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AMUN 2020 WIPO Guidebook - page 1

Combating Intellectual Property Theft

TABLE OF CONTENT
Team Introduction 2
Chairs
Content developers
Commitee Introduction 3
Formation of the UN
History of WIPO
Topic Introduction 4
Topic Background 5
Definition of Key Terms
History of Combating Intellectual Property Theft
Core Issues
Current Situation
Past Actions 15
Treaties signed under the administration
of the WIPO
Efforts from other organizations
Bloc Positions/Key Players 17
Suggested Solutions 18
Questions to Consider 20
Bibliography 20
AMUN 2020 WIPO Guidebook - page 2

I. Team Introductions
A. Chairs:
1. Quynh Nguyen Tran:
Greetings,
My name is Quynh Nguyen Tran and it is my honour to serve as
this year WIPO’s chair. Model United Nations has always been a substan-
tial part of my life, but I have never considered myself a serious person or
knowledgeable about politics. MUN also introduces me to many realms
and perspectives of life and wonderful people. I hope that AMUN 2020
will kindle your interests in global matters, and be as remarkable to you as
it has always been to me!

2. Minh-Anh D. Nguyen:
Esteemed Delegates and Fellow Observers,
My name is Minh Anh, a rising freshman at Hanoi-Amsterdam
High School, majoring in English. I am beyond proud to be your Chair at
the World Intellectual Property Organization.
Model United Nations will always occupy a special place in my
heart. Thanks to MUN, I have been able to discover my inner self, learn
new things, and make friends that (maybe, why not?!) last a lifetime. Never
have I been more understood and listened to before when I joined MUN.
I understand that the struggles before the first conference are real, yet,
you will overcome those waves of emotions soon--trust me! I am beyond
honored to accompany you in your MUN journey throughout two days at
AMUN.
I look forward to meeting you all at AMUN 2020!

B. Content Developer:
Kiet Do:
Greetings Distinguished Delegates!
My name is Do Binh Kiet and I am currently an eleventh - grader
in Ha Noi - Amsterdam High School for the Gifted and it is my utmost
privilege to serve you as a Content Developer in AMUN 2020’s WIPO.
At the beginning of High School, I was struggling to find fresh ex-
perience that is both joyful and academic when my classmates who hap-
pened to be passionate and talented MUN-ers lured me into this chal-
lenging but rewarding path. Little did I realize that I would be eternally
grateful to them for such a life-changing recommendation.
AMUN forever occupies a special place in my heart because my
memorable journey as a MUN-er started here as the delegate of the USA
in UNODC. Since then, with the guidance of committed HMA’s trainers
AMUN 2020 WIPO Guidebook - page 3

and the help of fellow aficionados, my love for MUN gradually grows.
Through all of the councils that I have luckily been a part of, I have learned
to make more confident speeches, conduct more in-depth research and
put aside differences to cooperate for the greater good. In crisis councils
in specifics, I have derived great pleasure from testing my wits against
my fellow delegates, planning and scheming, proposing solutions... How-
ever, to me, MUN is not just about what happens during sessions. From
MUNs there are moments during breaks and game nights to safekeep in
our memory and relationships that will accompany you further in life.
They are what evoke my desire to come back to MUN as a delegate, as well
as other roles in the future.
To the esteemed MUNers of AMUN 2020, especially first timers, I
have been in your position before, and I know that some of the elements
of MUN like speeches, lobbying, raising motions and writing directives
might look frightening and overwhelming at first. But believe me, MUN
is where potentials are realized, and it will push you beyond your comfort
zone and may even transform your mindset altogether.
I sincerely wish that you will all have an enjoyable time at AMUN
2020 as well as embark on this journey persistently and passionately from
then on.

