Centre for Internet and Society

India - Europe Conference on Building a Sustainable IPR - ICT Ecosystem for Promoting Innovation

praskrishna — 2015-12-22T02:48:04Z

Centre for Development of Advanced Computing (C-DAC), Pune organized a one-day conference in Bangalore on November 20, 2015. Rohini Lakshané attended this event.

Intellectual property is at the core of business ventures and critical to successfully compete internationally. However, skills to commercialize technological innovations remain a crucial impediment to innovative entrepreneurs and innovators aspiring to become world leaders in global ICTE markets. A robust IPR-ICT ecosystem can help capitalize on the growth-enhancing effects of innovation vis-à-vis ICTE. In order to fulfill the aspiration of its stakeholders, the IPR-ICT ecosystem has to be global in geographic scope, spearhead shaping appropriate framework conditions for innovation and assist in charting out policy roadmaps for sustainable and inclusive growth.

With this in mind Deity and EPO is working together in developing a close cooperation to promote IPR in ICTE domain, especially with respect to sharing of best practices and procedures for filing and processing ICTE patents in India and Europe by Indian and European firms.

The one day conference on “India-Europe Conference on Building a Sustainable IPR-ICT Ecosystem for Promoting Innovation” organised by Centre for Development of Advanced Computing (C-DAC), a premier R&D organisation, aims to address the challenges in building a sustainable global IPR-ICT ecosystem, discuss IP policy issues relevant to Indian and European ICTE industries and concord on various nuances of patenting technology and activities with an ICTE perspective.

Sessions

Parallel 1

11.00 - 13.00: Challenges and Opportunities in Building a Sustainable Global IPR Ecosystem for Promotion of Innovation in ICTE Sector
14.00 - 15.30: IPR Policy Perspective for Promoting Innovation -India and Europe

Parallel 2

14.00 - 15.30: Standard Essential Patent Issues and Perspective with regard to ICTE
15.45 - 17.15: Patent Information and Analysis: A Tool for Building Business Strategies

For more information and brochure of the event, visit this website.

For more details visit https://cis-india.org/a2k/news/india-europe-conference-on-building-a-sustainable-ipr-ict-ecosystem-for-promoting-innovation

IJLT-CIS Law Essay Competition

pranesh — 2011-08-04T04:35:20Z

The Indian Journal of Law and Technology and CIS are conducting a legal essay competition to encourage law students across India to think critically about the techno-legal issues facing us today. Students can write on any of the four themes, with the top prize being Rs. 7500 and an internship at CIS.

The Indian Journal of Law and Technology (IJLT) is an annual law journal published by the Law and Technology Committee of the National Law School of India University, Bangalore. IJLT aims to provide a platform for promoting discussion on issues relating to the interface between law and technology, particularly from the perspective of the developing world.

The Centre for Internet and Society (CIS) is a leading research organisation that engages with issues of digital pluralism, public accountability and pedagogic practices, in relation to the field of Internet and Society, with special emphasis towards South-South dialogue and exchange. IJLT and CIS are proud to announce the 1st IJLT-CIS Annual Law Essay Competition 2009, which is a competition open to undergraduate law students across India. The competition seeks to encourage creative thinking and promote research and writing about crucial legal issues in the field of Information Technology and the Internet.

Themes

Criminality and Second Life: Dr. Jekyll and Mr. Hyde
Trademark and the Internet: Cybersquatting and the Google Adwords-Consim Controversy -- Reasonable Limits to Trademark Protection
3G Services and Spectrum Allocation: Fair Competition, Welfare and Freedom of Speech and Commerce on the Airwaves
Easier to Be Criminals: Judicial and Legislative Responses to Cyber Crime in India.

Judging

The winning law essays shall be determined through a blind review by a panel of eminent academicians in the field of law and technology.

Prizes

Ist Prize: Rs. 7500 and an internship at CIS

2nd Prize: Rs. 5000

3rd Prize: Rs. 4000

Please note that the terms of the above internship shall be decided by CIS on its own initiative, and as such shall not be negotiable. The winning law essay shall be considered for publication in the next issue of IJLT in accordance with the Editorial Policy of IJLT.

Eligibility

The competition is open to all undergraduate law students in any college/law school in India.

Submission Guidelines

The entries must be between 5000-7500 words inclusive of all footnotes. The entries that fall short of or exceed the above word limit shall be penalised.
Substantive footnoting is not permitted and shall be penalised. The use of endnotes or other citation methods is not permitted.
The entries should be accompanied by a 150-word abstract. The abstract is not counted towards the word limit.
All entries should be in Times New Roman, size 12, 1.5 line spacing. The footnotes used should be in Times New Roman, size 10, single line spacing.
The footnotes used should follow a uniform and complete system of citation. However, the use of the Harvard Blue Book (18th edition) system of citation is encouraged.
The entries must be submitted in the Microsoft Word format and with all identifying information removed from the text of the entries and the file properties. The covering e-mail should contain the name, e-mail address, postal address, institution, course and year of study of the author.
The entries must be submitted via e-mail to essay@ijlt.in.
The deadline for entries is 11:59 P.M., 23rd January, 2010.

For any clarifications, please send an e-mail to editorialboard@ijlt.in.

For more details visit https://cis-india.org/a2k/blogs/ijlt-cis-law-essay

Guidelines for Examination of Computer Related Inventions in abeyance

sinha — 2015-12-23T10:06:53Z

The CRI Guidelines were heavily criticised for their failure to address the ambiguities created by Section 3(k) and for expanding the scope of software patent eligibile subject-matter, inter alia. Following several representations and submissions by interested stakeholders, the Controller General has moved the Guidelines into abeyance, until discussions with stakeholders are complete and contentious issues are resolved, and is a welcome step.

CIS has consistently made submissions to the Indian Patent Office on the issue of software patenting( 2015, 2013, 2010). The latest submission was made in September 2015, in response to the Guidelines for Examination of Computer Related Inventions, 2015(“CRI Guidelines/ Guidelines”) in which we highlighted several concerns and presented solutions, and also proposed a definition of "computer programme per se".

In view of the representations made to the Patent Office, on 14th December 2015, the Controller General issued an order to keep the Guidelines in abeyance. Till the issues therein are resolved, the existing provisions on S. 3(k) of chapter 08.03.05.10 of the Manual of Patent Practice and Procedure will continue to be applicable.

The primary fault with the Guidelines lay in the fact that, legally, its scope of was in excess of section 3(k) of the Indian Patent's Act, 1970 (parent statute). The Controller General's order acknowledging the representations and submissions made in response to the Guidelines, and consequently keeping the Guidelines in abeyance is a welcome step.

You may access the order here.

For more details visit https://cis-india.org/a2k/blogs/guidelines-for-examination-of-computer-related-inventions-in-abeyance

Govt for Legalising Parallel Import of Copyright Works; Publishers Oppose

Shamnad Basheer — 2011-08-30T10:19:35Z

Section 2(m) legalises the parallel imports of books and other copyrighted material into India and was part of the initial Copyright Amendment Bill introduced in the Parliament of India in 2010.

Section 2(m) reads as below:

"[P]rovided that a copy of a work published in any country outside India with the permission of the author of the work and imported from that country into India shall not be deemed to be an infringing copy."

Unfortunately, the government did a sudden volte face owing to pressure from publisher lobbies and deleted it from the latest version of the Bill. The provision would have helped students gain access to the latest affordable versions of text books from around the world.

When the Bill was referred to a Parliamentary Standing Committee for review, the said Committee strongly supported the introduction of section 2(m) and stated as below:

"that availability of low priced books under the present regime is invariably confined to old editions. Nobody can deny the fact that the interests of students will be best protected if they have access to latest editions of the books."

"Nobody can deny the fact that the interests of students will be best protected if they have access to latest editions of the books. Thus, apprehensions about the flooding of the primary market with low priced editions, may be mis-founded as such a situation would be tackled by that country's law. The Committee would, however, like to put a note of caution to the government to ensure that the purpose for which the amendment is proposed i.e., to protect the interest of the students is not lost sight of."

Despite the Standing Committees support, it is curious as to why the government dropped this provision, particularly when it would have tremendously helped a number of students gain access to latest low priced editions of text books from around the world. It ought not to have succumbed to the pressures of the publishing lobby.

Empirical studies done on this count clearly demonstrate that publishers only introduce old versions of books in India. The latest versions have to be imported, and they are very expensive, often times costing more than what they cost in the US and EU. See the Economic Times article documenting this empirical study here.

Further, an easy right of import enables any third party to import books which could also then be made available in accessible formats to the visually impaired.

Download the Economic Times article by Shamnad Basheer here. [PDF, 470 Kb]

For more details visit https://cis-india.org/a2k/blogs/govt-legalising-parallel-import-of-copyright-work

Governance in the Age of the Internet and Free Trade Agreements

praskrishna — 2013-07-03T05:04:39Z

Sunil Abraham was a speaker at this event organized by Thai Netizen Network on June 8, 2013 at Queen Sirikit National Convention Center. The Ministry of Information and Communication and the National Science and Technology Development Agency were co-hosts for the event.

Click to read the details of the event published on Internet Society website

In the age of accelerated international trade and the promotion of free flowing cross-border data transactions, countries and regions are working towards forming a commonly agreed modus operandi and protocols. These protocols seek to facilitate the growth of e-trade, ensure a secure data flow(economic transactions) and protection of its data in the network. In the recent, there has been strong attention by consumers and businesses with the growing scope and content of these agreements addressing Intellectual Property (IP). Emerging trend studies show that there is a growing practices to incorporate mutually exclusive arrangements without involving other stakeholders which happens in closed door negotiations i.e. government to government.

For instance, the European’s Anti-Counterfeiting Trade Agreement (ACTA) proposal and the U.S. Trans-Pacific Partnership Agreement (TPP).

The bigger concern raised by other stakeholders has been the secrecy of these arrangements and the insufficient protection of consumers and citizens rights in its consideration. So far, the lack of legitimacy and proportionality of legal policy measures has created unintended consequences and collateral damages in far reaching manners whether socially, economically or technologically. Citing practices of filtering technology, deep packet inspection, and Internet cut-off, are introduced by internet service providers to meet legal requirements. Activities in question may vary from country to country, some focus on violations of intellectual property, some on the control of political voices.

Notably, list of concerns have been raised explicitly by UN Special Rapporteur to adhere to the promotion and protection of the right to freedom of opinion and expression were recommended.

This workshop is aim to create discussion on the related topics among stakeholders both in Thailand and in the region of the direct and indirect implications of various developments.

Target: Regulators, consumer rights, human rights activities, Lawyers

Expected Outcomes

Understanding the dynamics of free trade agreements (i.e. APEC, TPP, and ACTA) and its implications on Internet regulations, national sovereignty, and civil rights from various perspectives. (Big picture)
Basic understanding of how various policy and technology related measures or solutions (i.e. digital rights management technology and deep-packet inspection) are used to address Intellectual Property (IP) and how it directly impacts freedom of expression and individual privacy.
Looking Ahead: The developments and upcoming legislations/regulation challenges in both Thailand and the region i.e. new draft of Computer-related Crime Act, new draft of Copyright Act, and the Personal Data Protection Bill.

Panelists

Sunil Abraham, Executive Director, Centre for Internet and Society, Bangalore
Konstantinos Komaitis, Policy Advisor, Internet Society, Geneva
Nakorn Serirak, Policy Advisor, Thai Netizen Network, Bangkok
Sawatree Suksri, Lecturer, Faculty of Law, Thammasat University, Bangkok
Lokman Tsui, Policy Advisor, Google Asia Pacific, Hong Kong

Moderator

Mike Hayes, Chair, International MA Program in Human Rights, Mahidol University

Click the PDFs below to download the full details and the presentation:

For more details visit https://cis-india.org/news/inet-bangkok-june-8-2013-governance-in-the-age-of-internet-and-fta

Global IP Convention, 2011

praskrishna — 2011-05-08T04:04:31Z

The Global IP Convention, 2011 is being held at the Lalit Ashok Hotel in Bangalore from 28 to 30 April 2011.

Institute of International Trade and Sughrue are the knowledge partners, Thomson Reuters, Licensing Executives Society India and Society of Indian Law Firms are the supporting organisers, and the sponsors include Bird & Bird, Finnegan, watermark, MOS AID, Brinks Hofer Gilson & Lione, Philips, Kilburn & Strode, Lakshmi Kumaran & Sridharan, Questel, SCOPE, EVALUESERVE, STN, DoW, United Phosphorus Limited, Yahoo India, Indian Oil, DANIEL, Global IP Services, Jitendra Intellectual Property, Novel Patent Services Limited and resurgentindia. CIPA, iam, World Trademark Review, manupatra, Lex Witness and LexisNexis Butterworths Wadhwa are the media partners. The event is convened by Tata Consultancy Services and Intangible Business.

