Committee: WIPO 3 - Innovation
Issue: Applying principles of intellectual property in sectors emerging in the fourth industrial revolution
Chair: Hannah Alderman
Introduction
One of the many challenges faced by industry and society today is to understand and shape the new technology revolution, referred to as the ‘Fourth Industrial Revolution’ or ‘Industry 4.0’ (see ‘Key Terms’ below). The scale, scope and complexity of Industry 4.0 will fundamentally change the way we live, work and relate to each other.
The impact of this new revolution, characterised by its speed and breadth, will result in billions of people connected by mobile devices with extraordinary processing power, storage capabilities and access to knowledge. Emerging technology covers areas such as artificial intelligence, robotics - for example, self driving vehicles, the Internet of Things (IoT), and 3-D printing. Many of these innovations are in the early stages of development but are already building on and benefiting from each other through a combination of technologies across the physical, digital, and biological worlds.
Industry 4.0 is likely to have a significant impact across many industries with the introduction of new business models, and new ways of using technology to re-shape production, consumption, transportation and delivery systems across (and within) countries, companies and industries.
Over the past decade, Intellectual Property (IP) rights have played a fundamental role in driving technological innovation and economic competitiveness. The global rules governing ownership of technology have been radically transformed from traditional goods and services to intellectual property. In a world where ideas can be easily transferred via the internet, protecting ideas rather than the physical products themselves is a serious issue. Globalisation is one of the main reasons that IP has grown exponentially. Intangible, technological products are now produced, sold and consumed globally, and IP has become an important area in national economic and developmental planning; it has also appeared to be a key incentive to improve multilateral trade relations. The subject of intellectual property is rapidly expanding to increase the level of protection but this is also creating conflicts with current trade, development, cultural, ethical, and economic traditions.
Key Terms
Fourth Industrial Revolution (Industry 4.0)
“Industry 4.0 or the fourth industrial revolution is the current trend of automation and data exchange in manufacturing technologies. It includes cyber-physical systems, the Internet of Things (IoT) and cloud computing.” Industry 4.0 is being driven by advanced automation, connectivity and the wider implementation of artificial intelligence.
Cyber-physical systems
A cyber-physical system (CPS) “is a mechanism controlled or monitored by computer based algorithms, tightly integrated with the internet and its users” (source: Wikipedia.org). CPS examples include self-driving cars, robotics, and process control systems.
Internet of Things
Internet of Things (IOT) refers to the connection of devices with on/off switches to the Internet – examples include PCs, smartphones, domestic appliances, components of machines. The IoT is not only a giant network of connected ‘things’ – it is about connecting people and economies.
Cloud Computing
Cloud computing refers to storing and accessing data over the internet instead of the hard drive on a computer.
Big Data
Big Data refers to large, complex sets of data which traditional data processing applications cannot manage. Advanced data analytics methods are used to extract value from the data so, in effect, data is turned into knowledge.
Artificial Intelligence (AI)
Artificial Intelligence refers to an area of computer science where machines act like they have human intelligence and are able to copy intelligent human behaviour.
Robotics
Robotics refers to the area of computer science and engineering in creating robots (programmable mechanical devices) that can perform tasks and interact with its environment without any human interaction. Robotics is one area of Artificial Intelligence.
3-D Printing
3-D printing refers to the creation of a 3-D printed object which is achieved using additive processes - laying down layers of material one after the other until the object is created.
Digitisation
Digitisation refers to connecting people and things; making sense of data in a smart and secure way.
Intellectual Property
Intellectual Property (IP) refers to the ownership of intangible and non-physical goods such as ideas, names, designs, symbols, artwork, writings and also includes digital media – audio and video clips that can be downloaded online. To earn recognition or financial benefit, Innovators and Creators can have legal protection of their ideas and creations through intellectual property rights.
Business owners are granted exclusive rights on the use of their trademarks (brands, logos, names) and geographical indications (where product originates from a particular location); Creative artists are granted copyrights on musical, literary and artistic works; Innovators are granted protection for patents, industrial design, trade secrets, and layout designs of integrated circuits.
Copyright
Copyright refers to the exclusive legal rights which creators of literary, musical or artistic work (including websites and online content) have in order to control the ways in which their material may be used. The length of copyright protection varies by country but usually lasts for the life of the creator/author plus fifty to 100 years.
