Summary of IP aspects of Central American Freee Trade act

From: Gregory Aharonian <srctran[_at_]world.std.com>
Date: Fri, 19 Dec 2003 15:25:15 -0500

!20031219 Brief summary of IP aspects of Central American Freee Trade act

• BRIEF SUMMARY OF IP ASPECTS OF CENTRAL AMERICAN FREE TRADE ACTI

This week, the United States reached an agreement with four Central American countries (Guatemala, Honduras, Nicaragua, El Salvador) for the Central American Free Trade Act. Costa Rica, with the largest economy, walked out of the talks, though will be back for more discussions next year. The act needs Congressional approval, which for these free trade acts, is no longer an assurance, because increasingly too many people no longer believe all of the exaggerated promises of these agreements or wants to make the sacrifices need (starting with American/European agricultural subsidies, the sugar growers in Florida being the most corrupt though with enough money to buy off most state and national politicians).

Anyway, attached is a brief summary of some of the IP aspects of the proposed treaty. The text of the agreement will be released in January.

Greg Aharonian
Internet Patent News Service

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   Protection for Copyrighted Works in a Digital Economy

   Copyright owners maintain rights over temporary copies of their works    on computers, which is important in protecting music, videos, software    and text from widespread unauthorized sharing via the Internet.

   Establishes that only authors, composers and other copyright owners    have the right to make their work available on-line.

   Ensures extended terms of protection for copyrighted works, including    phonograms, consistent with emerging international trends.

   Establishes strong anti-circumvention provisions to prohibit tampering    with technologies (like embedded codes on discs) that are designed to    prevent piracy and unauthorized distribution over the Internet.

   Ensures that governments use only legitimate computer software, thus    setting a positive example for private users.

   Requires rules to prohibit the unauthorized receipt or distribution of    encrypted satellite signals, thus preventing piracy of satellite    television programming.

   Provides rules for the liability of Internet service providers for    copyright infringement, reflecting the balance struck in the U.S.    Millennium Copyright Act between legitimate Internet service provider    activity and the infringement of copyrights.

   In all categories of intellectual property rights, U.S. companies will    be treated at least as well as Central American companies, and the    agreement makes a number of important improvements to intellectual    property rights protections.

   Tough Penalties for Piracy and Counterfeiting

   Criminalizes end-user piracy, providing strong deterrence against    piracy and counterfeiting.

   Requires all parties to authorize the seizure, forfeiture, and    destruction of counterfeit and pirated goods and the equipment used to    produce them. Also provides for enforcement against goods-in-transit,    to deter violators from using ports or free trade zones to traffic in    pirated products. Ex officio action may be taken in border and    criminal cases, thus providing more effective enforcement.

   Mandates both statutory and actual damages for copyright infringement    and trademark piracy. This serves as a deterrent against piracy, and    ensures that monetary damages can be awarded even when it is difficult    to assign a monetary value to the violation.

   E-Commerce: Free Trade in the Digital Age

   Central America and the United States agreed to provisions on    e-commerce that reflect the issue's importance in global trade and the    importance of supplying services by electronic means as a key part of    a vibrant e-commerce environment.

• All parties committed to non-discriminatory treatment of digital products; agreed not to impose customs duties on such products and to cooperate in numerous policy areas related to e-commerce.

   Important New Protections for U.S. Investors in the Region

• The agreement will establish a secure, predictable legal framework for U.S. investors operating in the Central American countries.

   All forms of investment are protected under the agreement, including    enterprises, debt, concessions, contracts and intellectual property.

   U.S. investors enjoy in almost all circumstances the right to    establish, acquire and operate investments in the Central American    countries on an equal footing with local investors, and with investors    of other countries, unless specifically stated otherwise.

   Pursuant to U.S. Trade Promotion Authority, the agreement draws from    U.S. legal principles and practices to provide U.S. investors in the    Central American countries a basic set of substantive protections that    Central American investors currently enjoy under the U.S. legal    system.

   Among the rights afforded to U.S. investors (consistent with those    found in U.S. law) are due process protections and the right to    receive a fair market value for property in the event of an    expropriation.

   Investor rights are backed by an effective, impartial procedure for    dispute settlement that is fully transparent. Submissions to dispute    panels and panel hearings will be open to the public, and interested    parties will have the opportunity to submit their views.

   State-of-the-Art Protection for U.S. Trademarks

   Requires a system to resolve disputes about trademarks used in    Internet domain names, which is important to prevent "cyber-squatting"    with respect to high-value domain names.

   Applies principle of "first-in-time, first-in-right" to trademarks and    geographical indications, so that the first person who acquires a    right to a trademark or geographical indication is the person who has    the right to use it.

   Encourages the development of an on-line system for the registration    and maintenance of trademarks, as well as a searchable database.

   Requires transparent procedures for the registration of trademarks,    including geographical indications.

   Patents & Trade Secrets: Stronger Protections

   Provides for the extension of patent terms to compensate for delays in    granting the original patent, consistent with U.S. practice.

   Limits the grounds for revoking a patent, thus    protecting against arbitrary revocation.

   Clarifies that test data and trade secrets submitted to a government    for the purpose of product approval will be protected against unfair    commercial use for a period of five years for pharmaceuticals and 10    years for agricultural chemicals. Closes potential loopholes to these    provisions.

   Requires a system to prevent the marketing of pharmaceutical products    that infringe patents.

   Provides protection for newly developed plant varieties. Received on Sat Dec 20 2003 - 01:25:15 GMT