Communication: Trade, growth and intellectual property – strategy for the protection and enforcement of intellectual property rights in third countries

The March 2014 European Council reaffirmed the importance of intellectual property (IP) as a key driver for growth and innovation and highlighted the need to fight against counterfeiting to enhance the EU’s industrial competitiveness globally. Intellectual Property Rights (IPR) are one of the principal means through which companies, creators and inventors generate returns on their investment in knowledge, innovation and creativity.

A recent study has estimated that IPR-intensive sectors account for around 39% of EU GDP (worth some €4.7 trillion annually) and, taking indirect jobs into account, up to 35% of all jobs. In practical terms, through the granting of temporary exclusive rights, IP is directly linked to the production and distribution of new and authentic goods and services, from which all citizens benefit. The key to achieving these goals is an optimal and economically efficient IP "infrastructure" which spans the legal recognition, registration, utilisation and balanced enforcement of all forms of IPRs.

Intellectual creations need protection if creativity and innovation are to flourish, and this is the role of IPRs, which also play an important function in promoting development and in addressing some of today’s global challenges. For developing countries, a pragmatic and flexible approach will help them maximise the potential of their own intellectual assets and further their integration into international trade, while achieving broader societal welfare.

Some estimate that the EU loses about €8 billion of its GDP a year because of counterfeiting and piracy, and that global costs could reach as high as $1.7 trillion by 2015. The EU has over many years developed a modern, integrated IPR regime that makes a major contribution to growth and job creation while at the same time ensuring that a proper balance is struck between the interests of right-holders and users.

In 2004, the Commission Communication "Strategy for the enforcement of intellectual property rights in third countries" defined a broad framework for fighting IPR infringements in third countries, as well as specific action lines, which have since been implemented. But, as noted in the accompanying Commission Staff Working Document, not only has there been significant technological change but also the nature and scope of the challenges and risks to European companies' IP, and IPR-related societal evolutions, have evolved considerably in the last 10 years.

This Communication therefore reviews the approach adopted by the Commission in 2004 and sets a revised strategy to promote IPRs and combat IPR infringements abroad. It will highlight ways in which existing policy approaches can be improved in keeping with the times, and also proposes tools and ideas to deal with new realities. A blend of continuity and change will help to ensure we sustain and encourage innovation and creativity, while balancing the interests of all stakeholders.

The Communication is complemented by an EU Action Plan that focuses on the enforcement of IPRs on the Single Market and the development of deeper cooperation between customs authorities in the EU and in third countries with respect to trade of IP-infringing goods, as foreseen in the EU Customs Action Plan.

See also:
- Communication from the Commission to the European Parliament, the Council and the European Economic and Social Committee - Towards a renewed consensus on the enforcement of Intellectual Property Rights: An EU Action Plan

• Primary Source

EUR-Lex: SDW(2014)204: Trade, growth and intellectual property http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2014:204:FIN

ESO: Background information: Commission presents actions to better protect and enforce intellectual property rights http://www.europeansources.info/record/press-release-commission-presents-actions-to-better-protect-and-enforce-intellectual-property-rights/

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