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Thailand has the largest foreign filings -slightly more than Malaysia. It should be pointed out that the Vietnam and Indonesia figures are estimates, based on previous years.Vietnam one would expect to see at the bottom of foreign filings, but Indonesia, the 4th largest country in the world? That's a reflection of the fact that it has not been onbusiness radar screens for very long (mistakenly - see below).
The domestic filing levels show the true market size and compare closely to GDP levels between these countries. Thailand with an active local economy is sizable. Malaysia too, but it is a smaller country with slightly lower GDP levels. The Philippines numbers are low as the figures are multi class, with Vietnam the smallest economy here, but perhaps punching above its weight in domestic filings. And Indonesia being by far the largest economy of these countries has by far the most domestic trademarks, over double its largest naighbours.
Now the interesting part. Add the two Indonesian ingredients -huge local brand focused commerce plus few foreign filings and what do you get...? A trademark squatting problem. So now we know why so many foreign brand owners end up in court trying to cancel local copies of their marks.
IP Komodo laments the loss of creative talent which comes fundamentally from a lack government interest in serving its citizens by providing a proper infrastructure.
But further than this it reminds IP Komodo of Jerome K Jerome's 'Author's Advertisement' at the start ofhis 1890s comic masterpiece Three Men in a Boat. He mentions that a retired book pirate told him that his book had been widely copied in another country, due to a lack of copyright protection there, selling over a million copies for which Jerome earned nothing. That country was the USA.
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PCT National Application (Inbound) – started from 1 July 2010 |
|
|
Year |
Numbers |
|
2010 |
28 |
|
2011 |
2,149 |
|
2012 (until 24 April 2012) |
1,307 |
|
Total |
3,484 |
Significantly there is take up from local applicants too:
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PCT International Application (Outbound) – started from 24 December 2009 |
|
|
Year |
Numbers |
|
2009 |
4 |
|
2010 |
49 |
|
2011 |
51 |
|
2012 – present |
19 |
|
Total |
123 |
Of course the numbers are small relative to inbound filings, but that's no surprise. Thailand is a larger international filer than its nearest (developmentally speaking) neighbours Philippines and Indonesia - see here.
Now Singapore proposes to regulate offshore patent filing by foreign registered patent agents. In truth foreign registered patent agents who may or may not practice offshore probably should probably not be 'regulated' since activities performed in Singapore relating to another legal jurisdiction should surely be irrelevant to Sinagpore? In Hong Kongfor example many US patent attorneys file directly in the US, provided they comply with the basic requirements for having a qualification and an address for US service.
Singapore now seeks to regulate that to attract more international patent firms. It is part of a wider plan for Singapore to become a professional hub for IP in Asia, grabbing a slice of the pie that was for many years eaten by default in Hong Kong. This pie is now more like crumbling pastry, as mainlandChina IP work and IP jobs leave Hong Kong for the PRC. Hong Kong has an urgent need to revinvent itself, IP wise. Arguably this is happening with the government issuing a consultation paper on a full patent system, and two groups quibbling over the establishment of a patent professional qualification. But they are over a decade behind Singapore which now far outpaces HK in patent production.
IP Komodo observes a trend for MNCs to split legal functions in the emerging Asian markets(excluding Japan that is), between the PRC and Singapore.In the past they might have one regionalIP lawyer or even team in Hong Kong. Singapore's IP Academy quite separate from its IP office, IPOS, seeks to promote IP leadership in the city. Now thegovernment has embraced IP through policies to attractmore IP functions to create a regional centre of IP excellence for Asia in Singapore.
It began in 2009 to enable sharing of search and examination results amongst the participating ASEAN IP Offices. The goal is to reduce duplication of search and examination work Patent examiners are able to develop search criteria quickly, reduce search time and efficiency. Patentinformation databases will be provided too.
Until now language was a barrier to sharing search and examination work. However under a recent review it has been agreed that all documents submitted for the purpose of the ASPEC programme at any participating ASEAN IP Office will be in English. The ASPEC Request form has also been revised.
Unfortunately as with the Patent prosecution highwayin ASEAN - see here -not every country has joined, and soonly a handful of ASEAN states are yet using the cooperation program.
Now the issue is made more complicated by a new trademark conflict. Minh An Cooperative, a Vietnamese coffee producer reported to be in financial difficulties, is seeking to sell some of its trademarks (protected in Vietnam, China and the USA) to a Chinese coffee company.
But the trademarks, Coffee Duc Lap Dakmil and Coffee Duc Lac Minh An use geographic names, the first one referring to Dak Mil district and the other to Duc Lac province, both known for coffee production. The local government of Duc Lac is seeking to build up a GI under the Duc Lac name. The sale of the mark would dilute the attractiveness of a potential GI.
