by Mark Esper

The President's comments today highlighting the importance of intellectual property to our nation's economy come at a pivotal time, and should be lauded. Our economic recovery, and the jobs that will come with it, depend on the innovation and creativity of the American people.  And so protecting IP rights by enforcing copyright, patent and trademark laws in the U.S. and abroad is critical to our nation's success.

We commend President Obama for recognizing this, as well as singling out the need for a strong Anti-Counterfeiting and Trade Agreement that will raise the bar on enforcement standards and improve cooperation between nearly forty countries.  Agreements such as this, coupled with increased resources and enhanced authorities for law enforcement here in the U.S., will help us address the tidal wave of counterfeiting and piracy—especially on the Internet—that is killing jobs and endangering consumers.

As the President stated in his address today before the Export-Import Bank, we cannot achieve job growth without aggressively protecting our intellectual property. American IP is worth $5 trillion—more than the GDP of any other country— and is responsible for the employment of over 18 million Americans. IP-intensive industries from the life sciences and computer industries, to the entertainment and apparel sectors, drive nearly half of the entire economy, contributing to nearly sixty percent of total U.S. exports.  These numbers will only grow in the years to come.

The President's statement lays a clear and firm predicate for the first-ever National IP Strategy— a government wide plan to improve our IP protection and enforcement efforts in the U.S. and abroad —that the White House is working on and expected to present this summer.  The Chamber and its members look forward to working with the Administration on this strategy and other IP issues, and are encouraged by the President's bold, aggressive defense of innovation and creativity—and the need to safeguard the IP that results from such efforts—as a solution to America's economic challenges and future aspirations.

by Mark Esper

When two of America’s most prominent voices on jobs and the economy say the same thing, well, it is time to take notice. When it’s the US Chamber of Commerce and the AFL-CIO, then Washington should really pay attention. At its recent meeting in Orlando, the AFL-CIO Executive Council released a statement detailing the damage intellectual property theft causes to America’s workers and our economy, and further offered support for efforts to combat the growing crimes of piracy.

This is music to our ears, and I commend the AFL-CIO for releasing this statement.  But actually, labor has been on the right side of this issue for some time, and we’ve worked closely with some of the unions in the past in defense of strong IP rights.  

Here at the Chamber’s Global IP Center, we have been championing intellectual property rights as a major driver of economic growth and job creation, and have aggressively worked both in America and abroad to protect IP rights. Innovation and creativity will play a major role in our economic recovery, and labor’s public support of IP adds another valuable ally to our IP protection and job creation efforts.

Intellectual property (IP), or what is often called ‘creations of the mind,’ is a key component to growth and development around the world. Whether it is addressing challenges such as chronic diseases, diffusing knowledge through books and journals, providing entertainment such as movies and music, or contributing to a recovering economy through technologies and software  that create jobs, one thing is certain: protection of IP is the foundation of America’s competitiveness, and vital to our future.

The United States’ IP is worth over $5 trillion—more than the GDP of any other country, and is responsible for the employment of over 18 million Americans. Accounting for over one-half of all U.S. exports, IP drives 40 percent of our economic growth today, with even greater potential going forward.

And as the AFL-CIO Executive Council noted in its statement, online theft and other forms of piracy are not “victimless crimes.” They in fact cost U.S. industries billions of dollars in lost revenue each year, which in turn directly affect workers’ benefits and the very jobs they hold.

Counterfeiting and piracy also affects consumers—from fake electronics that fail to perform as advertised, to fake pharmaceuticals with toxic chemicals that can kill patients.

Yet although protecting IP such as copyrights and patents makes common sense, you would be surprised how many groups are trying to weaken IP rights in the U.S. and abroad. This is why labor’s recognition of the importance of IP to job creation is so significant—a business/labor alliance on IP rights and protections is awfully hard to crack.

Labor’s support adds to a growing and broadening pro-IP voice in Washington and around the world. We have worked with state and local governments and international bodies to support the strengthening of IP rights and enhanced enforcement efforts.  Just recently, President Obama spoke of the need to protect IP rights as an important part of our recovery, not long after Vice President Biden convened a meeting at the White House to discuss these very issues. And this summer, we look forward to the Administration’s presentation to Congress of the nation’s first-ever National IP Strategy to improve the government’s coordination and effectiveness in the fight against counterfeiting and piracy.

The AFL-CIO’s statement is a clear indication of the importance of IP rights to jobs in this country, and I commend them for their position. As the Chamber’s Global IP Center moves forward with our 2010 pro-IP agenda for the Hill and the Administration, we look forward to working with labor and other IP stakeholder in an effort to enhance the protection of IP as vital to reviving America’s economy and creating high-paying and rewarding jobs for our future. 

by Mark Esper

Earlier today, in his testimony before the Senate Finance Committee on President Obama's 2010 Trade Policy Agenda, U.S. Trade Representative Ron Kirk stated that opening new markets and bolstering enforcement tools will be the main focus of his efforts this year. This agenda, he said, will support the President's goal of doubling U.S. exports in the next five years to support two million American jobs. We look forward to working with the Administration to achieve this goal and we applaud the USTR for setting forward an agenda that will spur job creation and economic growth. But this agenda will depend on strengthening IP laws and norms globally, and then vigorously enforcing them, especially since IP industries account for over half of all U.S. exports.