Speakers

Narendra K. Sabharwal, Former Deputy Director General [World Intellectual Property Organization]
Chid Iyer, Partner [Sughrue Mion PLLC, USA]
Michael R. Dzwonczyk, Partner [Sughrue Mion, PLLC, USA]
Jay Lytle, Partner [Sughrue Mion PLLC, USA]
Susan Pan, Partner [Sughrue Mion PLLC, USA]
Alban Kang, Managing Partner [ATMD Bird & Bird LLP, Singapore]
Anand K. Sharma , Partner [Finnegan, USA]
Dr. Raj Gupta, Partner [Finnegan, USA]
Richard Baddeley, Principal [Watermark, Australia]
Thayne Forbes, Joint Managing Director [Intangible Business, UK]
Ralph J. Gabric, Partner [Brinks Hofer Gilson & Lione, USA]
Nicholas G. de la Torre, Partner [Brinks Hofer Gilson & Lione, USA]
Manish Mehta, Partner [Brinks Hofer Gilson & Lione, USA]
Rana Gosain, Senior Partner [Daniel Advogados, Brazil]
Nick Lee, Partner [Kilburn & Strode LLP, UK]
Ravi Srinivasan, Partner [JA Kemp & Co. UK]
Paul Teng, Partner [COOPER & DUNHAM LLP, USA]
Richard Liu, Regional IP Director, Asia Pacific [Yahoo!]
Pravin Anand, Managing Partner [Anand and Anand]
V Lakshmi Kumaran, Founder and Managing Partner [Lakshmikumaran & Sridharan]
N. L. Mitra, Senior Partner [FoxMandal Little]
Dr. Rahul Verma, Assistant Vice President [Evalueserve]
Deepak Maheshwari, Director - Corporate Affairs [Microsoft]
S K Murthy, Patent Counsel [Intel India]
Vinod Kumar, Sr. Director, Business Development *TBC [MOSAID Technologies Inc., Canada]
Terry Ludlow, Founder and CEO [Chipworks, Canada]
Benjamin C. Adams, Director - Legal and Intellectual Property [Nokia]
Alex Jamal, Director-Patent Licensing [Ericsson Group]
Dr. Pinaki Ghosh, Head IP [Infosys Technologies Ltd]
Dr. Viswanathan Seshan, Country Manager -IP&S India [Philips Electronics India Ltd.]
Chandra Bajagur, Head- IP [Shell Technology India Private Ltd]
Dr. Aravind Chinchure, Head-IP [Reliance Industries Ltd.]
Dr. Anindya Sircar, Head – IP [Infosys Technologies Ltd]
Dr. Arun Kumar Kashyap, Chief Research Manager – IPR [Indian Oil Corporation Ltd]
Anup Kacker, General Manager (IP) [Indian Oil Corporation Ltd]
T C James, Director [National Intellectual Property Organisation]
Dr. Samiran Mahapatra, Open Innovation Director- Asia [Hindustan Unilever Limited]
Dr. A.S. Narayan [Unilever Research Center]
Dinesh Jotwani, President, National Bar Association of India [National Bar Association of India]
Santanu Mukherjee, Lead IPR Attorney [Qualcomm India Pvt. Ltd.]
Neeraj Panchal, Senior Manager – IP [John Deere]
Murthy Kotra, General Manager, Technical Information Services [Dow Chemical International Pvt. Ltd.]
Arun Bhardwaj, Director – Business Development [Dell Global]
Dr. Raghunadh Vajjula, IP Analyst [GE India Technology Center]
Anubha Sharma, Senior Legal Counsel and Head-IP [Bharti Enterprises]
Dawn Jos, Patent Strategy Coordinator- Asia [Texas Instruments]
Dr. Pradeep V Desai, Principal Consultant [Tata Consultancy Services]
Faiz ur Rahman, Manager – IP [Wipro Technologies]
Ayan Roy Chowdhury, Senior Manager - Legal & IP [Sony Entertainment Television]
Stephen Mathias, Partner [Kochhar & Co]
Lokesh V, Founder and CEO [Innomantra Consulting]
Lakshminarayanan R, IPR Specialist [Nokia]
Prof. Dr.-Ing. Sigram Schindler, CEO [TELES AG Informationstechnologien, Germany]
Navneet K Bhushan, Founder Director [Crafitti Consulting Pvt Ltd]
Hasit Seth, Director [Coofluence]
Mohammad S. Rahman [Rahman LLC, USA]
Sunil Abraham, Executive Director [Centre for Internet and Society]
Dr. Vijay Soni, Executive Vice President-IP [Glenmark Generics Inc]
Dr. Balu Gupta, Vice President - Patent Estate [Dr. Reddy's Laboratories]
Dr. Rajiv Saha, General Manager, IP *TBC [Torrent Pharmaceuticals Ltd]
Gautam Bakshi, Head – Corporate Intellectual Property [PROMED Research Centre]
Dr. Swati Bal-Tembe, Vice President [Piramal Life Sciences Ltd]
Dr. Alpesh Pathak, Head- API Patent Cell [Alembic Research Center]
Ashwini Sandu , Senior GM- IPR [United Phosphorus Ltd]
Jayanthi M, Senior Executive – IPM [Intas Biopharmaceuticals Ltd]
Dinesh Pillai, CEO [Mahindra Special Services Group]

For more details, click here

Download the event brochure here [PDF, 1.09 MB]

For more details visit https://cis-india.org/notices/global-ip-convention

Global Congress On IP and Public Interest Adopts Principles for Negotiations

praskrishna — 2014-01-13T08:32:25Z

A recent conference on intellectual property and the public interest concluded with the adoption of public interest principles to guide international trade negotiations and international organisations.

This article by William New was published in the Intellectual Property Watch on January 6, 2014.

The Open African Innovation Research (Open A.I.R.) conference and the Global Congress on IP & the Public Interest took place in Cape Town, South Africa from 9-13 December. The conference hosted by the University of Cape Town was funded by Canada’s International Development Research Centre (IDRC), and Germany’s Gesellschaft für Internationale Zusammenarbeit (GIZ), among others.

Principles adopted at the conference included transparency, preservation of rights within international agreements such as national flexibilities, protection for internet service providers, strengthening of the public domain, and access to knowledge and to medicines.

The event included a fairly diverse representation, and not all participants necessarily signed on to the principles that emerged from the event.

According to infojustice.org, some 200 people have signed the “Global Congress Declaration on Public Interest Principles for International IP Negotiations,” which is available here.

The declaration calls for “’a positive agenda in international intellectual property law making’ which would include a more open negotiating process, respect for stakeholders’ social and economic welfare, and preserve states’ freedoms to protect access to knowledge goods,” infojustice.org said.

In particular, the declaration took aim at the Trans-Pacific Partnership agreement (TPP) being negotiated by 12 countries led by the United States. It urged negotiators of the TPP and future negotiations to ensure the “ongoing release of proposed legal provisions for public comment and maximize the ability of all interested persons and organizations to observe and participate in negotiation processes.”

Other principles, which echo debates at international organisations in Geneva, include ensuring that nations: retain sovereignty to take actions in their public interest without constraint from intellectual property rights, be able to use anti-circumvention measures without liability, and that IP enforcement measures be “reasonable and proportional.”

Additional principles called for avoiding “the creation of new dispute resolution fora parallel to, and that may conflict with, the multilateral system,” and ensuring that IP agreements are “consistent with international law, including international human rights law and the Convention on Biological Diversity.”

Finally, the declaration said: "We record our serious concerns about the closed and secretive processes being used for current international negotiations while acknowledging the efforts of some countries to promote positive proposals within them."

Statement on Global Fund IP Policy and Generics

Also at the Cape Town event, a statement was adopted raising concern over a policy being considered by the Global Fund for AIDS, Tuberculosis and Malaria that would establish tiered pricing for medicines.

“We note with growing concern the weakening of the Global Fund’s support for expanding access to safe, affordable generic medications as the answer to unaffordable essential drugs,” the statement said. “We are extremely concerned about the recent announcement of a ‘blue-ribbon Task Force’ on tiered-pricing of medicines in middle-income countries.”

In addition, the statement raised concern about a new Global Fund partnership with the International Federation of Pharmaceutical Manufacturers and Associations on “fake medicines.” It said the effort could create confusion in consumers’ minds about generic medicines. For them, the best approach would be “strong drug regulatory agencies together with effective technology transfer.”

"The Global Fund should retain its public interest focus and disentangle the interests of public health from the interests of those who claim intellectual-property over drugs," it said. "Regressive policy suggestions and public campaigns that undermine generic competition are counter to the Fund’s public mission."

Open A.I.R.

One aspect of the Open A.I.R. project is that the fellows who have been trained over the past few years now will go out and spread the word.

Seble Baraki, legal researcher at the Justice and Legal Systems Research Institute in Addis Ababa, Ethiopia, told Intellectual Property Watch, “I go and tell people what I’ve learned and see how it is going to help” on issues like health or branding to ensure high quality products.

"By being here, I think I have brought the issue of IP in my government," she said. For instance, they have a conference on law and development with the United Nations Development Programme (UNDP), and she has consistently mentioned that they should include something on development and IP. Now, they have agreed to do it, she said.

From studying in the North (Sweden), she had a certain idea about intellectual property. "Being part of this project helped me to see how to look at how to use IP from a public interest and development perspective.

Now, she said, she plans to go home and look at how it really makes a difference in her city, to see how IP can be used. Being part of this project, she added, "changed how you think about IP."

Other Highlights

The weeklong conference was packed with speakers and activities, and involved many of the leading figures in the public interest movement related to intellectual property rights. It also involved a first-time training on traditional knowledge related to IP rights.

The death of South African leader and “father” Nelson Mandela profoundly impacted the meeting. For example, a participant from Côte d’Ivoire said he was going to “live tweet” a journey through Mandela’s whole life, traveling from country to country.

Separately, Diane Peters, general counsel at Creative Commons, suggested a focus on a positive agenda, not taking away the right of another. There are ways to structure a dialogue so that everyone’s needs are addressed, she said.

“We are all part of some ecosystem,” she said, thinking and learning from the ideas of others. Limitations and exceptions are a right, Peters said. Authors should recognise that they also are re-using others’ ideas, same for the people who re-use and remix. “I’m really happy with how the dialogue-shaping is going,” she said.

Peters also said Creative Commons takes the view that their licences are not an answer to the problems of the copyright system. (CC licences include the version used by Intellectual Property Watch allowing re-use of our content for non-commercial purposes with attribution).

[Update: Creative Commons recently issued a policy statement on copyright reform].

The Struggle for Balance

Discussions during the week showed the diversity of topics and interests in fields affected by intellectual property rights. There were few vocal champions of the IP system, but there also was no blanket condemnation of it. Rather, discussions were attempts to address specific opportunities within IP, or concerns about its effects in certain cases. Not everyone held the same view and there were some debates during the week.

But given the variety and number of advocates from different sectors, such as the access to medicines and access to knowledge movements, there were some rallying cries around certain issues.

One relatively common area was the Trans-Pacific Partnership agreement (TPP), as concerns are high about raising IP protection levels without the participation of public interest groups. A speaker asserted that the United States is using the TPP to target BRIC countries (Brazil, Russia, India, China) as it did in the negotiations for the 1994 World Trade Organization Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).

There also were a number of discussions about the meaning of “open,” in issues like open access, open education, and open source. On a related note, Sunil Abraham, executive director of the Bangalore, India-based Centre for Internet and Society, said there are different types of open standards, and that using digital signatures instead of biometrics gives a decentralised system that protects human rights.

One speaker said they had been struck during the week by the need for a South-South network. Another asked how developing countries can use IP frameworks that have been predetermined in the North and that are not appropriate.

Participants repeatedly expressed positive attitudes about such a large and high-energy gathering (which the beautiful setting did nothing to diminish), allowing endless networking opportunities. But there was an urgency about the gathering for many, as global efforts to strengthen the IP system are working against their goals.

“We are seeing an assault on pretty much every single level,” one public health advocate said at the closing session. “Even when we win” and are able to advance the cause for access to medicines, the judges have been trained by the North (meaning with a pro-IP slant) and “turn the whole thing over.”

George Washington University Prof. Susan Sell described the “forum-shifting” that occurs with forces seeking to strengthen global intellectual property rules, as they seek international organisations where they can effect change in their favour. She likened it to a “cat and mouse” situation. She also said that IP policy is not an end in itself, but is public policy.

A participant from Jordan said that country did not play “cat-and-mouse” very well as when it signed its bilateral free trade agreement with the United States it took in all the bad aspects of the US copyright law.

Another speaker said the IP system does not encourage innovation for need but rather innovation for profit. He said governments in countries with strong rights holders are “captured,” and that governments need to be recaptured. He said organisations like the Gates and Clinton foundations are promoters of strong IP protection. Developing countries, activists, need to stop being the mouse, he said, and “start becoming the dog that chases the cat.”

“How do we forum-shift to all of the spaces we can win,” another speaker asked later, “[and] push the IP maximalist agenda to where we are not always on the defensive?”

“We are seeing an assault on pretty much every single level,” said a third. “Even when we win and are able to insert an agenda for [access to medicines], the judges have been trained by the North and turn the whole thing over.”

The mood, as Sell characterised it, is that “we can never stop and congratulate ourselves too much, because it just keeps coming.”

The annual event will continue next December, this time in Kuala Lumpur.

For more details visit https://cis-india.org/news/ip-watch-january-6-2014-william-new-global-congress-on-ip-and-public-interest-adopts-principles-for-negotiations

Global Congress on Intellectual Property and the Public Interest, 2015

sinha — 2015-06-24T16:45:21Z

We are pleased to announce that the Centre for Internet and Society will be hosting the fourth edition of the Global Congress on Intellectual Property and the Public Interest at New Delhi, India, tentatively in the first two weeks of December, 2015. This post seeks your participation and invites your queries and suggestions for the event.

The theme for this year’s Congress will be “Three Decades of Openness; Two Decades of TRIPS.” We are now inviting applications to participate in the Congress, including session participation and presentations. We are also welcoming proposals for panels and workshops.

The application form is available now at [http://form.jotformpro.com/form/50854976184973?] Please note that this form is for application purposes, and does not amount to confirmation of participation. The registrations for the plenary sessions, which are open to the public, will open closer to the date of the Global Congress.

Deadlines

August 1st: Priority Deadline for Applications- Applicants will be considered on a rolling basis, with applications made by August 1st being given first consideration. Applications after August 1st to receive travel assistance will be considered only under exceptional circumstances (these details will be collected in a subsequent form).

November 1st: All applications for session participation and paper submissions will close on November 1st.

Application Information

For applications to participate/host: Applications to present or host workshops shall be considered based on the proposals to be submitted in the form.

For applications to attend sessions: Applications to attend sessions as discussants will be considered based on the statement of purpose and/or any other relevant information provided by the applicant.

Limited travel grants to cover accommodation and/or travel to the Congress will be available, with priority to those from developing countries.

Background, Theme and Expected Outcomes

The Global Congress on Intellectual Property and the Public Interest is the most significant event on the calendar for scholars and policy advocates working on intellectual property from a public interest perspective. By sharing their research and strategies, the network of experts and activists supported by the Global Congress are empowered to put forward a positive agenda for policy reform. The Global Congress began in Washington D.C. in 2011, moved to Rio de Janeiro in 2012, and was held in Cape Town in 2013. The fourth Global Congress will now be held in New Delhi, in December 2015. The event would be the largest convening of public interest-oriented intellectual property practitioners ever held in Asia, and would help link in the world's most populous region to these global debates around how intellectual property policy can best serve the public interest.

The fourth edition of the Global Congress brings research, civil society, industry and regulatory and policy-making communities together for active, intense engagement on key public-interest intellectual property issues. Opportunities for these groups to interact are rare but valuable; and have been proven to lead to successful policy outcomes. The 4^th edition of the Congress, slated to be held in December, 2015 in New Delhi seeks to be one such opportunity.

The theme for the 2015 Congress is Three Decades of Openness; Two Decades of TRIPS-coming at a pivotal time for reflection, revision, and further strategizing. Specifically, the 2015 Congress seeks to produce three outcomes- first, the mobilization of existing scholarly research directly into the hands of civil society advocates, business leaders and policy makers, leading to evidence-based policies and practices; second, the collaborative identification of urgent, global and local research priorities and generation of a joint research/advocacy agenda; and third, the solidification of an inter-disciplinary, cross-sector and global networked community of experts focused on public interest aspects of IP policy and practice.

Participation Opportunities

Discussions at the Global Congress will be carried out in the form of plenary sessions, thematic tracks, cross-track sessions, and the room of scholars. Participation is invited for the thematic track sessions, cross-track sessions and the room of scholars.

The thematic tracks at the Global Congress are: 1) Openness, 2) Access to Medicines, 3) User Rights, 4) IP and Development. Cross-track sessions will feature research that cuts across tracks in order to facilitate engagement between tracks on themes of mutual interest.

The Room of Scholars will feature presentations of research outputs such as draft works or white papers that may not fit directly within the thematic tracks but fall within the overall theme of the Global Congress.

Participation could be in the form of presenting / discussing conference papers or policy briefs, or by conducting workshops where they may share their own work and solicit feedback from peers, during the aforementioned sessions.

The application form for participation is available now at http://form.jotformpro.com/form/50854976184973?. Please forward this invitation to interested lists and individuals. For more information or questions, you may contact global-congress@cis-india.org.

Organisation

The 4^th Global Congress on Intellectual Property and Public Interest, is being organised in cooperation with National Law University, Delhi, by the American Assembly at Columbia University, the Centre for Internet and Society, Open A.I.R., and the Program on Information Justice and Intellectual Property at American University Washington College of Law.