But worst of all the buyer is Guangzhou Buon Ma Thuot Coffee, the very same entity which registered the Vietnamese GI Buot Ma Thuot as a trademark - see the report mentioned above.
One could argue that the NOIP should not have accepted Minh An Cooperative’s trademarks for registration. Then again GIs are a new creature in Vietnam whereas the trademarks were registered some while back. It’s a rather more compressed form of the new world/old world TM vs GI conflict between the US and Europe. But now that the trademarks are registered, the NOIP and Vietnam is in difficulties. How can it take away trademark rights, which Minh An Cooperative need to sell, to allow the protection of new GIs? It could ask the WIPO and WTO for help, but then again, they don't have the answer either.
In Hanoi, Vietnam,the US Embassy, the Motion Picture Association (MPA) and Megastar cinemas have teamed up to celebrate World IP Day 2012 by organizing a screening of the latest Hollywood movie, Battleship.
In Philippines there are to be various events especially focussed on eductaion and kicking off with the opening of the WIPO Regional Workshop on Copyright Documentation Systems on April 26-27, 2010 at Crowne Plaza Galleria Manila, Ortigas Center, Pasig City, Manila.
In Indonesia every year the President even gets involved hosting an event at the Merdeka Palace, although this year his other committments have led him to postpone the event until 8th May.
But the Bangkok Post's opinion piece today here on World IP day condemns the lack of robust activity from the government to protect Thai innovation in an outburst running contrary to the general celebration in the industry, and suggesting the need for more urgency to protect creative industries.
A finalist in the Vietnam’s Got Talent TV show, Kieu Van Thanh who uses a water pipe as a musical instrument, is now being accused of violating copyright. Another artist, Mai Dinh Toi whose performances on self-made instruments have been recognized by the Vietnamese Book ofRecords Center, claims ownership in this work. Thanh said that he has been creating musical instruments with everyday objects such as water pipes and tea boxes for a while.
The Head of the National Office of Intellectual Property of Vietnam (NOIP) when interviewed in the press indicated that this copyright infringement case may be complex as the plaintiff has not made any copyright registration for his creation.
IP Komodo muses that game show formats are one thing (and arguably not a copyrightable anyway), but an individual performance might be capable of protection, or at least the expression of it.But that was not reproduced here. Or is it a claim for copyright in the design of the musical instrument? IP Komodo suspects the claim is weak.
Some patent data from Indonesia shows a trend:
|
2009 |
2010 |
2011 |
||
|
total patents |
4829 |
5830 |
6130 |
|
|
1 |
US |
1059 |
1255 |
1211 |
|
2 |
JP |
862 |
1115 |
1202 |
|
3 |
ID |
669 |
756 |
778 |
|
4 |
DE |
347 |
449 |
541 |
|
5 |
CH |
276 |
303 |
342 |
Overall patent filings in Indonesiaare on the rise and in general the major filers are consistently rising. But Germany and Japan's patents jumped more than other major countries over this period. Japan's jump is consistent with WIPO data, which saw Japan's global patent filings rise fastin recent years (21% last year alone). Germany too, but not at the high rate their filings increased in Indonesia.
Japan's tech companiesclearly have not been idle these last few recession years.A recent survey by the Japan Bank of International Cooperation showed Indonesia moving from 6th to 5th most important investment destination for Japanese companies. Japanese attorneys whom IP Komodo quizzed about this at the FICPI conference in Melbourne confirmedthese suspicions.
So is Japan busy building up an ever larger patent portfolio in major Asianemerging markets while the US and Europe slumber through their recession?
VIC is the owner of the online household goods website www.groupmua.vn a portal which offers coupons and sells some goods directly. Apparently the website had been selling counterfeit MAGIC BULLET food blenders. MAGIC BULLET is a US brand and seizures of its products were made.
IP Komodo notes there are still many Magic Bullet products on sale on the portal, presumably now only genuine....?
This is not really a true internet case however since they really were selling fake goods, rather that the goods merely passing through an ISP or portal.
Meanwhile a BSA raid on a company called Multisari Langgengin September 2011 allegedly for unlicensed commercial software use, has backfired. Thecompany is suing the software association's offices in Singapore and Washington DCin the Jakarta courts for improper execution of the raid, claiming the court warrant documentation was defective. The case also claims the association is not properly able to bring an infringement case for its members (something which could have significance for other IP organisations), and seeks very substantial damages.
Similar problems are faced in other South East Asian countries - see some previous IP Komodo reports on software issues here. Neither local or the international software houses are having an easy time protecting their copyrights.
IP Komodo concurs; the police are almost totallyineffective at IP enforcement right now and hardly any cases make it to prosecution in Indonesia. The Ministry of Health inspectors have an uphill battle bringing cases.