We are pleased that the Obama Administration continues to share our view--recently outlined in a detailed letter from the GIPC to the White house--on the critical role innovation and creativity play in our economic recovery. As stated in the President's agenda, "fostering innovation is essential to our prosperity and to the support of countless jobs in the United States." This is the very reason why the GIPC works tirelessly to promote the value of intellectual property and to protect our IP rights--as guaranteed in the Constitution--from counterfeiters and pirates who undermine the U.S. comparative advantage with their illicit activities that harm American consumers and the 18 million workers employed in IP-dependent industries.

Like the Administration, the GIPC sees the growing crimes of IP theft--through counterfeiting and piracy in both the real and online environments--as a jobs killer. That's why we applaud the Administration for their efforts to conclude an Anti-Counterfeiting Trade Agreement (ACTA) this year with our major trading partners. This agreement will improve our multilateral efforts to stop those who traffic in fake and stolen goods by raising the bar on enforcement standards and cooperation between nearly forty countries. And while some anti-IP activists want to kill this agreement by claiming the talks are too opaque, we've urged the Administration to keep building on its transparency efforts by completely sharing the negotiating record and the current text with the Congress. We hope USTR's commitment to ACTA will lead to the successful conclusion of a comprehensive agreement this year--doing so will mark a major step forward in our international efforts to protect innovators, consumers, and workers.

We are also pleased to hear that President Obama is seeking to expand global markets for American goods and services by moving forward with the Trans-Pacific Partnership (TPP) Agreement. This agreement promises substantial opportunities for American businesses operating in some of the fastest growing economies in the world--the Asia-Pacific region. Using the TPP as a vehicle to open new emerging markets for U.S. businesses, the TPP should build upon the IP provisions in our other bilateral trade agreements--such as the pending U.S-Korea Free Trade Agreement-- with the strongest protection of IP rights. Doing so will not only incentivize our entrepreneurs and help them grow their businesses here in the U.S.A., but it will also protect their investments from the IP theft that is rampant in other markets around the world.

We look forward to working with the Administration to achieve a trade agenda that will surely foster the job creation and economic growth needed to get America back on track. Key to this, of course, is strengthening IP laws and rights abroad, and then enforcing them as vigorously as we can. Completion of the ACTA and reaching agreement on the TPP should do just that, to the benefit of consumers and our economy, and to the millions of workers, innovators, artists and entrepreneurs who drive it.

by Mark Esper

Today’s release of the 2010 International Property Rights Index (IPRI) by the Property Rights Alliance highlights once again the importance intellectual property rights (IPR) play in growing economies, improving living standards, and creating jobs around the world.

The report makes clear that “economic well-being and property rights are positively correlated,” adding that this dynamic occurs because as “innovation and investments grow the more the citizenry is assured of the protection of their property.”  We have known for generations that strong IP rights are essential to the economic health and well-being of a country.  This report looks at 125 nations – or 97 percent of the world’s gross domestic product – and shows it to be true.

In this study, nations earned composite scores in the following categories: legal and political environment; physical property rights; and IP rights.  These scores showed the differences between nations that protected and valued IP rights, and those that did not. Of the countries that scored in the top tier, the average national gross domestic product (GDP) per capita was $35,676. That is eight times higher than the bottom tier nations, whose GDP per capita was $4,437.  Along with higher per capita income, countries with stronger property rights also tend to attract more foreign direct investment—a key component to any countries development.  Interestingly, the report also outlines four ways which “insecure” property rights harms a country’s interests. 

These arguments are not new – experts have been making them for some time. But the numbers from the IPRI report add more to the story and make the case for strong IP protections more compelling.  A global economic recovery is going to occur, and innovation will play a major role in that recovery.  But if innovation isn’t promoted, and then protected, sustaining economic growth and creating jobs will be a difficult task.

The U.S. Chamber has long recognized the vital role innovation, creativity, and IP rights play in America’s economic growth and competitiveness.  That’s why we put forward to Congress and the White House an aggressive IP agenda for 2010 to champion IP rights. Our priorities focus on strengthening IP rights in the U.S. and abroad, and then defending them against countries and special interest groups that seek to undermine IP rights for their own gain.  We also want to enforce the law vigorously against the rampant crimes of counterfeiting and online piracy.  Key to this is the development of a first-ever National IP Strategy by the Obama administration to crackdown on the IP theft that is growing exponentially at great harm to workers, consumers, and patients. 

Innovation and creativity are the lifeblood of America’s economy and our global competitiveness.  When we protect the very sectors of our economy that are responsible for over $5 trillion of the U.S. GDP and drive more than half of U.S. exports, we are protecting not only the 18 million Americans employed in these industries, we are also creating and protecting future American jobs.  In a time when over ten percent of all Americans are either unemployed or under-employed, we need to defend the framework of IP rights and laws that both protects and incentivizes the inventors, artists, researchers, and entrepreneurs who are creating jobs around the country. 

This IPRI study tells us a story of countries all around the world, each striving for the same things we assume--prosperity, development, and a better life for their people. Yet to varying degrees, not all have learned, let alone embraced, the principle that by promoting and protecting strong IP rights these goals can be achieved.

by Mark Esper

The Federal Trade Commission (FTC) has been notifying dozens of organizations around the country of possible security and personal identification breaches related to the use of peer to peer (P2P) file sharing networks. This is not the first time we’ve been warned about dangers lurking on the Internet, but this latest episode once again highlights the importance of our own vigilance and knowledge of the risks we all face online.

Peer to peer technology is a popular and useful mechanism to greatly enhance one’s online experience. But if not used properly, and without a serious dose of caution, users can find their personal information leaked all over cyberspace. When P2P software is not configured properly, for example, files that were not meant for sharing—like your bank accounts—end up getting passed around the web like the latest YouTube video; dire consequences such as identify theft can take place quickly.

