Chen, Yusong --- "Ensuring the Benefits of Intellectual Property Rights to Development: A Competition Policy Perspective" [2009] ELECD 372; in Li, Xuan; Correa, M. Carlos (eds), "Intellectual Property Enforcement" (Edward Elgar Publishing, 2009)

Book Title: Intellectual Property Enforcement

Editor(s): Li, Xuan; Correa, M. Carlos

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781848446526

Section: Chapter 9

Section Title: Ensuring the Benefits of Intellectual Property Rights to Development: A Competition Policy Perspective

Author(s): Chen, Yusong

Number of pages: 18

Extract:

9. Ensuring the benefits of
intellectual property rights to
development: a competition
policy perspective
Yusong Chen1

BACKGROUND: GLOBAL PROLIFERATION
OF INTELLECTUAL PROPERTY AND
CHALLENGES FOR DEVELOPING COUNTRIES
The past several decades have seen a significant proliferation of intel-
lectual property rights (IPRs) across the world. Among these devel-
opments, a concrete step was the conclusion of the WTO TRIPS
Agreement,2 which has substantially increased global IPR protec-
tion levels in the following ways: (1) for the first time, it provides
comprehensive harmonized minimum standards for almost all kinds
of IPRs, and extends IPR obligations for many developing countries
(Finger and Schuler, 1999); (2) it stipulates, also for the first time
in international treaties, extensive enforcement obligations for all
WTO Members; (3) it incorporates an effective dispute settlement
system within the WTO framework.
The requirements for a high level of IPR protection in the TRIPS
Agreement have brought enormous challenges for developing coun-
tries. They are very sceptical that high incentives would bring tech-
nologies and innovations quickly and automatically (Sakakibara
and Branstetter, 2001). In fact, fostering domestic innovation and
creativity is a long-term process and depends on various local
conditions,3 which may not exist in many developing countries
(UNCTAD, 1996). At the same time, developing countries may
suffer seriously from huge social costs arising from IPRs.
Perhaps the most significant challenge for developing countries
is that sometimes protection of IPRs may also lead to barriers for

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innovation and development. It should be ...