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enforcement efforts have not kept pace with rising levels of IPR infringement and piracy. Not surprising in the context of Vietnam's economic boom, which inevitably outpaces the legal system, observes IP Komodo.
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administrative enforcement actions and penalties, the most commonly used means of enforcing IPR in Vietnam, have not served as a sufficient deterrent. IP Komodo thinks that the same can be said of China - administrative actions are just not taken as seriously as criminal and civil cases. Yet they are a TRIPS-acceptable system.
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Vietnam is praised for actions to enforce IPR protections on the Internet, including by issuing warning letters and by meeting with Internet service providers (ISPs) in response to rights holders' requests to address infringing content. It's such early days in the growth of the internet in Vietnam that IP Komodo expects this to become a future problem area.
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Strengthening of the criminal and administrative penalties is under way, provided the implementing legislation follows, which is a common delay in Vietnam.
IP Komodo worries that Vietnam is not as developed as the other nations and will struggle to quickly deliver an IPR system to the level the TPP requires.
Indonesia Copyright registration leads to court
Jusman Husen filed various designs and simple patents in 2007 and 2008 for metal sliding gates used as security doors (see photo of the types of doors in question). Two competitors filed revocation actions and successfully revoked 6 of his designs in an earlier case in 2008. But competition turned to active dislike and attack.
In 2009 Husen filed criminal complaints against the two competitors. There followed a raid by the police based on his two patents. So the raided defendants applied to revoke the patents on the grounds that the prior art disclosed the inventions. They had both been in business for 15 years as had many other people selling similar products. They could show this from catalogues.
The Jakarta Commercial Court cancelled the 2 simple patents and stated that Husen was acting in bad faith. Husen then appealed unsuccessfully, twice to the Supreme Court. Finally in March 2012, the Supreme Court decided there was no error in the first Supreme Court panel's decision and stated the invention was not novel.
Indonesia's adoption of a criminal system for patent enforcement has risks, as these businessmen found out. It is increasingly common to use the criminal justice system as club to batter competitors who are not necessarily in the wrong.
Whether cases can settle through mediation depends on the willingness of the parties to negotiate/come to an agreement/explore possibilities as well as the skill of the mediator. If parties take a hard line stance as is common in conflicts, the mediation won't succeed. However some are clearly coming to a resolution, which can shorten disputes and reduce costs. IP Komodo always likes to look at alternatives to lengthy contentious proceedings in the Philippines.
So the Ministry of Information asked local industry associations and firms to report their software and IP to enable more effective enforcement. This includes software copyright registrations which the Agency records. But the local industry complains that such registrations are required. IP Komodo observes that authorities in some Asian countries still sometimes insist on registration of copyright. Maybe not legally required, it is often requested as a practical requirement for authorities to act. (The same problem arises in some countries with packaging graphics and jewellery designs which are protected by copyright).
Vietnam's IT industry now has the same view, that barriers to enforcement need to be reduced and administrative authorities need to find ways to enforce unregistered without requiring registrations.
| Country | Date | compound | Patentee | Royalty | Purpose | Term |
| Indonesia | 5.10.04 | lamivudine | GSK | 0.5% of the net sales price | for government use | Patent expiry 2011 |
| Indonesia | 5.10.04 | nevirapine | Boehringer Ingelheim | 0.5% of the net sales price | for government use | Patent expiry 2012 |
| Thailand | 25.1.07 | efavirenz | Merck | 0.5% of the original cost of the drug | public non-commercial use for importation and local production | |
| Thailand | 25.1.07 | opinavir/ritonavir | Abbott | public non-commercial use for importation and local production | ||
| Thailand | 25.1.07 | clopidogrelc | Sanofi-Aventis & Bristol-Myers Squibb. | public non-commercial use for importation and local production | ||
| India | 9.3.12 | sorafenib | Bayer | 6% of net sales (up to max. price of 8880 Rps/pack) | Manufacture by NATCO only in India. | Patent expiry |
Indonesia embraced Blackberrys very early and its now one of their major markets. The lack of PC penetration is negated by the prevalence of smartphones aorund Indonesia. So business and consumers are leapfrogging the world of search engines in favour of mobile. Social media is rapidly becoming the primary marketing conduit to many consumers. Virtual currencies like the one offered by Mig33 from Singapore enable online transactions.
As a result there is a social media gold rush on. IP holders are staking claims through Twitter accounts, Facebook pages and by issuing apps. Brand licensing, software ownership and proper brand use guidelines are vital to IP security. Indonesia does not have a robust IP system so careful IP planning is required.
So the Indonesian Ku De Ta owners brought cases in Singapore based on their well known mark, against the Singapore registered trademark owner, Nine Squares (an Australian Company) who licensed use the mark to one Chris Au who in turn assigned this right to use to the Defendant operator, Ku De Ta SG Pte Ltd.
