CONTENTS WHAT IS INTELLECTUAL PROPERTY? Two experts explain the mysteries of patents, trademarks, copyrights, and trade secrets. SUPPORT FOR ECONOMIC AND POLITICAL FREEDOM The former U.S. Commissioner of Patents and Trademarks suggests why it is in every country's interest to establish and maintain an effective intellectual property system. A DEVELOPING COUNTRY'S PERSPECTIVE Intellectual property rights, says a Ghanaian copyright official, galvanize domestic industry while retaining national culture, inventiveness, and creativity. PROGRESS IN THE PHARMACEUTICAL INDUSTRY Striking a blow against patent piracy is essential to the future of pharmaceutical research, says a former association executive. A TRADE ASSOCIATION AT WORK The representative of a book publishing association recounts her organization's efforts to enforce international copyright standards. INTERNATIONAL POLICY AND ACCORDS Here are the key multinational treaties and conventions that require member countries to provide intellectual property protection for the benefit of foreign nationals. GLOSSARY From assignment to World Trade Organization, an attorney defines some commonly used terms related to intellectual property rights. SOURCES OF INFORMATION ON INTELLECTUAL PROPERTY How to get in touch with U.S. government entities, international organizations, and other groups in the forefront of the intellectual property scene. ADDITIONAL READINGS IN BRIEF... Fair Use Copyright in an Electronic Age The U.S. Patent System The U.S. Special 301 Process The World Intellectual Property Organization

A DEVELOPING COUNTRY'S PERSPECTIVE By Betty Mould-Iddrisu, Chief State Attorney, International Law Division, Ministry of Justice, Ghana The administration and enforcement of intellectual property rights in developing countries must be seen in another dimension to the administration of intellectual property rights and their enforcement in developed countries.     In Europe and the United States, the system of intellectual property rights emanated as early as the 16th century. Britain's Statute of Queen Anne, the earliest copyright statute, was passed in 1709 not only to protect local printers after the advent of the Gutenberg printing press but also to protect the foreign works (mainly books) that were being imported from Europe into England at that time.     Dennis de Freitas, former head of the British Copyright Council, has commented that “the copyright system as it now exists in virtually every civilized country is a vital part of modern society's infrastructure.” This may be so because of the centrality of the copyright system in the communication and dissemination of information to the public through newsprint, radio, television, films, broadcasting, and education.     In 1996, the International Intellectual Property Alliance estimated that copyright industries are one of America's largest and fastest growing economic assets, accounting for 3.7 percent of the country's gross domestic product — $278,400 million. The core copyright industries produce and distribute computers and computer software, motion pictures, television programs, home videocassettes, music and sound recordings, textbooks, trade books, reference and professional publications, and journals.     In Britain, according to statistics released by the British Phonographic Industry in its 1995 report on the recording industry, the 1994 retail value of British music sales was 1,400 million pounds sterling, with exports and invisible earnings amounting to 800 million pounds. Apart from direct recording company employment, the British music industry provides a living for over 50,000 people in music retailing and music publishing.     Studies conducted in other developed countries by the European Commission and other organizations indicate that in Austria, Australia, Germany, and Sweden, among others, 3 to 5 percent of the gross national product is attributable to copyright industries. It has also been estimated that the total value of the worldwide audiovisual market in 1994 was approximately $290,000 million.     What can be said of the situation in Africa? A survey of some countries such as Egypt, Ghana, Malawi, Mauritius, and Nigeria shows that, before the 1970s and 1980s, most of the laws regarding the protection of intellectual property were mere replicas of existing laws of their colonizing countries. These laws had been designed specifically to protect the rights of the colonizing nationals and their businesses and firms, and no account was taken of the different conditions in the colonies and the developed countries.     Immediately after Africa's emergence from post-colonialism, African governments still did not attach much priority to the need to protect intellectual property rights. Many industries were in their infancy, and the domestic manufacturing base was virtually nonexistent. What was prevalent in Africa was a vibrant folklore tradition around which cultural industries clustered in areas such as music, textiles, jewelry, and the like.     A quick survey of the intellectual property system in Ghana up to the 1970s reveals that the Ghanaian Trade Mark Register had recorded approximately 17,000 trademarks, out of which 90 percent were owned by foreign companies and individuals. In 1996, there were 27,625 marks on the register, with Ghanaians owning 15 to 20 percent of those registered.     