On top of this comes the added danger of unwittingly doing something illegal. P2P networks are often used to download and proliferate pirated movies and music – an all-too-common activity that violates long-established copyright laws. Much as it’s a crime to walk into a store and take a CD or DVD off the shelves without paying, the swapping of illegally downloaded or copied songs or shows puts you on the wrong side of the law.

This recent action by the FTC sheds light on a prevailing problem for most folks using the Internet. In the comfortable and familiar settings of our homes or offices, users are often lulled into a false sense of security, not mindful that they are acting in a very public space – the Internet – where dark actors lurk, viruses are spread, and harmful things can happen.

This is why we must all remain alert, and vigilant, especially with our kids, and a reason why the FTC should be commended for its measures to warn and educate us all. It’s important that we all better understand the risks we face in the online environment, whether it is from online predators, or from P2P networks siphoning our personal information or involving us in illegal file-sharing schemes that can put users in legal jeopardy.

File sharing can be a very useful tool, but there are risks involved, especially from bad actors out there who profit from the illegal exchange of copyrighted works and by taking advantage of individuals who do not understand the risks involved.

Technology is a wonderful thing, but a lack of knowledge in and the misuse of technology can have severe consequences, as we are now seeing. The more folks are familiar with good practices, the safer they will be.

By Dr. Mark T. Esper

U.S. Attorney General Eric Holder earlier today announced the formation of a new Department of Justice Task Force on Intellectual Property. Not only is this initiative another step forward in our fight against the growing crimes of intellectual property (IP) theft, it is also a critical recognition by the Administration that these crimes are endangering public safety and eroding our ability to create jobs and grow our economy. The Department of Justice’s initiative deserves to be commended.

Intellectual property refers to the “creations of the mind”— from computers and medicines to movies and cell phones—that help drive the innovation and creativity that make up American ingenuity and our global competitiveness.

America’s innovative and creative industries account for more than $5 trillion of the U.S. gross domestic product, drive more than half of U.S. exports, and employ over 18 million Americans.  However, these industries face increasing threats from IP crimes—in the forms of counterfeiting and piracy, in both the online and physical worlds.  For instance, U.S. Customs and Border Protection service last year seized 14,841 shipments of counterfeit goods, value at $260 million, with products—such as fake medicines and faulty car brake pads—especially dangerous to health and safety value at $32 million.

In the midst of today’s economic instability, we need increased efforts to thwart these dangerous crimes that erode jobs and hurt consumers. The newly announced task force will be a key component of a coordinated strategy among the various federal, state and local agencies, along with our international partners, to better enforce our IP laws. Additionally, the task force will also play an important role in assisting the U.S. Intellectual Property Enforcement Coordinator (IPEC) with crafting a first-ever national IP strategy—a monumental task that will be completed later this year

 The announcement of this task force is also a positive sign that the Administration is firmly committed to protecting this critical foundation of our economy so essential to incentivizing creators, inventors, and entrepreneurs, and protecting their rights. The U.S. Chamber commends Attorney General Holder for his leadership and looks forward to learning more about the task force’s programs.

The formation of this task force was one of the recommendations made recently by the U.S. Chamber of Commerce to the new U.S. IPEC, Victoria Espinel.

To learn more about what other actions can be taken to combat IP crimes, please visit the GIPC’s website, www.theglobalIPcenter.com.

by Mark Esper

The weather in Miami leading up to this weekend’s Super Bowl has been erratic to say the least.  And while I’m no meteorologist, there’s one prediction I can make with confidence: one team will come out on top and thousands of vendors will be hawking counterfeit NFL merchandise to football fans in Miami, across the country, and around the world via the Internet.

As the epitome of American sports culture, the Super Bowl game is expected to attract the attention of over 100 million viewers across the globe. Many viewers will be tuning-in for one of the most anticipated games in recent memory, while others will be waiting for the breaks in the game to see what creative ads are thrown their way.  But let’s not forget that the allure of the Super Bowl game, and the fans that both teams draw, also attracts counterfeiters looking to make a quick buck (or a quick million) off of unsuspecting consumers.

NFL licensed merchandise—such as men’s jerseys—can sell for anywhere from $80 on up.  Thus, a price tag of half that much for a seemingly flawless replication seems like a steal for any fan—which is exactly what it is. Each year, as counterfeit vendors make their way to the playoff games to hawk NFL merchandise, the problem of fakes not only gets worse, it gets more sophisticated. Counterfeit jerseys, caps, and other paraphernalia are often mixed in with the real ones, and even the merchant may not know they're selling a fake. A closer look at some merchandise and the subtle discrepancies should become clear: the color is off, the stitching is sloppy, or sometimes players’ names are misspelled.

Counterfeiting costs U.S. businesses hundreds of millions in lost sales each year.  Indeed, the Customs and Border Protection service last year seized 14,841 shipments of counterfeit goods with a domestic value of $260.7 million---and this is only the stuff they caught!  All of this counterfeiting leads to job losses ranging from the workers who make the products, to those that package, market, distribute, and sell them.  The NFL and its franchises are surely affected as well, especially given the League’s popularity with the American people. 

And in today’s Internet era, sales of counterfeit goods are not just happening on street corners, back alley stores, or outside stadiums, it is occurring in increasingly higher numbers online, and in ways that fool consumers into thinking these goods are the real thing.