For any clarifications or queries, please contact:

Global Congress organising team: global-congress@cis-india.org

Swaraj Paul Barooah: swaraj.barooah@gmail.com
Shruthi Chandrasekaran: shruthi.chandrasekaran@gmail.com

The planning team also includes:

Anubha Sinha: anubha@cis-india.org
M.P. Nagaraj: nagaraj@cis-india.org
Maggie Huang: maggie@cis-india.org
Pranesh Prakash: pranesh@cis-india.org
Rohini Lakshane: rohini@cis-india.org
Sunil Abraham: sunil@cis-india.org
Nehaa Chaudhari: nehaa@cis-india.org

For more details visit https://cis-india.org/a2k/2015-global-congress-on-intellectual-property-and-the-public-interest

Fueling the Affordable Smartphone Revolution in India

sinha — 2016-03-16T15:23:43Z

Smartphones have emerged as the exemplar of mankind's quest for shrinking technologies. They embody the realization of a simple premise – that computing devices would do more and cost less. This realization has been responsible for modern society's profound transformations in communication, governance, and knowledge distribution.

The essay was published as part of the The Good Life in Asia's Digital 21st Century essay collection.

The launch of the iPhone in 2007 is often credited with ushering in an era of smartphones. Ever since, the world's best tech R&D has focused on increasing the capabilities of these devices. And as a result, less than a decade later, we have sub-hundred dollar smartphones. The low-cost smartphone has found an enthusiastic and insatiable market in developing countries, especially Asia. India is no exception to the Asian narrative – Micromax, Spice, and Lava (low cost smartphone manufacturers) are household names in the Indian smartphone market, which accounted for 65% of internet traffic in 2014 (Meeker, 2015).

The Indian Prime Minister, carrying the twin aspirations of catalyzing the growth of indigenous manufacturing and bridging the digital divide, launched the “Digital India” and “Make in India” campaigns last year. During his US visit, Google, Apple, Microsoft, Facebook extended their support to the campaigns' vision (Guynn, 2011). The campaigns outline the government's elaborate initiatives to, inter alia, bridge the digital divide and build indigenous manufacturing capacity. While all these developments bode well for the indigenous smartphone, there remain some serious concerns affecting the growth of the industry – for instance, patent infringement litigations and the absence of clear legal and regulatory solutions.

From the state of the industry and its implications, it can be concluded that: first, growing access to smartphones has been influenced by their phenomenal affordability; second, smartphones are an excellent example of technology for development (UNDP, 2001) and a facilitator of access to knowledge; and third, domestic smartphone production has occurred in an imprecise legal and regulatory environment.

This essay attempts to build an appreciation for the role that smartphones are playing in development, specifically, by fostering Access to Knowledge. Conversations around development by public-interest groups and emerging industries often espouse Access to Knowledge to address concerns in international development, communications, technology, education, and intellectual property policy. Whereas the principle can be regarded as in-theworks, two theories inform us about the role of mobile phones in fostering Access to Knowledge. Lea Sheaver's theory classifies mobile as an Access-toKnowledge good. Lea enumerates the five key components of a robust Access to Knowledge framework, viz., education for information literacy, access to the global knowledge commons, access to knowledge goods, an enabling legal framework, and effective innovation systems (Sheaver, 2007). According to her, affordability of the good is the ultimate indicator of its efficacy as an access to knowledge good. Furthermore, inventions in microchip technology, electronics manufacturing, and software need to be supported by enabling legal and policy frameworks coupled with effective innovation systems.

Yochai Benkler's framework classifies mobile-devices as both informationembedded goods and information-embedded tools (Benkler, 2006). He says, “Information-embedded goods are those goods which are ‘better, more plentiful or cheaper because of some technological advance embedded in them or associated with their production,’ such as medicines, movies, and improved crop seed. Information-embedded tools, in turn, are those technologies necessary for research, innovation, and communication of knowledge” (Benkler, 2006). A smartphone qualifies as both because it can be used to obtain knowledge, and it depends on discoveries in microchip technology, electronics manufacturing, and software to function.

To date, there has been no formal, theoretical or evidentiary investigation on the emergence of smartphones as an Access-to-Knowledge good. In the following sections, I will attempt to explain the smartphone’s dependence on an enabling legal framework and effective innovation systems (Lea's components). It must be borne in mind that globally, discussions affecting access to knowledge have aimed at creating balanced and inclusive systems related to intellectual property (Kapczynski & Krikorian, 2010). Therefore, the essay will focus on: first, the relationship between constituent mobile technologies and intellectual property as a function of production/deployment of smartphones in India; and second, the relationship between innovation and access.

Creating an Enabling Legal Framework to Foster Access to Knowledge

The adage “the only lesson you can learn from history is that it repeats itself” is worth bearing in our narrative. The emergence of the smartphones industry in Asia has commonalities with the flourishing Asian piracy trade – which remains an essential access solution for low-income societies constantly barraged by expensive western media goods. The prohibitive cost of acquiring brand-name devices (e.g. Apple, HTC, Samsung, Sony) drove local production to imitate and innovate cheaper substitutes (WIPO, 2010). This occurred within the lenient and flexible intellectual property regimes prevalent in Asian countries, which continue to be constantly criticized for their failure to enact stricter intellectual property law. The hubs of smartphone production – China, Taiwan, and India – have flexible intellectual property protection law and lax enforcement measures (Centre for Internet and Society, 2012).

Concerns of intellectual property center around patent and copyright legislation, which have yet to be fully developed to address intellectual property in high-tech industries (since trademark issues remain unchanged, they will not be discussed in the essay.) As a result, constituent smartphone technologies have been shaped and governed by a blend of formal and informal rules and legal and illegal practices. This is why they are often referred to as “gray market” technologies. A smartphone in terms of constituent intellectual property can be broadly divided into hardware and software technologies. This piece will first deal with hardware, followed by software technologies.

Hardware Technologies and Their Relationship with IP Law

Presently, most Indian manufacturers import hardware from China and Taiwan, and assemble the phones in India. A few key Indian domestic players are Maxx Mobile, Intex, Spice, and Lava, whose dominance have not gone unnoticed by foreign manufacturers. A couple of these domestic manufacturers are now embroiled in patent litigation threats or infringement suits. And as litigation piles up in Indian courts, the judiciary is slowly waking up to mobile patent litigation, but is yet to rule comprehensively. To make matters worse, the jurisdiction of the Indian antitrust regulator remains unclear, and to a certain extent overlaps with the judiciary, adding to the ambiguity. For instance, when an appellate court ruled in favor of the Swedish tech-giant Ericsson, it ordered Micromax to pay a flat 1.25 – 2% of its devices' selling price to Ericsson (Lakshane, 2015). The ruling was devoid of a more rational and reasoned approach developed by courts of other jurisdictions in similar matters, which prescribed that the infringers pay damages based on the price of the patented components only, and not the retail price of the phones. This decision risks causing a significant increase in the price of phones and potentially threatens local innovation.

The Indian government's Make in India and Digital India campaigns aim to fulfill the vision of a digitally empowered India, and the 2015 Indian Union budget also targets boosting the electronics manufacturing industry. Despite these broad initiatives, there needs to be a more focused policy in place to ensure domestic companies do not get weighed down by patent related concerns. The root cause of litigation is the vesting of a majority of critical mobile patents (Standard Essential Patents, or SEPs) by a handful tech-giants. For instance, Qualcomm owns 5700 patents around CDMA technology (qualcomm.com). In another instance, the DVD format constitutes 311 SEPs for DVD players and 272 SEPs for DVD recorders (CIS, 2012). Such a dense concentration of patents around SEPs creates a patent thicket and thereby compels Smartphone manufacturers to acquire multiple licenses, and to pay high transaction costs and huge royalties to the owner. To reduce conflict and protect domestic players from being arm-twisted into paying high royalties, the government can potentially identify critical technologies and initiate the formation of a patent pool of such technologies. The concept of a patent pool mandates that the patent holders issue licenses on fair, reasonable, and nondiscriminatory basis to interested parties. However, a nuanced and cautious approach to setting up such pools is necessary (Shapiro, 2001).

There are interesting lessons in China's steps to encourage local innovation of Smartphone hardware as well, specifically in the form of standardized technologies. The Chinese government has actively supported the development of indigenous standards to shield domestic manufacturers from royalty exposure. In fact, the China Blue High-definition Disc (CBHD) standard was built as an alternative to the Blu-ray disc and was duly adopted by the Chinese government, which reportedly caused the royalty rates for the Blu-ray format to dip. Much later, Warner Bros, Paramount, and other motion picture producers adopted the CBHD standard as well for distribution in China.

Software Technologies and Their Relationship with IP Law

Unlike hardware technology, where India is struggling to build manufacturing capacity, the success of the Indian software industry has already been realized. The software-as-a-service (SaAS) industry is led by Infosys, TCS, and Wipro in software exports. The prevailing trend in the industry since the 1980s was to assign ownership of their products to offshore clients. However, in the past decade, there has been a conscious shift by the Indian software development workforce to build products for Smartphone platforms. This is in response to the shift in local populations to accessing content and services online. Reports indicate that India has the second largest population of mobile applications developers (approx. 3 million) in the world, second only to the US (Livemint, 2015). The Indian government has recognized the potential of mobile application-based ventures and created funds to encourage app development in India (IAMAI, 2015).

Intellectual property protection around software is fairly ambiguous. A piece of code is potentially capable of gaining both patent and copyright protection. In the area of mobile application development, preliminary research findings indicate that coding occurs with an agnostic attitude towards intellectual property laws (Cassar, 2014). One of the reasons is ambiguity on a multitude of issues around the protection of software because Indian legislation on patent and copyright is frustratingly insufficient. There is a growing discontentment about long-term patent protection over software code, which could be detrimental to innovation – particularly, to the start-up segment of software industry. In more technologically advanced economies, software patenting has emerged as a scourge – last year, the US Supreme Court in Alice Corporation Pty Ltd v. CLS Bank International Et Al narrowed the eligibility of software inventions to gain patent protection. The activist discourse has shifted in favor of eliminating software patenting because of the incremental and obsolescent nature of a software invention, inter alia (Lapowsky, 2015). However, in a recent disappointing move, the Indian patent office widened the scope of patent-eligible subject matter for software-related inventions – a move that was decried by free software activists and industry alike. This widening of scope can only benefit tech-giants in building bigger patent portfolios, which is unnecessary and unhealthy for innovation by small and mid-tier entities (Sinha, 2015).

Effective Innovation Systems

Innovation ensures fresh creation of knowledge. A society cannot premise itself on the mere importation of knowledge; it must also strive to use the knowledge to meet its own local needs and environment. Innovation depends on a variety of factors – there is no singular path or factor to build an innovative and enterprising society. The patent system is often incorrectly credited with “promoting” innovation. The discourse around innovation was extremely patent-centric until studies disproved the assumptive correlation between high patenting activity and innovation. Continuing in the same vein, Lea states, “From the A2K perspective, however, relying on patents – which represent the right to exclude others from access to the innovation – is particularly problematic. Patents likely represent the segment of innovation of least value for expanding access to knowledge: improvements in the knowledge stock whose application is limited by exclusive property rights” (Shaver, 2007).

In this framework, it is also important to shed light on the growing movement of openness. Openness as a movement has been captured by various fields - Big data, software, education, media, etc. Free and Open Source Software has emerged as a key agent in information technology policy-making in India, with the Indian government adopting an open standards policy and an open software policy for its own purposes.

In the context of smartphone technologies, preliminary findings also support the shift towards openness (Huang, 2014). Industry participants have observed that openness will lead to greater benefits in private production of hardware technologies. Similarly, mobile applications developers have also voiced support of open source software (Cassar, 2014).

Conclusion

The discussion above identified a limited set of legal and regulatory concerns affecting the state of production/deployment of smartphones in India. These issues and findings are backed by preliminary research, and purport to sustain the emergence of the smartphone as an enabler of access to knowledge. The proposed solutions direct industry and the government alike to take immediate steps to fix problems impeding pervasive access to this knowledge good.

The experience of the smartphone industry with an imprecise legal and regulatory environment, akin to piracy, has thus far been a success story of affordability, quality substitution, and innovation. However, this narrative is now threatened by messy litigation, jurisdictional uncertainties between the anti-trust regulator and judicial system, SEP licensing issues, rise of software patents, inter alia. Despite these issues, the industry continues to grow. The future of access to knowledge is therefore bright, provided that stakeholders make efforts to meet the needs of this emerging industry and the public, including development and consumer interests.

References / Links / Resources

Benkler, Y. (2006). The Wealth Of Networks: How Social Production Transforms Markets And Freedom. Retrieved from http://www.benkler.org/wealth_of_networks/index.php?title=Chapter_9%2C_section_3.
Cassar, S. (2014). Interviews with App Developers: Open Source, Community, and Contradictions – Part III. Retrieved from: http://cis-india.org/a2k/blogs/interviews-with-app-developers-open-sourcecommunity-and-contradictions-iii
Cassar, S. (2014) Ambiguity in the App Store: Understanding India’s emerging IT sector in light of IP. Retrieved from http://cis-india.org/a2k/blogs/ambiguity-in-the-app-store
Centre for Internet and Society, Pervasive Technologies: Access to Knowledge in the Marketplace(2012, September). Retrieved from http://cis-india.org/a2k/pervasive-technologies-research-proposal.pdf/view
Guynn, J. (2015, September 28). Facebook, Silicon Valley like Indian Prime Minister Narendra Modi. Retrieved from http://www.usatoday.com/story/tech/2015/09/27/narendra-modi-india-facebook-markzuckerberg-google-sundar-pichai-silicon-valley/72936544/
Huang, M. (2014). [Open] Innovation and Expertise > Patent Protection & Trolls in a Broken Patent Regime (Interviews with Semiconductor Industry - Part 3). Retrieved from: http://cis-india.org/a2k/blogs/ interviews-with-semi-conductor-industry-part-3
IAMAI (2015). An inquiry into India's app economy.
Kapczynski, A., Krikorian, G., (2010). Access to Knowledge in the Age of Intellectual Property. Retrieved from: https://mitpress.mit.edu/sites/default/files/titles/free_download/9781890951962_Access_to_ Knowledge_in_the_Age_of_Intellectual_Property.pdf
Lakshane, R. (2015, September). FAQ: CIS Proposal for Compulsory Licensing of Critical Mobile Technologies. Retrieved from: http://cis-india.org/a2k/blogs/faq-cis-proposal-for-compulsory-licensing-ofcritical-mobile-technologies
Lakshane, R. (2015, February). Open Letter to Prime Minister Modi. Retrieved from: http://cis-india.org/ a2k/blogs/open-letter-to-prime-minister-modi
Lapowsky, I. (2015, February). If You Want to Fix Software Patents, Eliminate Software Patents. Retrieved from https://www.eff.org/mention/follow-wired-twitter-facebook-rss-eff-if-you-want-fix-software-patentseliminate-software
Meeker, M. (2015). 2015 Internet Trends. Retrieved from http://www.kpcb.com/partner/mary-meeker
PTI (2015). Google aims to make India a hub for app development. Livemint. Retrieved from: http:// www.livemint.com/Industry/rwWUfp30YezONe0WnM1TIO/Google-aims-to-make-India-a-hub-for-appdevelopment.html
Qualcomm Enters Into CDMA Modem Card License Agreement with Seiko Instruments Incorporated. (n.d.). Retrieved November 13, 2015, from https://www.qualcomm.com/news/releases/2000/06/20/ qualcomm-enters-cdma-modem-card-license-agreement-seiko-instruments
Shapiro, C. (2001). Navigating the Patent Thicket: Cross Licenses, Patent Pools, and Standard Setting. Innovation Policy and the Economy, 1, 119-150. Retrieved from: http://www.nber.org/chapters/c10778.pdf
Shaver, L. (2007). Defining and Measuring Access to Knowledge: Towards an A2K Index. Faculty Scholarship Series. Paper 22. retrieved from: http://digitalcommons.law.yale.edu/fss_papers/22
Sinha, A. (2015). Comments on the Guidelines for Examination of Computer Related Inventions (CRIs). Retrieved from http://cis-india.org/a2k/blogs/comments-on-the-guidelines-for-examination-of-computerrelated-inventions-cris
United Nations Development Programme, Human Development Report 2001: Making New Technologies Work for Human Development (2001). Retrieved from http://hdr.undp.org/reports/global/2001/en/
World Intellectual Property Organisation. (2010, Dec 1-2). Media Piracy in Emerging Economies: Price, Market Structure and Consumer Behavior. Retrieved from the WIPO website: http://www.wipo.int/edocs/ mdocs/enforcement/en/wipo_ace_6/wipo_ace_6_5.pdf

For more details visit https://cis-india.org/a2k/blogs/digital-asia-hub-the-good-life-in-asias-21-st-century-anubha-sinha-fueling-the-affordable-smartphone-revolution-in-india

First Post-Bilski Decision - Software Patent Rejected

praskrishna — 2011-08-23T03:24:25Z

In the first decision post-Bilski, the Board of Patents Appeals and Interferences (BPAI) rejected a software patent claimed by Hewlett-Packard. The ruling in this case has buttressed the fact that the Bilski decision furthered the cause of narrowing the patentability of software even though the Supreme Court of the United States totally avoided mentioning software patents or the applicability of the machine or transformation test for software patents in its decision.

