‘Nightmare’ Outcome Seen Unless IP Rights Get Respect
Guarding intellectual property (IP) is vital to economic growth and global competitiveness and has major implications for a country’s ability to promote security and stability, Commerce Dept. Secy. Carlos Gutierrez told an international judges’ luncheon Tues. Countries like China, Russia, Brazil and India are seeing “they cannot sustain an advanced economy” without IP protections, he told judges from 30 countries whose 3-day meeting in Washington ends today (Wed.).
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In many countries, consequences for IP rights violations -- like distributing unauthorized music, movies or software -- don’t fit the crime, Gutierrez said. “Large scale offenders who make careers out of stealing intellectual property should face stiff penalties,” Gutierrez said. Serious violators need more than a suspended sentence; they must pay dearly for their violations, he said, suggesting “prohibitive financial penalties and real jail time.”
The former Kellogg chmn., just back from IP meetings with judges and prosecutors in Guatemala, Honduras and El Salvador, told listeners the “benefits of fighting piracy are not just for U.S. companies.” The talents of inventors, researchers, entrepreneurs, artists and workers contribute greatly to the most advanced economies, he said. Nations must collaborate “to ensure these contributions and advancements rest on a basic, inherent respect for intellectual property rights and a system that protects them.”
The consistent Bush Administration message has been that IP theft “is not tolerated, and will not be tolerated,” Gutierrez said. President Bush made it a priority at this year’s G8 summit and secured an agreement from fellow leaders urging action against piracy and counterfeiting. Bush also talked about stopping IP piracy in recent meetings with Chinese Pres. Hu Jintao. The Chinese leader subsequently committed to better address piracy in his country.
Besides his recent trip south, Gutierrez had productive meetings with leaders in Russia and China. “Leaders in both countries understand the need to adopt a more aggressive posture against IPR theft,” he said. Meanwhile, Secy. of State Condoleezza Rice raised U.S. concerns over Russian IP enforcement as it seeks WTO membership. “We will make progress towards stronger IPR protections,” he said: “A world that values and protects the rights of intellectual property holders benefits everyone.”
Unless global partners crack down on IP rights abuses, a “playing field that doesn’t respect brands or patents or copyrights, will emerge. That, Gutierrez said, would be “an absolute nightmare.”