In 2009, intellectual property rights (IPR) enforcement operations at Super Bowl XLIII in Tampa, Florida, led to many arrests and seizures of counterfeit merchandise. Federal agents joined the Tampa Police Department, Hillsborough County Sheriff's Office and the NFL to work together in the operation leading up to the big event. According to the U.S. Customs and Immigration Enforcement this collaborative effort led to the seizure of more than 15,000 pieces of counterfeit merchandise with a retail value of almost $2 million.  Similar efforts this year have already resulted in seizure of 1,600 items—valued at $155,000—of fake Super Bowl-related memorabilia, along with other counterfeit items.

Counterfeiting has a much greater cost than just lost merchandise sales. Intellectual property theft—through counterfeiting—is NOT a victimless crime. Not only do these crimes eat away at our economy with job losses, but those involved in these crimes are often directly linked to organized crime in one way or another.

Although the U.S. government has made tremendous progress over the past couple years to address the worsening crime of counterfeiting, there are number of additional steps the Congress and the Obama Administration can take to substantively improve our IP protections efforts.  Domestically, the newly confirmed Intellectual Property Enforcement Coordinator (IPEC) will play a critical role in creating and implementing a comprehensive national IP strategy to promote and protect IP. 

Counterfeiting is a serious global problem that costs tens of thousands of American jobs each year, and eats away at our economic growth and vibrancy.  The only way to fight back is through stringent enforcement and consumer awareness.  So as we watch the game on Sunday, there will be a lot of activity going on behind the scenes that you’ll never see on instant replay. The cracking down on counterfeiting is just one step in stopping this illegal activity. Increased vigilance from law enforcement all the way to Congress and the White House is needed if we are to deal a serious blow to this detriment to our economy. And lastly, if you’re at the game this weekend or online in the coming weeks, and the price of that NFL cap or jersey seems too good to be true, it’s probably a fake; please don’t buy it, somebody’s job may depend on it.

by Mark Esper

Last week, United States Trade Representative (USTR) Ron Kirk announced the designation of an Assistant USTR for Small Business, Market Access, and Industrial Competitiveness. The newly created position will help address the challenges facing small-and medium-sized enterprises (SMEs) that sell their goods abroad and promote the global export opportunities these businesses need to create jobs here at home. Why is this new position important?  Because these businesses employ just over half of all private sector employees and have generated 64 percent of net new jobs over the past 15 years. As a whole from 1998-2004, small businesses produced half of private nonfarm GDP.

This announcement also recognizes the importance of SME's and their dependence on trade, and its release couldn't be more timely. A recent report from the United States International Trade Commission (USITC) entitled Small and Medium-Sized Enterprises: Overview of Participation in U.S. Exports maintains that U.S. small and medium-sized enterprises accounted for approximately 30 percent of known U.S. merchandise exports between 1997 and 2007. The top merchandise export categories for SMEs in 2007 were electrical products, machinery, and chemicals, with wood products and apparel and accessories as the sectors with the highest concentrations of SME exports.

A major point of this study is the importance of protecting intellectual property—those inventions and creations of the mind that are protected by patents, copyrights, and/or trademarks—in our export markets.

The study found that, "SMEs are an important source of innovative processes, products, and services. One way to measure a firm's propensity to innovate is through patent filings. A recent study released by U.S. Small Business Administration Office of Advocacy demonstrates that small firms produce significantly more patents per employee than large firms and that their patents are more technologically important, according to patent impact metrics." The SBA study also found that small and medium sized businesses tend to be more profit-and cost-efficient, producing more innovations for a specific amount of R&D. These companies also hire 40 percent of high tech workers (such as scientists, engineers, and computer programmers). In short, their business processes can be more efficient in the innovative process. As a result, protection of their IP is absolutely essential to their livelihood, which in turn creates jobs and helps grow our economy.

Policies that help benefit small and medium-sized firms are an important component of any effort to reinvigorate our economy. The U.S. Chamber's Global IP Center (GIPC) has profiled over 100 American companies across the country that have a compelling story to tell about the importance of IP and innovation to their business. These "Profiles of IP" champion the American spirit of innovation and highlight the successes of SMEs that rely on strong intellectual property rights. These companies come from every industry highlighting the importance of patents, copyrights, and trademarks in driving economic growth and job creation. The GIPC's goal in this project is to educate the public, lawmakers, and government officials about the importance to our economy of protecting IP and enforcing IP rights for small and big businesses alike.

Earlier this month, in the U.S. Chamber's annual State of American Business address, Chamber President Tom Donohue spoke of the "ambitious goal of creating at least 20 million new jobs over the next 10 years." Donohue explicitly stressed the importance of seizing the potential of small and medium-sized businesses to export and bringing thousands of smaller firms into the international marketplace by assisting them with expertise, promotion, and financing. Most importantly, we cannot assure the expansion of SMEs in the global marketplace without guaranteeing the vigorous protection of IP for those businesses wishing to capitalize on their export potential and create jobs in the United States.

As SMEs are important to our economy, so too are IP rights important to SMEs. The two are directly correlated. So if 2010 is going to be the year of job creation and economic recovery, stronger IP protections must be part of this equation.

by Captain James Callaway, City of Morrow Police Department, Georgia

Last week, Morrow Police Chief Jeff Baker and I had the opportunity to represent Georgia’s top law enforcement in our nation’s capitol. We met with Congressional representatives as well as federal law enforcement agencies to discuss the need for a statewide task force in Georgia—where the problem of IP theft has grown exponentially over the last several years. Our meetings in D.C. allowed us the opportunity to explore ways that this task force could collaborate with federal law enforcement, as well as obtain federal funding as appropriated by last year’s PRO-IP Act for state and local efforts such as this. 