As eagerly as it was awaited, the United States Supreme Court’s decision in Bilski v. Kappos (2010) was a dampener as far as its impact (or the lack of it) on patentability of software was concerned. The Supreme Court totally avoided even mentioning software patents or the applicability of the machine or transformation test for software patents in its decision and while many claimed that it was status quo maintained, a few of us found a silver lining in the Court’s ruling of abstract ideas as unpatentable and its admission of an argument that patents do not necessarily promote innovation and may, sometimes result in limiting competition and stifling innovation. Our hope that the Bilski case furthered the cause of narrowing the patentability of software was not misplaced is evident from the first decision post-Bilski, of the BPAI, which rejected a software patent claimed by Hewlett-Packard. The BPAI, in In Re Proudler, rejected a patent claim for software made by Hewlett Packard on the ground that software, being an abstract idea, is not patentable. The BPAI relied on, among others, the Supreme Court’s decision in Bilski v. Kappos in holding that an abstract idea was not patentable.

The case before the BPAI was on appeal from the decision of the patent examiner who refused patent for the claim on the ground that it was obvious (on basis of prior art analysis) and therefore, “barred at the threshold” for patentability under US patent law. The patent was claimed for “a method of controlling the processing of data” comprising “defining security controls for a plurality of data items, and applying individualised security rules to each of the data items based on a measurement of integrity of a computing entity to which the data items are to be made available”. It was essentially a claim for software facilitation data processing and involving security controls for several data items. The BPAI refused patent for the claim but differed from the patent examiner in its reasoning. The BPAI held that all claims related to non-patentable subject matter and hence, could not be granted patent.

In coming to this conclusion, the BPAI relied on previous decisions including In Re Nuijten which held that Section 35 of the US Code of Patents which allows patents for a machine, a manufacture, a process or a composition of matter constitutes “the exclusive reach of patentable subject matter”. In ruling that HP’s claim was not patentable, BPAI also held that software, being an abstract idea, was not patentable. The line of argument relied on by the BPAI was something like this – “[A] machine, a manufacture, a process or a composition of matter” constitutes the exclusive reach of patentable subject matter. Thus, laws of nature, abstract ideas, and natural phenomena are excluded from patent protection as held in the well known case of Diamond v. Diehr. The Federal Circuit in its decision in In re Warmerdam has held that an abstraction is not a patentable subject matter. In other words, a claim that recites no more than software, logic or a data structure (that is, an abstraction) does not fall within any statutory category. It has been held in Microsoft Corp. v. AT & T Corp. that an abstract software code is an idea without physical embodiment. Finally, and most significantly, the Bilski case has put the nail in the coffin by ruling that abstract ideas are not patentable. Against the background of these precedents, BPAI has confirmed the unpatentability of software on the ground that it is an abstract idea.

It is interesting that the BPAI also mentioned that “no true hardware structure is recited” in the claims to buttress its conclusion that the idea claimed was an abstract one. This means that the BPAI took note of the fact that although a hardware structure may have been essential to implement the abstract idea forming the claim such structure itself was not claimed for patent. The innovation claimed lay in the software alone and not in the hardware and therefore, did not merit patent protection. Thus, a claimed invention which is a combination of hardware (required to implement the software) and software may not be patentable as long as there is no ingenuity in the hardware as software alone, being a mere algorithm and an abstraction, falls outside the scope of patentable subject matter.

The first post-Bilski decision gives us more than one reason to cheer about –

It refused patent for software on the ground that it was an abstract idea and hence, did not fall under patentable subject matter. Acceptance of software as merely an abstract idea is catching up and is thus, good news for those who challenge the patentability of software.
The BPAI, in ruling software as an abstraction and thus, unpatentable relied directly on the Bilski decision and therefore, provided a clear, much-needed guideline for conclusively interpreting the Bilski decision as one restricting the patentability of software.
The decision supported the argument that any combination of hardware and software, to be patentable, must demonstrate ingenuity in the hardware component. As long as there is no claim for hardware, the software itself, being an abstraction, cannot be patented. This brings about greater clarity in the definition of software to be limited to an algorithm (and thus, abstract) and to be looked at in isolation from a hardware component which is solely used to implement the software and no more.

It will be interesting to follow the developments in this case and in other future claims for software which may rely on the Bilski decision. In Re Proudler is certainly encouraging for limiting software patents especially in the aftermath of Bilski. As far as patentability of software is concerned, the Bilski decision may not be that insignificant after all.

For more details visit https://cis-india.org/a2k/blogs/post-bilski

First Asia Pacific Workshop on Empirical Methods in Innovation, Intellectual Property and Competition

praskrishna — 2017-03-14T14:14:12Z

Rohini Lakshané took part in a workshop organized by Centre for Innovation Intellectual Property & Competition in New Delhi from March 9 to 11, 2017.

The workshop was open for legal academicians (who are working in the areas of intellectual property law and/or competition law) and regulators working with intellectual property law and competition law issues in the Asia-Pacific region. Click here for the Agenda. More details on Spicy IP Blog here

For more details visit https://cis-india.org/a2k/news/first-asia-pacific-workshop-on-empirical-methods-in-innovation-intellectual-property-and-competition

Fifth International IPR Conference (GIPC 2013)

praskrishna — 2013-02-03T02:04:49Z

ITAG Business Solutions is organizing its Fifth International IPR conference "GIPC 2013" at Hotel LaLit Ashok, Bangalore, India on the theme "IPR: The Powerhouse of Tomorrow". Snehashish Ghosh is participating in the event and will speak on Pervasive Technologies: Access to Knowledge in the Market Place.

The Institute of International Trade and Sughrue are the co-organisers of this event. Full details of the event can be seen here.

The conference shall deal with specific technology in various industries, World leaders and the various IPR solutions.

The subjects to be covered in the conference are from idea to asset encompassing all relevant topics including valuation, commercialization, technology transfer, litigation, counterfeiting, analyzing the techno, legal and commercial solution to all associated problems in the field of intellectual property. The conference will deal with complex issues in simple manner about patentability of business methods, software and emerging field of technologies namely electronics, telecommunications, green technologies, nanotechnologies and pharmaceuticals. The emerging BRICS economies need to provide IP competitiveness to the Western Nations through innovation and creativity.

Click to see the agenda.

For more details visit https://cis-india.org/news/fifth-intl-ipr-conference-gipc-2013

Fallacies, Lies, and Video Pirates

pranesh — 2011-08-04T04:43:08Z

At a recent conference on counterfeiting and piracy, industry representatives variously pushed for stiffer laws for IP violation, more stringent enforcement of existing IP laws, and championed IP as the most important thing for businesses today. This blog post tries to show how their arguments are flawed.

The Confederation of Indian Industry (CII) organized its third annual conference on counterfeiting and piracy, with support from the United States Embassy and the Quality Brands Protection Committee of China (a body comprising more than 80 multinational companies). Last week we criticised the conference in an open letter. This week, we examine a few of the recurring themes that came up at the conference.

Something being substandard is not the same as something being counterfeit.

This was a mistake made by many whenever they invoked 'counterfeit' in the sense of something that is violative of one's patent and trademark rights. The Indian Drugs and Cosmetics Act itself distinguishes between 'misbranded', 'adulterated', and 'spurious' drugs, thus recognizing that something that is made without proper authorization from rights owners isn't necessarily of a bad quality. Indeed, this was substantiated by an audience member, a lawyer from Dr. Reddy's Lab. She spoke of a mandi in Agra where they seized medicines being sold under the Dr. Reddy's name, but produced by local manufacturers. Upon lab testing, it turned out, much to their surprise, that the medicines were of the highest quality and were not substandard. Similarly, many large companies including trusted FMCG companies like Hindustan Unilever and ITC are upbraided by authorities for violations of the Drugs and Cosmetics Act (for the cosmetics they produce) as well as the Prevention of Food Adulteration Act. Thus, even legitimate businesses can produce substandard products. Thus, a product can be unauthorized but not substandard, just as a product can be substandard but not counterfeit.

This distinction becomes very important when we talk about patents, and especially drug patents. A generic drug is by definition identical or within an acceptable bio-equivalent range to the brand name counterpart with respect to pharmacokinetic and pharmacodynamic properties. Thus, this entire category of high-quality drugs is often sought to be made illegal or counterfeit by large pharma companies. Some countries like Kenya have capitulated. But so far the World Health Assembly has been forced by developing countries to keep the issue of substandard medicines separate from patent-bypassing medicines.

The industry, for all their talk about "out of the box" thinking on the issue, still only consider metrics such the number of piracy raids conducted as measures of success. A question was put forth by Manisha Shridhar of the Intellectual Property & Trade Unit of the World Health Organization upon learning of the quality of the drugs seized at the Agra mandi: Why not cut a licensing deal with those manufacturers, who obviously have excellent production facilities? That kind of thinking, which helped HMV in India in the 1980s, and copying innovative features from video pirates and pricing their products competitively has helped an Indian company, Moserbaer, do extremely well.

Counterfeiters and pirates are not always seeking to fool consumers.

Only lawyers hired by the industry would think that a consumer aspiring towards a Rolex watch would actually think that the one he purchased off the streets for one-hundredth the original's price was in fact original. Street-side DVD hawkers are not thought by the general public to be selling original wares. Still, despite knowing the difference between the original and the fake, consumers many times opt for the latter.

Having said that, counterfeiting, by using someone else's trademark and trying to pass off fake goods as real ones, is quite obviously wrong. It harms customers, and it harms the manufacturers. Thus, a distinction deserves to be made here between the counterfeiters who try to deceive consumers (for instance by copying authenticity marks, like holograms, etc.) and those who are just providing them with highly cheaper alternatives (pirated DVDs, etc.). In this light, it is also important here to distinguish between counterfeiting, traditionally taken to be trademark violation, and piracy, traditionally taken to be a violation of international law, but now generally meaning a large-scale violation of copyright law. While the former can lead to consumer confusion, the latter scarcely ever does. This is ignored by industry people who evoke the image of the consumer quite often, but only when it helps them, and not in any meaningful manner. They negate consumer choice when it comes to consciously purchasing pirated goods, and consumer freedoms when it comes to usage of copyrighted materials.

While commercial film piracy funds terrorists, so does pretty much every business activity.

A favourite of the MPAA (and by association, the MPA) is the RAND report on Film Piracy and its Connection to Organized Crime and Terrorism. This report, which was funded by the MPAA, predictably concludes that film piracy funds organized crime and terrorism. Even if we are to believe its findings wholesale, it leaves us wondering whether all business activities from which terrorists derive funds should be banned.

In India, there is a substantiated link between organized crime and film and music production, and terrorists have been said to make money off the stock market. If the MPA's arguments are taken to their logical conclusions, then film production and equity trading should also be prosecuted. Furthermore, while the mafia and terrorists are the ostensible targets, the laws that are brought about to tackle it affect poor roadside vendors and non-commercial online file sharers. To tackle the funding of terrorists, roadside piracy shouldn't become the target just as film production per se shouldn't. The invocation of the RAND report is thus only meant for rhetorical effect, as it is hard to find logic in there.

"To copy without authorization is to steal", the death penalty, and drug peddling.

At the conference, Dominic Keating of the US Embassy pointed out that "to copy without authorization is to steal" and David Brener of US Customs and Border Protection kept emphasising, on at least two occasions, that "drug peddling merits an automatic death sentence in many countries". There are numerous arguments one can make to show the lack of thought in the former. One could point out that 'stealing' and 'theft' are things that happen to tangible property, and that not only is copyright not tangible, but it is barely property. Copying without authorization creates one more of what existed, without depriving the authorizer (usually a corporation) of its original. This goes against our notion of 'stealing'. If the argument is to be shifted to the terrain of control over one's property/copyright, Mark Lemley in an illuminative article shows how the economic theories behind externalities in property and copyright are vastly different, and that complete control over either has never been, nor should it ever be, an aim of the law. Simply put, someone free riding on your property leaves you worse off than earlier, while someone free riding on your copyright usually doesn't.

One could also point out that 'stealing' is endemic in activities involving human creativity. T.S. Eliot notes that "Immature poets imitate; mature poets steal; bad poets deface what they take, and good poets make it into something better, or at least something different". He does not even consider the possibility that artistic borrowing, whether by imitation or by 'stealing' does not happen. Even Y.S. Rajan, Principal Adviser to CII recognized this when during the conference he noted that "imitation and innovation have an interesting and intertwining philosophical history". If we are to take Mr. Keating's admonishment seriously, we would indeed have a very illustrious list of thieves on our hands, including the Walt Disney Corporation, William Shakespeare, Vladamir Nabokov, Public Enemy, and pretty much every creative person who has ever lived. Books can be written about this (and indeed, numerous books have been), so we shall not dwell on this issue.

