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    Policy Laundering Lies Behind Ottawa's Support for IP Treaties

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    Wednesday April 03, 2013
    Appeared in the Toronto Star on March 23, 2013 as Policy Laundering Lies Behind Ottawa's Support for Trade Treaties

    Last week, the House of Commons Committee on Industry, Science and Technology released its long-awaited report on intellectual property in Canada. The report was the result of months of study with witnesses representing a wide range of industries from pharmaceuticals to universities to entertainment software all making the trip to Ottawa to provide the committee with their views on what works, what doesn't, and what needs reform.

    While most of the recommendations are fairly innocuous - the committee identifies many issues for further study - one recommendation involves a classic case of policy laundering as the government has manufactured support for provisions found in two major proposed trade agreements that were not even raised by the witnesses that appeared before the committee. The report recommends:

    that the Government of Canada (in order to support Canadian businesses on the global stage and ensure the administration of Canada's IP regime is internationally compatible and streamlined) ratify the following key international agreements: the Patent Law Treaty, the Madrid Protocol and Singapore Treaty for trade- marks, and the Hague Agreement for Industrial Designs.

    The NDP picked up on the inclusion of the recommendations without any debate, discussion or actual study, noting in its minority report that

    As the Committee heard no testimony on the Patent Law Treaty, the Madrid Protocol and Singapore Treaty for trade-marks, and Hague Agreement for Industrial Designs, New Democrat committee members are surprised by the inclusion of a recommendation regarding these treaties in the majority report. The Committee should seek more information before pronouncing on such treaties.

    So why did the government representatives on the Industry committee include a recommendation to ratify four international treaties that were not discussed during the committee?

    The answer likely lies in the Canada - EU Trade Agreement and the Trans-Pacific Partnership, the two prospective trade agreements that top the government's current trade agenda. According to leaked documents, the Canada - EU Trade Agreement includes provisions that require Canada to make all reasonable efforts to comply with the Singapore Treaty and the Patent Law Treaty as well as accede to the Madrid Protocol and the Hague Agreement.

    There are similar requirements in the Trans Pacific Partnership as leaked documents indicate that it includes provisions that require countries to ratify or accede to the Madrid Protocol and the Singapore Treaty as well as make reasonable efforts to ratify or accede to the Patent Law Treaty and the Hague Agreement.

    These treaties would require significant legal reforms in Canada.  In the case of the Singapore Treaty and the Madrid Protocol, the procedures associated with Canada's trademark laws would face an overhaul, which the Intellectual Property Institute of Canada has noted would benefit only a small number of trademark holders.

    The other two treaties also create new procedural requirements, with the Hague Agreement for Industrial Designs establishing a system for registering industrial designs in multiple countries with a single application and the Patent Law Treaty seeking to harmonize formal procedures such as the requirements to obtain a filing date for a patent application, the form and content of a patent application, and representation.

    These treaties might make sense for Canada, but it is hard to know without careful study. Instead, the committee has simply recommended their ratification - and the all costs associated with doing so - without any debate or analysis. That represents a case of policy laundering designed to fabricate a record of support for the four treaties. Should Canada reach agreement on CETA or the TPP, the government will presumably use the report to claim support for the treaties that did not really exist. 

    Michael Geist holds the Canada Research Chair in Internet and E-commerce Law at the University of Ottawa, Faculty of Law. He can reached at mgeist@uottawa.ca or online at www.michaelgeist.ca.


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    Industry Committee Report on Intellectual Property: A Case of Policy Laundering for CETA and TPP

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    Tuesday March 19, 2013

    The Standing Committee on Industry, Science and Technology released its report on the Intellectual Property Regime in Canada yesterday. The report is the result of lengthy hearings that focused on a wide range of IP issues including patent reform, trademarks, counterfeiting, and pharmaceutical protection. While most the recommendations are fairly innocuous - the committee identifies many issues for further study - there are essentially three main legislative reform recommendations. One involves limiting the scope of official marks, which appears to be the result of comments from Dalhousie law professor Rob Currie (echoed by CIPO's Sylvain Laporte) expressing concern with governmental abuse of official marks in a way that may stifle innovation.