Patent / Patent Pool
A patent refers to the exclusive right granted by a government to an inventor to manufacture, use or sell an invention for a certain number of years.
A patent pool refers to an agreement between two or more patent owners to licence patents to each other or to third parties. Typically these are used with complicated technologies where complementary patents are required for more efficient technical solutions.
Trademark
A trademark refers to a word, phrase, symbol, and/or design that identifies and distinguishes the source of goods or services of one business from those of another.
Compulsory Licence
A compulsory licence refers to a legally created licence which allows certain parties to use copyrighted or patented material without the permission of the original owner in exchange for a specified royalty (fee).
Trade-Related Aspects of Intellectual Property Rights (TRIPS)
The Agreement on TRIPS was negotiated with other international trade agreements during the Uruguay Round of the GATT (General Agreement on Tariffs and Trade) from 1986 to 1994 and is a requirement for all WTO (World Trade Organisation) Member States. The TRIPS agreement sets minimum standards in the area of intellectual property protection which all WTO Member countries have to respect and if necessary, they need to modify their intellectual property laws to make them consistent with the new WTO standards.
Overview
Importance of IP
A strongly enforced IP system is important for the following reasons:
- Promotes the development of national industries by protecting the inventors market.
- Drives economic growth and competitiveness
- Protects consumers by ensuring goods and services are authentic, safe and reliable.
- Attracts foreign investment which improves the tax base and typically results in the creation of employment.
- Supports breakthrough solutions to global issues such as essential drugs, alternative energy sources and green technologies.
- Encourages innovation and rewards entrepreneurs.
Principles of Intellectual Property (IP)
A Guide to IP Principles
Patents protect inventions for 20 years, if granted, and must be new, involve an inventive step and be capable of industrial application. In the UK, for example, applications for patent protection are dealt with by IPO (Intellectual Property Office). If the invention is known about in the public domain before filing an application, the inventor is unable to gain protection.
Design Rights
These refer to the appearance of a product such as shape, colour, texture, materials used. Three types of protection apply to designs:
- Unregistered and registered design rights – an automatic right lasting for 15 years which protects shape and construction of a 3-dimensional article. The rights apply from when design was recorded or when the article was made to that design. An infringement of these rights is difficult to establish as proof of deliberate copying is required and that the creator holds the right.
- Registered design rights – provides further protection for the appearance of an item regarding features, colours, shape, texture and lasts up to 25 years. No proof of copying is required in infringement actions so it is easier to exploit, whether selling the rights or by licence.
- Copyright – protects literary, dramatic, musical and artistic works as well as sound recordings, films and broadcasts. Copyright protects material from being reproduced without permission and the right occurs automatically following the creation of work. Copyright duration depends on the type of work.
Trade Marks
Registering trade marks provides the exclusive right to use the mark for goods and services and to sell or licence the use of the mark. Registration of the mark discourages competitors from using the mark.
Global Evolution of Intellectual Property Rights
During the last 40 years, many of the world’s largest economies have strongly supported Intellectual Property Rights (IPR), WIPO (World Intellectual Property Organisation) and TRIPS rules have protected patents and copyright. In the last 10 years, however, Governments in less economically developed countries (LEDCs) as well as humanitarian groups have argued that IPR has negatively affected economic growth of developing countries. Deaths have also been caused due to some medicines being unavailable as a result of patented technology. Thus, there has been a call to remove IPR completely. Another factor supporting this approach is that as goods become less expensive in low wage countries such as China, the price of IP is growing and intellectual property rights are not being enforced.
The global intellectual property laws were designed to protect a creator on the use and sale of their invention. However, many supporters of changes to the IP laws believe that ownership of an idea is an unreasonable concept and it is unfair to strictly enforce IPR in some cultures due to the cost of security patents, especially when the laws require them to buy from a company that has patented their traditional knowledge.
On the other hand, patents and copyright protections are highly regarded in more economically developed countries (MEDCs) with any minor changes being requested, for example, reducing the time a creator has a monopoly on the invention.
In 1967 WIPO was formed to centralise the world’s patent and copyright information. It ensures an invention receives global patent protection anywhere in the world when it is first patented. WIPO also encourages enforcement of IPR amongst its member countries. With the introduction of the 1994 TRIPS agreement, countries agreed that the protection of IPR was vital to free trade and patent and copyright protection should be respected and piracy should be prevented.
