Edition


2021 OVERALL SCORES

Turk

eyCo

lom

bia

Chile

Russ

iaPe

ruJo

rdan

Braz

ilUA

E

Brun

eiSa

udi A

rabi

aPh

ilipp

ines

Ukra

ine

Indi

aVi

etna

mKe

nya

Arg

entin

aSo

uth

Afri

caTh

aila

ndEg

ypt

Ecua

dor

Indo

nesia

Kuw

ait

Nig

eria

Alg

eria

Paki

stan

Vene

zuel

a

100.00%

90.00%

80.00%

70.00%

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0%

26.4527.43

26.4327.86

30.16 30.60

14.10

32.59

35.5636.61 36.77 37.25 37.49

38.4039.54 39.81 40.38 41.13

41.98 42.3244.53

46,56 46.58 47.2048.17

51.07



Unite

d St

ates

Unite

d Ki

ngdo

mG

erm

any

Fran

ceJa

pan

Swed

enN

ethe

rland

sIre

land

Switz

erla

ndSp

ain

Sing

apor

eSo

uth

Kore

aIta

lyA

ustr

alia

Hun

gary

Cana

daIsr

ael

Gre

ece

Pola

ndN

ew Z

eala

ndTa

iwan

Mor

occo

Mex

ico

Chin

aCo

sta

Rica

Dom

inic

an R

epub

licM

alay

sia

51.61

54.32 54.46 54.86

58.2559.62

66,18

69.1070.50 70.67

72.5774.71

78.23

80.55

83.15 83.73 84.38 84.6885.82

88.8690.02 90.92 91.12 91.43

92.2793.90

95.31

2021 Ninth Edition


CATEGORY-BY-CATEGORY RESULTS Patents, Related Rights, and Limitations

Twenty-one economies achieve a score of 70% or more of the available score and 31 economies in total achieve a score of over 50%.

• In the United States, the U.S. Patent and Trademark Office (USTPO) guidance on patent eligible subject matter led to a statistically significant decrease in the first office rejections for Alice-related technologies. Additionally, USPTO proposed changes to the inter partes review process on patent validity challenges.

• In China, the government passed amendments to the Patent Law which outline China’s new patent linkage regime and introduce patent term restoration for biopharmaceuticals.

• In Australia, the government announced their intention to create an early patent notification framework to create an opportunity for resolution of patent disputes before a generic is listed on the Pharmaceutical Benefits Scheme.

• In India, the government streamlined reporting requirements for patent holders under the Form 27 scheme.

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00%

SingaporeJapan

South KoreaSwitzerland

United StatesFrance

GermanyIreland

NetherlandsSpain

SwedenTaiwan

United KingdomItaly

HungaryAustralia

IsraelChina

GreeceCanadaPoland

New ZealandMorocco

JordanCosta Rica

Dominican RepublicBruneiRussia

ColombiaKenya

Saudi ArabiaMexico

PeruPhilippines

UAETurkey

ChileMalaysia

EgyptUkraine

BrazilIndonesia

KuwaitVietnamEcuador

IndiaArgentina

ThailandPakistanAlgeriaNigeria

South AfricaVenezuela

97.2294.4494.4494.4494.44

91.6791.6791.6791.6791.6791.6791.6791.67

88.8986.11

83.3383.33

80.8380.56

78.3375.00

71.7870.83

63.8963.6163.33

61.1155.56

50.0050.0050.0049.83

47.2247.2247.22

44.4443.72

41.6736.1136.1135.94

33.3333.3333.3333.1733.17

32.2230.22

27.7822.2222.2222.22

8.33



Copyrights, Related Rights, and Limitations

The global environment for creators and copyright holders continues to be challenging, with 32 of the 53 econo-mies failing to reach 50% of the total available score. However, there were a number of positive copyright reforms in Index economies over the last year.

• As a result of the USMCA, both Mexico and Canada introduced copyright reforms. While the Canadian gov-ernment extended the term of protection for some copyrighted works, the Mexican government introduced more substantive reforms to the Federal Law on Copyright.

• New amendments to the Chinese Copyright Law strengthened the legal framework for sound and broad-casting, improved provisions on technological protection measures (TPMs) and digital rights management (DRM) and increased statutory damages for copyright infringement.

• In Costa Rica, the government developed a new software asset management platform to ensure that all central government ministries use fully licensed software.

