international business law - chapter 9

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Intellectual Property


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Introduction

Intellectual Property: useful information orknowledge Artistic property

Artistic, literary and musical works

Industrial property Inventions and trademarks

Created by national law (and some regional law) International law sets guidelines for uniform denition

and protection ets ways to make it easier for owners to ac!uire rig"ts

in di#erent countries

Creation $ Protection $ %ransfer


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Creation of Intellectual Property

&ig"ts

Copyrig"ts An incorporeal statutory rig"t gives

aut"or of an artistic work, for a limited

time, e'clusive privilege of making copiesof t"e work, publis"ing, selling copies

Pecuniary rig"ts rig"t to make moneyfrom works

&eproduction rig"ts

istribution rig"ts


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Creation of IP &ig"ts (cont*d)

Copyrig"ts (cont*d)

octrine of e'"austion +nce a copy is circulated, aut"or "as no control

furt"er rig"t ie purc"aser can sell work

&ig"t of performance &ig"t to -communicate t"e work to t"e public by

any means w"atsoever, including public recitation,

lyrical performance, public presentation, publicpro.ection and telecommunication

/ote on subsidiary rig"ts (0ermany)

Public versus private 1 see p 234 for e'amples


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Copyrig"ts (cont*d) 5oral rig"ts (not 6 7 68)

&ig"t of aut"or to pro"ibit ot"ers from

tampering wit" work &ig"t to ob.ect to distortion, mutilation or

modication

&ig"t to be recogni9ed as t"e aut"or

&ig"t to control public access to work

(rig"t to correct or retract a work) not so universal


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Copyrig"ts (cont*d)

orks Covered ;': 6 Copyrig"t Act (< categories)

=) >iterary works, ?) musical works, @) dramatic works, 2)pantomimesc"oreograp"y, 3) pictorialgrap"icsculpture,

4) motion picturesAB works,


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Copyrig"ts (cont*d)

/eig"boring rig"ts (similar, but distinctlydi#erent)

Computer programs, semi1conductor c"ips Dormalities

Eerne Convention: sub.ect to no formalities

cope

+nly wit"in scope of territory granting it uration

3F years post mortem (some .urisdictions


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Copyrig"ts (cont*d) ;'ceptions

In a courtadministrative proceeding or police(p"oto)

Instructional purposes in sc"ool

Purely private use (e'cept computer programs)

Erief !uotations in sc"olarly or literary works orreviews

;'tended !uotations of newswort"y speec"es orpolitical commentaries

-Dair 6se
http://youtu.be/CJn_jC4FNDohttp://youtu.be/CJn_jC4FNDo


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Patents A statutory privilege granted by

government to inventors (and licensed)

for a 'ed period of years to e'cludeot"ers from manufacturing, using, sellinga product +r from utili9ing a patented met"od or process

+wner may be e'cluded from e'ercising-monopoly rig"t 1 national security,contractual agreement


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Patents cont*d &easoning

Patents are conrmation of private property

rig"ts of an inventor ;ncourages invention and industrial

development


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Patents cont*d Patents and +t"er Inventor*s 0rants see p 24aw %reaty Common minimum rules

=F years for trademark


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International %ransfer of Intellectual

Property

Dive ways to transfer from country tocountry =) e'ercise rig"ts abroad

?) transfer or assign to anot"er

@) license anot"er

2) establis" a franc"ise

3) government may grant a compulsorylicense

Contractual in nature, business form


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International %ransfer of IP (Cont*d)

>icense

Dranc"ise

istributors"ip C"ain1style distributors"ip

5anufacturing or processing plant


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>icensing &egulations

0rants of patents, trademarks and copyrig"tcreate Kmonopolies*

trictly controlled, often special laws for it

>imited to w"at is granted bycontractlicense

-&ule of &eason Courts must consider t"e overall impact of t"e

particular agreement on competition in relevantmarket eig"ing t"e pro1competitive verses t"e anti1

competitiveness


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>icensing &egulations(Cont*d)