IP contributes significantly to national economies. Many industries require enforcement of patents, trademarks and copyrights to ensure financial viability of business while consumers use IP to ensure they are buying safe, guaranteed products. However, a number of industries are facing IPR problems, in particular pharmaceuticals and media (especially music). The main issue for the pharmaceutical industry is compulsory licensing where member countries, according to TRIPS agreement, can break a patent and manufacture a drug themselves in emergency situations. As a result, some governments, particularly in Asia, have encouraged copying and selling patented drugs without payment of royalty (fees) to the drug’s inventor causing pharmaceutical companies to lose income. The high cost of intellectual property is promoting piracy and resentment so the challenge for WIPO is how to develop the IP system so it supports innovation while being flexible enough to prevent LEDCs from breaking IP law. The WIPO Development Agenda suggests change will occur but the difficulty with IPR is that for any system to be successful, it must be absolutely clear- either an invention is property and therefore patentable or it is not, otherwise challenges to IPR will arise. However, if IPR is not enforced, companies and people lose incentive to create, invent, or innovate which is not in anyone’s interest.
TRIPS Agreement
WTO’s TRIPS agreement provides maximum levels of protection which each government applies to IP for WTO members. The aim of TRIPS is that society benefits in the long term as IP promotes creation and invention, and then enters the public domain on expiry. Governments are permitted to reduce short term costs through exceptions such as addressing public health issues. WTO’s dispute settlement system is used to resolve trade disagreements over IP rights. The agreement covers:
How basic principles of the trading system and other IP agreements should be applied
The key factor is treating all nationals and foreigners equally as well as nationals of all trading partners within the WTO. IP should contribute to technical innovation and the transfer of technology (transfer of new technology from originator to secondary user or from MEDCs to LEDCs). The objective is that both producers and users should benefit with economic and social welfare improving.
How to protect IPR
The TRIPS agreement includes reference to different IP risks and how to protect them, to ensure robust standards of protection. The international agreements listed below set out standards to be followed by member countries.
∙ WIPO international agreements World Intellectual Property Organization (WIPO)
∙ Paris Convention for the protection of IP (patents, industrial designs) Paris Convention for the Protection of Industrial Property
∙ Berne Convention for protection of literary and artistic works (copyright) Berne Convention for the Protection of Literary and Artistic Works
The TRIPS agreement adds to a number of the above standards to strengthen IP protection, some of which have an impact on Industry 4.0 as outlined below.
Copyright - Computer programs are protected as literary works under the Berne Convention and dictates how databases should be protected.
Industrial Design – Owners must be able to prevent the manufacture, sale or imports of articles including a copy of the protected design.
Patents- If a patent is issued for a production process, the rights must extend to the product directly obtained from the process. Patents need to be registered and include a description of what is being protected with regard to invention and design. This becomes complicated within the Industry 4.0 environment as processes are integrated and include embedded systems within mechanical components.
Undisclosed Information and Trade Secrets - Trade secrets and other types of “undisclosed” information which have commercial value must be protected against breach of confidence and other activities released to honest commercial practices. Reasonable steps must be taken to keep information secret.
How countries should enforce IPR
The TRIPS agreement states that governments have to ensure IP rights can be enforced under their laws and that penalties for infringement are strong enough to deter further violations. Procedures should be fair and not unnecessarily complex, costly or involve unreasonable time limits. The Agreement outlines how enforcement should be handled and courts have rights to dispose of pirated or counterfeit goods. Copyright piracy on a commercial scale should be a criminal offence. LEDCs see the technology transfer as an entitlement for agreeing to IP rights- TRIPS Agreement requires MEDC governments to provide incentives for companies to transfer technology to LEDCs.
Development of the Fourth Industrial Revolution
Industry 4.0 represents the beginning of a complicated transformation process based on the convergence of the analogue (real world) and digital (virtual world) through machine to machine communication, autonomous systems and the Internet of Things (IoT). Traditional industries will become ‘intelligent’ or ‘smart’ factories supported by cyber-physical systems (see Key Terms) and IoT (chart 2 below). Production will change to fully interconnected processes, products, and services. Chart 1 below illustrates the development of production processes from manufacturing to industry production (1st industrial revolution), then the change from steam-driven machine production to electricity production (2nd industrial revolution) and the progress from analogue processing to microelectronics (3rd revolution).