The cases are for invalidation of the mark, as well as an injunction to restrain use. It involves both the restaurant / club in the Marina Bay Sands resort and it's website http://www.kudeta.com.sg/. The case is being contested, because the operators and the registrant differ. At least one of the parties is suspected to have a connection to the Bali business. Since separate invalidation proceedings from the infringement case have been brought, the defendant in the litigation sought to have the injunction case struck out with a preliminary application, although unsuccessfully. Presumably too much has been invested with such a high profile operation in Singapore's premier resort for the defendant to walk away.
So the Indonesian Ku De Ta owners brought cases in Singapore based on their well known mark, against the Singapore registered trademark owner, Nine Squares (an Australian Company) who licensed use the mark to one Chris Au who in turn assigned this right to use to the Defendant operator, Ku De Ta SG Pte Ltd.
The cases are for invalidation of the mark, as well as an injunction to restrain use. It involves both the restaurant / club in the Marina Bay Sands resort and it's website http://www.kudeta.com.sg/. The case is being contested, because the operators and the registrant differ. At least one of the parties is suspected to have a connection to the Bali business. Since separate invalidation proceedings from the infringement case have been brought, the defendant in the litigation sought to have the injunction case struck out with a preliminary application, although unsuccessfully. Presumably too much has been invested with such a high profile operation in Singapore's premier resort for the defendant to walk away.
The court granted Natco a compulsory license, the first of its kind in India, (and the second in Asia after Thailand). It focused on 4 areas in deciding whether or not Bayer had made the drug reasonably available:
- Availability. The court sided with Natco, that sales by Bayer were insufficient to supply the Indian market.
- The price Bayer supplied at was too high for the market.
- Bayer failed to work their patent through their small imports and Bayer should be manufacturing its Nexavar in India.
- No adjournment was justified to enable Bayer to make more efforts to supply the market.
As the Bayer product was not reasonably available a compulsory license was granted. It was priced at 8880 Rps (NATCO’s price was accepted, a fraction of Bayer’s 280,000 Rps sale price), with a 6% royalty.
What are the consequences of this decision outside India ? Other countries are watching this, esp. in SE Asia such as Thailand and Philippines. The requirement to manufacture potentially renders many drugs subject to compulsory licensing. The assertion that the court understands pharma manufacturing and pricing best is of some concern. No-one really expected Bayer to win, but the court made little attempt to be balanced. A position somewhere between Natco and Bayer would probably still have resulted in the grant of the license based on my reading.
- The ASEAN IP Association Annual General Meeting & Conference is on 16 to 18 March 2012 at the Ayodya Resort, Bali, Indonesia. Its theme is Law Enforcement on Intellectual Property Rights. Click here for details.
- On 22 February, OHIM received a visit from the Department of Intellectual Property (DIP) of Thailand. The visit involved an exchange of views on various matters, looking at areas for bilateral cooperation discussed and reviewing the the ECAP III with ASEAN.
- On April 18-21 the USPTO is organising an ASEAN-USPTO Workshop on Enforcement Against the Trade in Counterfeit Hard Goods, in Jakarta, involving officials from the whole region.
- In April a group from the Indonesian IP office travels to the UK to meet with various collecting societies under the auspices of the British Copyright Council, so the Indonesian government can work out how to establish its own copyright royalty collecting societies.
IP Komodo, ever keen to see how countries are viewed in terms of IPR protection took a look at the ASEAN countries in the report which feature as follows in the list of 128 market surveyed, ranked in order of IPR protection:
4 Singapore
40 Malaysia
(51 India)
75 Philippines
86 Thailand
98 Indonesia
108 Vietnam
(China is not included)
You could argue a little about the placement of the countries but not a lot. Based on IP Komodo's experience around the region, he is impressed by the accuracy of the research.
It also raises the wider question, if ASEAN countries were better at IP protection, would their economies develop faster and more efficiently as Mr De Soto has long suggested is the case with real property?
The way it works is that an applicant can request PPH handling in a second patent office where it has had a corresponding examination in a first office (provided the two offices have a PPH agreement in place). This fast tracks the examination, because the second office can rely on the examination by the first office, removing their need to examine that issue. The number of office actions and pendency are shown to reduce (so the US data shows).
Two South East Asian nations have signed up so far.
Singapore has signed up to agreements with US and Japan. However in Singapore IP Komodo understands from his friend Mike McLaughlin that there is already a modified examination system which enables accelerated prosecution to allow a Singapore patent on the basis of a grant in select other corresponding jurisdictions, including the US and Japan. Besides that IPOS are very efficient and can usually process patents quickly on request. So the PPH may not add much for inbound work in Singapore. But Singaporeans do file more than 1000 US patents a year so for outbound work, Singaporeans may find a great benefit from the PPH, when they file outside.