0rants of patents, trademarks and copyrig"tcreate Kmonopolies*

trictly controlled, often special laws for it

>imited to w"at is granted bycontractlicense

-&ule of &eason Courts must consider t"e overall impact of t"e

particular agreement on competition in relevantmarket eig"ing t"e pro1competitive verses t"e anti1

competitiveness


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%erritorial &estrictions ;'"austion of rig"ts doctrine

+nce a good made or sold under license is incirculation, t"e licensor "as no furt"er rig"t to control

its distribution (see earlier) ee %errapin v %erranova, and Centrafarm v terling

rug

Common origin doctrine

+wners of t"e same IP w"o ac!uired it from t"esame predecessor cannot restrict eac" ot"erfrom using t"e rig"t Ban Luylyen case p 3FF


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/E: Primary purpose of a trademark is to

assure consumers of t"e place of origin

ie c"ocopie Primary purpose of patentcopyrig"t is

to reward creativity


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;'port &estrictions &estrict, entirely or partially, rig"t to

e'port goods from territory w"ere licensee

or production facilities are located 5ost countries pro"ibit e'port

ome limit, to e'ports w"ere: >icensor owns IP&s and local laws allow

licensor to restrict imports

+&, licensor is manufacturerdistributor orlicensor "as e'clusive license to @rdparty


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;'port &estrictions (cont*d) Mori9ontal competition agreement

ivision of industry on a globalregional

scale 6: per se violation of "erman Act

Bertical competition agreement Eetween seller and buyer

/ot per se violations, rule of reason test


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Cartels Combination of independent business rms organi9ed to

regulate t"e production, pricing and marketing of goodsby its members

Cross1licensing agreements Patent pool

5ultiple licensing agreement

Eottle neck principle: participants in an industry widepatent pool must grant reasonable access to t"e pool to

any rm wis"ing to compete so t"at no rm will bedisadvantaged ee s"ared licensing in mobile p"one tec"nology, Apple,

amsung


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;'clusive licensing &estricts w"o may compete wit" t"e

license

ole rig"ts ;'clusive rig"ts

/one'clusive rig"ts

i i l i


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ales and distribution arrangements everal approac"es

Pro"ibits any interference by t"e licensor in

t"e licensee*s distribution system Pro"ibits only t"ose provisions t"at give

licensor e'clusive distribution rig"ts

Pro"ibit e'clusive sales arrangements t"at

tend to allocate or monopoli9e t"e market

i i l i


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Price 'ing &e!uires licensee to sell products at a

price set by licensor

5ost countries pro"ibit all forms of price'ing

>i i & l i


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/oncompetition clause Dorbidding a licensee from competing

wit" t"e licensor

5ost countries pro"ibited ome e'ceptional circumstances

>i i & l i


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C"allenges to validity Provisions forbidding a licensee from

c"allenging t"e validity of a licensor*s

claim to a particular statutory rig"t %ying clauses

Provision re!uiring a licensee to ac!uireor use, apart from t"e tec"nology wanted,goods or personnel designated by licensor Illegal in most countries

>i i & l ti


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Huantity &estrictions

Dield of 6se &estrictions

>i i & l ti


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&estrictions on researc" anddevelopment

Huality controls

>i i & l ti


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0rant Eack Provisions

&estrictions t"at apply after t"ee'piration of IP& ee e'"ibit G1@, p 3==

>i i & l ti


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Package licensing

>i i & l ti


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&estrictions t"at apply after t"ee'piration of t"e licensing agreement /oncompetition agreements must be

reasonable =)

?)

@)

?) tier of countries @) tier of countries

ee p 3=?


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Compulsory >icenses

Patents ee p 3=@

ee case G1?, AI drugs

C l >i


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Compulsory >icenses(Cont*d)

Copyrig"ts tatutory copyrig"t license

Compulsory copyrig"t license

international business law - chapter 9

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