One of the key features of the 4th industrial revolution (Industry 4.0) is that machines and devices can communicate with each other without humans being involved. M2M communication and ‘smart data’ make devices and machines more autonomous, for example the self-driving car. Sensors help the car recognise obstacles while GPS (like a Sat Nav) provides the position and the Internet connection provides any information needed. The car will be online and connected to other cars and infrastructure networks. This technology will be a growth enabler for industry, in particular manufacturing businesses, IT, Telecoms, and IoT will play a key role with an estimated 26-30 billion globally connected devices by 2020 (compared with 7-10 billion in 2013) equating to 15-20% growth annually. (source: McKinsey The Internet of Things –Sizing up the opportunity).
While Industry 4.0 will create new business opportunities, it will also raise new legal issues which need to be addressed. These challenges are just starting to arise and jurisdiction is still a rare occurrence. It should be the responsibility of international legislators to deal with the impact Industry 4.0 has on many fields of law including intellectual property rights.
Effects of the Fourth Industrial Revolution on IP
Rapid technological change is a feature of the early stages of Industry 4.0 and as a result, the law around Intellectual Property (IP) rights is changing to incorporate new concepts and different forms of IP rights. As Industry 4.0 is driven by integrated technologies and by the growth of robotics, artificial intelligence and the virtual economy, there is a lack of clarity around IP rights. Due to the huge increase in automation, digital connectivity and technological innovations, the rules and regulations of IP rights are still developing globally. This creates questions about how International IP rights will relate to the protection and relevance of these concepts in future across key sectors and geographies.
Technological progress depends on patent protection
The fourth industrial revolution, characterised by “connectivity,” speeds up how goods are produced and distributed, but it also connects voices, images, thoughts, data, designs and multimedia everywhere in real time so geography becomes less important. By capturing this capability and power in a reasonably priced pocket-sized device, this revolution has impacted not just the industrial world but most of the developing world. Boston Consultant Group (BCG) found that that in the six countries the study focused on - Brazil, China, Germany, India, South Korea and the United States - the annual value of spending on mobile devices, mobile connectivity and mobile business was more than $1.2 trillion. In the United States, this mobile gross domestic product amounted to $548 billion (3.2 percent of GDP), exceeding the economic contribution of the car industry. According to BCG, the small number of core technology innovators for 2G, 3G and 4G wireless communications “take enormous risks by spending heavily on research and development with no guarantee of return on investment. Companies focused on mobile’s core technologies invest a larger share of revenue (21 percent) in R&D (research and development) than any other industry except biotechnology – and more than all other R&D-heavy industries.” The incentive for this R&D is strong IP rights that ensure invention companies and their investors that if their inventions succeed in the marketplace, they will be protected and financially rewarded. As BCG concluded, future growth of the mobile economy depends on “strong patent protection to encourage large and risky investments in mobile technology innovation.”(source: Don Rosenberg, General Counsel and Corporate Secretary, Qualcomm Incorporated)
IP Theft
The speed of globalisation and the rise of digitisation in some business sectors is providing an increasing number of opportunities for intellectual property crime. Piracy of recoded creative works – films, music and software – is rising considerably which is driving reduced profits and job losses in the industry. Intellectual property theft is also a threat to large companies whose trade secrets could benefit competitors and foreign Governments. In many cases intellectual content is more valuable to a company than physical assets – more than 45% of U.S. businesses have reported losses as a result of IP theft with an estimated cost of $250 billion per year ( source: National Crime Prevention Council – Intellectual Property Theft – Get Real). Trade secrets through cyber attacks can be downloaded to external sites, removed via a USB or exported by e-mail. The counterfeiting of software products as inaccurate copies could result in loss of important data and identity theft.
China is responsible for much of the world’s IP theft – 85% of counterfeit goods found in the EU in 2010 were thought to originate from China. Approximately 8% of China’s GDP comes from counterfeits of creative works, consumer goods and industrial products and software. It has been suggested that the Chinese Government is at fault for this activity as the rigorous protection of foreign intellectual property conflicts with China’s development strategy. China regards foreign innovations as part of their policy to develop their own domestic technology.