    The other two are particularly interesting as they set the stage for the Canada - EU Trade Agreement and the Trans-Pacific Partnership. First, the report recommends anti-counterfeiting measures similar to those required by CETA and found in Bill C-56.  Should criticism arise over Bill C-56 or CETA, the government will likely point to this report in support. 

    The second involves a classic case of policy laundering as the government has manufactured support for CETA and Trans-Pacific Partnership (TPP) provisions that were not even raised at committee.  The report recommends:


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    European Reports Indicate Ongoing Battle over CETA IP Provisions

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    Tuesday January 22, 2013
    The European Commission hosted an information session for non-governmental groups on Europe's current trade negotiations. The Canada - EU Trade Agreement was the first discussed. Both Ends, a Dutch NGO, reports that European officials indicated that they are still unhappy with the Canadian position on copyright and patents. While the disagreement of patents for pharmaceuticals is well known, Canadian officials had indicated that the copyright provisions were completed.
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    Supreme Court Serves Stunning Reminder of the Patent Bargain

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    Thursday November 22, 2012
    Appeared in the Toronto Star on November 18, 2012 as Supreme Court Serves Stunning Reminder of the Patent Bargain

    The House of Commons Committee on Industry, Science and Technology has spent the past few months hearing from a myriad of companies on the Canadian intellectual property system. With few public interest groups invited to appear, one of the primary themes has been the call for more extensive patent protections, as witnesses link the patent system to innovation and economic growth.

    While policies that purport to help the economy unsurprisingly generate considerable support, the Supreme Court of Canada recently provided a powerful reminder about the true purpose of patent law in a decision involving Pfizer's patent for Viagra, the well-known erectile dysfunction medication. Teva Pharmaceuticals, one of the world's leading generic pharmaceutical manufacturers, had lost successive challenges against the Viagra patent, but managed to pull out a win when it mattered most.

    Proponents of extending patent law often focus on the benefits of encouraging innovation that may come from offering patentees exclusive rights to their invention, yet the foundation of the law is about striking a balance between public disclosure and exclusive rights to the invention.  

    The law includes disclosure requirements that mandate that the patentee "correctly and fully describe the invention." In this particular case, Pfizer failed to actually describe which chemical compound was effective. This led the trial judge to remark that the disclosure "plays games with the reader."

    The Supreme Court was seemingly in no mood for such games as it reminded the parties that the patent system was based on a bargain that Pfizer had failed to meet. In a paragraph that is likely to be quoted for many years, the court stated:

    "The patent system is based on a ‘bargain', or quid pro quo: the inventor is granted exclusive rights in a new and useful invention for a limited period in exchange for disclosure of the invention so that society can benefit from this knowledge. This is the basic policy rationale underlying the Act. The patent bargain encourages innovation and advances science and technology."

    Disclosure is therefore a crucial part of the patent bargain. The court clarified that this involves not only a description of the invention and how it works, but rather a much more practical level of disclosure "to enable a person skilled in the art or the field of the invention to produce it using only the instructions contained in the disclosure."

    In this case, the court found that Pfizer failed to provide sufficient disclosure, since the pharmaceutical giant "obscured the true invention." Pfizer argued that this should not result in invalidating the patent, but a unanimous court found no other alternative. The immediate effect is that the Viagra patent is therefore voided in Canada, which will allow for generic substitutes.

    While some have tried to downplay the significance of the decision - the Viagra patent was scheduled to expire in 2014 and Pfizer filed a motion last week for a rehearing - the real importance lies in the court's unequivocal assertion of the need for balance in the patent system and the broader societal benefits that must accrue in return for patent protection.  

    Innovation is a laudable goal, yet the court has reminded Canadians that it is only part of the patent equation. Pharmaceutical companies will undoubtedly continue to lobby for more extensive rights before Parliamentary committees and in trade agreements, but the policy focus from governments and courts should be on ensuring that the "patent bargain" remains intact.

    Michael Geist holds the Canada Research Chair in Internet and E-commerce Law at the University of Ottawa, Faculty of Law. He can reached at mgeist@uottawa.ca or online at www.michaelgeist.ca.


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