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00%

United StatesUnited Kingdom

SingaporeGermany

SwedenFrance

South KoreaAustralia

NetherlandsJapan

IrelandNew Zealand

ItalyIsraelSpain

MalaysiaGreece

HungaryCanadaMexico

MoroccoCosta Rica

SwitzerlandPolandChinaKenya

IndonesiaRussia

Dominican RepublicIndia

Saudi ArabiaSouth Africa

TaiwanKuwaitTurkey

ThailandUAEPeru

ChileColombia

JordanBrazil

UkrainePhilippines

EcuadorArgentinaVenezuela

AlgeriaBrunei

NigeriaEgypt

PakistanVietnam

96.4394.71

92.7191.14

90.7185.5785.57

84.0082.0081.95

76.8671.80

66.5766.1466.14

64.7160.53

59.0057.71

54.1453.43

49.8648.29

45.1443.2943.29

39.5739.1439.1038.86

36.1436.1436.1436.09

35.5732.5732.57

32.0030.43

29.8627.71

26.8626.14

25.4324.86

23.2923.29

21.9621.96

21.2919.71

18.2918.29

2021 Ninth Edition


0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00%

United KingdomUnited StatesSouth Korea

FranceGermany

IrelandJapan

NetherlandsNew Zealand

SwedenSwitzerland

AustraliaChina

ItalySingapore

SpainCanada

HungaryIsrael

MalaysiaMexicoTaiwan

ThailandTurkey

UAEBrazilChile

ColombiaCosta Rica

Dominican RepublicGreece

IndiaPhilippines

PolandSouth Africa

VietnamArgentina

BruneiKenya

MoroccoNigeria

PeruSaudi Arabia

EcuadorEgypt

IndonesiaJordanKuwait

UkraineAlgeria

PakistanRussia

Venezuela

100.00100.00

93.7587.5087.5087.5087.5087.5087.5087.5087.50

81.2575.0075.0075.0075.00

68.7568.7568.75

62.5062.5062.5062.5062.5062.50

56.2556.2556.2556.2556.2556.2556.2556.2556.2556.2556.25

50.0050.0050.0050.0050.0050.0050.00

43.7543.7543.7543.7543.7543.75

37.5037.5037.5037.50

Trademarks, Related Rights, and Limitations

Online shopping increased dramatically during the COVID-19 pandemic, leading to a corresponding increase in the online sale of counterfeit goods. While many economies lack the appropriate resources to combat the increase sale of counterfeit goods online, there were a series of positive developments in 2020.

• In Thailand, the government applied an injunctive-style relief mechanism to disable access to websites with trademark-infringing content.

• In Mexico, the revised Industrial Property Law included a mechanism whereby injunctive-style relief can be obtained directly from the national IP office for online trademark violations.

• In Malaysia, the Parliament passed the Trademarks Act which expands the type of marks that can be registered, improves enforcement provisions against trademark-infringing goods, and makes Malaysia a contracting party to the Madrid Protocol.



Design Rights, Related Rights, and Limitations

Many of the Index economies have some form of design rights protection in place, with an average score of 64.95% in this category.

• In 2020, China, Japan and the Ukraine all increased the available term of protection for design rights.

• In the EU, design rights holders can file a request for customs action in individual Member States as well as all Member States specifying both registered and unregistered design rights be protected.

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00%

FranceGermany

IrelandJapan

NetherlandsSweden

SwitzerlandUnited Kingdom

South KoreaGreece

HungaryIsrael

ItalySpain

TurkeyUnited States

BrazilMalaysia

MexicoPolandRussia

New ZealandSingapore

TaiwanMoroccoPakistanUkraineCanada

ArgentinaBrunei

Dominican RepublicIndia

KenyaVietnamAustralia

ChileColombia

Costa RicaEcuador

IndonesiaPeru

ThailandUAE

ChinaEgypt

JordanKuwait

NigeriaPhilippines

South AfricaAlgeria

Saudi ArabiaVenezuela

100.00100.00100.00100.00100.00100.00100.00100.00

90.0087.5087.50

87.5087.5087.5087.50

80.0075.0075.0075.0075.0075.00

67.5067.5067.50

62.5062.5062.50

57.5055.0055.0055.0055.0055.0055.00

45.0045.0045.0045.0045.0045.0045.0045.0045.00

42.5042.5042.5042.5042.5042.50

37.5032.5032.5032.50

2021 Ninth Edition


Trade Secrets, Related Rights, and Limitations

Many Index economies to do not have specific trade secrets legislation in place, with an average score of 49.40% in this category.