Data Security Risk
In manufacturing, data is a valuable element in the production process, containing unique information about the product and its manufacture. With this information and the right equipment, counterfeits can easily be produced. Design data is usually well protected from unauthorised outside access but production data can often be unsecured in the computer and be subject to cyber-attack. Data security has become more challenging in the Industry 4.0 environment with IP needing an extra layer of protection on processes and products. Due to the complexity and unclear boundaries of Industry 4.0, IP may need to be reflected in different forms.
Patents for new business models
Industry 4.0 will result in new business models with interoperability and networked communication between production systems (vertical integration). This will also work across business functions (horizontal integration) with networked systems from supply, warehousing, production to marketing, sales and delivery. Intelligence on specific business models will need to be protected through data security measures as well as through patents. 3D printing is an example where IP issues arise, as these will need to cover not just printers and printer technology but also systems and plans.
Embedded systems, a computer within a large mechanical or electrical system, are a feature of Industry 4.0, where patenting is complicated as the inventive step is unclear. Software related inventions require strong technical content for the overall solution to be patentable.
IP of the final Product
Ownership and licensing issues need to be addressed in contracts with suppliers. Due to the interconnectivity between machines, software and companies involved, there may be confusion about who can use the business intelligence. Another IP concern is raised between the company and the customer. Some production processes allow the customer to personalise products, for example modifying the printing on t-shirts. Clarification is required on who then owns the IP rights to the final product.
Organisations Involved
The World Intellectual Property Organisation (WIPO)
WIPO, a specialised, self-funding agency of the United Nations, was formed in 1967 “to encourage creative activities, and to promote the protection of intellectual property (IP) throughout the world” (source: wipo.int). With headquarters in Geneva, WIPO has currently 189 member states with most aligned to the 26 international treaties which it administers.
WIPO provides a forum where Governments debate and shape IP laws in line with a changing digital society. The goal of WIPO is to make IP work for all member states by operating an international filing system, making it easier to protect inventions, designs and brands across borders and by helping to resolve disputes. WIPO promotes co-operation between Governments, businesses and individuals to help them understand and benefit from the international IP system. It also provides training programmes and information, adapted to meet Country needs, to enable all member Countries to use IP for economic, social and cultural development.
In the last 50 years, WIPO has processed 4.5 million international patent and trademark applications.
European Patent Office (EPO)
The European Patent Office is an intergovernmental organisation, set up on 7th October 1977, based on the European patent convention (EPC), signed in Munich in 1973. The organisation currently has 38 member states and includes the European Patent Office and the Administrative Council, which supervises the Office's activities.
World Economic Forum (WEF)
Established in 1971 with headquarters in Geneva, WEF is an international, non-profit organisation with no commercial interest. The forum provides a platform for Government, business leaders, academics, technical innovators and individuals from society to engage in addressing global, regional and industrial issues with the aim of making positive change.
Mastering the Fourth Industrial Revolution is one of three strategic challenges on which the Forum is focused, and has the potential to transform economies and societies.
World Trade Organisation (WTO)
WTO is an international organisation which deals with the global rules of trade between nations to help trade flow as feely and smoothly as possible. WTO’s multilateral trading agreements are negotiated and signed by Governments to help producers of goods and services, exporters and importers to conduct business.
United Nations Educational, Scientific and Cultural Organisation (UNESCO)
Known as the ‘intellectual’ agency of the United Nations, UNESCO tries to build networks among nations through the creation of holistic policies to address social, environmental and economic aspects of sustainable development. In the new connected world of Industry 4.0 with the growth of a creative economy and the power of the Internet, participation of everyone in the new global public space will be a requirement to achieve peace and development.
The International Association for the Protection of Intellectual Property (AIPPI)
The International Association for the Protection of Intellectual Property, known as AIPPI (Association Internationale pour la Protection de la Propriété Intellectuelle), is the world’s leading International Organization dedicated to the development and improvement of laws for the protection of intellectual property. It is a politically neutral, non-profit organization, based in Switzerland with over 9000 Members representing more than 100 countries.
Countries Involved
The International Property Rights Index (see table below) measures the strength of the three focal factors of a property rights system around the world: the Legal and Political Environment (LP), Physical Property Rights (PPR), and IPR which includes: the Protection of Intellectual Property Rights, Patent Protection, and Copyright Protection. This index illustrates the trends and patterns in levels of physical and intellectual property protection across 29 countries. The IPR scores are based on a survey of experts who work in or with the respective country.