The Textiles Design Registration Decree of 1966, under which regime textile designs were registered, specifically excluded registration of all well-known Ghanaian designs such as “Kente” and “Adinkra” symbols. It is interesting to note that, between 1966 and 1997, 23,000 designs were registered under this law; some 66 percent (just over 15,000) are owned by foreign designers, and 7,592 are owned by local designers.     In respect of patents, Cap 179, which was the colonial Patent Registration Ordinance, merely extended the validity of all patents registered in the United Kingdom to the Gold Coast colony at that time. All patents so registered belonged to foreign individuals or firms. This ordinance, due to the difficulties in setting up a patent system, remained in force in Ghana until July 1, 1994, when a new patent law was enacted.     It must be noted, however, that most of the intellectual property laws enacted after the 1970s tended to have a different bias since they had to respond to new national environments and the varied global trade requirements of emerging nations struggling to level the playing fields in international commerce and investment activities.     Some of the advantages that developing countries acknowledge as having directly resulted from increased enforcement of the intellectual property laws are: Stimulation of creativity and inventiveness in society, thereby contributing to a country's development. Provision and protection of the infrastructure necessary for the growth of production, manufacture, and distribution within the cultural, educational, and entertainment industries. Creation of an environment conducive to attracting domestic and foreign private sector investment in the copyright industries. Protection — in view of emerging technologies — of expressions of folklore and live performances through the enhanced legal protection of performers' rights.     On the African continent, the intellectual property system has also had to confront misguided individuals in society who believe and expound the theory that developing countries should feel free to copy works coming in from other countries, notably the more developed countries. These people cite Asian countries and others as examples that, because of limited intellectual law protection in the past, managed to develop local industries as a major force on world markets by copying, pirating, or counterfeiting the works and goods of other countries.     However, many of these countries now realize the impact that lack of enforcement of intellectual property rights has had on their economies, their local industries, and their culture. For example, it is well known in Asia that Malaysia's domestic motion picture industry suffered tremendous harm from competition in foreign films since, until recently, the country had neither copyright rights nor rental royalties for films. The Malaysian motion picture industry and its performers had to exert an enormous amount of pressure, demanding that the government effectively enforce the copyright laws. Malaysia now has a vigorous intellectual property enforcement program, worthy of emulation anywhere in the world.     Previously, we in Africa, especially those within the Anglo-Saxon legal tradition, have had a very basic problem with the philosophy of intellectual property rights, which have been enforced primarily through civil litigation. Only recently have African governments regarded the enforcement of intellectual property rights as their responsibility and those persons who infringe upon these rights as engaging in acts inimical to the interest of the state. The Experience of Ghana The challenge now is for African governments to commit to the enforcement of strong intellectual property laws by strengthening the administration of their copyright systems. My own experiences in intellectual property administration in Africa have shown that the basic prerequisite for the development of a strong and effective copyright system involves the following minimum criteria: Passage of a strong copyright law. Adherence to international conventions. Establishment of effective administrative machinery that can collect royalties and undertake distributions at regular intervals to the deserving authors. Entering into a network of reciprocal representation agreements with sister societies worldwide. Establishment of an effective enforcement and monitoring mechanism to fight piracy.     I would like to illustrate these points by reference to Ghana in West Africa. Ghana passed a strong, modern, and vibrant copyright law, PNDCL 110, in 1985 to replace the obsolete Copyright Act of 1961 — one of the pieces of post-colonial legislation regulating the copyright industry. The criteria enumerated above — the framework within which copyright should be administered — were also adhered to in Ghana.     A collective body for the administration of authors' rights, known as the Copyright Society of Ghana (COSGA), was set up in 1986. Ghana adhered to the Berne Convention in 1991, and COSGA embarked on a program of concluding reciprocal representation agreements with other collective societies worldwide.     