As part of their continued efforts to strengthen state and local IP enforcement, the U.S. Chamber’s Global IP Center has been working with the law enforcement community in Georgia to launch a state wide task force to fight counterfeiting and piracy. The Morrow Police Department, through the GIPC’s partnership with Georgia’s Attorney General Thurbert Baker, became familiar with the concept of a statewide task force and volunteered to help establish one. The task force continues to recruit other state and local jurisdictions and is working diligently with state wide office holders, including Attorney General Baker. The task force is expected to be formally launched early this year.

This past year, effective enforcement efforts have yielded several, multi-million dollar raids.  We have also pioneered training for law enforcement in Georgia and have built a coalition between private industry and law enforcement. Our efforts have repeatedly proven that IP is NOT a victimless crime. We have seen how IP theft eats away at our local economy with job loss and presents a risk to public safety from counterfeit pharmaceuticals to electronics. We have also seen various levels of organized crime associated with the sales and distribution of counterfeit items. 

In the State of Georgia, over a dozen police agencies from all across the State have shown an interest in task force participation. The local problem is becoming more apparent to those in law enforcement once they learn the long reaching effects of IP crime in our state. 

While in DC last week, we had an opportunity to speak personally to Rep. Henry Johnson, Rep. David Scott, and Sen. Johnny Isakson from the Georgia delegation—all were very interested in our work and expressed their interest in supporting appropriations for a statewide task force.  We also met with representatives from Rep. Phil Gingrey, Rep. John Barrow, and Rep. Sanford Bishop, Jr.’s offices who were also very interested in our goals and work. Additionally, we also met with federal agencies—the Office of Justice Programs, the FBI, and the Computer Crime & Intellectual Property Section of the Department of Justice— as well as representatives from the various IP-intensive industries. In meeting with industry representatives, we get to see firsthand the impact our efforts on the streets have on the industries that are directly affected by them.

Our trip to D.C. was a success—to say the very least. Our meetings with various groups have confirmed that we are, indeed, fighting the good fight to enforce the laws and put an end to IP theft and sales in the great State of Georgia. With garnered support from our elected officials, the federal agencies, and industry representatives, we are highly encouraged to continue to work on the advancement of the Georgia IP task force.

by Mark Esper

The Anti-Counterfeiting Trade Agreement (ACTA) negotiations were launched in 2006. ACTA is a new plurilateral treaty to help fight counterfeiting and piracy through enhanced international cooperation and more effective international standards for enforcing intellectual property (IP) rights. It will build upon existing international rules, in particular the Trade-Related Aspects of Intellectual Property Rights Agreement (TRIPS), to address a number of enforcement areas where countries have identified the need to strengthen the current international legal framework.

The 7th Round of ACTA Negotiations are going on now in Guadalajara, Mexico and we are encouraged by the administration’s continued efforts to work with our trading partners towards a comprehensive and robust agreement. If fully implemented, ACTA has the potential to raise the bar for IP protection and enforcement around the world. It is our firm belief that concluding an agreement this year will help protect U.S. jobs, American consumers, and stimulate our economy.
 
Given the importance of this agreement to our economy and to consumers, we must not allow ACTA to be derailed by a minority opposed to protecting the rights of artists, inventors, and entrepreneurs. The U.S. Chamber has also been supportive of greater transparency in these talks. We recognize the constraints of international trade negotiations; however, we urge the administration to ensure the Congressional committees of jurisdiction—as representatives of the American people—are fully briefed on the scope of the ACTA negotiations and why concluding this agreement expeditiously is in the country’s best interests.

by Mark Esper

On Wednesday, President Obama will give his 2010 State of the Union address, and much of this address will focus on jobs. As a precursor to his speech, the president recently visited Elyria, Ohio, a small town in the rustbelt that epitomizes the economic struggle that America faces today.

Taking a question from a townhall crowd, the president eloquently shared his thoughts on intellectual property (IP)—those "creations of the mind" that result in new movies, new cell phones, and any other type of new invention—and the role it will play in "prying open"export markets and providing jobs to millions of Americans.

When it comes to intellectual property, this Administration has time and again expressed their support for strong IP rights embodied in patents, copyrights, and trademarks. And with jobs taking center stage as we begin the new year, the push for further enforcement of IP protections is critical. In Ohio, President Obama was very clear. He said "our competitive advantage in the world is going to be people who are using their minds to create new products, new services. But that only helps us and helps to build a multi-billion dollar company if somebody can't steal that idea and suddenly start making it in Indonesia or Malaysia or Bangladesh with very cheap workers."The president continued by citing "insufficient protection" of IP rights as one of the problems facing the economy today.

The president's familiarity with IP rights, and the benefits to our economy from innovation and creativity that they drive, is no surprise—they drive America's competitiveness and prosperity. The United States' intellectual property is worth over $5 trillion to the U.S. economy and accounts for more than one-half of all U.S. exports. And if provided the proper protection and incentives, IP-based industries can play a major role in rebuilding our economy. Where would we be today if the innovations of Bill Gates or the movies of Steven Spielberg were not protected at all—left to be stolen, duplicated overseas, and sold on the cheap—the lost revenues their companies would never see resulting in more layoffs? These questions can be asked for nearly all major U.S. industries, and the millions of jobs they have created for the American economy.

