EU to Revamp Intellectual Property Rights

 

Intellectual property rights (IPR), which comprise patents, trademarks, designs and geographical indications, as well as copyright (authors' rights) and rights related to copyright (for performers, producers and broadcasters), have been around for centuries. Often, without our even realising, they affect our daily lives: they protect the technology we use (cars, mobile phones, trains), the food we eat and the music we listen to or the films we watch. But in the last few years, technological change and, in particular, the growing importance of online activities, have completely changed the world in which IPR operate. The existing mix of European and national rules are no longer adapted and need to be modernised. That is why the Commission has adopted today a comprehensive strategy to revamp the legal framework in which IPR operate. Our objective is to enable inventors, creators, users and consumers to adapt to the new circumstances and to enhance new business opportunities. The new rules will strike the right balance between promoting creation and innovation, in part by ensuring reward and investment for creators and, on the other hand, promoting the widest possible access to goods and services protected by IPR. Getting this balance right will make a real difference to businesses (from the individual artist working alone to the big pharmaceutical companies) by encouraging investment in innovation. This will benefit the EU's growth and competitiveness which is delivered through the single market. Consumers will benefit from wider and easier access to information and cultural content, for example online music. The strategy deals with many issues to ensure IPR are covered comprehensively - from the patent a business needs to protect an invention to tackling the misuse of such inventions via a proposal also adopted today which will strengthen action on counterfeiting and piracy. Among the first deliverables of this IPR overall strategy are today's proposals for an easier licensing system for so-called "orphan works" that will allow many cultural works to be accessible online, and for a new regulation to reinforce customs actions in fighting trade of IPR infringing goods.

"Ensuring the right level of protection of intellectual property rights in the single market is essential for Europe's economy. Progress depends on new ideas and new knowledge," said Internal Market Commissioner Michel Barnier. "There will be no investment in innovation if rights are not protected. On the other hand, consumers and users need to have access to cultural content, for example online music, for new business models and cultural diversity to both thrive. Our aim today is to get the balance between these two objectives right for IPR across the board. To make Europe's framework for intellectual property an enabler for companies and citizens and fit for the online world and the global competition for ideas."

Algirdas Šemeta, Commissioner responsible for Customs said: "Customs are ideally placed at the border, to protect citizens and legitimate businesses and their contribution is highly valuable in fighting counterfeiting and piracy". He added: "I am convinced that a robust system of intellectual property rights is essential for the whole EU economy. With today's proposal, customs will be able to provide greater protection for IPR and to better tackle the trade in IPR infringing goods."

The IPR Strategy sets out a series of short- and long-term key policy actions in various areas which include:

Patents: the Commission already launched proposals in April for a unitary patent protection under enhanced cooperation (see IP/11/470). Meanwhile, work will continue on proposals relating to the creation of a unified and specialised patent court for the classical European patents and the future European patents with unitary effect. This would considerably reduce litigation costs and the time it takes to resolve patent disputes. It would also increase legal certainty for business.

Trade marks: while trade mark registration in the EU has been harmonised in Member States for almost 20 years and the Community trade mark was established 15 years ago, there is an increasing demand for more streamlined, effective and consistent registration systems. The Commission intends to present proposals in 2011 to modernise the trade mark system both at EU and national levels and adapt it to the Internet era.

Geographical indications (GIs): GIs secure a link between a product's quality and its geographical origin. However, there is currently no such system available at EU level for the protection of non-agricultural products such as Carrara marble or Solingen knives. This leads to an unlevel playing field in the Single Market. The Commission will therefore carry out an in-depth analysis of the existing legal framework in the Member States as well as the potential economic impact of protection for non-agricultural GIs in 2011 and 2012. Depending on the outcome of an impact assessment, these could eventually be followed up by legislative proposals.

Multi-territorial copyright licensing: While the substantive scope of copyright has been largely harmonised, rights are still licensed on a national basis. In view of the digital Single Market, streamlining copyright licensing and revenue distribution is one of the most important challenges that must be addressed. In the 2nd half of 2011, the Commission will submit a proposal to create a legal framework for the efficient multi-territorial collective management of copyright, in particular in the music sector. It will also establish common rules on the transparent governance and revenue distribution. In the second half of 2011, the Commission will also launch a consultation on the various issues related to the online distribution of audiovisual works.

Digital libraries: The creation of European digital libraries that preserve and disseminate Europe's rich cultural and intellectual heritage is key to the development of the knowledge economy. To facilitate this, the Commission is also tabling today a legislative proposal that will enable the digitisation and online availability of so-called "orphan works" (works like books and newspaper or magazine articles that are still protected by copyright but where the right holders are not known or cannot be located to obtain copyright permissions) – see MEMO/11/333. Concurrently, the Commission looks forward to concluding a Memorandum of Understanding amongst libraries, publishers, authors and collecting societies to facilitate licensing solutions to digitise and make available out-of-commerce books.

