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Intellectual property

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= useful info/knowledge (intangible assets)

· Company names

· Geographical indications - denomination for goods given quality or reputation attributable to the geographical origin (Feta cheese).

· Trade secrets: info of commercial value (ingredients, costs).

Why to protect:

· Stronger position in export markets

· Prevent imitating/copying

· Access to new markets through licensing and franchising

· To convince investors

IPR Treaties:

· TRIPS (WTO): a common min. protection (© - 50 years after the death of the author) & obligation to observe directives & 4 other IPR conventions, e.g. Berne Convention

· Berne Convention: artistic property

o National treatment – works originating in one state are given the same protection in other states.

o Automatic protection –no registration needed; gets protected when the product is finished.

o Independence of protection - protection is independent of the existence of protection in the country of origin of the work.

· Paris Convention: industrial property.

Copyright protects an intellectual work (computer programs); expression of work, not the idea; governed by national law; protects: right to translate, to make amendments, to perform in public, to recite in public literary works, to broadcast, to make reproductions in any form and manner, for audiovisual use and moral rights (right of attribution (установление авторства), publish the work anonymously or pseudonymously, and the right to the integrity (неприкосновенность) of the work; esp. in civil law countries).

Pecuniary (облагаемый штрафом) rights: right of reproduction (make copies), right to distribute (offer to the public), exhaustion of rights in EU (the first sale of a copyrighted work by © holder exhausts owner’s IPR & control of resale in EU) (national /EU), right to exhibition/performance to public, moral rights.

EU exceptions: private use with no commercial aim, libraries and schools open to the public, TV- and radio programs for non-commercial institutions e.g. prisons and hospitals, quotations for purposes as criticism or review (+ indication of author’s name), advertising public exhibition or sale of artistic (no other commercial use), caricature or parody, demonstration or repair of equipment, reporting of current events (informatory purpose), use of works, e.g. sculpture, made to be located permanently in public places.

Patent protects invention; valid» 20 years;»32,000 in EU; at least 3 pictures required; no world-wide, only national!

Patent Co-operation Treaty (PCT) - a system which allows to seek patent protection in all contracting states simultaneously by filing one single application; 20 or 30 months to consider where to patent; then must continue by national systems; application in national language®costs!

European Patent Convention (EPC) - a European-wide (38) patent by one application; application in any language but translation into English, German or French in two months; translation into other EPO’s official languages; patent granted by European Patent Office (EPO).

Not patentable: e.g. against ordre public/morality, schemes, rules and methods for performing mental acts, playing games or doing business.

Design: protects the appearance of the product or its part;must be new, individual & Not against ordre public or public morality; min. 10 years; right to prevent third parties from making, selling or importing for commercial purposes.

Exceptions: acts done privately and for non-commercial purposes; acts done for experimental purposes; acts of copying done for making citations or for teaching, with the source to be mentioned.

Registration:

· National

· Community Design (EU)

· The Hague System (one application à national design in the named countries)

Trademark - any word, name, symbol, or device (figurative, sound, colour); used to differentiate between identical or similar goods and services offered by different producers or services providers.

Registration: (42 classes – pay for each class; same tm can be used by competitors for dif. products; tm can be registered only by enterprises)

· National registration

· Community trademark

- one application à 27 countries

- EU exhaustion of the tm

- can be revoked (аннулировать) if not put to use in 5 years

- sound or smell cannot be registered (cannot be presented in graphical form)

§ Requirements:

o Absolute grounds:

o Graphically distinctive

o public policy/morality

o not misleading

o obstacle in one country à no registration

· International registration (Madrid system)

- one application to national office

- must name the countries

- effected directly in each of the countries named by the applicant

- valid for 10 years, can be renewed

- Procedure:

o application to national office or OHIM (The Office of Harmonization for the Internal Market)

o any language of the 27 Member States

o publication in CTM Bulletin

o valid for 10 years, can be renewed

o opposition of the application

§ identical or similar tm and goods/services leading to confusion

o revocation:

§ not put into genuine use in 5 years

§ has become a common name for the goods

§ has become misleading

Counterfeit (nearly 5 % of goods in world; 600-1000 $ billion/year) – illegal copy of the original product (esp. can be dangerous for health (pharmaceuticals, auto-parts, food)) + piracy goods.

Protection:

o International conventions: WIPO, WHO, EU etc.

o Customs seizures (confiscation)

o Health and safety regulatory requirements

o IPR enforcement mechanisms

TRIPS measures:

o Civil proceedings: judicial instruments must be available to right holders

§ Injunctions (судебный запрет), damages

o Criminal proceedings: commercial scale of trademarks and copyright infringement

o Border measures: measures to prevent the commercialization of imported products that infringe trademarks and copyrights

EU Customs:

o import to EU, export out of EU, re-export (вывоз ранее ввозимых товаров), transit, warehouse (таможенный склад для хранения не оплаченных пошлиной товаров)

o not applied:

o parallel import

o passenger import if no commercial nature

o seizure by application or ex officio

o destruction at the IPR-holder’s expense

+ Exhaustion (applies only to authentic products)

Geographical indications:

o Name of the place of origin of the goods

o Points to a certain place

Requirements:

o Relates to a good (service in some countries)

o Goods originate from a defined area

o Goods have qualities or reputations that are linked to a place of origin

Product safety directive:

o Producer may bring only safe products to the market

o Surveillance (наблюдение) procedure (IDEA: SELF-SURVEILLANCE BY THE BUSINESSES)

- European standards

- CE marking:

§ does not guarantee the safety

§ when affixed, it is a declaration by the person that

· the product conforms the EC requirements

· appropriate conformity assessment procedures have taken place

o technical documentation needed

§ ensures free movement of goods

§ Mandatory when directive so requires and not possible to use if not required by directive

§ must be affixed before put to the market and after conformity procedure

§ Independent conformity assesment:

· CE marking must be followed by the identification number of the notified body

· list of notified bodies on the Commission’s Enterprise and Industry section

o RAPEX – EU alert system for all dangerous consumer products

o each business must warn consumers of risks

o businesses must inform the national authority about dangerous products and take other necessary measures to protect consumers

o sample testing

o national authority can withdraw the product from the market, recall it from consumers or issue warning

o EU-Commission can order a national authority to ban the marketing of an unsafe product, to recall it from consumers or to withdraw it from the market

Liable persons:

- producer of raw material

- manufacturer of component part

- manufacturer of a finish product

- persons presenting them as producers

- an importer to EU-area

- each supplier of a product if producer not identified (can avoid this by telling the consumer who the producer is)

Damage:

- death and personal injuries

- a damage to another piece of property

o only type used for private consumption and was used like this by the injured

o own threshold (порог) 500 EUR

- must sue within 3 years from injury

No liability:

- Producer did not put the product to the market

- defect did not exist at the above time

- the product was not manufactured or distributed for sale/economic purpose (not in FI or LUX)

- defect is due to official regulations

- scientific or technical knowledge at the time was insufficient.

Tort – people cause damages.


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