January 2003 / No. 21

Legislative

Joining Int'l Community on Intellectual Property

Masoud Karbasian, Deputy Minister of Finance and Economic Affairs and Head of Iran's Custom Department

The World Intellectual Property Organization (WIPO) is responsible for encouraging and protecting intellectual property rights worldwide. These rights have been divided into two main categories of industrial property – licensing rights, rights relating to inventions and discoveries, trademarks, industrial designs, etc. – and copyrights relating to literature, music, performance arts, visual arts and multimedia presentations.

The WIPO also has an extensive cooperation program with the developing countries. This program aims to educate  and encourage governmental bodies so they adopt new and appropriate legislation at the national level. Regional agreements have been concluded and implemented to encourage industrial invention and artistic creation.

Considering that intellectual property has emerged as a promoting tool for creation of a fair and healthy competition environment and a foundation for national and international trade and commerce worldwide, it can be correctly concluded that the laws relating to intellectual property are of the most fundamental and important rules and regulations for the facilitation of active and beneficial partnerships in the world market.

In recent years the economic and cultural significance of intellectual property rights has increased rapidly. One of the most important reasons for this is the amazing advancement seen in recent decades in every – general and specific – area of technology resulting from innovation, creativity and activity in research and development in all scientific and industrial fields. To encourage such creativity and innovation, intellectual property rights must be protected.

Furthermore the magnitude of international trade has had an extraordinary increase and the imports and exports of states are no longer confined to raw materials and its like, but also include the exchange of complex materials and goods as well as cultural exchanges. In order to systemize such exchanges in goods and services it is critical for intellectual property rights to have legal protection and enforcement. This protection of export and import of goods and services and licensing or contracting rights also extends to creation of goods and services. Protecting and enforcing intellectual property rights provide the necessary incentive for the advancement of research and development programs; otherwise investing in these fields would not be worthwhile.

In this regard the main goal of the system is to protect intellectual property rights, encourage innovative and creative activities and incite research and development, thus protecting everyone’s interests. Creators of intellectual works and innovators can be rewarded for their efforts by receiving official recognition and the opportunity of receiving financial reward and thus encouraged to continue their activities. Therefore the system of property rights must provide such encouragement efficiently (financial and fast) and effectively (enforceable).

An important point of consideration in organization and implementation of an international intellectual property protection system is that protection of intellectual property should not hinder access of the developing countries to technical know-how and new technologies. Serious consideration must be given to the issue of protecting traditional knowledge (such as Iran’s hand-woven carpets), which mainly covers the national interest of the developing countries. The effective protection of intellectual property rights, which requires states to adopt national legislation in accordance with their obligations under the relevant international treaties and conventions, raising public awareness and adopting effective border control to prevent illegal imports, has considerable benefits for states, which will be briefly referred to:

Growth in Foreign and Domestic Investment: Growth in investment in industries centered on intellectual property is of the most obvious and immediate benefits resulting from appropriate protection of intellectual property rights. A survey conducted by the Organization for Economic Cooperation and Development (OECD) shows that problems relating to intellectual property are of the most important limitations faced by foreign companies granting building licenses to the developing countries. Similarly, domestic investors and job-creators can only be encouraged to invest on condition that a wide spectrum of industries centered on intellectual property exist. Furthermore, cultural production as well as production of goods using intellectual property centered on technology are largely dependant on existence of efficient systems of protection for intellectual property rights. 

Development of Technology: One of the significant benefits of establishing proper protection for intellectual property rights is its positive impact on transfer of technology and sophisticated expertise to the country. Both transfer of technology and transfer of sophisticated expertise to countries are usually facilitated through granting of building licenses or other agreements which form the basis of participation in investments and aid. The successful conclusion of such agreements – which are reliant on an enforceable system of intellectual property rights – can improve domestic research and development in the concerned industry. This strengthens the position of domestic institutions and allows them to compete for a greater share of the consumer market. In these circumstances the number of producers will increase as will productivity, thus ensuring that technical experts would remain in the country.

Growth of Employment: Upsurge in employment is another outcome of the effective protection of intellectual property rights. Due to transfer of technology, research and development would increase and improve conditions for investing. Investing in industrial and creative activities centered on intellectual property would increase opportunities for legitimate domestic employment.

Rise in Tax Revenue: Breaching intellectual property law by manufacturing goods in violation of copyrights or duplicating computer programs and cultural works would result in government forfeiting collectable tax. Similarly, lack of confidence for investment in industries centered on intellectual property would deny government’s tax revenues.

Expansion of Trade: The expansion of legal trade, another benefit of effective protection and performance of intellectual property rights, has resulted in expansion of international trade to an extent that ratification of the Trade Related Aspects of Intellectual Property (TRIPS) has become a perquisite for membership in the World Trade Organization (WTO). The efficient and effective performance and protection of intellectual property rights empowers States to resist the unilateral imposition of trade restrictions by powerful trade companies.

In view of what said above, countries, particularly those in the developing world, would entitle themselves to many economic and cultural benefits by providing adequate protection for intellectual property rights.

Even though the Islamic Republic of Iran’s official membership in WIPO began in November 2001, the need for adequate protection of intellectual property has been attended to since a long time ago. The ratification of the Patent Trade Mark Law in 1921 and the country’s official membership in the Paris Convention for Protection of Industrial Property since 1939, show the country’s enthusiasm and attention to the positive effects of protecting intellectual property rights. Also in this regard, reference can be made to Paragraph 12 of Article 40 of the Customs Law (passed in 1961), which is still in force and has been drafted in the framework of the Paris Convention as a means of protecting industrial property and the rights and interests of the consumers of imported goods.

Iran by joining WIPO, following which the state must become a party to all other international treaties and conventions relating to intellectual property rights – such as Bern Convention, Rome Convention, TRIPS, Madrid Protocol, etc. – has undertaken financial obligations for Iran’s customs. After implementation of the laws regarding protection and performance of intellectual property rights, government bodies and organizations are obliged to take internal and external measures, which in other words means taking appropriate measures regarding its domestic markets and adequate protection of its customs controlled borders. However, based on TRIPS, custom administrators play an important role, as economic gatekeepers, in effective protecting intellectual property rights, as customs is significant in establishing legitimate trade, expansion of world trade and international economy. According to Articles 51 through to 60 of TRIPS, customs officials must adopt measures that would prevent entry of fake and counterfeit goods and provide adequate protection to intellectual property rights. Thus customs administrators, with the cooperation of law enforcement agencies and the judiciary, have an important role in implementing intellectual property rights.

In conclusion we must point out, in the same way that international associations and the developed world expect other countries to carry out their activities under the supervision of international bodies and to this effect, impose limitations and restrictions on them, our country too expects organizations like WIPO to provide an opportunity for transfer of knowledge, information and experiences relating to intellectual property to our experts, the provision of advise regarding methods of attaining information and documents on intellectual property rights and raising public awareness in achieving protective methods for inventors and creators of trademarks, industrial designs, literature and artistic works.