• In Canada, Parliament passed new criminal provisions, including a 14-year prison term, for the theft and misappropriation of trade secrets as part of its USMCA implementation.

• In Taiwan, the Legislative Yuan passed a new trade secrets law that provides stronger safeguards for foreign rights-holders and better protection for confidential information during criminal investigations.

• While the UAE introduced an 8-year term of regulatory data protection (RDP) for pre-clinical and clinical data, new draft implementing regulations in Saudi Arabia will limited the availability of RDP in the market.

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00%

GermanyNetherlands

SpainSweden

SwitzerlandJapan

ItalyUnited States

CanadaFranceIrelandGreece

New ZealandPoland

United KingdomSouth Korea

AustraliaHungary

TaiwanUAE

SingaporeColombia

ChinaIsrael

Costa RicaDominican Republic

JordanMalaysia

MexicoMorocco

Saudi ArabiaVietnam

RussiaBrazilChile

EcuadorTurkey

PeruSouth Africa

UkraineAlgeria

ArgentinaEgyptIndia

IndonesiaKenya

KuwaitPakistan

PhilippinesThailand

BruneiNigeria

Venezuela

100.00100.00100.00100.00100.00

93.3391.6791.67

85.0083.3383.33

75.0075.0075.0075.00

70.0066.6766.6766.67

60.0058.33

50.0045.00

43.3341.6741.6741.6741.6741.6741.6741.6741.67

36.6733.3333.3333.33

26.6725.0025.0025.00

16.6716.6716.6716.6716.6716.6716.6716.6716.6716.67

8.338.338.33



Commercialization of IP Assets

Many of the economies benchmarked in the Index have introduced policies that limit market access or commer-cialization of IP assets, with an average score of 59.42% in this category.

• While Algeria has historically had a poor environment for commercialization, the 2020 Finance Law removed the 51-49% ownership requirement for non-strategic industries.

• In Turkey, the Parliament passed amendments introducing new local data storage requirements for social media services.

• In Nigeria, the government introduced new guidelines and amendments that strengthen existing localization requirements for multinational software companies and the oil and gas industry.

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00%

Australia Israel

United StatesSingapore

SwitzerlandUnited Kingdom

GermanyFrance

HungaryIreland

NetherlandsCanada

JapanNew Zealand

Italy Spain

PolandSweden

TaiwanBrunei

Greece Mexico

Dominican RepublicMorocco

Chile Malaysia

JordanArgentina Costa Rica

South Korea Turkey

South Africa Saudi Arabia

UAE Egypt

Peru Brazil India

China Philippines

Pakistan Kuwait

Nigeria Russia

Algeria Ukraine

Colombia Thailand Vietnam

Kenya Venezuela

Ecuador Indonesia

95.8395.83

94.5091.6791.6791.67

90.3387.5087.5087.5087.50

86.1786.1786.17

83.3383.33

79.1779.17

73.6772.17

70.8369.50

66.6766.67

65.3365.33

62.5061.17

58.3357.00

54.1752.83

50.0050.00

45.8344.50

43.0041.67

38.8336.17

34.6733.33

32.0032.00

29.1729.17

27.8327.83

26.3320.83

12.508.33

4.17

2021 Ninth Edition


Enforcement

Enforcement against IP theft continues to be a challenge for rights holders operating in global markets. Twen-ty-one economies (39.62%) achieve a score of 50% or more on this category, and only 10 economies achieve a score of 75% or more.

• Only 16 of the 53 economies sampled in the Index regularly publish data on customs actions taken against suspected counterfeit goods.

• However, in 2020, Algeria, Chile and South Korea issued new reports issued or transparency measures on counterfeit goods seizures.

• As part of its implementation of the USMCA in 2020, Canada passed new provisions providing ex officio authority to detain all suspected counterfeit goods, including those in-transit.