II. Committee Introduction

A. Formation of the UN:

U.S., British, Soviet, and Chinese representatives met at Dumbarton


Oaks in Washington in August and September 1994 to draft the charter
of a postwar international organization based on the principle of collec-
tive security. Representatives of 50 nations met in San Francisco April-
June 1945 to complete the Charter of the United Nations. In addition to
the General Assembly of all member states and a Security Council of 5
permanent and 6 non-permanent members, the Charter provided for an
18-member Economic and Social Council, an International Court of Jus-
tice, a Trusteeship Council to oversee certain colonial territories and a
Secretariat under a Secretary General.
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A. Formation of the UN:

In 1970, the Convention establishing the World Intellectual Prop-


erty Organization (signed in 1967) came into force, making the World
Intellectual Property Organization (WIPO) the successor of the United
International Bureaux for the Protection of Intellectual Property (BIRPI).
Headquartered in Genève, Switzerland, WIPO is the specialized agency of
the United Nations with the responsibility of regulating services, policies,
data and cooperation linked to intellectual property.
Recognizing the importance of intellectual property to the development
of the society, with the assistance of member states and related organi-
zations, WIPO aims to develop a fair and efficient global IP system for
common benefits as well as create a conducive environment for creativity
and innovation to thrive. According to Article 3 of the WIPO Convention
signed in 1967, WIPO’s missions are as follows:

(i) encourage global protection of intellectual property through in


tergovernmental cooperation and with any other international
organization,
(ii) ensure administrative cooperation among the Unions.

III. Topic Introduction


Creative thinkers have driven the world with progression and innovation. Yet, their
contribution has been undermined by committers of intellectual property theft. Legitimate
businesses suffer huge losses in revenue and fall into disrepute, product quality is dented,
and lives are even in peril.

With an effort to eliminate intellectual property infringement, the World Intellectual


Property Organization (WIPO) has strived to provide international registering systems. To
tackle issues regarding rights of intellectual property, WIPO provides five distinct frame-
works: the PCT, Madrid, Hague, Lisbon, and Budapest; each allocated with missions in the
fields of patent, trademark, design, geographical location, and microorganism respectively.
These systems are recognized worldwide--businesses only need to fill in one form, and their
products will be guaranteed of copyright in all contracting states.

However, intellectual property crime rates continue to soar despite efforts from the
Organization. This comes as a result of the tremendous amount of time taken for organi-
zations to be patented, vulnerability of small businesses against intellectual property theft,
and lack of awareness among the public about the proper use of copyrighted material. Del-
egates are expected to propose viable solutions to strengthen regulations regarding intellec-
tual property, ease unfair competition among businesses, and bring attention to the right
employment of patented articles.
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IV. Topic Background


A. Definition of Key Terms:
1. Types of Intellectual Property Rights:
a. Parents: an article, or two dimensional features,
Patents are the most prevalent type such as patterns, lines or color that are
of intellectual property rights that people used to produce such articles.
refer to when they think of intellectual
property rights protection. A patent is d. Industrial Designs:
used to prevent an invention from being Legally, an industrial design con-
created, sold, or used by another party stitutes the ornamental aspect of an arti-
without permission. A Patent Owner has cle. An industrial design may consist of
every right to commercialize his/her/its three dimensional features, such as the
patent, including any transaction regard- shape of an article, or two dimensional
ing the patent or granting a license to the features, such as patterns, lines or color
product to any third party under mutual- that are used to produce such articles.
ly agreed terms.
e. Geographical Indications:
b. Trademarks: Geographical indications (GI)
Trademarks are another common are signs or names attributed to prod-
type of intellectual property rights pro- ucts which correspond to a specific geo-
tection. A trademark is a distinctive in- graphical location (e.g., a town, region,
dication ( text, a phrase, symbol, sound, or country). The use of a geographical
smell, and/or color scheme) which allows indication illustrates the product’s or-
consumers to easily recognize the partic- igin and acts as an authentication that
ular goods or services that a company the product possesses certain qualities, is
provides. produced according to traditional meth-
ods, or possesses a good reputation due
c. Copyright: to its geographical origin.
Copyright does not protect ideas.
However, it allows its owners the ex- f. Trade secrets:
clusive right to make copies of original Trade secrets are the proprietary
works fixed in a tangible medium of ex- systems, formulas, strategies, practices,
pression. The copyright owner has the processes, designs, instruments, patterns,
exclusive right to sell, publish, and/or re- or compilations of information that have
produce any literary, musical, education- inherent economic value because they
al, artistic, or architectural work created are confidential or readily ascertainable
by the author. by others and are not meant for unautho-
Industrial Designs rized commercial use by others. This is a
Legally, an industrial design constitutes crucial form of protection that can help
the ornamental aspect of an article. An businesses gain a competitive edge in the
industrial design may consist of three di- market.
mensional features, such as the shape of
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2. Intellectual Property Services provided by WIPO