In February the Philippines signed on to the PPH system through an agreement with the Japan Patent Office. It plans to launch on March 12th. In Philippines pendency is currently 3 to 4 years which is not too bad, but examination can be expedited if applicants volunteer to conform the Philippines application to corresponding US, EPO, Japan patents. So it is not clear how the PPH will improve examination for inbound work yet.
As for elsewhere, well some of the slower SE Asian countries like Indonesia really could us the PPH to speed up examination and reduce duplicated costs on work already done elsewhere.
IP civil litigation is still rare in Vietnam. How the court deals with evidence, the damages calculation and the injunction will be of great interest to IP holders and IP attorneys.
One Indonesian businessman, Abdul Soelystio owns a Jakarta-based “Kopitiam” shop and has sought to register the name as his own brand in 1996. He then filed a lawsuit against a Medan-based business called “Kok Tong Kopitiam” for trying to register a mark including kopitiam. He won in the Medan District Court. Paimin Halim, the owner of “Kok Tong Kopitiam”, appealed to the Supreme Court last year but lost. Now, Abdul Soelystio has taken out national advertisements to warn other restaurant owners to immediately drop kopitiam from their names.
One Indonesian businessman, Abdul Soelystio owns a Jakarta-based “Kopitiam” shop and has sought to register the name as his own brand in 1996. He then filed a lawsuit against a Medan-based business called “Kok Tong Kopitiam” for trying to register a mark including kopitiam. He won in the Medan District Court. Paimin Halim, the owner of “Kok Tong Kopitiam”, appealed to the Supreme Court last year but lost. Now, Abdul Soelystio has taken out national advertisements to warn other restaurant owners to immediately drop kopitiam from their names.
There is even a Kopitiam Association and its chairman Mulyadi Praminta has said the court rulings are ridiculous. So has Bondan Winarno, the owner of the “Kopitiam Oey” chain. In Singapore, the name is generic.
The problem in this case stems from a problematic District Court decision in Medan; in Indonesia it is often hard to raise defences, because of a bifurcated system. The defendant needed to file a cancellation action to revoke the mark as generic. Maybe now other major business owners or the association should do so.
So the Philippines put in a petition seeking removal from the Watch List this year, citing its government’s concerted efforts at protecting IP rights. They pointed to several activities including a number of training seminars, workshops and summits held to focus on IPR protection. They referred to an ongoing enforcement initiative which led to increased fake product seizures.
In early May the USTR's report will help understand the effect of these efforts, whether they have translated into real changes on the ground. Will Philippines Customs still be largely ineffective at stopping fakes? Will the new rules of procedure speed up criminal trials. Will the authorities conduct raids more quickly and effectively? These are some of the questions raised.
The USTR's Special 301 review causes much anger because it seems to be a stick, a high and mighty complaint about others' imperfections. But if governments do make efforts in consequence as the Philippines is doing then perhaps it does achieve its goals.
A report in Bisnis Indonesia about the Commercial Court sheds light on the number of IPR civil trials. This data is not published by the Commercial Court. In 2010 there were 89 cases recorded at the Central Jakarta Commercial Court, a few more that the 86 2009 cases. That is pretty consistent with previous years IP Komodo recalls. The second city of Surabaya has a Commercial Court too but it only hears a few IP cases a year. Trademark cases still make up the largest part of the Jakarta docket, with 71 cases being trademark cancellation or non use deletion cases. There were 8 copyright cases, 8 industrial design cases and 2 patent cases.
Meanwhile Thailand despite being a smaller country has its IP/IT court, which in 2011 heard 260 civil IP trials. That is a ris eon the 225 in 2010. 155 cases involved trademarks, of which 59 were infringement cases. There were 52 patent cases of which 16 were infringement. The remainder were copyright, trade secret and IP license cases. Apart from the court, which is highly efficient so dispenses high quality justice worth paying for, there is more hi tech manufacturing in Thailand over which disputes do arise.
A 2011 Thai Supreme Court case dealt with the matter. A US IP holder licensed a manufacturer and the trademarked goods were imported into Thailand. The Court decided that third party royalties did not need to be added to the Customs value of the imported goods in that case. They looked at various factors including the level of control of the IPR holder over the 3rd party manufacturer. The Supreme Court decided that the circumstances were similar to those in a recent WCO Advisory Opinion, as the licence holder had no direct control over the maker of the goods, and the sales contract had no specific obligation for the Thai importer to pay royalties. It was not a condition of sale of the goods.
But in many cases Thai Customs does determine that royalties are dutiable. Some examples would be if the IP owner controls the manufacturer and can enforce payment of royalties, or where the licensee is obliged to pay a specific royalty.