Mr. Brener's repeatedly spoke of how drug peddling attracts death penalty in many countries (though in neither the US nor in India has anyone ever received capital punishment for drug peddling), but he also clarified that he is not advocating for the death penalty for copyright violations. That made one wonder why he was bringing up the death penalty at all. He also made the dubious, non-substantiated claim (noting it as "true fact") that pirating movies is more profitable than selling heroin. This claim appears in an article about a report produced by the Australian Federation Against Counterfeit Theft (AFACT), but the original report is nowhere to be found. The article about the AFACT report also claims that the pirates are using their illicit profits promote drug smuggling. The seeming contradiction of film pirates investing in something that is riskier and less profitable doesn't seem to have caught the eye of the writers. One version of the 'drugs are less profitable than pirated DVDs' claim (with marijuana taking heroin's place) was debunked on the Commons Law mailing list. Pirated DVDs are sold for a fraction of the cost of the original. It would be obvious to anyone that DVDs that are typically sold for Rs.30-50, where the cost of manufacture alone may be estimable to be around Rs. 10, cannot be more profitable than heroin peddling. That apart, most online file sharing (deemed to be "piracy") is non-commercial. Thus the question of profit does not really arise. Still, for the industry, absence of a profit is equal to a loss.

Thus, the rhetoric of crime, and that too heinous crime, is continually used, despite its being completely inapposite. Why does used to try to make IP enforcement a matter of state concern, rather than a matter of private, and civil, interest. This way, illegitimate statistics and factoids are used to make individual file-sharers who earn no money get lengthy prison sentences. This and other ways in which IP enforcement has expanded are carefully documented in this paper by Susan Sell.

Repeating false 'statistics' does not make them true.

Again, we were subjected to a number of dubious claims during the conference: If only counterfeiting and piracy were eliminated, India's fiscal deficit would disappear; the Indian entertainment industry loses 16000 crore (USD 4 billion) yearly to piracy; 820,000 direct jobs are lost due to film piracy; software piracy costs the industry USD 2.7 billion annually, etc. These reports' methodologies have been thorougly discredited. Even The Economist, a very conservative and pro-industry newspaper, believes that the BSA-IDC annual reports on software piracy are utterly distorted. Similarly, in the U.S., the figure of 750,000 jobs (around 8% of the U.S. unemployed in 2008) being lost due to piracy were touted by everyone from the Department of Commerce, the Chamber of Commerce, U.S. Border and Customs Protection, and the MPAA, RIAA, and BSA. The amount of money lost each year in the U.S. due to IP infringement has been estimated to be between USD 200-250 billion (that's more than the combined 2005 gross domestic revenues of the movie, music, software, and video game industries). In a lengthy piece in Ars Technica, Julian Sanchez traces back the history of both these figures, and shows how they are just large numbers used for lobbying, and are not based on actual studies. The industry-commissioned Ernst & Young report ("The Effects of Counterfeiting and Piracy on India's Entertainment Industry") was never made available to the public at large, thereby making it impossible to judge the methodological soundness of the survey and the veracity of the figures.

IP expansion and more stringent enforcement is counter-productive.

Chander Mohan Lall, copyright lawyer to various film studios (including Warner Bros.) in India, used a number of short film clips in presentation during the conference. Upon being questioned about it, he admitted that he did not have permissions of the copyright holders, but claimed that his use fell under "the education exception" in Indian copyright law. While I wish he were correct (because what he was doing was indeed educational use), as per the law he is wrong. Section 52(1)(i) of the Copyright Act only exempts educational usage of cinematograph film recordings when "audience is limited to such staff and students [of an educational institution], the parents and guardians of the students and persons directly connected with the activities of the institution". While there are other arguments he could seek to use to make his usage of the film clilps non-infringing, being excepted by the educational fair dealings clauses isn't one of them. Thus, more stringent enforcement of IP rights actually engenders such unauthorized, but perfectly legitimate copying and communication to the public such as that done by Mr. Lall.

Another way in which IP enforcement is being sought to be increased is by way of the so-called Goonda Acts. These are generally statutes aimed at criminals and lumpen elements in society. The Maharastra version, the Maharashtra Prevention of Dangerous Activities of Slumlords, Bootleggers, Drug-Offenders and Dangerous Persons Act, 1981, just became the Maharashtra Prevention of Dangerous Activities of Slumlords, Bootleggers, Drug-Offenders, Dangerous Persons and Video Pirates Act. The term "video pirate" is very widely defined, to include any copyright infringement-chargesheeter who is "engaged or is making preparations for engaging in any of his activities as a video pirates, which affect adversely or likely to affect adversely, the maintenance of public order". Public order is deemed to be disturbed by "producing and distributing pirated copies of music or film products, thereby resulting in a loss of confidence in administration". Thus video pirates can possibly be interpreted to include individual sitting at home and using P2P networks to share films. The only requirement is that they should have had a chargesheet lodged against them previously -- they needn't even have been convicted; being chargesheeted suffices. Thus, non-commercial activities of file-sharing are equated to bootleggers and drug smugglers, and preventive detention (an anti-civil rights relic of India's colonial past) is applicable to them.

IP expansion is happening without the ostensible justifications for IP being kept in mind. That Tirupathi ladoos are going to get GI (geographical indicator) protection was announced at the conference with great pride. Geographical indicators are used to protect consumer interests, to ensure that no one outside a particular region (Champagne) can lay claim to be producing that product (Champagne) if the production of that product is intrinsically linked to special features found in that region (climate, etc.). However, no devout person would want to purchase anything advertised as "Tirupathi ladoo" if it were produced outside the Venkateswara temple at Tirupathi, thus the question of consumer confusion does not arise. What if someone malignantly advertises something as Tirupathi ladoo and claims it was made in Tirupathi (and not just that it tastes like the ladoo made there)? Such a person can be taken to task for deceptive advertising, and there is no need for something to have IP protection to do so. This represents a senseless expansionism of IP. It is now IP for IP's sake.

One of the speakers, Mr. V.N. Deshmukh, who though pro-stringent IP enforcement, astutely noted that, "When local demand is not met, they [consumers] turn to counterfeiters and pirates." Local demand can be unsatisfied because of lack of supply, or because the supply is overpriced, or because the supply is not easy to access, or because what is supplied is inferior to what is demanded. At the end of the day, as William Patry, Google's lead counsel, has noted, what companies sell to the public are products and services, and not IP. It would thus be wise for businesses to be innovative and compete rather than trying to extend their monopolies and engaging in rent-seeking behaviour that is economical harmful to consumers. They would also do well to remember that IP is not only a product but an input as well, so they are ultimately consumers themselves. All the harsher laws and enforcement mechanisms that they push for right now will have unintended consequences, and come to affect them adversely.

For more details visit https://cis-india.org/a2k/blogs/fallacies-lies-and-video-pirates

Expert Meeting on Freedom of Expression and Intellectual Property Rights

praskrishna — 2012-03-16T07:41:39Z

This report provides an overview of the discussion from the Expert Meeting on Freedom of Expression and Intellectual Property Rights, organized by ARTICLE 19 in London on November 18, 2011.

At the meeting, nineteen international scholars, experts and human rights activists met to explore the antagonistic relationship between Intellectual Property (IP) and the rights to freedom of expression and information (FoE). This conversation is timely if not overdue, as governments are increasingly using the pretext of IP protection to place unjustified restrictions on the exercise of FoE, particularly on the Internet. ARTICLE 19 believes that increasing the profile of the human rights perspective in debates on IP law and policy is essential to protecting FoE, particularly in the digital environment. The objective of the meeting was therefore to develop an appropriate rights framework for evaluating IP law and enforcement mechanisms, to advance a policy paper on the issue and eventually to establish a set of key principles on IP and FoE.

This report outlines:

A summary of the discussions that took place during the meeting; and
Outstanding issues and those requiring follow-up discussion in order to conceptualise and complete a position paper on the subject.

List of Participants

Andrew Puddephatt: Director, Global Partners & Associates
Brett Soloman: Executive Director, ACCESS.
Dinah PoKempner: General Counsel, Human Rights Watch.
Jérémie Zimmermann: Co-founder and spokesperson, LaQuadrature du Net: Internet & Libertés
Jeremy Malcolm: Project Coordinator for IP and Communications; Consumer International.
Jim Killock: Executive Director, Open Rights Group
Michael Camilleri: Human Rights Specialist, Office of the Special Rapporteur for Freedom of Expression at OAS.
Michael Geist: Chair of Internet and E-commerce Law, Univesity of Ottowa.
Pranesh Prakash: Programme Manager, Center for Internet and Society
Raegan MacDonald: Policy Analyst, ACCESS (Brussels)
Saskia Walzel: Senior Policy Advocate, Consumer Focus
Yaman Akdeniz: Associate Professor in Law; Human Rights Law Research Center, Faculty of Law, Istanbul Bilgi University.
Walter van Holst: IT legal consultant, Mitopics
Agnes Callamard: Executive Director, ARTICLE 19
Barbora Bukovska: Senior Direct for Law and Policy, ARTICLE 19
David Banisar: Senior Legal Counsel, ARTICLE 19
Gabrielle Guillemin: Legal Officer, ARTICLE 19
Andrew Smith: Lawyer, ARTICLE 19
Michael Polak: Intern, ARTICLE 19

Welcome, Introductions, Purpose

Agnès Callamard opened the meeting with a welcome and introduction, giving a brief overview of ARTICLE 19’s extensive experience over twenty years bringing together coalitions to increase the profile of various advocacy issues and develop key policy documents, including the Camden Principles on FoE and equality, and the Johannesburg Principles on FoE and national security.

In the last three years, the Internet has increasingly come to the forefront of ARTICLE 19’s work. During this time it has become clear that the agenda for protecting IP negatively impacts FoE, and that there is a notable absence of traditional human rights groups engaged with the IP agenda or campaigning on its implications for human rights. ARTICLE 19 believes that there is a clear need for this gap to be filled, for us to enter this dialogue and challenge current preconceptions with an alternative human rights narrative that counters that promoted by IP industries.

The purpose of this meeting, therefore, is to develop a strategy for promoting the FoE perspective in debates on IP. To do this, it is important to first conceptualise the relationship between FoE and IP within a rights framework: to identify how or if these interests should be balanced and what the areas of conflict and conciliation are. This discussion should clarify the best way to proceed, with a view to arrive at a policy paper and eventually a set of principles on how to best protect FoE in the IP context.

Session 1: Brief comments by participants on issues of concern for freedom of expression campaigners in relation to IPR

The objective of the first session was for all participants to identify the most significant issues in current debates on freedom of expression and IP, and the extent to which some issues may have been overlooked, underestimated, or over-emphasised. These issues, ideas and perspectives would then guide discussions during the remainder of the meeting and at future meetings.

All participants agreed that applying a human rights framework to this debate is an important and worthwhile endeavour. The following issues were identified during the discussions:

Conceptual starting point

Participants agreed that the status quo should not be the “starting point” for discussions, and that we should avoid being trapped in the narrative that has been developed and imposed by IP rights holders. This requires questioning accepted language and norms, pushing the boundaries of the debate and thinking outside the box. The proliferation of terms such as “piracy”, “theft” and other criminal law language to describe non-commercial copyright infringement demonstrates the extent to which corporate interest groups have controlled the agenda. We should reject these terms and instead adopt positive language that emphasises the cultural and economic value of information sharing, and frame IP as a potential obstacle to these values. This dialogue should recognise that the relationship between people and information has changed in the digital age, and that a new generation of people express themselves through sharing media online and creating new works such as video mash-ups.

A human right to IP?
Several participants questioned whether we should accept interests in IP as “human rights”, particularly as the concept is one born from censorship. Rejecting IP as a human right would require challenging accepted language such as “intellectual property rights” and “rights holder”. If we speak of IP interests or claims, rather than human rights, then it is also inaccurate to speak of their interaction with other rights as a “conflict between rights” that requires “balancing”. Instead, certain IP claims, and the detection or enforcement mechanisms that support them, should be framed as restrictions on the right to freedom of expression.

Some participants expressed doubts over the value of advocating that IP is not a human right when the idea is already embedded and various regional courts have already recognised it as such. Such a campaign would be difficult and achieve little, particularly as it may require changing established agreements such as Berne and TRIPS that would take decades to reform. Staying within the existing legal framework may be the only pragmatic way to achieve change in the short and medium-term. There was agreement that understanding how different treaties and human rights instruments or bodies understand IP is important before proceeding.

In the alternative, it was suggested that IP could be viewed as a “human right” to the extent that it complements other human rights, such as FoE. Copyright is often justified on terms that it is essential for incentivising creativity and that it is an “engine” of free speech – this argument needs further exploration, as it shows that the two rights may sometimes be complementary. ARTICLE 19 is familiar with a strategy focussed on complementarity, as the Camden Principles promoted a similar approach to advocate that the right to equality and right to FoE were mutually reinforcing rather than contradictory. Similarly, participants spoke about a “social value” approach to viewing IP as a human right, i.e. the greater the social value behind the IP protection, the more weight it would have in a rights “balancing” exercise.

Other suggestions on reframing or reversing IP preconceptions included recommending a system where the “public domain” is the norm and any monopoly interest the exception. Exceptions would have to be argued on a case-by-case basis and would be granted only when it would be in the public interest to do so.

A consensus seemed to develop that rejecting the idea of IP as a right would not be a helpful strategy. However, between the various alternative suggestions the only agreement seemed to be that the issue requires more exploration so that the nature of IP as a right can be better understood. It is anticipated that reaching a definite conclusion on this issue will inevitably not satisfy everyone, but would be necessary to proceed with an advocacy campaign.

The Right to Culture
As well as the right to property and the right to freedom of expression, there is also the right to culture in Article 27 of the UDHR and Article 15 of the ICESCR. Both instruments reflect the tension between a right to access culture and the competing right of individuals to protect the material interests in their intellectual property. Participants recommended further exploration of the economic, social and cultural rights perspective on IP issues and integrating this into a campaign.

Pulling apart multiple IP issues
Participants identified a number of ways in which IP engages freedom of expression, and that it is therefore important that a FoE analysis dealt with these issues separately. One focus should be on the IP protections themselves – these give individuals monopolies over information and thereby restrict others’ FoE. Within this, the breadth of exceptions regimes is important, as these vary significantly between countries, in particular the duration of copyright protection and how ‘fair use’ or ‘fair dealing’ type exceptions are defined. The use of digital rights management systems (DRMS) as preventative measures also relate to this area. A second focus, and a current “hot topic” in IP circles, is the enforcement agenda. This includes the criminalisation of non-commercial IP infringement, the privatisation of policing IP infringement and its impact on net neutrality, and criminal and civil law protections for DRMS.

The difference between types of IP was also discussed. There are different rationales behind copyright, trademarks, and patents. Our approach should be as nuanced and specific as possible – when we are criticising copyright we should only refer to copyright and not IP generally. Unpacking the issues in relation to the different types of IP will be important for developing a coherent policy.

The way that international trade agreements have consistently augmented IP rights was also highlighted. In relation to electronic data, the copyright holder now has so much control over the use of the information, particularly through digital rights management systems protected by the criminal law, that purchasing such products is increasingly more like renting than owning. This augmentation should be tracked and highlighted in an advocacy campaign.

Advocacy Strategy
It was also noted that developing a human rights perspective on IP is not only an intellectual pursuit but needs to be viewed in terms of a citizen movement capable of achieving outcomes. Participants identified several further issues that should be considered when developing an advocacy strategy.

