International Business Law - Chapter 9
Transcript of 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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Creation of IP &ig"ts (cont*d)
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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Creation of IP &ig"ts (cont*d)
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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Creation of IP &ig"ts (cont*d)
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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Creation of IP &ig"ts (cont*d)
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
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Creation of IP &ig"ts (cont*d)
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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Creation of IP &ig"ts (cont*d)
Patents cont*d &easoning
Patents are conrmation of private property
rig"ts of an inventor ;ncourages invention and industrial
development
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Creation of IP &ig"ts (cont*d)
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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>icensing &egulations(Cont*d)
%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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>icensing &egulations(Cont*d)
/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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>icensing &egulations(Cont*d)
;'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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>icensing &egulations(Cont*d)
;'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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>icensing &egulations(Cont*d)
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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>icensing &egulations(Cont*d)
;'clusive licensing &estricts w"o may compete wit" t"e
license
ole rig"ts ;'clusive rig"ts
/one'clusive rig"ts
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>icensing &egulations(Cont*d)
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
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>icensing &egulations(Cont*d)
Price 'ing &e!uires licensee to sell products at a
price set by licensor
5ost countries pro"ibit all forms of price'ing
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>icensing &egulations(Cont*d)
/oncompetition clause Dorbidding a licensee from competing
wit" t"e licensor
5ost countries pro"ibited ome e'ceptional circumstances
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>icensing &egulations(Cont*d)
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
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>icensing &egulations(Cont*d)
Huantity &estrictions
Dield of 6se &estrictions
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>icensing &egulations(Cont*d)
&estrictions on researc" anddevelopment
Huality controls
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>icensing &egulations(Cont*d)
0rant Eack Provisions
&estrictions t"at apply after t"ee'piration of IP& ee e'"ibit G1@, p 3==
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>icensing &egulations(Cont*d)
Package licensing
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>icensing &egulations(Cont*d)
&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