IPR violations: Counterfeiting and piracy are a growing threat for the economy. Between 2005 and 2009, the number of registered cases at the EU borders of goods suspected of infringing IPR increased from 26 704 to 43 572. Meanwhile, the creative industry estimates that piracy has cost the European music, movie, TV and software industry €10 billion and more than 185 000 jobs in 2008 alone. The Commission is set to intensify its efforts in this area. Firstly, the Commission has tabled a regulation today that is to reinforce the European Observatory on Counterfeiting and Piracy, which it launched in 2009, by entrusting its tasks to the Office for Harmonisation in the Internal Market (OHIM). This will allow the Observatory to benefit from OHIM's intellectual property expertise and strong record of delivery in trade marks and designs. The Regulation now passes to the European Parliament and the Council for consideration. Secondly, in Spring 2012, the Commission will propose to revise the IPR Enforcement Directive (see IP/04/540). The Directive provides for civil law measures allowing right holders to enforce their intellectual property rights but should be adapted, in particular to meet the specific challenges of the digital environment.

IPR enforcement by customs: Customs supervise all trade crossing EU external borders: they carry out controls for many purposes and have an essential role in fighting the trade in IPR infringing goods. In 2009 only, customs intercepted over 40 000 suspect shipments involving 118 million articles. Whilst the majority of goods intercepted are counterfeit or pirated, customs' unique position at the border allows for the enforcement of a wide range of intellectual property rights. As part of today's overall IPR strategy, the Commission also proposes a new customs regulation, to further reinforce the legal framework for customs' actions. The proposal also aims to tackle the trade in small consignments of counterfeit goods sent by post as the overwhelming majority of these goods results from internet sales.

EU Can Help Irish Business

Research and innovation, involving collaboration between businesses and knowledge providers, and utilising EU funding, is one of the motors that will drive sustainable development in Ireland. This was the clear message given by a panel of industry practitioners, Enterprise Ireland, and an eminent academic from the University of Strathclyde at a research and development-themed seminar held in Intel Shannon last week.

The seminar, which was organised by Shannon Chamber in conjunction with Enterprise Ireland and Supply Network Shannon, succinctly demonstrated how Irish companies can access significant research and development funding for technology, product and process development, which will ultimately generate new products, improve their competitiveness and in turn, their bottom lines.

“Traditional manufacturing is dead,” said Professor Umit Bititci from the Department of Manufacturing and Engineering Management, Strathclyde University, stressing that Irish businesses need to be positioning themselves in the high-value adaptive manufacturing space. The future is about continuous manufacturing where, for example, personalised medicine will become the norm, not the exception,” he said, adding that crowdsourcing will replace outsourcing in the development of new products and designs.

“That’s why businesses need to develop capability in multi-party research, which combines the knowledge and capability of industrialists and academics,” said Liam Brown of Enterprise Ireland and one of the national contact points for the EU’s Framework Programme 7, which is investing in excess of €50 billion in trans-national collaborative research and development projects between 2007 and 2013. Irish companies and academics are already involved in this level of research, but we need greater involvement in the years ahead,” stated Mr Brown, urging Irish companies to contact their development agencies to understand how they can get involved in what he describes as “the most generous R&D programme in the world.”

The seminar, whilst addressing higher-level research, did not omit the research funding needs of companies who are at early stage development. 

Enterprise Ireland’s innovation vouchers, which are valued at €5,000 and issued three times a year, are structured to meet the research requirements of businesses with less than fifty employees and an annual turnover of less than €10million. Manufacturing and internationally traded services companies, who wish to collaborate with third level institutions to undertake project-specific research can also access innovation partnership funding in the order of €150,000 to €350,000.

As Shannon Chamber’s chief executive, Helen Downes stated: “Irish businesses can thrive in the years ahead, once they position themselves to avail of the range of innovation funding available, domestically and at an EU level. Europe still looks favourably on Irish business. The primary conditions attaining to R&D funding is that there are deliverables in the form of new technologies and new products. It's a win-win for Ireland and Europe.”

Irish Company Brings Start-ups to Silicon Valley

North-West based Company Seedups recently returned from SxSW in Austin, Texas after a successful visit to the prestigious SXSW Interactive festival to launch their service to the US market. "With Ireland and Northern Ireland being in the news for the wrong reasons, it's important that not only are we open for business, we're spearheading new initiatives" said Seedups founder Michael Faulkner.