One consideration would be how we develop campaigning alliances. Some industries are potential allies, in particular Internet intermediaries that are increasingly under pressure to be the private police of copyright holders. Some artists themselves are also sympathetic to FoE arguments. More obviously, consumers and information users should be mobilised by a campaign. It is important to develop distinct strategies for targeting identified groups that reflects our understanding of their diverse interests; this would allow us to build commonalities between actors who may normally be regarded as having divergent objectives, and mobilise each to push for change in a direction that supports our ultimate goal.

Central to a campaign strategy is also the idea of having a clear message as to what the problem is and how it impacts people on a day to day basis. The utility of graphics illustrating the inequitable geographic distribution of IP interests was recommended as a useful tool to demonstrate the scale of this global problem. Ways of countering campaigns conducted by IP holders over the last two decades were also discussed, in particular how to push back against the idea of copyright infringement as “theft”, as has been promoted through slogans such as “you wouldn’t steal a handbag.” Illustrative analogies were discussed, including viewing IP infringement as mere trespass rather than theft and as “copying” rather than depriving a person of property. However, it was concluded that these analogies were helpful for developing our understanding of the issues, but would not be as effective as campaign tools. An effective campaign would have to distinguish between background issues and our actual advocacy points, which would be focussed on a clear set of key fundamental principles.

Participants also identified the importance of engaging governments and the media on the inconsistency of their policies and coverage of FoE and IP. The US, in particular, is loudly proclaiming its commitments to FoE on-line whilst simultaneously promoting aggressive enforcements mechanisms for IP that directly undermine FoE rights.

The campaign against ACTA in the European Parliament (EP) was also recommended as a platform from which to launch further dialogue on FoE and IP. Since the meeting, ARTICLE 19 has released a statement on ACTA that we have shared with all participants, and plans to circulate this statement to various EP committees and MEPs in the coming weeks.[1]

Opportunities for strategic litigation were also identified. In particular, there are a number of Article 10 ECHR cases pending before the European Court of Human Rights on the blocking of websites, many being from Turkey.

Session 2: The tension between freedom of expression and IPR

The second session began with a presentation by Gabrielle of the background paper on intellectual property and freedom of expression. Participants gave feedback on issues raised in the paper and suggested ways of developing it into a policy paper to compliment an advocacy campaign.

Gabrielle’s opening comments acknowledged that the background paper is very much focussed on FoE in the digital age, and is centred more on copyright rather than trademarks and patents. Gabrielle outlined the way in which conflicts between tangible property rights and freedom of expression have been dealt with by the ECHR. She also identified key challenges to reframing understandings of IP, in particular in relation to the notion that the public domain and information sharing should be the norm while information monopolies should be the exception. Gabrielle also highlighted the timeliness of this discussion as significant changes to the enforcement agenda are taking place; including the criminalisation of copyright infringement and DRMS circumvention.

Participants agreed that the policy paper was an excellent starting point for discussions on FoE and IP, and recommended a number of areas for further elaboration in future drafts:

The objective tone of the paper, placing ARTICLE 19 as an impartial arbiter, is a productive starting point.
The legal framework for IP/FoE should be elaborated to acknowledge the right to culture as contained in Article 27 of the UDHR and Article 15 of the IESCR. The ways that states periodically report their IESCR compliance could be explored.
Intermediaries should be referred to in broader terms than just as ISPs. “Information society service providers” is an umbrella phrase that includes search engines, advertisers, payment services.
The Scarlett decision by the ECJ should be incorporated once it is released.[2]
The concept of “filtering” is essentially a type of “blocking”, both may be referred to as censorship to clarify their immediate impact on FoE.
Some participants felt that explaining why the FoE implications are different for civil and criminal law would be helpful.
Participants felt that the section on the implications of the ACTA regime could be built upon.[3]
In developing the section on FoE rights, the Latin American view of FoE as a collective right may also be worth emphasising. It may also be worth comparing the potential balance between IP and FoE to other balancing exercises related to privacy or reputational rights.
The differences between copyright, trademarks and patents should be explained.
A section outlining the philosophical foundations of these protections, in particular the difference between the US (incentivise creation) and European (natural rights) approach to IP might also be helpful.
It should be stressed that the failure of IP law to adapt to new technologies is the problem, not new technologies themselves. This failure undermines the justifications for protecting IP rights.
Greater emphasis should be placed on the way in which the current legal framework is based on an ideal of an 18th century author, and does not acknowledge the impact of IP on scientific research and collaboration, indigenous knowledge, peer-to-peer sharing, the creative power of new technology etc.
Positive examples of IP infringement would be useful for illustrating why IP protection shouldn’t be safeguarded at all costs. In particular, efforts to make works more accessible to minority language speakers (crowd-sourcing methods in particular) and the impact that IP law has on blind people’s access to information.
Similarly, examples of censorship that make the impact of IP protections of FoE clearer to policy makers would be helpful in debunking the myth that the interests of the IP industry giants are synonymous with those of the individual creators.
It would also be helpful to illustrate that IP protection is also a geographic concentration of wealth issues as much as a moral issue.[4]
The role of de minimis exception regimes in protecting FoE should also be explored in greater depth.
Several sources were also recommended, including the Association littéraire et artistique internationale (ALAI)[5], the International Federation of Libraries Association (Stuart Hamilton identified as a contact)[6] and the OSCE study on Internet Freedom.[7]

Session 3: Key questions, issues and challenges

Dave chaired a third session to elaborate upon the key issues discussed prior to lunch, with a view to reaching some level of consensus on the appropriate scope of restrictions on freedom of expression in defence of IPR.

Gabrielle offered comments on the balance that could be applied between the right to property (Article 1 of Protocol 1 to the ECHR) and the right to freedom of expression (Article 10 of the ECHR). However, as the European Court of Human Rights has not ruled on the balance that ought to be struck between these two rights in the context of intellectual property, it is difficult to speculate on how it would be litigated.

Participants agreed that the ‘public interest’ is central to assessing when property rights can be restricted to promote other rights, including FoE. The need to stress the importance of the Internet as a public forum was also identified.

The participants also discussed what limitations are appropriate to place on IP rights. Various ideas were suggested, but it was concluded that any recommended framework on the substance of IP rights would have to be compliant with the Berne Convention. This means that in terms of copyright duration, the minimum that could be recommended is 50 years. It was also stated that any system that recommends a default public domain with a system of registration for copyright “exceptions” would not be compliant with Berne. The augmentation of IP rights through these international agreements was again referenced, as there appears to have been a pattern of the US and EU exporting the worst aspects of their IP regimes abroad through trade arrangements without elaborating on how exceptions to IP rights should be developed. It was also noted that copyright holders will continue to support this process, as their business model depends upon having as much control over the use of information as possible.

Again participants identified the need to distinguish between the limitations that are imposed on FoE by the IP rights themselves, those limitations imposed by preventative technological measures and those imposed by enforcement mechanisms.

The importance of distinguishing the different actors involved was also emphasised, i.e. whether we are discussing competing rights between private creators (e.g. original creator vs. derivative creator) or the direct relationship between the state and individuals (e.g. enforcement of criminal provisions against an individual infringing IP). It is important that our analysis does not conflate private actors with state actors, and that it is clear what positive and negative obligations are on these parties and the rationale for their application.

It was suggested that an approach that balances competing human rights is appropriate where the interests of two creators are in conflict, but perhaps not when the state intervenes to prevent or punish IP infringements. Where the state acts to restrict an individual’s access to the Internet, it is not a balance issue but an unnecessary and disproportionate interference with the right to freedom of expression.

Participants stressed the economic and social significance of blanket (and even many specific) restrictions on Internet access. Blanket prohibitions on access to the Internet was compared to solitary confinement, and participants agreed that sanctions such as these are never necessary or proportionate responses to IP infringement. An analogy was made to a statement recently issued by ARTICLE 19 on services to counterfeit mobile telephones being shut down in Kenya.[8] Participants also indicated that these blanket measures are increasingly rare, but that states still violate the principles of necessity and proportionality through limitations that they impose.

Further FoE concerns were raised in relation to the enforcement of IP rights in the digital environment. In order to monitor the Internet for IP infringement, it is necessary to monitor the content of all Internet communications. This has implications for FoE rights and privacy rights, and has a potential chilling effect on all on-line expression.

There was also some discussion on defining what our working definition of FoE should be in this context, particularly in relation to use of new technologies and DRMS. Does FoE necessarily include the right to scan a document, to use translation technology on it, to copy and paste, to save in various formats etc?

Participants also discussed that the ordinary de minimis exceptions cannot simply be transplanted and applied as ‘exceptions’ or defences to DRMS circumvention offences. DRMS limit the use of works severely, and unless you have the technical knowledge to circumvent these devices, it is not possible to take advantage of exceptions or defences.

There were also discussions on access to justice issues, due to the prohibitively expensive cost of contesting litigation against large corporations.

Several participants mentioned that discussions on these issues have a tendency to become too narrow in their focus. Examples given were that the focus drifts to copyright rather than trademarks and patents, that peer2peer sharing gets more attention than other technology uses, and that artistic expression is talked about but not technical or scientific forms of expression. At the same time, some participants expressed an aversion to a “kitchen sink” approach in any campaign, as it may result in an incoherent message.

Various sources were recommended for further reading. These included a report by Consumers International on best state practices (Brazil, Canada and South Africa mentioned for enacting progressive legislation recently),[9] and the UN guidelines on consumer protection.[10]

Session 4: Measures for protecting and enforcing IP rights on the Internet: finding a better balance with FOE

At the fourth session, Barbora chaired a discussion on procedural issues that pose a threat to freedom of expression and Internet freedom. Key issues identified at the outset were whether sticking to a human rights view that judicial oversight is the best option or is there a human rights compliant alternative model? As it was decided in the previous session that disconnection is disproportionate, are all forms of criminal liability for Internet use disproportionate? And what limits should be placed on civil remedies, such as damages-award ceilings.

Discussions began on whether an administrative model for notice and takedown would be appropriate. Advantages that were identified of non-judicial models include:

An administrative system is more effective in terms of time and cost. The number of notice and takedown requests that happen on-line would overwhelm a traditional judicial organ.
Protections for intermediaries from liability can be built into the system.
Guidelines can ensure compliance with legal certainty, transparency, due process, specificity of remedies, protections for the identities of users.
Could also be subject to judicial oversight.
That limitations on cost would also “disarm” corporations who would not be able to threaten expensive court procedures that intimidate individuals into prematurely settling civil actions.
The need for fast remedies in digital infringements was also stressed. For example, a website may be created only for the 90 minutes of a football game and then disappear – traditional judicial methods cannot be used to provide redress in these circumstances. Although this may appear to be a “shoot first, aim later” approach, one needs to consider these pragmatic concerns. An administrative model is better suited to this than a judicial system.
Alternatives to an administrative model included the use of non-legal ombudsmen or arbitration proceedings. These measures could also keep costs low.

A number of participants disagreed that an administrative model was appropriate. Their concerns focussed on the following issues:

That the independence of an administrative body could not be guaranteed.
That an administrative procedure should never be used to impose criminal liability.
The procedural guarantees in an administrative system are less robust, particularly in countries that do not have a strong separation of powers.
That the time and cost of a judicial system is necessary to comply with international human rights standards.

Concerns were also raised about recommending any boilerplate solution that should be ‘copy and pasted’ into all national contexts without adequate consideration being paid to that country’s legal system or traditions. In terms of accuracy of language, it was also commented that notice and takedown affects hosts of content, and not ISPs, who are mere conduits.

Systems in place in Canada and Japan for “notice and notice” were also discussed. In these systems, the IP holder notifies the intermediary, who notifies the user, who has a time to reply before action is taken. The role of the intermediary in this system is to facilitate communications and they are not subject to liability. The accommodation of “emergency requests” could also be considered within this system.

With any notice and takedown system it would also be important to make it clear to those controlling the content how you object to a takedown notice. Access to justice principles are important here, particularly considering the amount of misinformation that has circulated in recent years on the nature of IP infringement.

Various examples were given of forum shopping by IP owners in provincial courthouses where judges are less experienced in IP law and therefore more responsive to the arguments of IP holders.

There was also a discussion on why copyright holders would favour criminal sanctions as opposed to civil remedies. On the one hand, it seems intuitive that the rights holder would rather receive damages than have a person fined or imprisoned by the government. It was suggested that the criminal law has the advantage of having a more significant chilling effect. Also, in criminal cases, the costs of detection and enforcement can be placed on the state.

A number of initial principles were identified through this discussion:

Intermediaries should be immunised from civil liability.
There should not be liability for hyperlinking. It must be distinguished from “re-publication”.
Non-commercial infringement should not be criminalized. It was noted that TRIPS requires commercial scale infringement to be criminalized. Narrowly defining what is meant by “commercial” is important:

Peer-to-peer sharing should not be considered commercial.
IP infringement committed by individuals should not be considered commercial.

The need for clarity in the law and for information on IP law to be available to end-users facing litigation threats from copyright holders. In particular, states should educate individuals in the exceptions to copyright protections that serve the public interest.
Possible limitations on damages could be developed.

Session 5: Political developments and strategies of response

The purpose of the fifth session was to provide participants with the opportunity to discuss developing strategies for working together to better combat governments’ attempts at restricting FoE on the basis of protecting IP.

The first priority that was identified was to finalise a policy paper on the issue. This would perhaps take some time to formulate, and may require further meetings to discuss key issues.

A second priority for advocacy was identified in relation to ACTA, which will be voted upon by the European Parliament in the coming months. ARTICLE 19 has issued a statement on ACTA that will also be circulated among participants.

A third discussion concerned the possibility of uncovering a wikileaks-type “scandal” in which the hypocrisy of copyrights holders, and their true motivations, could be exposed. Receiving internal emails from whistleblowers interested in exposing such a story would provide a good media storm in which to launch an advocacy campaign. Examples of IP industries illegally lobbying governments or interfering with the administration of justice would be helpful. The involvement of the British Phonographic Industry in lobbying for the Digital Economy Act was referenced in this discussion.

The utility of engaging with the copyright industries was also discussed. These industries have a reputation for not negotiating– they want as much control over information as possible, as control is essential to their business model. There may be some utility in identifying who our enemies’ enemies are. It was mentioned that the occupy movements may be interested in pursuing a human rights narrative against corporate property interests. These groups are very much engaged in promoting FoE rights. The traditional media was also identified as a group that may be interested in supporting a movement for greater FoE protections against IP.

In terms of developing strategy, it was also recommended that we look at successful human rights campaigns from the past, particularly any in the field of cultural rights. Potential partners for coalition building need to be looked at, and many of these partners may be within emerging economies such as BRIC or South Africa.

As we develop a strategy, we need to remain focussed on framing this battle as a human rights fight. We need to identify victims, perpetrators, and a call to action. A different plan may be needed for each audience that we identify. From the experience of activists at the meeting, theoretical arguments will not succeed in rousing a people-driven campaign. The use of new media, such as campaign videos on youtube, that clearly outline the human rights case would be helpful. It is also necessary to bridge the gap between popular campaigns and videos, and getting those campaigns into the mainstream media and creating a political issue out of it. As technology users that would be interested in this campaign tend not to vote, making this a political issue means making people who do vote understand the issue as one that is a mass-scale human rights violation.