COSGA has achieved some measure of success in its operations; it has been collecting and distributing royalties for both domestic and international repertoire since its inception. The Confederation Internationale de Societes des Auteurs et Composituers (CISAC) views COSGA as one of the leading authors' societies in Anglophone Africa, since the strides made by the collective administration of authors' rights in Ghana are remarkable. In most other Anglophone countries, the efforts at collective administration of authors' rights have met with only limited success.     Even though Ghana enacted a modern copyright law in 1985, the music, literary, and film industries had suffered a severe decline prior to 1992, and the rights of performers, composers, and authors were being infringed upon at an alarming rate. I want to underscore the fact that mere passage of legislation is no guarantee that a law is being enforced, and if there is no enforcement, the passage of legislation is useless. This has been most apparent with regard to copyright legislation in Africa.     The successful administration of copyright in developing countries is inextricably linked to the problem of piracy, which in Ghana had reached an alarming rate of 90 percent in those intervening years. Obviously, the whole administration of copyright became problematic since, ultimately, there would be only insignificant royalty payments going to authors, illustrators, composers, arrangers, or performers or any of the creative people who contributed to the making of an original work.     The piracy of copyrighted works in Africa, and in Ghana in particular, over the years contributed to: The exodus of many of our talented authors to Europe, the United States, and other developed countries. This drain has deprived Africa of a wealth of native creativity. Stultification of the development of all the copyright-associated industries and the subsidiary activities of those involved in the business of legitimate creativity. Considerable loss in revenue to the state through direct and indirect forms of taxation. Retardation of the cultural creativity of our local communities, which, for a developing country whose national identity and cultural roots are inextricably linked with its national economic development, may have far-reaching consequences. Putting an End to Piracy The music industry in all its ramifications forms a major part of cultural industries since it is one of the formats through which musical folklore is expressed. In Ghana, musicians have a vast reservoir of indigenous Ghanaian music from which they draw their inspiration; they are able to modify and arrange expressions of folklore to modern-day music.     In Ghana during the 1970s and 1980s, with the advent of tape recording machines and videocassette recorders, the production of indigenous music was on the ascent and could be heard all over the country. Yet the musicians, artists, producers, and others involved in the legitimate production of music — and the music industry as a whole — had never been poorer due to the impact of these new recording technologies and their encouragement of piracy.     The government of Ghana and the Copyright Administration from 1985 to 1990 found themselves more or less helpless to fight the piracy that was rampant. Owing to increased costs in production of music and the relatively small number of “genuine” works being sold, artists, composers, and the producers of musical works lost the incentive to create new works. Thus, Ghana lost international respect and gained a reputation for being a safe haven for pirates and pirated works. At the same time, Ghanaian music suffered a reversal since the pirated foreign imported music was able to capture the market.     It became evident to the Ghanaian authorities that when one copies, one does not, in any way, encourage national authorship, national culture, or national creativity. This holds true for all the different strata of the intellectual property legal system, whether it be the copyright, patent, industrial design, or trademark system. If we in Africa pursue such a course of copying blindly all that comes from the developed countries, we would forever be trapped in a cultural negation of our own making that would undoubtedly retard both our economic and cultural progress.     The government of Ghana, through the Copyright Office, was thus compelled to take the initiative in the fight against piracy. The Copyright Office, in close cooperation with the various organs of the music industry and with the technical cooperation of the International Federation of the Phonographic Industry (IFPI) in London and its national group in Ghana, the Association of Recording Industries of Ghana — ARIGh — instituted the “banderole” system. The system was modelled along the lines of the Portuguese system, because after Portugal introduced this system, it achieved a near-zero rate of piracy.     The affixing of an authentication stamp known as the “banderole” on all musical works became mandatory in Ghana beginning June 1, 1992. This stamp is a security device that is sequentially numbered; individual numbers are allocated only to genuine producers of musical works, and imports of all pre-recorded musical works have to be authenticated by the Copyright Office, in cooperation with the Customs Excise and Preventive Service (CEPS). The recording industry in Ghana agreed with the Internal Revenue Service (IRS) to use the banderoles as a source of direct prepaid income tax.     