The Administration has a golden opportunity to shift its pro-IP policies and actions into a higher gear this spring as Victoria Espinel, the nation's first Intellectual Property Enforcement Coordinator (IPEC), prepares a comprehensive National IP Strategy that is designed to better coordinate America's anti-counterfeiting and piracy efforts, and promote IP rights abroad. It is critical that Espinel's efforts be supported by Congress, and this includes continued funding for the Department of Justice, FBI and state and local grants. This strategy–the first of its kind–has the potential to greatly enhance the focus on IP as a major driver of economic growth and job creation.

The president chose a critical state to speak about jobs as Ohio has suffered more than its share of unemployment and economic stagnation. Yet, as is the case throughout the country, you do not have to go too far in Ohio to see where innovative companies buck the trend and provide a bright spot for the Buckeye State economy. IP-intensive industries such as the software industry employ thousands of people and contribute hundreds of millions of dollars to the state economy. At the same time, jobs in Ohio's creative industries grew by ten percent while other sectors lost jobs.

I am encouraged by the President's support of IP rights, and his understanding of the power of innovation and creativity to our economy and America's competitiveness, but more can always be done. His administration has the opportunity now to turn his words into greater action, beginning with the National IP Strategy. I hope this vigor and vision will be reflected in the U.S. IPEC's plan. If so, it will certainly get the full support of the Chamber's Global IP Center.

by Mark Esper

Online piracy represents ten percent of all U.S. books downloaded from the Internet, accounting for potential revenue losses to publishers of $2.75 - 3 billion according to a new study. These stunning numbers and other findings are included in Attributor’s U.S. Book Anti-Piracy Research Findings.

So what, you ask? It’s simple: this alarming statistic means that many peoples’ jobs and livelihoods are eaten away by the online theft of copyrighted materials. And we’re not only talking about the jobs of well known authors such as John Grisham or Stephen King, but the people who work behind the scenes—editors, printers, administrative assistants, and so on.

The theft of intellectual property (IP)—so called “creations of the mind” such as books, movies, and music—through online piracy is a serious problem that is only getting worse. In the music industry, for example, it is estimated that 95% of all downloaded songs are done so illegally. Yet in the eyes of many, these illicit activities are often viewed as “okay” because the books, movies, and music can be found easily online. However, when asked if it’s “okay” to walk into a store and steal a hardback or lift a CD, everyone agrees that’s a crime.

As with nearly every crime, there are victims. In this case, it is the jobs of many hard-working Americans who make their living in these industries. Jobs are jobs, and when 10 percent of an industry—in this case book publishers—finds 10 percent of their products stolen, it hurts, and something must be done about it.

Creative industries such as books and music are not the only sectors hurt by IP theft. Patent and trademark heavy industries that we rely on every day—from pharmaceuticals and automotive, to computer and apparel sectors—have also been harmed. Many Americans work—or at least used to—in these fields.

The U.S.-based Center for Medicine in the Public Interest predicts that this year, counterfeit drug sales will reach $75 billion across the globe—an increase of 90 percent over the past five years. In the auto parts industry, the Federal Trade Commission projects that counterfeiting costs the industry $12 billion a year in lost sales, and in America alone this correlates into potential job losses reaching 250,000.

Across all industries, counterfeiting and piracy cost the U.S. economy billions of dollars annually, are responsible for the loss of hundreds of thousands of jobs, and have resulted in a deluge of dangerous and defective products in the marketplace. These are serious threats that need remedying, not only if we are going to protect consumers, but also to save jobs and grow America’s anemic economy.

This, of course, accentuates the importance of Victoria Espinel and her role as the first-ever U.S. Intellectual Property Enforcement Coordinator (U.S. IPEC). The new U.S. IPEC has an opportunity to bring together anti-counterfeiting and piracy efforts into a comprehensive national strategy that the White House and Congress can rally behind, and hopefully, fund and support. Such a plan will need to address the rampant counterfeiting and piracy that is happening every day, especially the problem that today’s Attributor report draws out.

America is in a time of great economic unrest, and lawmakers and administration officials are looking for ways to save jobs and jumpstart the economy. When online piracy represents 10 percent of sales in a valued multi-billion dollar industry such as book publishing, enforcing IP laws is a good place to start.

by Mark Esper

Yesterday, the U.S. Chamber's Global IP Center submitted comments in response to the Federal Communications Commission's Notice of Proposed Rulemaking (NPRM). The purpose of these comments was to express our strong belief that Internet Service Providers (ISPs) must retain the ability to manage illicit content (including pirated content such as illegally downloaded movies and music) in a reasonable and effective manner.

Why? The reason for this is simple. Through 2006-2007 alone, copyright industries provided more than 22% of the nation's total real growth, and in 2007 provided nearly 6 million jobs. Yet the distribution of illegal content over the Internet is not only clogging up the web and slowing it down—a problem ISPs wrestle with daily—it has also led to tens of thousands of lost jobs in some of America's most creative industries. And the problem is only getting worse.

The theft of this intellectual property—those creations of the mind, such as music, TV shows, blockbuster movies, and books—not only threatens the jobs of the millions of Americans who work "behind the scenes" (e.g. writers, sound technicians, and cameramen) in these fields, but it also affects our country's economic growth and competitiveness.

Nationally, IP theft costs the U.S. economy hundreds of billions of dollars each year and has led to the loss of hundreds of thousands of jobs in many sectors. Clearly this is an issue that must be addressed, and preserving ISPs' ability to manage illicit content is a step towards remedying this problem. Ensuring that ISPs retain this capability will not only save jobs and protect the rights of artists, it will also help them protect Americans from other illicit activities, from harmful malware that infects people's computers, and from the scourge of child pornography that's found a new venue online, for example.