Concluding comments and closing

Agnès closed the session by identifying several key steps:

The need to revise the policy paper in light of discussions throughout the day’s sessions.
The need to meet again to discuss the revised policy paper and to continue these discussions.
The objective of developing our role as advocates, identifying what we can initiate, what existing efforts we can support, and what our overall strategy should be.

[1].ARTICLE 19 statement “European Parliament must reject ACTA”, see: http://www.article19.org/resources.php/resource/2901/en/european-parliament:-reject-anti-counterfeiting-trade-agreement-%28acta%29

[2].This judgment has since been released. See ARTICLE 19 press release: http://www.article19.org/resources.php/resource/2872/en/landmark-digital-free-speech-ruling-at-european-court-of-justice

[3].ARTICLE 19 has since released a statement on ACTA. See: http://www.article19.org/resources.php/resource/2901/en/european-parliament:-reject-anti-counterfeiting-trade-agreement-(acta)

[4].http://www.worldmapper.org/images/largepng/167.png was recommended for its map of patent distribution in 2002.

[5].ALAI homepage: http://alaiorg.vincelette.net/index.php?option=com_content&task=view&id=50&Itemid=24

[6].See a list of publications at: http://www.ifla.org/en/publications

[7].OSCE study “Freedom of Expression on the Internet” (2010): http://www.osce.org/fom/80723

[8].ARTICLE 19 statement on FoE and counterfeit mobile telephones: http://www.article19.org/resources.php/resource/2762/en/kenya:-free-expression-standards-should-guide-fight-against-%E2%80%9Ccounterfeit%E2%80%9D-mobile-phones

[9].http://a2knetwork.org/watchlist

[10].http://www.un.org/esa/sustdev/publications/consumption_en.pdf

For more details visit https://cis-india.org/a2k/freedom-of-expression-and-ipr-meeting

Exhaustion: Imports, Exports and the Doctrine of First Sale in Indian Copyright Law

pranesh — 2014-05-29T06:18:31Z

This article by Pranesh Prakash was published in the Manupatra Intellectual Property Reports, February 2011, Volume 1, Part 2, pp. 149-160. In this short note, the author argues that Indian courts have fundamentally misunderstood the doctrine of first sale, and consequently have wrongly held that parallel importation is disallowed by Indian law. He further looks at the ingenuity displayed by a court in prohibiting export of low-priced editions from India, and comes to the conclusion that this is also wrong in law. He believes there is a way out of this quagmire that we find ourselves in due to judicial inventions: that of accepting a proposed amendment to the Copyright Act.

Can foreign works be copyrighted works?

Section 13(2) of the Indian Copyright Act states that insofar as published works go, copyright only subsists if the work is first published in India or if the work is by an Indian citizen. It does except the application of this section to all those works to which sections 40 and 41 of the Act apply. Section 40 allows for the provisions of the Act to be extended to foreign works and foreign authors by special order of the government. The government is required to do so, being a member of the Berne Convention, the Universal Copyright Convention as well as the TRIPS Agreement, and has fulfilled its requirement via International Copyright Order, the latest such order having been issued in 1999.

Thus, for purposes of our law, we protect not only Indian works, but foreign works as well. It expressly places foreign authors and works published in a foreign country in the same shoes as Indian authors and works published in India, respectively.

Import of copyrighted works

Thus having established that foreign books enjoy protection under Indian law, we now turn to the question of whether import of foreign works into India is permissible under Indian law. There is no provision of the Copyright Act by which the owner or licensee of copyright given the exclusive right to import a copyrighted work into India. Section 51(b)(iv) does, however, makes it illegal to import infringing copies of a work.[1];It is clear that illegally published copies are infringing copies, and thus cannot be imported. But are legally published copies that are legally purchased outside of India also ‘infringing copies’ and is their import also prohibited by the section 51?

This question is laid out as:

We now arrive at one of the most difficult topics in copyright law. It is our ambition to expound this subject as clearly as possible but inevitably this involves exposing some troublesome problems which lurk not far beneath the surface. The basic idea is simple. It has long been the policy of copyright law in the UK and other countries which follow our system that as a rule, mere selling or other secondary dealings with articles manufactured in the home market shall not be treated as copyright infringement unless their marking was piratical in the first place. Further, it is policy that traders should be free to buy and sell goods without getting involved in copyright proceedings, so long as they do so in good faith. Do not deal in pirate copies where you can tell they are probably such” is a law anyone can understand. Dealing in pirate copies where you know or have reason to believe that they are such is called secondary infringement in contrast to primary infringement (e.g. manufacturing) where liability is strict.

This idea works fine as long as one does not need to examine too closely, what one means by pirate copies; it is usually pretty obvious. However, when it comes to parallel imports it is not so obvious, and one has to know precisely what is meant. It is plain that the test cannot be whether the copy was made piratically in its country of origin because the copyright laws of foreign states are irrelevant so far as rights in the UK are concerned, and in some cases these laws may not even exist. Since foreign copyrights are separate and distinct rights, and since it is commonplace for these to be assigned so as to be exploited by different hands, it cannot matter whether a copy imported from Britannia was lawfully made in its country of origin; this principle has been recognized from an early date.

According to section 2(m) of the Act, a reproduction of a literary, dramatic, musical or artistic work, a copy of a film or sound recording is an "infringing copy" if such reproduction, copy or sound recording is made or imported in contravention of the provisions of this Act. So section 2(m) does not clarify matters either, because it applies only to that importation that is “in contravention of the provisions of” the Copyright Act. So we look to section 14 which lays down the meaning of copyright and is read with section 51 when determining what does and does not constitute infringement. Nowhere, in section 14 of the Act is a right to import granted to the copyright owner. However, section 14 does clearly lays down that insofar as literary, dramatic or musical works go; it is the copyright owner’s exclusive right to issue copies of the work to the public not being copies already in circulation”. The explanation to this section goes to clarify that for the purposes of this section, a copy which has been sold once shall be deemed to be a copy already in circulation.”What this means and how this has been construed by various courts shall be seen in the following sections.

Judicial history on importation

The Penguin case [2]

The issue of parallel importation first reached the higher judiciary in 1984 when the Delhi High Court was called upon to pronounce judgment on whether import by a third party without the express authorisation of the copyright owner constitute infringement. The court, bizarrely, ruled that it constituted infringement because it constituted a violation of the owner’s right to publish:

While publication generally refers to issue to public, importation for the specified purpose may be a necessary step in the process of issuing to the public, and therefore of publishing. It appears to me that the exclusive right of the copyright owner to print, publish and sell these titles in India would extend to the exclusive right to import copies into India for the purpose of selling or by way of trade offering or exposing for sale the hooks in question. This is the true meaning of the word “publish” as used in section 14(1)(a)(4).

It is also an infringement of copyright knowingly to import into India for sale or hire infringing copies of a work without the consent of the owner of the copyright, though they may have been made by or with the consent of the owner of the copyright in the place where they were made.

It should be noted that prior to the 1994 amendment of the Copyright Act, the first two clauses of section 14 read: “(i) to reproduce the work in any material form; (ii) to publish the work”. Thus, this judgment extends the right to “publish the work” (or in the words of the judge, “print, publish and sell”) to include a right of importation out of thin air, simply by stating that it appears so. While the judge notes that “publication” under the Act (in 1984) was defined as meaning the issue of copies of the work, either in whole or in part, to the public in a manner sufficient to satisfy the reasonable requirements of the public having regard to the nature of the work”, he does not explain how importation is subsumed under that definition contrary to a plain reading of the law. Finally, the judge does note that, “It is true that India Distributors are not printing these books and are not guilty of what is called primary infringement”, but goes on to state however, that “when they issue copies of these titles for public distribution they are guilty of secondary infringement”. These categories are created, but neither explained nor explored in the judgment. One other legal nuance that was examined was the allowance granted to the Registrar of Copyright under section 53 to “order that copies made out of India of the work which if made in India would infringe copyright shall not be imported. The judge noted that the words infringing copy as contained in section 53 could not be different in meaning from the same words contained in section 51(b). The implication of this shall be demonstrated shortly.

Importantly, the judgment does not look into section 16 of the Act which states that there shall be no copyright except as provided by the Act, and how this should prevent a judge from expanding the rights provided in the law to include a new judicially created right to prevent imports.

Privity of contract

Nowhere in the judgment does the judge explain how an exclusive distribution contract between two parties can affect a third party in violation of the well-held principle of privity of contract. This is an important issue because in effect, the judgment makes a third party bound by the contract entered into by two private parties. The parties agree inter se (for example) to ensure that the India distributor does not sell the book outside of India and that the owner of rights will not give the right to sell in India to any other person. How could this contract between those two parties come in way of a third person buying from a foreign market and importing into India? If it was the case of an exclusive UK licensee selling in India, then both the exclusive Indian licensee as well as the owner of the copyright would have cause of action in India on the basis of both violation of contract as well as violation of copyright (for exceeding his territorial licence). However, a third party who buys from a stream of commerce cannot be bound by these contracts because he becomes the owner of the book and not a licensee. Thus, the judgment makes a contract between two private parties, which merely creates a right in personam, applicable to the entire world. By doing this it allows a contract to create a right in rem without any express provision of the law doing do. Indeed, this issue was examined by the United State Supreme Court in 1908 in the case of Bobbs-Merrill Co. v. Straus,[3] in which the doctrine of first sale was judicially evolved.

Doctrine of first sale/exhaustion

Importantly, nowhere in the judgment does the judge bother to go into the details of the interaction between the sale of a copy of a book (upon the occurrence of which no further conditions can be laid) and the Copyright Act. If I sell you a bicycle laying down a condition that you cannot re-sell it, such a condition cannot be upheld in a court of law because by sale I divest all saleable interest I have in the bicycle. This principle is what is embodied in sections 10 and 11 of the Transfer of Property Act. Section 10 states–“Where property is transferred subject to a condition or limitation absolutely restraining the transferee or any person claiming under him from parting with or disposing of his interest in the property, the condition or limitation is void, except in the case of a lease where the condition is for the benefit of the lessor or those claiming under him. In the same vein, section 11 states–“Where, on a transfer of property, an interest therein is created absolutely in favour of any person, but the terms of the transfer direct that such interest shall be applied or enjoyed by him in a particular manner, he shall be entitled to receive and dispose of such interest as if there were no such direction.” Thus, by selling of a copy of a book (as opposed to a licensing the book), I divest myself of all saleable interests in that particular copy of the book (though not copyright). I cannot prevent you from re-selling that book. However, copyright law would require that you can only re-sell a copy of a book without the owner’s permission, and cannot sell it without the owner’s permission. This is known as the doctrine of first sale, which evolved as a via media between copyright law, which gave the owner of copyright rights in a book, and property law, which gave the buyer of a book rights in her particular copy of the book.

The best appreciation of this doctrine of first sale (also known as “exhaustion of rights”) has come in a judgment by Justice Ravindra Bhat, who states the meaning of the doctrine very clearly:

The doctrine of exhaustion of copyright enables free trade in material objects on which copies of protected works have been fixed and put into circulation with the right holder’s consent. The exhaustion principle in a sense arbitrates the conflict between the right to own a copy of a work and the author’s right to control the distribution of copies. Exhaustion is decisive with respect to the priority of ownership and the freedom to trade in material carriers on the condition that a copy has been legally brought into trading. Transfer of ownership of a carrier with a copy of a work fixed on it makes it impossible for the owner to derive further benefits from the exploitation of a copy that was traded with his consent. The exhaustion principle is thus termed legitimate by reason of the profits earned for the ownership transfer, which should be satisfactory to the author if the work is not being exploited in a different exploitation field.

Exhaustion of rights is linked to the distribution right. The right to distribute objects (making them available to the public) means that such objects (or the medium on which a work is fixed) are released by or with the consent of the owner as a result of the transfer of ownership. In this way, the owner is in control of the distribution of copies since he decides the time and the form in which copies are released to the public. Content wise the distribution rights are to be understood as an opportunity to provide the public with copies of a work and put them into circulation, as well as to control the way the copies are used. The exhaustion of rights principle thus limits the distribution right, by excluding control over the use of copies after they have been put into circulation for the first time.

1994 Amendment to the Act

Interestingly, the Penguin judgment was sought to be overturned by an amendment to section 14 in 1994. That amendment removed the right to “publish”, and instead made it a right to “to issue copies of the work to the public not being copies already in circulation”. It stands to reason that this not only ensures the centrality of the doctrine of first sale in India, but also allows for international exhaustion, thus allowing for parallel import. This is clear from the fact that we, in Indian law (as per section 40), makes it clear that “all or any provisions of this Act shall apply to work first published in any class territory outside India to which the order (under section 40) relates in like manner as if they were first published within India.

Thus, even books published internationally are, under the legal fiction under section 40, akin to books published in India. Since we are granting foreign works all the protection under the Act as though they had been published in India by Indian authors, it is but natural that they should be subject to all the same limitations as well (such as the doctrine of first sale).

As one commentator puts it, “with amendments, the decision of the Penguin case is no more the law. Like most other nations, we have also accepted the principle of international exhaustion. This seems to be after taking into view the public interest angle.”[4]

Unfortunately, legal commentators seemed to have paid greater attention to legislative changes than did the courts.

Eurokids case[5]

In 2005, the same issue of parallel importation in literary works arose before the Bombay High Court. Highly unfortunately, the decision by the Bombay High Court was even more ill-reasoned than that of the Delhi High Court in the Penguin case. Nowhere in the judgment is the issue of the first sale doctrine, on which the issue of parallel importation rests, even cursorily examined. Nowhere is the amendment to section 14 of the Copyright Act even noted. Indeed, the only time that section 14 is even mentioned is when the section is quoted to establish it as providing the meaning of “copyright” in Indian law. The implications of section 14 in terms of exhaustion of rights are simply not examined. Section 2(m) of the Act, which it is necessary to examine (as shown above) to understand what to make of the phrase “infringing copy” in section 51, is not even mentioned once. As per the logic of the judgment, any copy that is sold in India by a third party in contravention of an exclusive licence contract is automatically assumed to be infringing. Thus, once again, copyright law magically overrides the concept of privity of contract without so much as an explanation.

Most importantly, because the case relies on the Penguin decision without having noticed and accounting for the subsequent change in the text of the law because of the 1994 amendment, it should be held to be per incuriam, and should not act as a precedent.

Warner Bros. case [6]

In 2009, the Delhi High Court pronounced yet another verdict on parallel importation in the case of Warner Bros. v. Santosh V.G. However, this was a case on DVDs, and not on books. While the Court correctly understands the meaning of the first sale doctrine in terms of literary works (and thus becoming the first judgment to explicitly talk about this doctrine), it is open to debate whether it was correct in its ruling on the inapplicability of the doctrine when it came to cinematograph films. The reasoning of the court (in paragraphs 77 and 78) as to why parallel importation is not allowed under Indian law is faulty, and is worth quoting in extenso:

In this case, the copies that are being let out for rent/hire by the defendant are not made in India. Rather, they have been made in the US and imported into India. As noticed earlier, copyright in a work published abroad, in a Berne Convention country, like the United States, entitles its owner to assert copyright in India; such rights are “as if” the works were published in India (section 40 and provisions of the order). An infringing copy is one “made or imported in contravention of the provisions of this Act”. In this context, the proviso to section 51(b)(iv), in the court’s view, provides the key to Parliamentary intention. It carves only one exception, permitting “import of one copy of any work for the private and domestic use of the importer”. The plaintiffs’ argument is that there would have been no need to enact this exception, if there were no restriction on import of cinematograph films, genuinely made outside India. The effect of the proviso to section 51(b)(iv) is plainly, not to relax the importation of genuinely made cinematographic films but to allow for the importation of one copy of any work “for the private and domestic use of the importer.” This would mean that the proviso allows for the importation of an infringing work, for private and domestic use of the importer, and not commercial use.