At present EU and US rules along with WCO guidelines provide examples of when royalties are a condition of sale so become a dutiable addition to the value of the imported product. But at least in Thailand now, importers have a court case to back them up, when Thai customs are insisting on an automatic inclusion of royalties. Other court challenges to Customs decisions may follow.
One of the ways to tackle the problem of corruption when granting official approvals is to use software to take away the decision making power from the officials. A software driven process for applications like product registrations/marketing approvals is such a solution. Customs implemented such a system to reduce delays and corruption when approving imports. Now BPOM have launched a similar system, initially for certain food products, the vast majority of which need only limited review. An online application for marketing approval is made, reviewed and processed online and then granted. Applicants can also submit far more applications online than they can do physically and they no longer need to send someone to the BPOM office.
New was even was acknowledged in the movie’s closing credits and his lawyers obtained admissions from members of the production team, as well as materials naming New as the source of the costume.
As we know from the Star Wars cases, copyright in sculptures is not always easy to apply to costumes. But the Philippines IP Code does protect scuptures as well as applied art, so the case seems strong.
However the Vietnamese music industry struggles to make money. One reason is extensive piracy of all forms of media in Vietnam. Another is weak business models. Most people in the industry are part timers, holding down other jobs to earn a living. Entertainment venues there do not pay royalties. Many musicians give away their CDs at gigs since there is a poor retail market. Two are two collecting societies, the Vietnam Center for Protection of Music Copyright (VCPMC) that collects music copyright royalties and the Recording Industry Association of Vietnam (RIAV) that collects related rights royalties such as sound recordings and broadcasts.
IP Komodo finds it ironic, given the complete reverse elsewhere in the world, that the internet might be the trigger for musicians to be more financially appreciated in Vietnam.
The case is a copyright claim based on misuse of digital map data owned by Globetech. The claim is for damages of 540 million Thai Baht, around 17 million USD. The Plaintiff claims that Nokia's Ovi internet smartphone system incorporates the map data. Globetech has been mapping Thailand for decades and sells a variety of online and paper maps. Navteq was acquired by Nokia and provides the map software for Ovi.
Globetech initially issued a warning letter and there were some negotiations, but these failed to reach a resolution so Globetech sued.
IP Komodo understands IP/IT court trials take up to 2 years.
Occasional calls would be received from Jakarta Cengkareng airport about small consignments, but these would typically be too small to be of any interest. The World Customs Organization arranged training for Customs in 2001. Still no regulation appeared. Sporadic lobbying, and US Special 301 complaints got nowhere. Meanwhile fake imports of electronics, car parts etc mainly from China grew.
In 2006 the Customs law was revised, and the provisions on IP border protection maintained, still specified to be subject to implementing regulations. IP holders and IP consultants had all but given up hope. After all, around ASEAN, Customs was not exactly a roaring IP success. Malaysia and to a lesser degree Thailand had something going, but Philippines and Vietnam’s IP border protection systems barely operate. And with the China ASEAN free trade agreement starting in 2010 there was talk of customs IP border protection being a barrier to imports from China. Notwithstanding that by now most fakes were imported from China.
IP Komodo was surprised then to hear, 15 years after first announcement that a team would be put together to draft the customs regulation in 2012. He hopes it doesn’t take them another 15 years.
Thailand's IP/IT court has seen quite a few civil patent cases in recent years. IP Komodo has heard it said that given that it is one of the most sophisticated courts in the region it is a rare place to test patent cases out while avoiding the costs of sophisticated jurisdictions. And IP Komodo knows a clever litigant who filed in Singapore, to obtain the discovery then quickly went to trial in Thailand with that information to seek a judgment. As Thailand has a lot of local technology manufacturing some plaintiffs see it as a good place to block competitors too. Most actions for patent infringement are civil – there are around 30-40 per year. Many are pharmaceutical matters.
But Thailand also operates a criminal patent enforcement system. There are a dozen or so cases per year, but it really only works with clear cut infringement, otherwise there are difficulties in proving the "wilful" infringement requirement.
Indonesia operates both a criminal and civil patent system too. Civil cases are very rare, typically a couple of cases per year. So far most have been patent revocations. Criminal patent infringement in Indonesia has tended to be brought through police raids, and all cases reach a settlement, recognising the difficulty in proving wilful infringement, especially given most are secondary liability cases because the products are imported. In any event almost no IP cases of any kind reach prosecution in Indonesia at present. As a general observation IP Komodo thinks it is questionable whether public authorities really ought to be engaging in criminal patent investigations. IN IP theory patents are more like commercial property disputes. Patent protection unlike copyright (which seeks to protect artistic freedom and creativity) is not generally felt to be deserving of criminal attention. And given the complexity of patent disputes, are administrative bureaucrats like the police really equipped to handle such cases?