Expanding broadband as far and wide as possible is important for a number of social, economic, and other reasons, and we stand fully behind that goal. Preserving ISPs this flexibility to manage their networks and stop illicit content simply makes sense, and any policy prohibiting reasonable measures to address these activities would not only stifle such innovative efforts going forward, but would also send the wrong signal to taxpayers, law enforcement, industry and others about the administration's commitment to enforcing the law, protecting consumers, and saving jobs. 

by Mark Esper

Throughout time, innovation and creativity have been the catalyst for our economic and cultural growth and scientific advancements—from novel medicines that save lives and "green technologies" that will help protect the environment, to the movies, music and software that define America. We owe much of this to a robust system of intellectual property (IP) rights—the framework of laws and policies that encourage innovation, rewards entrepreneurs, protects one's ideas, drives economic growth and competitiveness, and creates and supports jobs. 

This week, in his annual State of American Business address, U.S. Chamber president and CEO Tom Donohue laid out a plan to help create jobs and revive America's economy. One key element of this plan is to continue promoting and defending the current global system of international IP laws and norms. As Tom noted in his address:

"We must also vigorously protect our intellectual property. The theft of IP costs our nation hundreds of thousands of jobs, threatens consumer safety, and puts our leadership in innovation at risk."

Tom couldn't be more spot on. America's economic growth depends on innovation and the strong intellectual property rights that safeguard it. America's IP is valued at over $5 trillion, more than the GDP of any other country. Intellectual property also accounts for more than half of all U.S. exports, helping drive 40 percent of U.S. economic growth. America's IP-intensive industries, such as pharmaceuticals, entertainment, computers, and electronics, have created jobs—over 18 million of them—and IP job creation is expected to grow faster than the national average over the next decade.

Intellectual property is equally critical on the state level as well. Nevada, for example, is home to a large number of innovative startup companies, and was ranked first nationally in job creation by the 2007 Kauffman Institute New Economy Index. 

In 2007 and 2008, film and television production in Louisiana contributed $316 million in local wages, and in 2008, the number of businesses that were involved with copyrighted works grew to almost 6,300—an increase of 12.1 percent from the previous year. Additionally, Louisiana hi-tech industry workers earn an average of $17,495— more per year than other private sector workers.

In Wisconsin, innovative industries employ more than 80,000 high-tech workers and nearly 10,000 doctoral scientists and engineers. The software industry alone employs nearly 4,500 people and contributes almost $300 million in wages to the Wisconsin's economy.

Finally, in Florida, the innovative economy supports 20,000 doctoral scientists and engineers and more than 276,000 high-tech workers, making the Sunshine State the 4th in the nation in terms of high-tech employment. 

It is a no-brainer that IP rights play an integral role in driving the economy of every state in the U.S., and they cannot be taken for granted. Innovation and creativity will continue to improve our lives and create jobs, contributing to America's economic recovery and global competitiveness. It is American ingenuity at its best, and it is one of our greatest assets.  

Note: For more information on how innovation, creativity and intellectual property impact your State, please visit the Chamber's Global IP Center at www.theglobalipcenter.com.

by Steven Law

A few months ago we filed a civil complaint in federal district court to protect our trademarks and other intellectual property from unlawful use by the Yes Men and others in furtherance of their commercial enterprises. The law is clear that one cannot misappropriate others' intellectual property through the type of deceptive "identity theft" that the Yes Men admit is their standard way of operating. The Chamber's complaint simply seeks to vindicate its rights under this well-established law.

On January 5, the defendants filed a motion to dismiss the complaint. This is a routine procedure that most defendants attempt. Predictably, the defendants' motion attempts to turn the court's attention away from the issues raised by the Chamber's lawsuit. The defendants claim that their theft of the Chamber's identity was protected under the First Amendment because it was supposedly intended to promote political debate. That argument is irrelevant to the Chamber's lawsuit, which has nothing to do with the substance of the speech by the Yes Men and the activists who helped them. So-called "parody" simply cannot be justified where it deceives people as to the true source. Such deception creates a serious threat of harm not only to organizations like the Chamber, but to the political process generally.

We are confident that we have strong legal claims and that we will prevail.

by Mark Esper

Despite the lack of real agreement in Copenhagen, there is clearly a consensus among the nations gathered that climate change must be addressed.  All agree as well that new and innovative technologies will be critical to helping nations deal with global warming adaptation and mitigation.  Most of these innovations will come from the private sector, which has been expending a great deal of time, effort, and resources—with much more to follow—on these cutting edge technologies.

Protecting the intellectual property (IP) rights of these firms and inventors will be critical to both incentivizing their continued investments, and helping spread the knowledge gained from such research and development.  Negotiators from the United States and other nations consistently reiterated this pro-IP position during negotiations over the past year, and worked together to protect IP from efforts to weaken existing laws and norms. Their steadfast support of IP rights and innovation should be commended.

Although no climate change agreement emerged from Copenhagen, efforts by some nations to craft political statements and treaty provisions s designed to weaken IP rights leaves much room for concern.  Efforts to undermine IP protections will not stop, and anti-IP activists already have their sights set on the next round of talks.  As such, it is important that we remain engaged and vigilant if we are to address climate change in a timely and effective manner.