In Kenya when the banderole system was originally planned, it was proposed that the banderole be used as a value-added tax (VAT). Nigeria had no tax element built into the system. Unfortunately, the system never took off in Kenya, which now has an unacceptably high rate of piracy. And in Nigeria, it completely collapsed after less than one year due to internal problems. However, that country is now anxious to revive it since its piracy rate is over 80 percent. The Benefits of Banderoles Some of the benefits that the Ghanaian authorities and the music industry have seen during the past several years of successful operation of the banderole system are as follows: There has been a reduction in the rate of piracy from 90 percent to about 10 to 15 percent. The stamps have served to identify original musical works originating from an authentic music producer. The Copyright Office issues approvals only to applicants who are genuine members of the Association of Recording Industries of Ghana. The banderoles have provided adequate statistics about the number of musical works produced and imported into the country. The producers are being made strictly accountable to their artists since the Copyright Office insists on having recording contracts between the producer and the artist before approval for purchase of banderoles is given. So for the first time, Ghanaian artists and composers can know exactly how many of their works have been produced and can calculate and collect their royalties without encountering the difficulties of the past. The Internal Revenue Service — the agency actually responsible for the sale of the banderoles — has managed for the first time to collect revenue from a sector of business in the country from which it had hitherto received little or no revenue.     This system of authentication is, at present, being used for musical works. It is envisaged that the system will be extended to authenticate literary and video works sometime in the future.     The introduction of the banderole system has brought a complete reversal of the fortunes of the music industry. Ghana has now moved away from the situation in which only 2,000 to 3,000 pieces of a hit number are sold to a situation where a hit musical work may sell between 200,000 and 500,000 pieces. Over 27 million banderoles have been sold since the system was instituted. While this may not be much in the international arena, it has enabled Ghana, with a population of some 17 million people, to be ranked 47th in the world for musical sales.     There has been a dramatic growth in the music industry over the past five years — with a proliferation of recording studios, cassette manufacturing plants, and the like — bringing in both local and foreign investment. The major foreign licensees are all back in the country, and Ghana has now become a safe haven for the production of musical works for artists from neighboring countries. Ghana has become a model for the rest of Africa to emulate in terms of the enforcement of intellectual property rights. The Evolving Role for Patents In light of the success of the banderole system, one is tempted to ask why the patents regime has not proved so effective a stimulant in the economic development of developing countries.     It is, of course, well known that a patent system requires a relatively expensive infrastructure with experts in various technical fields. The patent law in Ghana is only a few years old, and the regulations to enable the law to be implemented were only recently enacted. The role the patent regime can play is only now evolving; however, with growing awareness of industrial property laws, this field is likely to be strengthened in the years to come. This situation is being repeated across most of the continent.     However, it cannot be denied that the trademark and design system and, to a lesser extent, the patent system have played an influential role through the licensing, distribution, and franchising of intellectual property rights in developing countries. They have assisted in the transfer of technology and the dissemination of new forms of know-how through minimum standards of licensing and usage of these rights.     It is hoped that when the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement comes into force in most African countries in the year 2000 (despite the unlevel playing fields), developing countries will be in a better position to benefit from the globalization of minimum intellectual property standards in world trade.     The example of Ghana I have given above, which I have experienced, has given me reason to be optimistic for the future of intellectual property rights in developing countries. We in the Third World should not see the observance and enforcement of intellectual property rights as merely protecting the interests of the developed world, but rather as a powerful tool to galvanize our domestic industry while retaining national culture, national inventiveness, and national creativity. Betty Mould-Iddrisu is chief-state attorney at the International Law Division of the Ministry of Justice in Ghana. She is a specialist in intellectual property law and also lectures at the University of Ghana's Law Faculty in intellectual property. She is a gender rights activist and is the African regional director for the International Federation of Women Lawyers (FIDA).   Back to top