Top 20 Countries
Country | Score | Globally | Regionally |
8.4 | 1 of 128 | 1 of 19 | |
8.3 | 2 of 128 | 1 of 20 | |
8.3 | 3 of 128 | 2 of 19 | |
8.3 | 4 of 128 | 3 of 19 | |
8.2 | 5 of 128 | 4 of 19 | |
8.1 | 8 of 128 | 3 of 20 | |
8.1 | 6 of 128 | 2 of 20 | |
8.1 | 7 of 128 | 5 of 19 | |
8.0 | 10 of 128 | 1 of 2 | |
8.0 | 9 of 128 | 6 of 19 | |
7.9 | 12 of 128 | 4 of 20 | |
7.9 | 11 of 128 | 7 of 19 | |
7.8 | 14 of 128 | 8 of 19 | |
7.8 | 13 of 128 | 5 of 20 | |
7.7 | 15 of 128 | 2 of 2 | |
7.7 | 16 of 128 | 9 of 19 | |
7.6 | 17 of 128 | 10 of 19 | |
7.6 | 18 of 128 | 11 of 19 | |
7.5 | 19 of 128 | 12 of 19 |
Bottom 20 Countries
Country | Score | Globally | Regionally |
4.1 | 108 of 128 | 16 of 18 | |
4.1 | 109 of 128 | 17 of 18 | |
4.0 | 111 of 128 | 21 of 27 | |
4.0 | 113 of 128 | 18 of 20 | |
4.0 | 112 of 128 | 17 of 20 | |
4.0 | 114 of 128 | 20 of 22 | |
3.9 | 115 of 128 | 19 of 20 | |
3.8 | 116 of 128 | 22 of 27 | |
3.8 | 117 of 128 | 18 of 18 | |
3.7 | 118 of 128 | 23 of 27 | |
3.7 | 119 of 128 | 24 of 27 | |
3.7 | 121 of 128 | 18 of 20 | |
3.7 | 120 of 128 | 20 of 20 | |
3.6 | 122 of 128 | 25 of 27 | |
3.4 | 123 of 128 | 26 of 27 | |
3.4 | 124 of 128 | 27 of 27 | |
2.8 | 126 of 128 | 19 of 20 | |
2.8 | 127 of 128 | 20 of 20 | |
2.8 | 125 of 128 | 21 of 22 | |
2.7 | 128 of 128 | 22 of 22 |
Source: http://internationalpropertyrightsindex.org/countries
As property rights are central to economic prosperity, the developed nations around the world have realized their importance, particularly in the rapidly growing Industry 4.0. Generally Western countries top the list of IPR scores for strong property rights protection as they have a heritage around inventions with strength in economic and legal frameworks. IP plays a key role in terms of innovation and competitiveness. Germany, for example, has a keen interest in addressing existing rules on IP to overcome challenges posed by Industry 4.0 as they rank 3rd in the world behind USA and Japan on number of patent applications in 2015.
Conversely, countries that have weaker IPR ratings may struggle to attract the investment to achieve a strong, innovative economic market as Industry 4.0 evolves. Although China, with an IPR raining of 5.4, is positioning itself to be a leader in the fourth industrial revolution, and already has large numbers of patents on low-cost robots, foreign companies often have concerns about their intellectual property rights infringement. Currently, countries in the Middle East and Africa are suffering most in securing property rights, affecting a population of over 1.4 billion.
Possible Solutions
Changes to Patent Law
According to current patent law, ‘first to file’ secures the rights. But should this be changed to ‘first to invent’? This would align with the speed of change within Industry 4.0 in securing a patent and would avoid the advantage large companies or developed Countries have as they can afford to file many patents. In this case speed and agility would be the key requirements, rather than financial status, which may position the emerging countries more favourably.