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00%

United StatesUnited Kingdom

France Sweden

Germany IrelandJapan

South Korea Switzerland

Netherlands Spain

Singapore New Zealand

Australia Italy

Israel Hungary

Poland Canada Greece

ColombiaMexico

Dominican RepublicTaiwan

BrazilSaudi Arabia

Chile Thailand Morocco

South AfricaMalaysia

Russia Turkey

Peru China

UAE Costa Rica

Kuwait Ecuador

Jordan Brunei

Algeria Vietnam

India Philippines

Argentina Kenya

Pakistan Nigeria

Ukraine Indonesia

Egypt Venezuela

94.8093.81

92.4990.35

90.4989.98

87.1386.47

82.5682.39

74.4672.87

72.0271.33

70.1969.36

67.6762.00

55.6154.93

52.4848.94

48.1447.11

45.8642.97

42.3142.2942.03

40.8240.78

39.6839.21

38.8337.00

35.8633.73

32.8531.02

28.2026.51

25.6425.49

23.4122.9422.64

21.3419.37

17.2116.98

16.6015.23

7.42



Systemic Efficiency

Many Index economies score well in the Systemic Efficiency indicators, with only 14 economies failing to achieve a score of 50% or above and an average category score of 63.11%.

• In Costa Rica and Argentina, the national IP offices expanded existing public awareness campaigns.

• In Saudi Arabia and Ecuador, the national IP authorities launched new initiatives to help SMEs register and commercialize their IP assets.

• In Australia, the national IP offices issued a report that maps the contributions of IP-intensive industries to the Australian economy.

• Brazil concluded consultations for its first-ever National Intellectual Property Strategy—which will guide the country’s IP policy for the next 10 years—and kicked off a National Innovation Strategy.

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00%

FranceIreland

ItalyJapan

South KoreaSweden

United KingdomUnited States

GermanyNetherlands

SpainBrazilChina

SingaporeSwitzerland

AustraliaHungary

TaiwanCanadaMexico

ColombiaIndia

MalaysiaPhilippines

PolandGreece

New ZealandThailand

ChileCosta Rica

IsraelArgentinaIndonesiaMoroccoPakistan

PeruSouth Africa

TurkeyVietnamEcuador

Saudi ArabiaUAE

Dominican RepublicNigeria

EgyptKenyaRussia

JordanAlgeriaBrunei

UkraineKuwait

Venezuela

95.0095.0095.0095.0095.0095.0095.0095.00

90.0090.0090.00

85.0085.0085.0085.00

80.0080.00

75.0075.00

70.0070.0070.0070.0070.00

65.0065.0065.00

60.0060.0060.00

55.0055.0055.0055.0055.00

50.0050.0050.00

45.0045.0045.00

40.0040.00

35.0035.0035.00

30.0025.00

10.0010.00

20.0020.00

80.00

2021 Ninth Edition


Membership and Ratification of International Treaties

While the numbers of treaties benchmarked in the Index has expanded over the nine editions of the report, many economies are not contracting parties to the majority of the treaties included. Twenty-one economies fail to achieve a score of 50% or more in this category.

• New trade agreements in China, Mexico, and Vietnam resulted in score increases for each of those three economies.

• In Egypt, the government acceded to the International Convention for the Protection of New Varieties of Plants, act of 1991.

• In Colombia, the government ratified the Convention on Cybercrime in March 2020, and the agreement is now in force.

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00%

CanadaFranceJapan

NetherlandsSpain

SwitzerlandUkraine

United KingdomUnited States

GermanyHungary

ItalyPolandIreland

SwedenGreece

AustraliaSingapore

MoroccoSouth Korea

TurkeyPeru

RussiaTaiwan

Costa RicaDominican Republic

IsraelMexico

ColombiaVietnam

ChileJordanBruneiEgyptKenya

PhilippinesChina

New ZealandAlgeria

ArgentinaEcuador

IndiaIndonesia

MalaysiaNigeria

South AfricaUAE

BrazilSaudi Arabia

ThailandKuwait

VenezuelaPakistan

100.00100.00100.00100.00100.00100.00100.00100.00100.00

96.4396.4396.4396.43

92.8692.86

89.2985.71

78.5778.5778.57

71.4371.43

68.1867.8667.8667.86

60.7157.1457.14

50.0050.00

42.8642.8642.8642.86

39.2935.71

32.1432.14

28.5728.5728.5728.5728.57

21.4321.43

17.8614.29

0.007.147.14

14.29

85.71



ECONOMIES WITH

EFFECTIVE IP SYSTEMSECONOMIES WITH EFFECTIVE IP SYSTEMS:

Have 2X MORE innovation output

Have OVER 550 MORE high-value inventions patented per million population

Almost 5X MORE knowledge output in scientific and technical journals

Host over 10X MORE clinical trials

2X THE ACCESS to new music through legitimate and secure platforms

Are 38% MORE LIKELY to attract venture capital and private equity

executive summary - value ingenuity...twenty-one economies achieve a score of 70% or more of the...

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