To that end, the Chamber will continue to actively work to promote strong IP rights as a driver of innovation and a key part of the solution as climate change discussions move forward in other venues.  We will also work to remove the real barriers to technology transfer—such as high tariff and non-tariff barriers, and weak legal frameworks—so that critical technologies can be diffused widely and broadly in this global fight. 

But the value of protecting IP rights doesn't stop with the new green technologies it will bring to our climate change efforts.  Research shows that strong IP rights in sectors such as green tech can create millions of jobs in India and Europe, and most certainly for other developed and developing nations as well.  Conversely, research also shows that weakened IP laws will cost America over a million jobs in the next ten years, with that number increasing exponentially after 2020.   All of this will have a dramatic impact on each nation's economic growth and competitiveness in the years ahead. 

These are vital statistics that cannot be ignored, and the Congress and Obama Administration have demonstrated their continued support for strong IP rights. Whether it  is increased funding for enforcement, bipartisan legislative language urging IP protection in climate change negotiations, or direct intervention—such as Vice President Biden's recent IP roundtable at the White House—America's  political leaders remain spot on when it comes to intellectual property. 

This support will remain crucial as some nations and anti-IP activists regroup in the months ahead for the next opportunity to weaken the rights of inventors, undermine a time-proven system of incentivizing innovation, and sap America's recovery and competitive edge.

by Mark Esper

Tuesday’s White House roundtable discussion on the monumental problems of counterfeiting and piracy is another indication of the value being placed on intellectual property (IP) as a job creator, driver of innovation and creativity, and integral part of the American economy. I commend Vice President Biden and the Administration for holding this important and timely meeting.
 
The government has a clear interest in thwarting the growing and increasing complex problem of counterfeiting and piracy. Our economy is leaking jobs and opportunities like a sieve due to IP theft. The production and distribution of fake products ranging from consumer goods to replacement auto parts, coupled with the illicit distribution of movies, music, and software has cost the nation tens of thousands of jobs. At the same time, tens of billions of dollars in revenue that could have been re-invested into a struggling American economy and its workforce have been lost.
 
With a focus on enforcement, today’s meeting strikes on a topic that can play a vital role in turning the tide on counterfeiting and piracy. Enforcement works, as was evidenced just recently during a series of nationwide raids conducted by federal authorities. These raids netted more than $26 million worth or counterfeit clothing, electronics, DVD’s, holiday ornaments and other merchandise. Authorities recovered more than 700,000 products in a sweep of 41 cities in 26 states across the country. This coordinated effort involving federal, state and local authorities demonstrated the effectiveness of enforcement policies – when they are followed.
 
This meeting comes on the heels of positive developments orchestrated by the Congress, where passage of the omnibus spending bill meant good news for IP enforcement efforts. The bill provides $8 million for new FBI agents to bolster enforcement efforts, $2 million for prosecutorial activities through the Department of Justice, and $20 million for state and local enforcement grants.  
 
So with this roundtable discussion, the Administration continues to say the right things on counterfeiting and piracy. This, along with congressional actions, will hopefully empower Victoria Espinel, the nation’s first Intellectual Property Enforcement Coordinator, in her efforts to address the threats to innovation and creativity that are wreaking havoc in our economy.

by Matt Letourneau

The Energy Institute’s Steve Eule has been representing the Chamber in Copenhagen, and tonight he checks in with some troubling news about the prospects for strong intellectual property rights in an international climate agreement. Steve’s latest blog entry on Politico details the latest turn of events.

IP protections are a top priority for the Chamber and for the international business community, a fact which was underscored in a new statement released by the Major Economies Business Forum on Energy Security and Climate, which just wrapped up its meeting in Copenhagen. As you might recall, the Chamber hosted the first meeting of the group, which represents over 25 million business around the world, back in September.

Steve has been regularly blogging from Copenhagen to both Politico’s Arena blog, and to National Journal’s Experts blog. To read Steve’s previous Politico posts, which include some thoughts on how the structure of the Framework convention itself might be holding back an agreement, visit here. 

Over at National Journal, Steve discusses the efforts by developing nations to get the US and the rest of the developed world to pick up the tab—in a major way—for technological advances. His latest post is available here.

Finally, Institute president and CEO Karen Harbert has also weighed in on the Reuters Copenhagen blog about whether China is doing its part to reduce emissions. You can follow that discussion here.

by Mark Esper

Recently, anti-intellectual property rights activists have misstated the U.S. Chamber of Commerce’s position on access to copyrighted materials for the visually impaired and other persons with disabilities.

The Chamber supports increased copyright access for the visually-impaired, including measures currently practiced under U.S. law that have proven effective in providing access, and promoting results-oriented solutions to the needs of blind and visually-impaired persons.

However, the treaty now being proposed would not be compatible with US copyright laws and norms, and would undermine the goal of expanded access that we all share. This overreaching treaty would also harm the rights of authors and other artists, and the incentives necessary for them to create and commercialize their works. We strongly believe improving access for one community should not mean that another loses its rights in the process.

The Chamber stands ready to work on practical ways to support more efficient and expedited access for the visually impaired, in partnership with all stakeholders, to achieve these important outcomes.

// Update: See also comments in response to the request by the U.S. Copyright Office and the U.S. Patent and Trademark Office

by Brad Peck

Well, the articles and the headlines are very damning; the source document, not so much:

The U.S. Chamber fully supports the goal of facilitating access to copyrighted works for the blind and visually impaired, and our comments below aim to propose the most effective, efficient, and expeditious means by which to expand access and achieve this very important goal over the long term.

Read the full comments.