In the Philippines the 2011 IPOPHL data show trademark filings increased from 16,812 applications in 2010 to 17,928 in 2011. Foreign applicants comprised 43% of the total filings with US applicants 23%.
The Philippines reported local Filipino trademark applicants increased in 2011 by 7%, showing that Filipino businesses are more aware of the need for trademark protection. Contrast that with weakness in local patent filings here, which is the common trend in most emerging markets.
Trademark pendency also improved from 10 months in 2010, to 8 months in 2011.
As a result the government proposes to reinstate the Philippines Inventors Commission, to promote research and development and provide technical, financial, legal, and marketing assistance to Filipino inventors. There is a Technology Application and Promotion Institute (TAPI) under the Department of Science and Technology (DoST) which helps provide incentives to Filipino inventors and inventions. But clearly more is needed.
Some Filipino inventions from the Philippines have won international awards, including for an SMS reader and a solar-powered foot maker. IP Komodo also suspects that more than a few of the 100 or so USPTO patents filed by Filipino inventors each year are from Filipinos living in the US. So Filipino inventiveness is probably not the problem; more likely it is poor awareness of patent value and the lack of a supportive ecosystem in the Philippines. This is what the new policy seeks to address.
Now the Bandung department of agriculture in Java is seeking to register Java Arabica Preanger as a collective trademark. Bandung is in mountainous region of Java, perfect for the civets which like altitude, and so are widely farmed. Each animal processes only a kilo of beans per day. The local government hopes to develop the industry through the new mark.
IP Komodo has tasted it and whilst it is good, he hasn’t yet detected why its flavour is unique!
The lack of injunctions granted is partly due to the lack of civil IP cases, because the market is not developed enough to sustain major civil IP litigation yet. Most IPR cases still tend to be dealt with by the administrative authorities. But changes will come as they are coming elsewhere in South East Asian IP litigation and once disputes of sufficient size appear, we can expect the civil courts will likely see their first injunction applications in the coming years.
Section 60 of the East Timor Constitution of 2002 provides that “The State shall guarantee and protect the creation, production and commercialization of literary, scientific, and artistic works, including the legal protection of copyrights”. East Timor is slowly putting into place individual laws to implement its constitution. The Civil Procedure Code came into effect in 2005 and the Penal Code in 2009. But no specific IPR legislation exists yet.
Trademarks. There was until several years ago an informal system to request the Ministry of Justice to stamp an endorsement onto a certified translated (into Portuguese), copy of an equivalent Indonesian trademark registration. However the Ministry has now ceased this. A number of trademarks were so endorsed, but the degree of protection this conferred then and now the system has stopped is uncertain. It was assumed that this created at least some legal rights, pursuant to section 60 of the constitution. But no enforcement has been undertaken.
The current option to seek protection is to publish cautionary notices. These at least gives some notice to consumers about trademark rights. Examples of newspapers are Timor Post and the Suara Timor Lorosae. Cautionary notices can be repeated every few years to ensure public knowledge.
Patents and Designs. There is currently no legislation or system in place so patents and designs cannot be protected.
Copyright. There is no copyright legislation, and as East Timor is not a member of the Berne Convention yet so there is no copyright protection. However the Constitution specifically refers to copyright so it might be possible to argue some level of protection arises.
SOPA and PIPA are Congessional and Senate bills targeting especially entertainment content piracy such as P2P systems focussed on pirated music like Piratebay. The bills empower IP holders to attack the most difficult to reach pirate websites based on a "good faith belief" of infringement and then seek to take them down, block them from receiving payments, or remove them from search engine results. Of particular concern are "notorious foreign infringers".
The world reacted against them through some 7000 Wikipedia and other website blackouts claiming it violates free speech and web freedom.
Concerns expressed in the South East Asia media are that Asian websites may be in the sights of the US legislation. A common theme was the uboquitous and therefore innoucous nature of piracy in South East Asia. One particularly Filipino concern is that the 'copycat tendency in Philippine legislation' might lead its Congress to replicate the legislation.
IP Komodo feels the impasse in the content providers v ISPs war is not helping anyone. Content providers must provide better business models to supply content in the easier ways that people now want content (but obviously not for free). And service providers must accept some level of responsibility for helping police their networks. IP Komodo really does wonder if SOPA and PIPA would lead to curbing of freedom of speech? Surely attacking Piratebay and the like is not really going to harm the internet. A trial of the legislation with clear checks and balances against IP holder overreaching would be an obvious way to see if it works or not.
In Indonesia the principal private organization for IP holders is the Indonesian Anti Counterfeiting Society or MIAP (which was modeled on China’s QBPC). It’s members are mainly MNCs and although its remit goes beyond pure anti counterfeiting into general IP issues, it is an active lobbyist for greater IP protection and works closely with the IP office. See here for example of their work.
