2.2 - Patents Flashcards
1
Q
What is the UN organisation in charge of ensuring intellectual property is respected?
A
- WIPO, World Intellectual Property Organisation
- established 1976
- maintains database of patents and IP
- resolves disputes between parties
- encourages use of patents and IPs to benefit creators
2
Q
How much is the illicit software market worth?
A
- $75bn/yr
3
Q
What are royalties?
A
- fee paid to inventor or designer of an idea when using it
- 85% of all royalties go to Japan, US and EU
4
Q
What are the types of Intellectual Property law?
A
- patents
- copyrights
- trademarks
5
Q
Where do most counterfeits come from?
A
- China (70%)
- sometimes from same factory as originals
- are cheaper as inventors are not paid for their ideas
- is unregulated, thus poor working conditions
- China has a lack of cooperation with US State Department and other authorities over counterfeit products
6
Q
What are patents?
A
- filed for new inventions, idea, technologies
- registers these ideas so that they are owned by the person who came up with them
- means innovators are paid for their ideas by those who use them
7
Q
What are copyrights?
A
- used usually for art, music, books
- means that they cannot be copied in any way or form
- cannot be used without permission of copyright holder
8
Q
What are trademarks?
A
- used to protect designs, logos, names
- allows brand names to remain under the control of their respective owners
9
Q
What is the rationale behind Intellectual Property law?
A
- Inventors benefit from their creations
- business are guaranteed a return on investment on their R&D
- encourages competition
- consumers can be assured that their products meet safety standards and are what they say they are
- increases consumers trust in TNCs
- counterfeit goods can flood local markets and undercut local producers
10
Q
What type of goods are counterfeited?
A
- pharmaceuticals (can be deadly if drugs do not work as they are meant to or don’t work at all eg. Fake insulin can be fatal for diabetics )
- electrical goods (can be dangerous as may not meet fire retardent legislation)
- music
- movies
11
Q
What makes counterfeiting possible?
A
- a demand existing for counterfeits
- consumers not reporting counterfeits
- governments not cracking down on counterfeits
- manufacturers agreeing to produce counterfeits
12
Q
What is the value of the counterfeiting industry?
A
- $500bn/yr
13
Q
How long do intellectual property rights last?
A
- 20 years
- is usually enough time to allow inventor to capitalise on monopoly and make most money and recoup R&D costs
- can be longer if is renewed and depending on good
14
Q
How much of traded counterfeited goods form?
A
- 2.5% of all world imports and 5% of EU imports in 2013
15
Q
What are the problems with Intellectual Property law?
A
- TNCs are usually the ones who are in best position to file for patents and develop new patents off income from previous ones
- creates perpetual cycle of TNC dominance
- not good for smaller businesses
- companies in emerging markets are usually the one paying royalties, money goes to developed countries, makes development harder
- Pharmaceutical companies charge exorbitant prices on newly developed drugs as they do not know for sure whether they will recoup R&D costs
