Unclear How IP Provisions in Trans-Pacific Partnership Agreement Will Factor Into Congress's Ratification

The White House praised TPP Monday as beneficial for e-commerce and digital freedom, noting in a fact sheet that the agreement “includes strong rules that make sure the best innovation, not trade barriers and censorship laws, shapes how digital markets grow.” The agreement will also help preserve the global digital marketplace by ensuring the free flow of data through a ban on forced localization, the White House said. TPP would eliminate import taxes on U.S. information and communications technologies (ICT) exports to TPP nations, which are as high as 35 percent, the White House said.

IP provisions in TPP remained one of the issue areas still open for negotiation up until the agreement was finalized, said U.S. Trade Representative Michael Froman during a U.S.-led news conference Monday with other TPP nations’ ministers. But it’s unlikely that IP issues of interest to the ICT sector -- and particularly those on copyright -- have changed much in recent negotiations, an industry lobbyist told us. TPP’s IP provisions would largely bring other TPP nations’ IP laws in line with existing U.S. laws, including extending the length of copyright terms in six TPP nations to 70 years past an author’s death, the lobbyist said. The six TPP nations whose copyright terms would be extended under the agreement have hewed to a 50-year term past an author’s death, in accordance with the Berne Convention, the lobbyist said.

Senate Finance Committee Chairman Orrin Hatch, R-Utah, raised concerns Monday that the final version of TPP may squander a “historic opportunity to break down trade barriers for American-made products with a trade block representing 40 percent of the global economy.” Although full details of the final TPP aren’t available, “I am afraid this deal appears to fall woefully short,” Hatch said in a statement. Senate Finance ranking member Ron Wyden, D-Ore., said in a statement that he would support a good version of TPP.

CEA President Gary Shapiro hailed the conclusion of the TPP as a big step toward the “continued expansion of the digital economy and global supply chain,” in a Monday statement. “CEA has long supported trade deals that reflect the realities of the 21st Century, including the growing role of the Internet and digital economy,” Shapiro said. “By removing trade barriers, requiring balanced copyright rules and promoting innovation and sustainable growth across the Asia-Pacific region, the TPP stands to benefit American businesses and workers through increased exports, greater contributions to the U.S. economy and the creation of new, high-paying jobs.” CEA is carefully reviewing the details of the agreement” and will work with Congress and the Obama administration “to ensure the final results have the best interests of American businesses and workers in mind," Shapiro said.

AT&T was among other industry parties that reserved full judgment of TPP Monday pending a review of the agreement’s final language. But the agreement would “help establish 21st century rules for all sectors of the economy, including digital economy, and provide us with the opportunity to further U.S. economic growth, job creation and investment,” said AT&T Senior Executive Vice President-External and Legislative Affairs Jim Cicconi in a statement. TPP’s “data flow provisions will help harness the benefits of emerging technologies, such as fifth-generation (5G) wireless technology and the Internet of Things, and connect more people to global networks,” said Verizon Senior Vice President-Federal Government Relations Peter Davidson in a statement. Cisco believes TPP “represents an important opportunity to lower trade barriers on technology goods and services, which benefits not just the producers, but more importantly, the users of cutting-edge technology,” said Cisco Senior Manager-International Trade Policy Jennifer Sanford in a blog post.

TPP “ensures information technology will remain the principal driver of modern economic growth,” said Information Technology and Innovation Foundation Vice President-Global Innovation Policy Stephen Ezell in a statement. “In addition, the new protections against trade secret theft help ensure that future generations of technological innovation continue to drive a robust global economy.” MPAA Chairman Chris Dodd said in a statement that “enacting a high-standard TPP is an economic priority for the American motion picture and television industry, which registered nearly $16 billion in exports in 2013 and supports nearly two million jobs” across the U.S. TPP’s value for the tech sector will depend on “whether it is an agreement that will support jobs, drive sustainable growth, foster inclusive development, and promote 21st century innovation,” said Information Technology Industry Council President Dean Garfield in a statement.

The Electronic Frontier Foundation, which has led opposition to including an extension of copyright terms in TPP, hopes to “win over more allies in Congress” to oppose TPP because the deal “threatens to lock us into provisions” passed in the Digital Millennium Copyright Act, including that law’s ban on circumventing technology protection measures, said Global Policy Analyst Maira Sutton said in an interview. “Anyone can tell you that the landscape of tech policy and the Internet has really changed in the last 15 years, so the fact that we are locking ourselves to rules that are really out of date is very problematic,” she said. “Our main message is that the rules that we’re putting into TPP don’t work for users, don’t work for the Internet and don’t work for tech companies.”

U.S. stakeholders "shouldn't oppose TPP’s copyright provisions because those provisions are “consistent with U.S. law and are obviously important to the creative community,” said Copyright Alliance Executive Director Keith Kupferschmid. “There’s obviously some benefit in the U.S. to having consistent minimum standards that mirror U.S. law and that’s what we understand the TPP will do. Although some people may misstate the facts, we’re hoping that doesn’t happen.” Extensions of copyright terms to 70 years after the author’s death have been a staple of trade agreements involving the U.S. ever since the North American Free Trade Agreement, an industry lobbyist said.