Example and Explanations Series: Intellectual Property Rights

Chapter 1: Intellectual Property Rights and Economic Development

1- Introduction

In the last 2 years Cambodia has succeeded in its efforts to mainstream trade into its overall national development policies. Trade mainstreaming means domestically giving greater visibility to the linkages between trade and all other related economic policy areas such as investment, financial and commercial institutional infrastructure, including in areas such as corporate governance, and intellectual property rights regime. Externally mainstreaming means encouraging broad-based economic cooperation and resource mobilization through regional and global economic linkages.

Economic integration means recognizing the reality of the literal "globalization" of business activity in the last quarter century, where a new set of assets, denominated as "knowledge" and "innovation", have now moved to the forefront of business strategy for both large and small enterprises around the world. Like any other type of asset, they may be susceptible to obsolescence, misappropriation and duplication. For that we see the development of the legal framework that has been constructed to contain, define and allocate ownership and control of these assets, in the form of patent, trade secrets, copyrights and trademarks and other types of intellectual property, provides an owner with far more than a set of property rights.

DEFINITION: WHAT IS INTELLECTUAL PROPERTY?

Intellectual property ("IP") is a legal term that refers to industrial property and to copyright and related rights. It comprises the protection of patents, trademarks, industrial designs, and geographical indications. It also includes the protection of utility models, trade dress and layout-designs or topographies of integrated circuits, where such protection exists, and protection against unfair competition including/or protection of undisclosed information/trade secrets. IP is really a type of property or asset, just as valuable (or more valuable) than physical or real property, even though it may be intangible, like knowledge. The value of IP assets relative to physical assets has increased because of the importance of technology and creative works in the modern economy. IP consists of new ideas, original expressions, distinctive names, and appearance that make products unique and valuable. IP is often traded (or "licensed") in its own right without trading in the value of an underlying product or service, by means of patent or other IP licenses from a rights owner to another.

 

the last quarter century, where a new set of assets, denominated as "knowledge" and "innovation", have now moved to the forefront of business strategy for both large and small enterprises around the world. Like any other type of asset, they may be susceptible to obsolescence, misappropriation and duplication. For that we see the development of the legal framework that has been constructed to contain, define and allocate ownership and control of these assets, in the form of patent, trade secrets, copyrights and trademarks and other types of intellectual property, provides an owner with far more than a set of property rights.

Within this larger scheme of economic development Cambodia views policies and legislation related to protection of intellectual property rights as important instruments in the economic, social, scientific and technological development strategy of the country, both for the short and long-term. Efficient and effective protection of intellectual property rights is vital for the development of the domestic economy, for promoting foreign investment, for the transfer and dissemination of technology, and for increasing local jobs and income as well as facilitating the integration of Cambodia's economy into the regional and global economies.
While mindful of these challenges, the Government was nonetheless hampered by financial and technical capacity constraints to respond to its drive to modernize the national intellectual property legislations to keep apace with international developments and the needs of emerging technologies.

Moreover the Government is conscious of the need to strengthen the enforcement mechanisms to better fight against infringement, and counterfeiting. The police force, the judiciary and the customs administrations need to be made aware of their important role in enforcement of intellectual property rights.

Adequate national resources should be reallocated to these enforcement agencies to enable them to effectively deal with both piracy and the broad-based pirate networks, in order to protect national authors, composers, artists, film and record producers, and the software industry, as well as invention and innovation.

For the last few years the Government and the private sector have worked hand in hand in designing policies and strategies to ensure the strengthening and promotion of the use of the intellectual property system for socio?economic development of the country. The system has begun to bring considerable economic value.

At the Annual Convention of the Ministry of Commerce held last January 14, 2003, Commerce Minister Cham Prasidh has noticed with appreciation the country's achievements in the areas of IPR development and enforcement, a factor he considered crucial for instilling investors' confidence and attracting FDI. Another positive indicator was the increase of registrations of local brands.