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Following post-World War II efforts by the major industrialized nations to reintegrate the global economy through Bretton Woods and other international policies, less developed nations faced the prospects of entering the global stage at different phases of economic and industrial maturity. Consequently, views of international trade were shaped by nations’ unique economic situations. As history has shown, economies subsequently adopted more open vs. closed trade practices based on immediate economic-industrial challenges.
Researchers Robert Bird and Daniel Cahoy have released a new paper on how the BRIC economies (Brazil, Russia, India, China) are taking steps towards adopting and enforcing stronger IP laws, while balancing new IP rules with their economic situations. The Emerging BRIC Economies: Lessons from Intellectual Property Negotiation and Enforcement, Northwestern Journal of Technology and Intellectual Property, 2007. It is tempting to view the BRIC’s options for the future from one of two opposing perspectives: (1) the Western property rights view, which argues for strong legal protections and the rejection of free-riding when a country has the economic strength to participate in global innovation, or (2) the Southern open access view, calling for a noble resistance to the coercion of industrialized oppressors intent on maximizing profits without a realistic understanding of development needs...
On one hand, the BRICs seem to respond to the economic incentive to limit IP enforcement when home industries can effectively copy the creativity and technology of industrialized nations. Conversely, the property rights push can seem a bit disingenuous in view of the fact that many western nations owe aspects of their economic development to a lack of IP Protection. As a result, nations often end up talking past each other or resorting to grudging conciliation without truly understanding the others’ needs.
Perhaps the dichotomous narrative is simply wrong on both counts. One can argue that it misses a middle ground that may better characterize the optimal future relationship of the BRICs with developed countries, as well as the larger developing world. It is possible that a hybrid model of IP protection and occasional exception—a process of convergence and resistance—will provide the mix necessary for developing countries to gain an economic foothold, protect the health and safety of their citizens, and play a responsible and vital role in the world economy. This model may not mimic the regimes of industrialized nations now, or event in the distant future. But it may provide a predictable projection the value of investment incentives in these growing global markets. Although the BRIC economies may approach IPRs grudgingly, they must balance the extent to which they defy stronger IP laws and enforcement with the consequences on their trade relationships and long term development. For example, with the first industrial revolution, nations such as Germany “leap-frogged” by copying others’ machinery, production techniques and business models. One German statesman reportedly said: “We will gladly copy what we admire.” Germany would later adopt stringent IP laws to maximize the benefits of local commercial activity. Now, in the current global economy, based on innovations protectable by copyrights and patents, copying of foreign inventions that could be valuable to non-dominant nations is often prohibited. At the same time, enforcing strong IP laws will draw more foreign investment, provide consumers with greater access to modern goods and help mobilize local industry. Weak IP regimes may be beneficial in the maturing stages of industrialization, however long term economic goals require respect for copyrights and patents.
posted by Noel Le @ 12:15 PM | Academia, International
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