The Economic Costs and Benefits of Intellectual Property Right Reinforcement in Kosovo

Taulant RamabajaAhmet MorinaXhenis Mazreku Nexhat PeciVesa RadoniqiIntroduction to Qualitative Policy AnalysisResearch Paper 17.05.2010

The possible economic costs and benefits of Intellectual Property Right reinforcement in Kosovo

Abstract

Despite the very pressing issue of Intellectual Property (IP) in Kosovo we have not seen any serious public debate in the media or through scholar text which might asses the true economic and politicaldimensions of this problem. We define and propose three different legislative models with which theissue of IP Rights in Kosovo can be tackled.This paper addresses parts of this issue by providing the basic information needed to understand this IPrelated problems.

Introduction

Considering that this paper is intended for an audience which is concerned rather specifically withKosovo's economic development and its integration in international structures and institutions, we willfor the sufficient reach of this paper focus mainly on three distinct concepts: Intellectual Property (IP),Copyrights, and Trademarks.

Key Terms

Intellectual PropertyIntellectual Property

or as an acronym

IP

refers to a specific idea, complex information or simply

“creation of mind” which can under specific laws be legally owned by a single legal person. IP is arather broad term which includes such complex property types as copyrights, patents, trademarks,industrial design rights and in some countries such as the U.S. trade secrets. More specifically IP caninclude literary, musical, and artistic works; inventions, designs, symbols, and often even phrases andspecific words.IP, similar to other legal forms of property is meant as a framework for financial incentives andcompensations for one's very specific and new contribution to society[1].However, even this basicincentivised scheme has been disputed since IP's very creation[2].It is assumed that all post-industrial or information-centric economies depend to the largest extend on“Value added” or “IP intensive industries”.Most research in the past decades has shown that greater economic growth is almost always associated with greater IP protection. However, some scholars arguethat this is more of a correlation that a causation. Already existing foreign companies and institutionsmight set up their offices and industries in less developed economies for several reasons but IPreinforcement. As a result Intellectual capital and with it IP could potentially flow into that specificcountry even against the will of the owners of the specified IP.Opponents of IP or specific laws concerning IP often state that IP is useless in a non-scarcity economyaltogether. Markets make sense wherever there is some kind of scarcity which then in return can lead toownership and proprietary use and distribution of the scarce good. IP is a non-scarce good. Ideas can bydefinition flow freely and be copied, manipulated and transferred without any problems normallyassociated with almost any tangible good [3]. As such, making a non-scarce good artificially throughlaws scars could be seen as a market distortion itself.

CopyrightsCopyrights

are a set of specific rights reserved to the creator of an original work. The most

fundamental rights associated with is "the right to control copying". However, more specificallycopyright is the right to copy, distribute and adapt the work. Anyone who has a copyright on somethinghas the right to sell, transfer or license the rights or usage of the original work to a second party. Inmost countries copyright on an original work last only for a specific time period after the authors death,typically 50-100 years, after that the work will become part of the public domain.In the last decades copyright laws have been greatly standardized throughout the world. Leading to better IP and copyright cross-compatibility [4]. Similarly to the global standardization of other laws thishas led to better business conditions in the global market.Since the 1980's the European Community has been working extensively on streamlining copyrightlaws throughout its member states. Today the EU regards streamlined copyright laws in all its member states as a fundamental precondition for the free movement of goods, services and labor [5].According to the World Intellectual Property Organization there are two justifications for the existenceof copyright:"To encourage a dynamic creative culture, while returning value to creators so that they can leada dignified economic existence, and to provide widespread, affordable access to content for the public." [6]Copyright always refers to an intangible good which is generally associated with a tangible good. Anexample would be that if one buys a book one buys only the tangible book itself, not the right to thecontent of the book [7].

Trademarks

A

trademark

is a specific sign or indicator which represents an individual, business or other legalentity. Generally trademarks are distinct through additional symbols such as

TM

,

SM

or ®. All of thesesymbols refer to to a different registration type and/or level of legal protection.