The innovative online matching engine for Entrepreneurs and Investors launched in Ireland and the UK in February and is enjoying a whirlwind spell in America, including the establishment of an office in Silicon Valley and a launch party alongside some of the other digital talent from Ireland in Austin. The launch was picked up by Entrepreneur Magazine, and has quickly been adapted by American entrepreneurs.

The Seedups office in Silicon Valley is in the Enterprise Ireland offices situated near San Jose, and places Seedups, and Irish businesses looking to raise funds right at the heart of the most vibrant launching area for Tech startups in the world.

To mark their launch, Seedups are giving away $5,000 (or Euro equivalent) to 1 lucky entrepreneur. To win the prize, all entrepreneurs have to do is submit a 60 second video pitch, which is hosted on the seedups.com website, and the pitch with the most votes will win the money. “$5,000 cash can be a great boost for new companies, and at Seedups we’re determined to help startups” continued Mr. Faulkner. The competition will run until 1st May, and is open to startups from anywhere in the Ireland, the UK and US.

Of what this will mean for Irish companies, Mr. Faulkner said “After months of preparation and following the set up of an office in Silicon Valley, we’re really looking forward to working with tech start-ups in the US. We’re also ecstatic at being part of what is a strong team of delegates from Ireland who are supported by Invest NI. It's important to remember that the next generation of entrepreneurs will not be in traditional industries, but will be coming up with innovative answers through web-based app development, and these brightest minds will need funding to match their ideas.

Seedups model works on the concept of "fair value" for both Start-ups and Investors. This allows entrepreneurs the chance to hold on to more control of their business, while allows investors the chance to diversify their portfolio. This financing model is beginning to take a hold in many countries around the world, and has been used quite successfully in funding creative and community projects. With Seedups disruptive technology, it is now available to business start-ups in the US, Ireland and the UK.

Seedups are now calling on innovative entrepreneurs to list their business on the Seedups.com platform, and get funded through the growing number of investors, from both sides of the atlantic.

--
Connor Doherty

Online Community Manager, Seedups

Web: www.seedups.com

Twitter: @seedups

Create. Fund. Grow.

The Small Business Do's and Dont's of Elections

Do's

• Do question your politicians intently about what they will really do for small business.

  Its time to separate the wheat from the chaff. When canvassers call to your door we must begin to ask the intense questions that are need for businesses to get some real answers. Its easy for anybody to stand on the soapbox and spout all the in form rhetoric, but what will they really do. We must challenge our would be politicians about not simply telling us what we want to hear. We must accept only the finer detail, anything other that is worthless.

• Do Open Up To New Ideas.

  Its been clear for some time that the old ways may not good enough to provide a new future to this country. We must expand our thinking to new radical ideas that provide a balance of business progress and secure employment while at the same allowing us to compete in a realistic way in a global free market. We must sweep the cobwebs from Government, the Banking system and the view that we are destined to remain an economy in hiatus. New ideas have been floating around in the air for some time now. Some from ordinary business owners, others from Nobel prize winning economists. We cannot dismiss new ideas as fairytales simply because it suits us to. Remember 3,4,5 years- we were in a fairytale then too. There was no happily ever after.

• Do talk to your politicians about the problems you are facing.

  Change won't happen unless you ask for it. Talk to your politicians and convey the problems that you are having in your own businesses. Finance, bureaucracy, Employment etc are things you must let your politicians know. We start believing that we are the ones in control, the politicians work for us. So they must work for changes that benefit us as a nation, not just the ones in their area.

Dont's

• Don't accept face value statistics

  Anybody can make up statistics to suit there needs, 76% of all business owners know that...you see. Ask your politicians where the numbers came from. Probe for answers and information. These are the people we are putting in charge of country, so it is imperative they have the answers and open up the small print on where they got their information and how they came to the conclusion of those numbers that they love to throw around. Make our politicians accountable for the things they say, make them deal in facts not rhetorical fiction.

• Don't make time for any politicians who say 'Its the only solution...'

  Any business manager will tell you that one of the key factors in making decisions in options. If a politician says ' Its the only solution/option...' they are lying, pure and simple. Their are always options. Anybody who believes that their is only one option for anything has not done their research nor have they bothered to seriously receive the opinions of others. Everything has multiple options.

• Don't accept anything but change.

  If Red Tape and attitudes don't change towards SMEs then this election is simply a showcase for the word 'maybe'. We know small business is good enough and bright enough to lead us into a new future of progress. But we need the forces that be to allow us to strive towards that, without tying our hands at every possible turn, increasing taxes and VAT rates or allowing young graduate entrepreneurs to look upon starting a business in Ireland with disdain. We must change for the better or forever accept average politicians from all parties treating SMEs as a money making scheme instead of the progressive strategy that this country needs.