a. The International Patent System - PCT:


Helps with patenting decisions and protect patents
b. The International Trademark System - Madrid:
Makes the process of registering trademarks internationally
easier and more manageable
c. The International Design System - Hague:
Allows the process of registering industrial designs become
more approachable
d. The International System of Geographical Locations - Lisbon:
Provides a means of obtaining protection for appellations
of origins in multiple countries
e. The International Microorganism Deposit System - Budapest:
Provides a practical business solution when pursuing pat-
ents involving biological processes or materials
f. Article 6ter:
Enables both intergovernmental organizations and individ-
ual governments to protect their flags, abbreviations, and other
state emblems
g. Trusted Digital Evidence - WIPO PROOF: Safeguards digital
assets

B. History of Combating Intellectual Property Theft

Judging by the estimation that Ancient Rome is the origin


of the term “intellectual property, ancient civilizations, especial-
ly those with advanced thinking and ideology have been aware of
the importance of intellectual property as well as the promotion
of innovation and resourcefulness. For instance, as early as in 500
BCE, the administration of the Greek state of Sybaris granted one
year's patent "to all who should discover any new refinement in
luxury". Intellectual property protectionism continued to be de-
veloped over time with new legislations and treaties adopted by
monarchies, particularly those in Western European countries like
the UK and France where lies the most cutting-edge technology
and innovative ideas as well as some major intellectual movements
like the Renaissance and humanism.
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1. Timeline:

Time Event

1266 First trademark legislation was passed by the English


Parliament

1474 The Venetian Statute: the first statutory patent system


in Europe

1624 The Statute of Monopolies set the foundation for the


establishment of patent law

1710 The British Statue of Anne set the premise for the for-
mation of copyright law

1867 - 1870 The Constitution of the North German Confederation


granted legislative power over the protection of intel-
lectual property to the confederation

1883 The Paris Convention for the Protection of Industrial


Property laid the foundation for the legal protection of
intellectual properties.

1886 The Berne Convention for the Protection of Literary


and Artistic Works granted creators the control over
their products and the financial benefits from them.

1891 In accordance with the Madrid Agreement, the first


international IP filing system was deployed.

1893 The merging of the Paris and Berne Convention led to


the establishment of the United International Bureaux
for the Protection of Intellectual Property (BIRPI).
1970 In accordance with the Convention establishing the
World Intellectual Property Organization, WIPO suc-
ceeded BIRPI.

1974 WIPO became an UN’s specialized agency.


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2. Early famous cases of intellectual property infringement:


(i) The first remarkable case of intellectual property dispute dated
back to as early as the early 1500s when artist Albrecht Dürer caught a fel-
low sculptor named Marcantonio Raimondi replicating one of his most
renowned brainchildren called Life of the Virgin. Inscribing the signature of
Durer onto the copies, Raimondi managed to make a bundle out of it. The
act was soon brought to the court of Venice and Raimondi was prohibited
from keeping the monogram.
(ii) However the most heated intellectual property clash during the
20th century probably occurred between Isaac Newton and Gottfried Wil-
helm Leibniz. Specifically, both claimed to be the father of calculus. While
Leibniz was the first to publish official papers on the topic in 1684 and 1686,
Newton claimed to have circulated documents of the same subject among
some close colleagues previously. In the end they were considered co-inven-
tors and having independently hit upon the concept of calculus.
(iii) Chinese IP Theft: Throughout history, Chinese companies have
made several attempts of industrial espionage, especially against US compa-
nies. Some of the most prevalent cases include: the Wind Turbine case, the
Oreo White case, the Motorola case,...

