TPP Sean Flynn American University Washington College of

TPP Sean Flynn American University Washington College of Law

Territorial Period 1 st Globalization 1880 s -Paris, Berne 2 nd Globalization 1950 s+ -national experimentation 3 rd Globalization 1984+ -Unilateral (Special 301) -Multilateral (WTO) -Bilateral (eg USColombia) -Plurilateral (ACTA, TPP)

Post-TRIPS FTAs • • • • • Australia Bahrain Chile Costa Rica Columbia* Dominican Republic El Salvador Guatemala Honduras Israel Jordan Morocco Nicaragua Oman Panama Peru Singapore

ACTA • • • Japan United States Canada European Union (27 countries) Switzerland Australia New Zealand Republic of Korea Singapore Mexico Morocco

TPP • • • United States New Zealand Singapore Australia Brunei Chile Malaysia Peru Vietnam [Mexico] [Canada]

P 4 • • Brunei Chile Singapore New Zealnd

TPP: FTA v. Non FTA • • • Chile Peru Australia Mexico Canada Non-FTA • • Brunei Malaysia New Zealand Vietnam

Income High + Middle • • • U. S. Canada Brunei Australia Mexico Low • • Peru Malaysia New Zealand Vietnam

Knowledge Importers v. Exporters Low • U. S. • • Peru Malaysia New Zealand Vietnam Brunei Mexico Canada Australia

DEVELOPMENT ECONOMICS

Abbreviated Lit. Review Fink and Mascus, 2005 “Existing research suggests that countries that strengthen their IPR are unlikely to experience a sudden boost in inflows of FDI. At the same time, the empirical evidence does point to a positive role for IPRs in stimulating formal technology transfer. ” “Developing countries should carefully assess whether the economic benefits of such rules outweigh their costs. They also need to take into account the costs of administering and enforcing a reformed IPR system” “We still know relatively little about the way technology diffuses internationally. ” infojustice. org/tpp

Foreign Direct Investment 2006 2010 Change Guatemala 11. 13 12. 90 1. 77 t=0. 99 Peru 12. 03 11. 71 -0. 03 t=-0. 13 Nicaragua 09. 03 11. 08 2. 04 t=0. 75 Source: World Bank Enterprise Survey. infojustice. org/tpp

Flexible Copyright and FDI 2001 -2010 180 FDI Inflows, $mil 160 140 120 100 80 60 40 20 0 0 10 20 Rank in CI Flexibility Index infojustice. org/tpp 30

Average GDP growth 2002 -2010 Flexible Copyright and GDP Growth 10 8 6 4 2 0 0 10 20 Rank in CI Flexibility Index infojustice. org/tpp 30

MONOPOLY ECONOMICS

“[T]he ability of patent holders to charge for the use of their patent rights, either in the form of royalties or through end product prices is constrained by the ability of the country granting the patent to pay. Poor countries will inevitably pay proportionately less than wealthy countries for the use of patent rights. ” -Edmund Kitch (1994)

Price Volume 100 Revenue Price Volume 0 10 90 11 80 20 80 12 70 30 70 13 60 40 60 14 50 50 50 15 40 60 40 16 30 70 30 17 20 80 20 18 10 90 10 19 0 100 0 11 Revenue

Price Volume Revenue Price Volume 100 0 0 10 90 11 80 20 1600 80 12 70 30 2100 70 13 60 40 2400 60 14 50 50 2500 50 15 40 60 2400 40 16 30 70 2100 30 17 20 80 1600 20 18 10 90 900 10 19 0 100 0 0 11 Revenue

Price Volume Revenue 100 0 0 10 1000 90 10 90 11 990 80 20 1600 80 12 960 70 30 2100 70 13 910 60 40 2400 60 14 840 50 50 2500 50 15 750 40 60 2400 40 16 640 30 70 2100 30 17 510 20 80 1600 20 18 360 10 90 900 10 19 190 0 100 0 0 11 0

U. S.

Norway

South Africa Income by Decile Annual Income, USD 35, 000 30, 000 25, 000 20, 000 15, 000 10, 000 5, 000 0 1 2 3 4 5 6 7 Income Decile 8 9 10

Profit Maximizing SA

Lowest Price for d 4 T+3 TC+NVP for Poorest Countries Reported by MSF Brand Name Price | Generic Price Source: Médecins Sans Frontières, Untangling the Web of Price Reductions: a Pricing Guide for the Purchase of ARVs for Developing Countries. Editions 1 -9, published 2001 through 2007.