Several IP attorney associations exist too including the Indonesian Intellectual Property Society (IIPS), chaired by IP Komodo's very good friend Gunawan Suryomurcito and the IP Consultants Association, chaired by another IP komodo friend Justi Wirakusumah. These two tend to provide expertise for the government to rely on for drafting new laws, as well as engaging in training programs and policy related matters. The Asian Patent Attorneys Association (APAA) has a local chapter as it does in most countries.
VN Economy News reported yesterday about the country's frustrations that its well known agricultural products have insufficient IP protection. See here for previous reports about Chinese companies registering Vietnamese GIs in bad faith. Some 53 GIs have now been registered at the National Office of Intellectual Property(NOIP) in Vietnam. But a recent NOIP report indicates that there are at least 800 well recognised agricultural GIs in Vietnam and the report says producers need to do more to secure IP protection, though trademarks, collective and certification marks and GIs.
But in today's fruitnet.com, it is reported that Vietnam's largest dragon fruit exporter, Binh Thuan, has registered its trademark in the US - BINH THUAN for Vietnamese dragon fruit. The importance of this is that as we enter the Chinese New Year of the Dragon is that red dragon fruit are especially popular being lucky colour red as well as very healthy. Much of the company's exports of the dragon fruit are to the US.
Chuc Mung Nam Moi as they say for Happy Lunar New Year in Vietnam!
Singapore requires all residents (including expats) to obtain approval from the Registrar of Patents to first file abroad.
Malaysia too prevents residents including companies from first filing aboard unless approval has been given.
Philippines, Indonesia, Vietnam and Thailand have no such restrictions.
IP Komodo suggests that when a country reaches a certain threshold of technology development such restrictions are sensible provided they are easy to comply with. But countries which are still developing may not have enough domestic technology to make the restrictions worth having.
IP Komodo has noticed a recent change in pharma emphasis which is confirmed now in media reports. The Philippines Daily Inquirer reported last weekend that the Pharmaceutical and Healthcare Association of the Philippines (PHAP) found that the pharma industry’s 2011 recovery was driven largely by generic medicines.
With many products falling out of patent protection generic medicines are driving pharma industry growth in South East Asia. This is aided by constant pressures on containment initiatives by both the private public sectors. The industry itself is no longer split between generics and innovators, with most major household pharma names having generics arms.
IP Komodo predicts that one future SE Asia pharma IP issue will be battles between major pharma companies, with one side's generics arm seeking to launch a product and another pharma company seeking to defend its patents. It is likely that some innovator companies' past patent strategies will be found wanting, as patent families ranging from the molecule through to a final composition may not always have been fully filed in SE Asia. Litigation is inevitable, and major markets like Thailand, Indonesia and Vietnam could see some interesting court battles.
The latest one is from the Napa Valley Vintners, the nonprofit organisation of the 420 Napa Valley wineries. Thailand will now protect the California wine region from misuse of its name.
IP Komodo understands that 35 GIs have now been registered in Thailand of which 27 are from local Thai producers. The IP office publishes an impressive brochure on all the local producers and their histories. Many involve tasty Thai foods, which IP Komodo thinks would be tasty if he didn't live only on dead meat.
Rather than consider there could have been any rise in counterfeiting, they only indicate their roaring success over and above previous years. In fact they claimed that one of the obstacles is 'the lack of cooperation of brand owners and sometimes settlement of the filed complaints even during the investigation stage'.
Extraordinary thinks IP Komodo, musing on his previous posts here about delays in the criminal system, that one would prefer settlement over a decade of court proceedings to follow up a criminal case!
Indonesia is one of the last of the more developed ASEAN markets not to have a system for preliminary injunctions in its civil court system. Thailand, Philippines, Malaysia and Singapore all have them and use them. Indonesia's post TRIPS IP law revisions in 2001 set out a system for preliminary injunctions in civil cases but specified that a further regulation would lay out the details. The Commercial Court was set up to hear IP cases, but it began operation a year or two later and cases in the early years were fewer than today. Somehow a decade passed by without the implementing regulation (although well known marks and Customs IP protection fall into the same category).
But just before Christmas, a draft regulation regulating Provisional Decisions for Intellectual Property Rights matters appeared at the Supreme Court. It aims to set clear and detailed terms for the process of seeking a provisional decision in the Commercial Court. IP Komodo struggled a bit with the draft, because it seems to focus mainly on Anton Pillar issues and not enough on preliminary injunctions/TROs.
It is supposed to apply to all forms of IP cases, especially infringement, where losses are irrepairable. It also covers goods seized by Customs (although Customs don't yet have any seizure system in place) and civil search and seizure orders where evidence is likely to be disposed of (Anton Pillar Orders).
It is still a draft and Indonesia is famous for allowing these regulations to languish. IP Komodo will keep an eye out for implementation.