C. Core issues:
International Property Theft (IPT) is fostered by two main core issues: lack of awareness
and support of organized crime.

1. Lack of awareness:
a. Consumers
Consumers' ignorance of the violation of copyright material has allowed
the crime to continue. Many do not like to pay prices or fees for their desired
products, thus giving the way for free-movie websites or replicas of the original
designer items. In a study in 2002, more than half of college students in the US
use cracked software, ninety percent of all software used is non-verified, more
than a third of all business software is reproduced illegally, and illegitimate cop-
ies/burning of CDs and/or DVDs are regarded as normal.
Employees
Many IPT cases were the products of employee’s giving away trade secrets
i.e. blueprints, databases, or customer information. Lured by material gains,
many employees are beyond willing to divulge confidential information, for
a substantial period of time. In 2015, roughly 50% of UK companies suffered
once from intellectual property theft by their staff members, and 13% of these
companies witnessed the occurrence once a month. Examples:
Avery Dennison (AD): Avery Dennison is the US’s largest
adhesive label manufacturer. It was robbed of intellectual property from 1989
to 1997 by Four Pillars, a Taiwanese competitor of Avery Dennison. The culprit
was Ten Hong Lee (Victor Lee), who was a senior research engineer at AD’s
AMUN 2020 WIPO Guidebook - page 9

research faculty in Ohio. He entered a secret relationship with Four Pillars’


CEO, Pin Yen Yang, and his daughter, Hweu Chen Yang, for $150,000 and rec-
ognition for his efforts in the industry. In 1999, U.S. District Court charged the
Yangs and Mr. Lee with stealing trade secrets and economic espionage charges.
The CEO received a six-month home confinement sentence and a $250,000
fine. His daughter was put on probation for a year, and given a $5,000 penalty.
Four Pillars was penalized $5 million for accepting trade secrets. Lee gave him-
self in to wire fraud and deceiving his company.
Huawei: In between 2000 and 2003, an engineer (referred here as
Engineer 1), recruited by a company (referred here as Company 2), attempted
to expropriate intellectual property from Company 2 to provide for Huawei.
Huawei then targeted Engineer 1 for recruitment, and arranged meetings with
Engineer 1 for several times during 2000 and 2003. On March 3, 2003, Engi-
neer 1 sent an email enclosed with confidential information from Company 2
to Huawei.
America Online (AOL): In April and May 2003, Jason Smathers,
an AOL engineer took advantage of his counterpart’s access codes to gain in-
formation of over 30 million AOL customers, which contained email addresses,
telephone numbers and ZIP codes. He then sold the information to Sean Dun-
away for $27,000, who then re-sold to spam websites for about $52,000. Sma-
thers was sentenced to 15 months in prison and fined $84,000 in October 2005.
2. Support from organized crime groups:
One notable factor which makes intellectual property theft a heated issue
is its close ties to organized crime. These organizations target intellectual prop-
erty theft as a medium through which their income is generated due to its low
risk and high profit margins. Criminals target all types of goods: food, phar-
maceuticals, clothing, etc. for counterfeiting, which then later are transported
from country to country for consumption.
a.Low risks:
With governments not paying sufficient attention as well as low fines,
criminals aim at counterfeit industries as a sub-activity to fund their major
goals, or in some cases, their main source of income. The profits gained through
trade of knock-off products can be utilized to sustain their operations, which
can cover them with an additional layer of protection against detection.
Organized crime groups are also highly flexible in their operations. With
a view to broadening their influence as well as recruiting skilled hackers and
technicians to aid their ventures, these groups often branch out to sole, inde-
pendent criminals around the world. Individual criminals, lured by the strato-
spherical sums of money and abundance of resources, agrete to partner with
and/or join transnational organizations. With this convergence, these illegiti-
mate institutions can carry out misdeeds on an international scale, especially
when borders are being loosened as a byproduct of globalization and free trade.
Trade in replicas and intellectual properties is now easier than ever: in one
AMUN 2020 WIPO Guidebook - page 10