Quite obviously, there are some glaring problems in the court’s reasoning. The proviso to section 51(b)(iv) does indeed carve out an exception, but that exception is for infringing copies of a work, and not for non-infringing or “genuine” copies. The plaintiffs’ argument, according to the judge, is: If all genuine copies of the cinematograph film could be legally imported, there would be no need to enact this exception. However, there could well be a need to enact this exception to cover a single non-genuine copy of a cinematograph film. It is precisely because of this that the exception is so very narrow, being for not only private use, as in section 52(1)(a), but of a single copy of a work and that too only for “private and domestic use”. This possibility of allowing import of a non-genuine copy is completely overlooked by the judge. The judgment continues:

The defendant’s argument that the plaintiffs lost the power to deal with the copy, once placed in the market place, in the United States, is also unsupportable as too broad a proposition. In the context of the Act, the argument is more hopeful, than convincing. Even in the United States, it has been held (United States v. Wise, 550 F.2d 1180, 1187 (9th Cir. 1977)) that though, after “first sale", a vendee “is not restricted by statute from further transfers of that copy”, yet a first sale does not, however, exhaust other rights, such as the copyright holder’s right to prohibit copying of the copy he sells. The Federal Appellate Court noted that “other copyright rights (reprinting, copying, etc.) remain unimpaired”. It is clear therefore that the copies in question are infringing copies. Therefore, their importation, and more importantly, use for any of the purposes under section 51, other than the one spelt out in it the proviso is in contravention of the Act. The question, however, is whether the action of the defendants amounts to infringement of the copyright of the plaintiffs. This must be answered independently of the question of whether parallel importation of copyrighted goods is permissible under Indian copyright law.

While the reading of the law is correct (i.e., the first sale doctrine does not exhaust all rights, but merely the right to prevent further transfers), the application of the law to the facts is incorrect. In this case, the fact situation before the court was not of “reprinting, copying, etc.” but of the physical transfer of copies of a work bought in the US into India. As is noted in United States v. Wise, “after first sale,” the buyer “is not restricted by statute from further transfers of that copy”. Indeed, this was case can be seen as exactly such a “further transfer” (of the rights over that copy from a shop in the US to the buyer in India). How the judge misreads the argument as being about something other than transfer of property rights in a copy (and more as something akin to reproduction), and concludes that “it is clear therefore that the copies in question are infringing copies,” is not clear.

However, the verdict of the court does not proceed on this ground alone, and involves discussion of the doctrine of first sale with regard to cinematograph films, the provisions of section 53, which apply only to cinematograph films, none of which are applicable in case of literary works.

Export of copyrighted works

Now, that we have dealt with the traditionally contentious part on imports, we may now examine the rare, but even more contentious issue of exports. Barring a few exceptions, notably the United States, the copyright law in no country regulates exports. Even in the United States, section 602 of their Copyright Act regulates only the export of infringing works, and not the export of legitimate works. In India, though, there are two judgments of the Delhi High Court that seemingly make illegal export from India of legal copies of a copyrighted work. As one of these decisions is an ex parte order without any reasoning—indeed calling the reasoning “bare minimum” would be doing that phrase a disservice—we shall focus only on the other judgement: the one pronounced by Justice Manmohan Singh in John Wiley & Sons v. Prabhat Chander Kumar Jain [7]. The facts of the judgment are rather simple. John Wiley & Sons Inc., based in New York, exclusively licensed the rights over certain books to Wiley India Pvt. Ltd. (all the other plaintiffs follow the same model, so we shall restrict ourselves to the case of the Wiley corporation). These books were sold at a reduced cost in the Indian market and were clearly labelled as being “Wiley Student Edition restricted for sale only in Bangladesh, Myanmar, India, Indonesia, Nepal, Pakistan, Philippines, Sri Lanka and Vietnam”. Another label on the same book read: “The book for sale only in the country to which first consigned by Wiley India Pvt. Ltd and may not be re-exported. For sale only in: Bangladesh, Myanmar, India, Indonesia, Nepal, Pakistan, Philippines, Sri Lanka and Vietnam.”[8]. Quite clearly, John Wiley & Sons, being the owner of the rights, had given exclusive license to Wiley India Pvt. Ltd. to publish and print an English Language reprint edition only in the territories entailed in the agreement and not beyond that. Further, they wished to impose this restriction on all buyers of the book by way of that notice and attached conditionality, and thus prevent exports to the United States.

At this stage, it would do us well to dwell into the facts of the 1908 US Supreme Court case of Bobbs-Merrill Co. v. Straus[9]. In this case, the plaintiff-appellant sold a copyrighted novel with a clear notice under the copyright notice stating that, “The price of this book at retail is $1 net. No dealer is licensed to sell it at a lower price, and a sale at a lower price will be treated as an infringement of the copyright”. Macy & Co., a famous retailer, purchased large lots of books both at wholesale prices and at retail prices, and re-sold the books to its customers at 89 cents a copy. This was quite clearly in violation of the condition imposed by the notice.

It may be seen that the facts in this case quite clearly mirror the fact situation in John Wiley & Sons v. Prabhat Chander Kumar Jain. It is only the nature of the conditionality that differentiates the two cases: in the one it was a restriction on price at which the book could be further sold, in the other it was a restriction on where the book could be further sold. How did the judge rule in Bobbs-Merrill Co. v. Strauss? The court ruled that it was on the record that Macy & Co. had knowledge of the notice. However, despite that, the notice was held not to be binding on Macy & Co. The court noted:

The precise question, therefore, in this case is, “Does the sole right to vend secure to the owner of the copyright the right, after a sale of the book to a purchaser, to restrict future sales of the book at retail, to the right to sell it at a certain price per copy, because of a notice in the book that a sale at a different price will be treated as an infringement, which notice has been brought home to one undertaking to sell for less than the named sum?” We do not think the statute can be given such a construction copyright statutes, while protecting the owner of the copyright in his right to multiply and sell his production, do not create the right to impose, by notice, such as is disclosed in this case, a limitation at which the book shall be sold at retail by future purchasers, with whom there is no privity of contract …To add to the right of exclusive sale, the authority to control all future retail sales, by a notice that such sales must be made at a fixed sum, would give a right not included in the terms of the statute, and, in our view, extend its operation, by construction, beyond its meaning, when interpreted with a view to ascertaining the legislative intent in its enactment.

This judgment proceeded on privity of contract, the factum of a sale having occurred, and created what is now known as the doctrine of first sale–an established principle that the exclusive right to sell, distribute or circulate a copy of the copyrighted work exhausts the moment the item is placed into a stream of commerce through a sale. This can, of course, be contradicted if explicitly stated so in a statute.[10] However, as we noted earlier, the Indian statute explicitly notes that the right to issue copies of a work to the public, guaranteed to the owner of the copyright over a literary, dramatic, or artistic work is restricted to copies not already in circulation. Thus, it might seem to one to be quite clear how the court would in the John Wiley & Sons case. One would then be wrong.

In fact, Justice Manmohan Singh, in a very detailed and circuitous judgment, rules that the activity done by the defendant is a violation not of some implied contract between Wiley India Pvt. Ltd. and him, but that it constituted a violation of the Indian Copyright Act, and notably section 51 of the Copyright Act. How does he reach this conclusion?

His reasoning rests on 3 dubious pillars:

that the rights of the licensee are distinct from that of the owner, and that the former may get exhausted without affecting the latter;
that the licensee cannot pass on better title to those that buy from him than he himself has;
that sale or even offer for sale or taking of orders for sale are all forms of putting into circulation or issuance of copies.

First, through a close reading of the various provisions of the Copyright Act he notes that the Act creates a clear difference between the rights of the owner and the rights of the licensee (para 47-50). He then finally comes to noting that,

“A logical corollary drawn from above analysis which needs reiteration at this stage is that for the purposes of section 51 which is in the preceding chapter, the term owner of the copyright does not include exclusive licensee. Thus, the rights of the owner although may include rights of the exclusive licensee but the court cannot read the term owner of the copyright as that of the exclusive licensee and their rights are different as per the allocation by the owner.” (para 62).

Thus, he establishes that some rights of the licensee may be extinguished (as per the doctrine of exhaustion) without extinguishing that same right of the owner. In other words, while the right of circulation of the licensee get exhausted, the right of circulation of the owner remains unaffected. Justice Singh doesn’t go into the implications of this, but there can be two ways of interpreting what this means. It could mean that by virtue of the circulation rights of the licensee getting exhausted, the circulation right of the owner gets exhausted in those nine countries for which the licensee had been granted rights of circulation. Else, it could mean that the exhaustion of the licensee’s circulation rights does not at all affect the owner’s circulation rights. This latter one is obviously an absurd idea, since that would, in all cases, leave the owner with a cause of action in case of all sales even when the owner is in India. Thus, one is left considering the former the only logical meaning.

However, that this cannot possibly be right is demonstrated by the fact that this can easily be applied to an all-in-India transaction as well. Thus, for instance, the owner of rights can decide never to directly sell any book, but only allow its licensees to sell. Thus, it can contractually bind a licensee to sell only in Andhra Pradesh and hold that because of that license contract any buyer who buys from the Andhra Pradesh licensee and decides to re-sell to a second-hand bookstore in Karnataka is actually violating the terms of the license (because the circulation right gets extinguished only insofar as the licensee is concerned, and that licence only allows sales in Andhra Pradesh).

That is obviously cannot be held to be the purpose of the law. Thus, the privity of the contract between the owner of the right and the licensee must be upheld and may not be held to bind a third party purchaser.

The second ground on which Justice Singh rules is on the general property law principle that a person cannot pass on a better title than she herself has. Thus, Justice Singh holds that when the licensee sells a book to a person, that person only receives as much of the title to that book that the licensee has. Thus, since the licensee only has title in the book insofar as those nine countries go, the person who buys that book cannot get better title.

The plain fault in this reasoning is the very founding basis of the doctrine of first sale: the differentiation between property rights in a copy of a book and the copyright in the book. No one has contended in this case that the transaction between the licensee and the book purchaser is not a sale. Once a sale happens, all property rights in that copy of the book are alienated to the book purchaser. It must be remembered that this transaction is not the case of the licensee sub-licensing the right to circulate the book. The licensee cannot sub-license to another party the right to sell the book in, say, Australia, because she does not have that right in the first place. However, in this case, the licensee is invoking the right to sell the book in India, and is not passing on that right. The right of a book buyer to re-sell comes from the statute— from the doctrine of first sale and not from a passing on of that right from the licensee.

The last pillar of the judge’s reasoning is that the sale—or even offer for sale, or taking of orders for sale—of a book online are all forms of putting into circulation or issuance of copies. Section 40 does not work two ways. It only deems a foreign work “Indian”, and does not deem a sale in a foreign land the same as sale in India. Thus, even if we are to accept the other two pillars of Justice Singh’s reasoning, it is unclear how an offer made online to sell a book is equated to actually placing a book in circulation in India. How can an India law prohibit circulation on the streets of Bogotá? This is only possible if a separate right of export is recognised. But Justice Singh is extremely clear that he is not creating such a distinct right.

A notice to the buyer that re-exports are prohibited cannot be held to constitute a valid contract because the Transfer of Property Act clearly makes such a prohibition invalid (sections 10 and 11) after all, it is a sale that takes place and not a license as does the Copyright Act (section 14).

Amendment to Section 2(m)

There has been much controversy lately with some publishers trying to stop the government from amending section 2(m) of the Indian Copyright Act, clarifying that a parallel import will not be seen as an “infringing copy”. Some lawyers for the publishing industry have made the claim that allowing for parallel importation would legally allow for the exports of low-priced edition and overturn the basis of the Wiley judgment. This is false.

The amendment itself merely adds the following proviso at the end of section 2(m) (which itself defines what an “infringing copy” means):

Provided that a copy of a work published in any country outside India with the permission of the author of the work and imported from that country shall not be deemed to be an infringing copy.

It seems that this is in fact a provision introduced solely to clarify that this (i.e., following international exhaustion) is the position that India holds, and not to change the statute itself. It is merely to clarify that the courts have misread the provisions of the law, or that they have indeed not read the provisions of the law (as in the Eurokids case).

This provision will have no effect whatsoever on the Wiley ruling. While the Wiley ruling deserves to fail on its own merits, the reasoning in that case does not depend on whether we follow international or national exhaustion. Indeed, in para 104, the judge states:

As per my opinion, as the express provision for international exhaustion is absent in our Indian law, it would be appropriate to confine the applicability of the same to regional exhaustion.

Be that as it may, in the present case, the circumstances do not even otherwise warrant this discussion as the rights if at all are exhausted are to the extent to which they are available with the licensees as the books are purchased from the exclusive licensees who have limited rights and not from the owner. In these circumstances, the question of exhaustion of rights of owner in the copyright does not arise at all.

Thus, the argument that following the principle of international exhaustion will upturn this judgment is faulty. Imports and exports are two distinct things. India’s following of the principle of “international exhaustion” means that the right to first sale is exhausted in India, when the work is legally published anywhere internationally (i.e., regardless of where that copyrighted work is legally published). The principle of international exhaustion does not not exhaust the right of first sale internationally—the word “international” is used to indicate where the publication has to take place for exhaustion to occur, and not where the exhaustion takes place. After all, Indian law on a matter cannot determine whether a book can or cannot be sold anywhere else in the world (which is precisely what it would do if it is to hold that rights are exhausted internationally by virtue of a book being printed in India).

Conclusion

I think the best way of concluding this are by quoting, in extenso, a passage from a book on the Indian intellectual property law by Prof. N.S. Gopalakrishnan & Dr. T.G. Agitha:

Under the Indian law there is no express provision recognising the right of importation. This would in fact enable parallel importation of works. “Parallel importation” means transportation of “legitimate” goods which are available at a cheaper rate in one country by independent buyers (e.g. book sellers), for sale in another country. This could act as an effective check on creating monopoly in the market. Hence, it is an important aspect to be borne in mind for a developing country like India. Since there is no international obligation against parallel importation, nothing prevented the court from taking the stand that unless there is an express provision conferring importation rights on the owner of copyright or prohibiting parallel importation, it need not be considered to be prohibited in India. It is pertinent to note that India supported the principle of international exhaustion and not the national exhaustion principle. [11]

However, it is submitted that the court (in Penguin v. India Book Distributors) failed to take note of these aspects while deciding this case.”[12]

One can only hope those words by these leading experts on IP law in India are paid heed to, and that the arguments otherwise will fail to convince both the government as well as future court decisions.

* Please do not cite this note in an academic paper. Feel free to cite elsewhere. This note is still very much a work in progress. However, given the urgency of this issue and the importance of ensuring debate on the legal ramifications of the proposed amendment to s.2(m), this note should prove useful.