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[Thai Economics Library | Archives| Currency Crisis 2007| Entrepreneurs]
May 06, 2009

iplaws

Recents changes in Thailand's IP policies, a step backwards?

By Jon Fernquest

IP crackdownToday's editorial in the Bangkok Post addresses recent changes in Thailand's policies on Intellectual Property (IP) enforcement.

In 2007  the US downgraded Thailand to its Priority Watch List from Watch List.

This list is a "special watch list of what it [the US] considers a Dirty Dozen nations that fail to crack down on copyright and patent violations."

The move followed Thailand's compulsory licensing of HIV drugs (Read articles).

A number of high-value Thai export items lost tariff privileges under the United States' Generalised System of Preferences (GSP) shortly afterwards (Read article).

In January of this year, the new Obama administration in the US decided to keep Thailand on the Priority Watch List (Read article).

(Photo on the right of goods seized after typical periodic IP crackdown).

Today's article in full follows the vocabulary:

Intellectual Property (IP) - property rights created through the (intellectual) discovery efforts of a creator that are protected under patent, trademark, copyright, and trade secret laws (See Wikipedia)
enforcement - making sure a law is obeyed and punishing people if it is not obeyed 
copyright - exclusive right to publish and sell literary or musical or artistic work (See Wikipedia)
exclusive - something available only to one person or a limited group of people
a trademark - a name or a symbol used on product (that cannot be used by another company
a patent - legal ownership rights to a business idea, "a set of exclusive rights granted by a state to an inventor or his assignee for a fixed period of time in exchange for a disclosure of an invention" (See Wikipedia on patent)
downgraded -
Priority Watch List, US 301 Priority Watch List - a trading status with the US that functions as a warning that the country should change its policies, part of the Special 301 Report issued by the US Trade Representative:

"Once a country is listed under the priority watch list, the PWL becomes a basis for the US to press for a "constructive engagement" with that trading partner. Or, to put it another way, exerting diplomatic pressure to change its IP regime. In theory, the 12 countries on the list could be subject to penalties, trade barriers and embargoes. So far, no action has been taken against Thailand" (Source: Bangkok Post).

constructive engagement - a policy of maintaining political and business links with a country while demand reform within the country (political, economic, or social reform)
exerting diplomatic pressure to change its IP regime - using diplomats and ambassador to try to change IP laws in the country
Special 301 Report - an annual review of the global state of intellectual property rights protection and enforcement, conducted by the US Trade Representative:  
"The 2007 'Special 301' annual review examines in detail the adequacy and effectiveness of intellectual property rights protection in 87 countries. Based on a lengthy process of information gathering and analysis, the United States Trade Representative has identified 48 countries that are designated in the categories of Priority Watch List, Watch List, or Section 306 Monitoring. The Special 301 Report reflects the Administration’s resolve to take consistently strong actions under the Special 301 provisions of the Trade Act of 1974." (From the online report; also see Wikipedia
US Trade Representative (USTR) - the US government agency responsible for international trade policy (See Wikipedia)
compulsory licensing (CL) - when a government forces the holder of a patent to grant use to the state (See Wikipedia)
tariff privileges - reduced taxes to paid on exports entering the US
Generalised System of Preferences (GSP) - a US law that gives lower tariffs to developing countries (See Wikipedia)
a crackdown - a sudden short period when laws are harshly enforced (long-term effectivenesss limited)
periodic IP crackdown - when the police raid shops, seize, goods, impose some fines on unlucky vendors, and make the news

EDITORIAL Protecting IP or bullying?

5/05/2009

Prime Minister Abhisit Vejjajiva was right when he said no one was surprised that the US has kept Thailand on its list of serious violators of intellectual property (IP) rights. But there are doubts about the annual Special 301 Report itself. The report on countries worldwide is presented by the US Trade Representative as an objective and global account of enforcement of copyright, trademarks and patents by countries and regions. There is increasing evidence it is a political tool, heavily influenced by wealthy US industries and used by Washington to impose protectionist trade policies.

First, it must be admitted there are vast violations of IP rights in Thailand. In some areas, sprawling markets exhibit few products except for illegal movie DVDs, music and software CDs, and clothing and accessories claiming to be brands they are not. It is not in dispute that all such products are illegal and some are used to prop up and encourage organised crime. By flouting a veritable volume of laws, sellers and buyers alike are promoting disrespect for rule of law itself.