instance, a smuggling ring successfully imported over 100 million fake ciga-
rettes through dishonest documents at customs, according to IACC in 2005.
Furthermore, trade routes are often unpredictable and can shift from time to
time, since these organizations aim to escape security checks from customs.
Quoting OECD, the methods that criminals can deceive officials can range
from hiding them deep in containers, mixing them with legal goods to faking
declarations, shipping parts individually to an assembly intermediary.
Technological advances also play a vital role in exploiting intellectual
property, which can be vulnerable to such high-tech tools. Cloud storage and
big data have no longer been foreign in many corporations, and hackers have
found ways to surpass these leading companies to conduct theft.

Source: Treverton, Gregory, et al. Film Piracy, Organized Crime, and Terrorism. RAND Corporation,
2009, p. 37, apps.dtic.mil/dtic/tr/fulltext/u2/a497848.pdf.

Moreover, the Internet can act as a prominent medium for the trade of coun-
terfeit products. As transactions and online activities can appear anonymous,
consumers and sellers of counterfeit products can easily conduct business. In
2007, US federal law enforcement convicted 18 members of the Affpower or-
ganization, a blacklisted casino group, for an online pharmacy which involved
domestic and foreign entities. The administration board of the website con-
sisted of physicians who prescribed the drugs, and pharmacies that dispensed
the drugs; with the aid of merchant websites, affiliated websites to advertise the
drugs, and credit card processors to conduct transactions, all located in various
places. The operators resided in the United States but had bank accounts in
Panama, Cyprus and Costa Rica; the host was embedded in Cyprus. Another
case, the Bansal organization, also sold over 11 million prescriptions to more
than 60,000 people in the United States, gaining more than $8 million USD in
the course of over a year.
AMUN 2020 WIPO Guidebook - page 11

b. Profits gained through counterfeit industry:


It is estimated that trade in counterfeit goods worldwide has accounted
for 3.3% of global trade, approximately at $509 billion. Many organized crime
groups prefer intellectual property theft to smuggling drugs or human traffick-
ing. A report from RAND corporation, an American non-profit global think
tank, compiled from various reports from government officials, has revealed
that:
- A blank disc may cost as much as 20 cents (even free if stolen),
but can be redistributed at 35 baht in Thailand (approximately $1), to $5 at
New York’s Chinatown, or $18 if the disc is claimed to be a “legal copy.” A DVD
manufactured in Malaysia for $0.70 can be passed off in the streets of London
for $9.
- The cost of pirating softwares on computers may cost up to 30
cents, but selling the softwares can provide as much as $50. In contrast, a gram
of marijuana would cost $2.25 to produce but can only sell for $18.2.
Therefore, many criminals opt for intellectual property theft than oth-
er types of crimes such as smuggling drugs or human trafficking. Organized
crime groups usually operate in different fields of crime in various countries to
avoid detection, especially countries with lax regulations and an open market
for counterfeit products e.g. China, Turkey, and the UAE.