Develop IP Systems for the Digital (Virtual) World
Should intellectual property in the digital world be treated in a different way to the non-digital world? Do we need a fundamental change in the existing system for shaping protection of IP or should the existing system continue with amendments / updates to address the challenges from the growth of Industry 4.0? One common characteristic of Industry 4.0 and digital business is the generation and use of large quantities of data. This involves the creation of new intelligent analysis tools and software used to transform ‘big data’ to ‘smart data’, or information to knowledge which creates business value. Currently data or information is not classified as a tangible object or protected under IP rights – there is no legal ‘ownership’ of data. This presents a potential problem for investments in Industry 4.0 technologies. Do we need clarification around whether data collections can be regarded as data banks which are subject to copyright protection? If such an ownership right were to be designed, this could negatively affect the free use and exchange of data. On the other hand, the opportunity of using and exchanging data without being affected by ownership rights could support the basis for future innovations and inventions in the digital business.
Collaborative Approach to IP regulation
Due to the Fourth Industrial Revolution’s rapid pace of change and breadth of impact, there is no time to study a specific issue and develop the necessary response or appropriate regulatory framework. How can the interests of businesses and consumers be protected while innovation and technological development continues to be supported? According to Klaus Schwab, Founder and Executive Chairman, WEF, ‘Regulators will need to adapt to a new, fast-changing environment, reinventing themselves so they can really understand what it is they are regulating. To achieve this objective, governments and regulatory agencies will need to collaborate closely with businesses and civil society’. Suggested ways of collaboration may include cross-border programmes for addressing cyber security and effective protection of intellectual property rights and the creation of public institutions to improve cyber security. As an example, in 2015, Germany and China signed an agreement outlining ‘general bases of co-operation’ on Industry 4.0.
Strengthen Protection from Cyber Attacks
Provide trade incentives for countries which have strong IP and anti-corruption laws, and enhance incentives where there is strong evidence of their application.
Increase fine /imprisonment for companies and individuals found guilty of hacking
Ensure businesses have a robust cyber plan to: understand risk, develop a cyber security policy, encrypt data, physically protect hardware and have clear guidelines for responding to an attack.
How can Intellectual Property law be re-aligned with modern technological, economic and social trends? How would this address IP issues faced by the evolution of Industry 4.0?
Richard Grefe, AIGA, the Professional Association for Design in the United States, calls upon Governments and the international community to adopt the following principles:
Laws regulating intellectual property must serve as a means of achieving creative, social and economic objectives.
These laws and regulations must serve, and never overturn, the basic human rights to health, education, employment and cultural life.
The public interest requires a balance between the public domain and private rights. It also requires a balance between the free competition that is essential for economic growth and the monopoly rights granted by intellectual property laws.
Intellectual property protection must not be extended to abstract ideas, facts or data.
Patents must not be extended over mathematical models, scientific theories, computer code, methods for teaching, business processes, and methods for medical diagnosis, therapy or surgery.
Copyright and patents must be limited in time and their terms must not extend beyond what is fair and necessary.
Governments must facilitate a wide range of policies to stimulate access and innovation, including open source software licensing and open access to scientific literature.
Intellectual property laws must take account of developing countries' social and economic circumstances.
Bibliography
Websites/links
https://www.stratfor.com/global_evolution_intellectual_property_rights
https://en.m.wikipedia.org/wiki/TRIPS_Agreement
http://www.industrie2025.ch/fileadmin/user_upload/ch-en-delloite-industry-4-0-24102014.pdf
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http://www.theglobalipcenter.com/why-are-intellectual-property-rights-important/
https://www.articleonepartners.com/blog/top-5-countries-in-ip-rights-protection/
https://hansard.parliament.uk/commons/2016-09-08/debates/16090835000001/FourthIndustrialRevolution
https://www.linkedin.com/pulse/industry-40-legal-challenges-digital-business-systems-maximiliano
http://www.bbc.co.uk/news/technology-34224406
http://www.wipo.int/export/sites/www/wipolex/en/notes/gb.pdf
https://www.weforum.org/agenda/2016/01/why-technological-progress-depends-on-patent-protection/
http://nationalparalegal.edu/public_documents/courseware_asp_files/patents/IntroIP/History.asp
https://www.wto.org/english/thewto_e/whatis_e/tif_e/agrm7_e.htm
https://hansard.parliament.uk/commons/2016-09-08/debates/16090835000001/FourthIndustrialRevolution
Books / Articles
http://www3.weforum.org/docs/Media/KSC_4IR.pdf
Videos
https://www.youtube.com/watch?v=KP9sMNwf6zw