The Global Challenge of Intellectual Property Rights
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The Global Challenge of Intellectual Property Rights

Edited by Robert Bird and Subhash C. Jain

The importance of intellectual property rights is now well established as a vital component in the success of firms and of nations. The diverse contributors to this volume, drawn from the fields of law, business and economics, clarify and analyze the problems and promise of IP policy from a global perspective. They discuss both developed and emerging nations and advance the understanding of this increasingly important topic.
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Chapter 13: Intellectual Property Reform in Developing Countries: Trade and Investment Dimensions

Douglas Lippoldt


Douglas Lippoldt1 INTRODUCTION In recent decades, the global economy has become increasingly integrated as technological advances, trade and investment liberalization, reform in transition countries, institutional change and other factors have come together to break down barriers and increase international economic possibilities. The multilateral trading system has played a major role in promotion of economic integration, in part by influencing the evolution of institutions related to intellectual property rights (IPRs) in developing and transition countries. A key element in this regard is the World Trade Organization’s (WTO) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), which came into effect in 1995. The TRIPS Agreement established minimum IPR standards and a framework to review and enforce these standards. In parallel with the advent of TRIPS, the World Intellectual Property Organization (WIPO) witnessed a significant increase in adherence to the various international treaties that it administers. One result of these developments has been a strengthening of IPRs around the world, including in a number of developing countries where the initial protection of IPRs was weak at best. Drawing in part on recent OECD studies, this chapter begins with an examination of the extent of institutional change with respect to IPRs in developing and transition countries. It then presents analysis employing statistical and regression techniques in order to assess developments in international trade and investment associated with IPR reform. The chapter highlights the tendency – with some notable variation by sector or level of development – for strengthened IPRs to be associated...

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