D. Current Situation:
With the effect of multiple treaties signed from as early as the 1800s, the WIPO has
eased the way for many companies and individuals in their intellectual property claims.
Furthermore, systems within the WIPO—the Hague, Madrid, Lisbon, Budapest and
the PCT systems have allowed protection of all types of intellectual property to take
place, thus guarantee the rights of respective owners. As a result of these efforts, the
number of patents registered and cases solved have risen considerably.
AMUN 2020 WIPO Guidebook - page 12

However, the crime still takes place in many countries, notably in China, Turkey, and
the UAE where counterfeit goods are mass-produced and distributed every year—Chi-
na is responsible for over 80% of counterfeit goods production in the world.
Statistics from OECD revealing top countries who churn out counterfeit products ev-
ery year, in the course between 2013 to 2016:

OECD also revealed areas in which the products are most likely to be imitated:
AMUN 2020 WIPO Guidebook - page 13

Data also revealed seizures of counterfeit products proportions:


AMUN 2020 WIPO Guidebook - page 14

Furthermore, tension between the USA and China heightens as China is


rapidly convicted of misappropriating information from the USA in order to
benefit economically and technologically. On August 14, 2017, president Don-
ald Trump ordered for an investigation into China’s intellectual property prac-
tices, which was the onset for a trade war that still continues to escalate. Major
companies, notably Huawei, are accused of stealing trade secrets through the
acts of hacking into major databases of large US companies. According to the
US Justice Department, Huawei has allegedly been committing IP theft as early
as 1999. The lawsuit against Huawei was filed on February 13, 2020, the Third
Superseding Indictment since January 16, 2019, including:
- In 2004, a Huawei employee stole a competitor’s technology by
staying overnight after the trade show in Chicago. He was found “removing
the cover from a networking device and taking photographs of the circuitry
inside”—quoting from the indictment.
- The lawsuit also revealed that Huawei plotted “countermeasures”
against a company (referred to in the indictment as “Company 4”) in 2009, de-
spite having signed a non-disclosure agreement, which deprived Huawei of us-
ing information supplied by Company 4 for their own benefits. After request-
ing Company 4 for a presentation briefing its plan of “proprietary technology to
improve reception between cellular telephones and the antennas that provide
cellular telephone and data services”, Huawei wrote emails to Company 4, ask-
ing for the slides used in the presentation. Huawei then later forwarded them
to their engineers, who worked on a competing counterpart.
- The indictment also included several other cases, in which the
employees from competing companies as well as Huawei employees were
tipped off and were given bonuses to expropriate trade secrets and confidential
information from many companies.
The White House is looking forward to increasing the pressure on Hua-
wei, for fear of unlawful surveillance and potential threats to the economy.
Huawei has denied all claims, confident that the latest charges will be absolved
in the court. Andy Purdy, chief security officer for Huawei in the United States
stated that the campaigns against Huawei will ultimately result in economic
losses as jobs can dwindle and competition can reduce in the telecommunica-
tions industry.
AMUN 2020 WIPO Guidebook - page 15

V. Past Actions
A. Treaties signed under the administration of the WIPO:

Year Action

1981 Nairobi Treaty on the Protection of the Olympic Sym-


bol: all states under the treaty must protect the symbol
of the Olympics.
1989 Washington Treaty: provides protection for the topog-
raphies of integrated circuits.

27/10/1994 Trademark Law Treaty with a view to “standardizing


and streamlining national and regional trademark
registration procedures”.

20/12/1996 WIPO Performances and Phonograms Treaty


(WPPT): grants rights of two types of beneficiaries in
the digital environment:
artists: actors/actresses, singers, musicians, etc.
“producers of phonograms: persons or legal entities
that have responsibility for sounds fixation.

20/12/1996 WIPO Copyright Treaty (WCT): “special agreement


under the Berne Convention that deals with the pro-
tection of works and the rights of their authors in the
digital environment.”
subjects covered: “computer programs/compilations
of data or other material (“databases”), in any form”
rights granted to authors: right of distribution/right of
rental/ a broader right of communication to the public

1/6/2000 Patent Law Treaty (PLT): set the rules for formal pro-
cedures of patent applications of regional and national
level.

