The
recent supreme court ruling staying the telecast of a daily soap
based on novelist Barbara Taylor Bradford's bestseller, 'A Woman
of Substance', has yet again brought to the fore the contentious
issue of copyright violation. As the novelist herself points out,
the world is shrinking and gross violations of copyright such as
this one can no longer go unnoticed. That should certainly stem
the creative juices of Bollywood badshahs, many of whose 'hits'
have been blatant lifts from Hollywood flicks. Now the broadcast
industry in its own quest for the hit formula has very simply decided
to tread on the same ground.
Films, media or broadcast, however, are by
no means the only violators of copyright. The issue really is one
of Intellectual Property Rights (IPR) violation whereby the right
to an idea is vested with an individual who has laid claim to the
generation of that idea and as its innovator would need to be compensated
whenever the idea is used. IPR broadly encompasses the rights belonging
to individuals in the form of copyrights, trademark rights and patent
rights. If this simple definition be applied then everyone right
from the cable operator who lifts signals of a channel to insert
his own advertisements to the counterfeit products manufacturer
who causes substantial revenue erosion for MNCs like Lever, is a
violator of IPR. Why even a commonly accepted practice like reverse
engineering of in-patent drugs by domestic pharma companies would
be construed as a violation of IPR once the patent regime comes
into force in India.
Several developing countries including India
have been put on the United States 301 Priority Watchlist on grounds
that domestic IPR legislation is not in tune with international
requirements. While these allegations are debatable it might be
worthwhile to delve into the core of the argument. At the core of
it all is affordability of products and services whose IPR cost
needs to be factored into the price of the product. And this becomes
particularly relevant in the case of developing economies where
the cost of most products and services would turn prohibitive once
the IPR cost is included.
Let's take the case of software where high
prices coupled with the ease with which it can be copied have resulted
in rampant levels of unlicensed software in developing countries,
particularly China where the pc shipments far exceed the numbers
in India but the amount of software sold by MNCs is almost the same
in the two countries. That means that a majority of Chinese users
simply thrive on unauthorised software. The issue of IPR and the
resultant monopolies is one that has taken epic proportions in this
sector, which also has the unique distinction of taking the bull
by its horns through the revolutionary open source movement. But
that is another story.
A more pragmatic way to address the issue would
be to look at the cost heads of IPR protection and the mechanisms
available to address these issues particularly in the context of
developing economies. Why do IPR-protected products cost as much
as they do? The process of registering IPR itself is an expensive
one and all IPR barring copyright is territorial and has to be registered
individually across territories. Enforcement is also country-wise
and carries its own cost. Finally, the IPR regime includes just
two parties-the innovator and the user with practically no room
for a third-party unless the compulsory licence clause is applied.
The compulsory licence is a provision that allows for the government
to step in case of emergencies or to address issues of affordability.
The provision is almost never used by governments for fear of the
political signals that it would send out. A judicious use of the
compulsory licence coupled with a kitty to compensate the innovator
could be one measure to handle IPR violation issues. And there is
the competition law, which comes into play when someone is perceived
to be overcharging users. This law saw Microsoft being hauled to
the courts in the famous anti-trust case. The issue finally boils
down to one of a balancing act that involves compensating the innovator
even as users are spared undue costs. And this is the issue that
governments and trade bodies in developing economies are going to
have to address as the world economy gets integrated.
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