BG-95-20 July 13, 1995

PROTECTING INTELLECTUAL PROPERTY: COPYRIGHTS

Fact Sheet: Fifth in IPR Series

WHAT IS A COPYRIGHT?

A copyright is an exclusive right conferred by law for a specified period of time to reproduce an original literary or artistic work fixed in any tangible medium of expression; to prepare derivative works based upon the original work; and to publicly perform or display the work.

Copyright protection means that certain uses of a work are lawful only if made with authorization of the copyright owner. However, copyright protection does not extend to any idea, procedure or concept explained or embodied in the copyrighted work. Rather, protection is limited to an author's particular expression of the idea or procedure in a tangible medium.

FAIR USE

Under U.S. law, exclusive rights granted to a copyright owner do not include the right to prevent others from making "fair use" of the owner's work. Fair use may include criticism, comment, news, reporting, teaching, or research. The nature of the work, the extent copied, and the impact on the work's commercial value are factors used to determine whether an unauthorized use is a "fair use."

U.S. LAW

The U.S. Copyright Act enumerates eight broad categories of protectable subject matter:

-- literary works;
-- musical works, including any accompanying words;
-- dramatic works, including accompanying music;
-- pantomimes and choreographic works;
-- pictorial, graphic and sculptural works;
-- motion pictures and other audiovisual works;
-- sound recordings; and
-- architectural works.

U.S. law, consistent with the Berne Convention and the TRIPS agreement, protects a copyrighted work for the term of the author's life, plus 50 years.

Copyright protection is not extended to works of the U.S. government.

INTERNATIONAL ISSUES

Copyright protection is particularly important in such industries as printing and publishing, broadcasting, computer software, and entertainment industries. Unauthorized copying of these products occurs frequently in countries where there is inadequate or ineffective protection of intellectual property.

The International Intellectual Property Alliance, an organization representing U.S. copyright-based industries, estimates collective losses of $15-17,000 million annually due to copyright piracy outside the United States.

INTERNATIONAL ACCORDS

The Berne Convention: Established 1886, it is the principal transnational convention relating purely to copyright protection. It is based on national treatment, whereby foreign nationals receive the same protection as nationals of any member country, without discrimination. Copyright protection is automatic throughout all member countries without the need to comply with any formalities.

TRIPS: The Trade-Related Aspects of Intellectual Property Rights

(TRIPS) accord, concluded as part of the Uruguay Round multilateral trade negotiations and signed in 1994, incorporates all substantive trade-related protections afforded under the Berne Convention. The accord expressly:

-- requires copyright protection to computer programs and data files;

-- extends the right to authorize or prohibit commercial rental to owners of copyrights in computer programs and films, and to producers of sound recordings and any others that hold rights in a phonogram under a country's domestic laws; and

-- ensures the right of sound artists, recording companies and broadcast organizations to prohibit unauthorized copying and broadcasts.

With the exceptions of photographic works or works of applied art, TRIPS sets the term of protection for copyrights at a minimum 50 years when the term is calculated on a basis other than the authors life.

PROGRESS SECURING FOREIGN COPYRIGHT ENFORCEMENT

Obtaining improved intellectual property protection globally has been a central objective of U.S. trade policy since the mid 1980s. Most recently, the United States made considerable progress in combating copyright piracy, particularly in computer software and audio visual works, in February 1995 when it reached a historic agreement with China on intellectual property rights enforcement. According to the U.S. Trade Representative (USTR), software piracy in China has taken as much as 95 percent of the market. Piracy of U.S. compact discs, laser discs, cassette tapes, videos and movies also has been exceedingly high. Additionally, Chinese companies have begun exporting pirated products including CD-ROMS, which can hold many software programs on a single disk.

The U.S.-China agreement, concluded following a Section 301 investigation, commits China to strong measures to curb piracy -- including establishing focused enforcement efforts for audio visual works, computer programs and publications. A top U.S. priority will be ensuring that the agreement is implemented fully and on schedule.

According to the USTR's April 1995 review of foreign intellectual property enforcement, other recent progress includes implementation of a new bilateral understanding with Bulgaria on copyright and a commitment announced by Indonesia to strengthen copyright enforcement, particularly for computer software.

Over the last 12 months, new copyright laws or amendments were enacted in several countries including Australia, Costa Rica, India, Panama, Poland, New Zealand and Thailand.

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