Coldplay: Viva la Vida (CD) Legal Price (US$) GDP/ Capita CPP Price US 46, 857 80 Brazil 8, 200 20. 5 164 South Africa 5, 824 8. 5 378 India 1, 031 US 17 ------- Brazil 14 South Africa India

The Dark Knight (DVD, 2008) Legal Price (US$) CPP Price Pirate CPP US 24 ------- 5 ------- Russia 15 79 5 26. 5 Brazil 15 85 3. 5 20 South Africa 14 129 1 -2. 8 22 India 14 635 . 75 -1. 2 54 Mexico 27 154 . 75 4. 25

HOT ISSUES

Temporary Copies TPP Each Party shall provide that authors, . . . have the right to authorize or prohibit all reproductions. . . permanent or temporary (including temporary storage in electronic form). Colombia FTA (A) transmitting, routing, or providing connections (B) caching carried out through an automatic process; (C) storage at the direction of a user (D) referring or linking users to an online location

Copyright Term Colombia FTA TPP • 70 years “other than life of • 95 years “other than life of the author” • Not published w/in 50 • Not published w/in 25 years, then 70 yrs from date years, then 120 yrs from of creation date of creation

Technological Protection Measures FTA/TPP Each Party shall confine exceptions and limitations to measures implementing subparagraph (a) to the following activities. . . Colombia L&E Bill Parody Disability Access Libraries Educational Institutions

Internet Retransmission FTA/TPP Colombia No Party may permit the retransmission of television signals (whether terrestrial, cable, or satellite) on the Internet without the authorization of the right holder or right holders of the content of the signal and, if any, of the signal. Supreme Court held unconstiutional

Parallel Importation FTA US Law Each Party shall provide. . . the Kirtsaeng v. John Wiley & Sons right to authorize or (pending) prohibit the importation into that Party’s territory of copies of the work. . . made without authorization, or made outside that Party’s territory with the authorization of the author

Damages FTA U. S. “Pre-established damages shall “the copyright owner may be in an amount sufficiently elect. . . instead of actual high to constitute a damages and profits, an deterrent “ award of statutory damages . . . in a sum of not less than $750 or more than $30, 000 as the court considers just. ”

Patentability India 3(D) TPP The following are not inventions within the meaning of this Act, . . . the mere discovery of a new form of a known substance which does not result in the enhancement of the known efficacy of that substance ARTICLE 8: PATENTS “patents shall be available for any new forms, uses, or methods of using a known product; . . . even if such invention does not result in the enhancement of the known efficacy of that product. ”

Number Relevant Claim 5, 648, 497 RTV molecule 5, 674, 882 use of RTV with a PI for inhibiting HIV Use 5, 635, 523 use of RTV with an RTI for inhibiting HIV Use 5, 541, 206 use of RTV for inhibiting HIV Use 5, 846, 987 combination of RTV and an RTI Product Combination 5, 886, 036 combination of RTV and a PI Product Combination 1991 Product New Chemical Entity 1993 * 1996 6, 037, 157 use of RTV to boost a PI Use 6, 703, 403 use of RTV to inhibit cytochrome P 450 monoxygenase Use 1996 5, 914, 332 LPV molecule Product New Chemical Entity 6, 284, 767 use of LPV with RTIs or PIs 6, 232, 333 soft-gel formulation of RTV Product Formulation 6, 458, 818 soft-gel formulation of RTV & LPV Product Formulation 6, 521, 651 soft-gel formulation of LPV Product Formulation Use 1997 U. S. Patents related to Kaletra *

Patentability TPP Andean Community Plant and animals and methods Cannot patent “any living thing”

Patentability TPP 8. 10 -. 11 Andean Community Disclosure complete when other can make Art. 3. Protect TK and genetic resources.

Medicines Issues TPP Colombia FTA, May 2007 “Access window” + data exclusivity, linkage, patent term extensions Concurrent Data Exclusivity Permissive linkage

TPP Limitations and Exceptions “each Party shall confine limitations or exceptions to exclusive rights to certain special cases that do not conflict with a normal exploitation of the work, performance, or phonogram, and do not unreasonably prejudice the legitimate interests of the right holder. ” Global Expert Network “In addition to uses specifically authorized by law, any use that promotes general economic social and cultural objectives is not infringing if its character and extent is appropriate to its purposes and does not unduly prejudice the legitimate interests of the copyright owner, taking account of the legitimate interests of creators, users, third parties and the public. ”