Outlining the Small Business Stance

FocuSME Editor, Kehlan Kirwan, replies to Fine Gael T.D. John Perry's recently released document on Small Business.

Hi John,

Interesting reading on small business report you sent me.

My own view would be that you have good general policies, but I think above anything you need to make promises that you will implement fully, even if you have to reduce the stats or funding. Small business has had to many broken promises, at to high a cost.

We need to increase the amount of tenders that small business gets from state and semi state bodies. Governmental bodies have an extremely poor record when it comes tendering out to small businesses. You can't say you support business and then ignore them in the most obvious of ways. An achievable goal would be get somewhere between 30%-40% of tenders going to small businesses. We must openly promote and provide for small business in a very public way. Instead of simply saying we have this plan or that plan, show people with tangible figures- ' Here look, this IS what we are doing for small domestic business' instead of ' This is what we COULD do for small business'.

We must find newer/different ways for investment to happen. This means getting existing big companies to re-invest profits back into the Irish economy. Currently multi-national companies have over €150bn in financial accounts at the IFSC in Dublin. We must encourage these businesses to invest some of that money into Irish companies through R&D or bolstering investment. The advantages of this are two fold- 1) Irish companies now have assured investment to work and strive for 2) The pressure is released on the government to provide money to small business, allowing it target other places for the money to go to.

Reform of the Enterprise Boards/Enterprise Ireland etc. is essential. For this to happen they must be given definitive goals and targets to be met. Give the Enterprise Boards a structure to adhere to. e.g. 40% of allocated funds for the year must go to manufacturing, 10% to professional services, a percentage to go to other sectors which must be considered the future of Ireland. Allow money from the enterprise boards to roll over to the next year. Money is being wasted on poor projects because they must 'get rid' of the money they have been allocated. Make the decision process with board members public- virtually eliminating conflict of interest problems that arise in the process.

Last of all the Banks- You must be better involved within the financial institutions. If it means physically putting people into the HQ of banks then so be it. The credit flowing to small business has been nothing short of disgraceful the past two years. Give them targets to lend and enforce it. Its been quite obvious that 'asking' banks to lend will not work. You must enforce your will on banks that we virtually own. It is simply not good enough to ask the Irish public to take the brunt of the damage through job loss and bailouts and allow the banking system to avoid investment in business and job creation.

Those are just some of my views. I appreciate you sending the document to me and I enjoyed reading it.
Remember that SMEs need action, not talk. If you give small business a chance, you'll get big results.

Regards,

Kehlan Kirwan

Editor, Focusme Magazine

Government Pressure on Banks is Coming to Late

Focusme Magazine welcomes the new injection of lending to Small Business, but asks if the government should have acted much sooner to curb Small Business closures and increase lending.

‘If We Succumb To a Dream World, We’ll Wake Up In a Nightmare’

Three years ago Ireland woke up from its slumber to realise that it was in a total nightmare. One of the worst affected sectors was that of small business. The seriousness of the task faced by SMEs was evident from the beginning. The collapse of the economy and the subsequent exodus of foreign investors, showed how over exposed we were and not just from the banking sector. The state of SMEs was frightening and it still continues to this day.

This week Brian Lenihan will announce a €12bn bank lending plan to small businesses that have been starved of credit. The minister is likely to announce the plan to release €3 billion each from AIB and Bank of Ireland to SMEs in 2010 and again in 2011. But is this all to Late?

For nearly three years Small Business has been ravaged by the economic downturn which has affected every part of this island. On average four firms a day closed under the tenure of Brian Cowen and his government. That is over 3600 small businesses which have been forced to close their doors forever. While we here at Focusme Magazine welcome the lending to SMEs, we cannot help but think that it has come far too late.

For to long the Small Business Sector has been the dog that has been tied up in the back yard, away from sight and sound. Left to our own devices, left to starve. Now we are being asked to be grateful to the master for bringing us back to health. Where was this stimulus package when business owners had mortgages to pay? Where was it when creditors and debtors were causing untold hurt?

There is no doubt that this news is a significant boost to SMEs across the country. But if the lending had been begun in earnest then maybe we could have been looking at the rapid expansion of businesses, jobs and an economy that has begun to turn a corner in reality and not in rhetoric.

Our own experience here at the magazine has been the same, it has been a battle. But last week we were approved for a loan from A.I.B. and now we can finally begin to get our business on the road to success. We’ve won the battle, but the war isn’t over. We know we’ve done a lot but there is still a long way to go. But we are living proof that maybe the banks, the economy and the government psyche are beginning to change.

With the right lending and this new encouragement to SMEs maybe we can begin to rebuild and progress. It will still be hard but now that the right people are getting behind us we can, not only begin over, but plan for the future.

Maybe now we can wake from the nightmare and fulfil our dreams.