a step backwards - undoing progress that has already been made
progress -
the process of gradually improving something
bullying -
using your your strength and power to frighten other people and make them do what you want 
protectionism (noun) - the economic policy of restricting trade between countries using tariffs on imported goods, quota limits on imports, and other restrictive regulationsto discourage imports and prevent foreign take-over of local markets and companies (See Wikipedia)
protectionist (adjective) - follows the patterns of protectionism above
impose on Y - cause trouble for Y [Thai: greng jai]
impose protectionist trade policies - policies that take action to restrict trade
prop up - support, help
organised crime - the mafia, an organisation of criminals with crime as their business
flout - know what the rule is but don't follow it
flout a law - know what the law is but don't follow it
flouting a veritable volume of laws - flouting a lot of laws
rule of law - the doctrine that no individual is above the law and that everyone must follow the law even powerful people, there are no excuses such as I am poor therefore an exception should be made (See Wikipedia)
disrespect  - showing that you do not respect, do not agree with and perhaps not follow 

The government, in quick reaction, has made highly questionable twin promises to tighten control of IP rights. Deputy Commerce Minister Alongkorn Ponlaboot has tried to move the often ineffective Intellectual Property Department into action. The minister wants a draft law that would punish enablers of IP violations. First and controversially, he wants laws that would make department store owners responsible for tenants who openly peddle illegal goods. This is a debatable measure, and deserves careful consideration. It would be far better for the law to allow authorities to shutter shops engaged in blatant law-breaking.

Making businesses responsible for the actions of their clients may be too much to ask. It seems the government is trying to placateWashington's list of five "notorious areas" where illegal goods are available in Bangkok. One wonders if Mr Alongkorn is willing to take responsibility if a Commerce Ministry bureaucrat breaks the law.

an enabler - someone who helps someone do something, enables them to do something
enablers of IP violations
- people who help other people break IP laws
peddle - sell
openly peddle illegal goods - sell illegal things in public, where everyone can see it
shutter shops - close shops (put up the shutters which are metal screens protecting the shop)
blatant - easy to see that it is bad
shutter shops engaged in blatant law-breaking - close shops where it is obvious that the law is being broken
notorious - famous in a bad sort of way
Washington's list of five "notorious areas" where illegal goods are available in Bangkok -

1. Pantip Plaza
2. Mahboonkrong (MBK) shopping centre
3. Klong Thom
4. Patpong Road
5. Upper Sukhumvit Road areas

(Source: Bangkok Post, 1/05/2009, Thailand on most-watched list of IP offenders, Alan Dawson, link)

Equally controversial is a promise to the Obama administration by Public Health Minister Witthaya Kaewparadai to never again allow the compulsory licensing (CL) of drugs. There is no doubt that the patent-busting of several expensive and life-giving drugs by Thailand in 2007 landed the country on the US "dirty dozen" list. Yet, it seems a terrible idea to promise "never again". An unpredictable set of circumstances may arise when the completely legal act of compulsory licensing could save lives. The US report, in fact, said the US "respects a country's right to grant compulsory licences".

Where, then, is the beef? It could be in the seemingly absurd decision to place Canada in the top rank of worst offenders with China, Russia and Thailand. Canada has stolidly refused to ape the US government in enacting a punishing law protecting the movie and music distributors. The Digital Millennium Copyright Act is a blatantly anti-consumer law which has little to do with IP protection, and everything to do with stifling digital copying of material owned by huge and profitable companies which help to finance US political campaigns.

Thus Washington seems to be using its annual IP report to hammer nations to enact and enforce US IP laws, or suffer the consequences. This appears to be nothing but ham-handed protection of big businesses at the expense of free trade. The US Trade Representative must accept that there are many ways to protect IP rights, and cease its threats against those who take different courses.

bust - break or damage badly so it cannot be used
X landed Y on the list - condition or event X caused Y to be  put on the list  
the US "dirty dozen" list - the twelve countries on the US Priority Watch List: China, Russia, Algeria, Argentina, Canada, Chile, India, Indonesia, Israel, Pakistan, Venezuela, and Thailand.
stolidly Y - Y done is a slow and serious manner 
X apes Y - X imitates Y (in a bad way)
stolidly refused to ape the US government - refused to follow the US government in a serious manner
Digital Millennium Copyright Act - the new set of US laws on copyright as of 1998, "a United States copyright law that...criminalizes production and dissemination of technology, devices, or services intended to circumvent measures (commonly known as Digital Rights Management or DRM) that control access to copyrighted works and it also criminalizes the act of circumventing an access control, whether or not there is actual infringement of copyright itself. In addition, the DMCA heightens the penalties for copyright infringement on the Internet. " (See Wikipedia)
consumers -  people who buy things or services
anti-consumer law - a law that acts against consumers 
stifling - prevent a good thing from continuing
hammer nations to enact and enforce US IP laws - force severely other countries to make laws like US IP laws and then enforce them
ham-handed - clumsy, done without skill or grace

(Source: Bangkok Post, op-ed section, 5/05/2009, EDITORIAL Protecting IP or bullying?, link)




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