24/6/2012 Beijing Treaty on Audiovisual Performances: discusses


terms about performers in audiovisual performances’
rights of the intellectual property
AMUN 2020 WIPO Guidebook - page 16

28/6/2013 Marrakesh Treaty to Facilitate Access to Published


Works for Persons Who Are Blind, Visually Impaired,
or Otherwise Print Disabled (MVT): “demand con-
tracting countries to list the limitations and exceptions
to copyright rules to
give permissions for reproduction, distribution and
making published works in formats designed acces-
sible to VIPs (the blind, visually impaired, otherwise
print disabled)
give permissions for exchange of these works across
different countries by organizations that serve those
beneficiaries”

B. Efforts from other organizations:

1. TRIPS Agreement: 2. Efforts from the community:

A legal, international agreement There are many international allianc-


among all country members of the World es, organizations, NGOs around the world
Trade Organization (WTO). It includes the working on the protection of intellectual
minimum standards for the regulation by property against theft. NGOs such as South-
national governments of many forms of in- East Asia IPR SME Helpdesk, etc. have been
tellectual property (IP) as applied to nation- credited with enhancing the development
als of other WTO member nations. Negoti- capacity of developing countries’ delegates
ated at the end of the Uruguay Round of the to negotiate, raising awareness, achieving
General Agreement on Tariffs and Trade coherence in different multilateral forums,
(GATT) between 1989 and 1990, TRIPS is being facilitators and helping with timing,
administered by the WTO. etc…
AMUN 2020 WIPO Guidebook - page 17

VI. Bloc Position/Key players

1. China:
China is a giant powerhouse in the domain of intellectual property and patenting,
interestingly, both in the role of a contributor and an issue to innovation with its record
as the country being most often accused of stealing IP rights. It is estimated that Chinese
theft of American IP surmounts to between $225 and $600 billions every year.
China underwent a reorganization of government that involved intellectual property re-
sponsibilities of various agencies. Revisions of laws and regulations have been made by
the country but China still failed to make fundamental structural changes to strengthen
IP protection and enforcement, open China's market to foreign investment, allow the
market a decisive role in allocating resources, and refrain from government interference
in private sector technology transfer decisions.
China reportedly took advantage of the openness in US academics to steal technol-
ogy, using proxies on campus. The country is also accused by the FBI Director to “want
to set its next aim on US’ aircraft and electric vehicle technology”. The Chinese embassy
in Washington rejected all US allegations. This rival has dated back a long time ago. Re-
cords as early as 2012 have shown that the director of the U.S. National Security Agency,
General Keith Alexander, called out Chinese IP theft as the “greatest transfer of wealth in
history.” A CNBC survey showed that 1 in 5 companies reported China theft of their IP,
and big companies such as Apple, IBM and GE are suffering right under these incidents.

2. United States of America:


The FBI pointed to China as the biggest “ law enforcement threat” to the United
States. The FBI is having an intense defense mechanism against this: the bureau had about
1000 investigations open into Chinese technology theft across 56 offices. In 2019, 24 peo-
ple were arrested by the bureau in China-related cases and 2020 had already 19 arrested
people. The theft of American trade secrets by China costs the United States an estima-
tion of between $300billion to $600billion” a year.
The FBI data holds aggressive campaigns to root out Chinese espionage operations
pursuing American secrets. Public records in just 2019 depict US authorities arrested
and expelled two Chinese diplomats who were reported to drive onto a military base in
Virginia. Former CIA and Defense Intelligence Agency officials were also caught and
jailed on espionage charges linked to China.
Domestically, The Office of International Intellectual Property Enforcement (IPE)
stands for the genius of America to the world and is an integral part of the country’s econ-
omy.
The Office of Intellectual Property Enforcement (IPE) advocates for the protec-
tion and enforcement of intellectual property rights (IPR) globally. The IPE team works
in tandem with American diplomats around the world to make sure that the US’ rights
holders’ voices are represented overseas, and to emphasize the intricate part that IPR pro-
tection plays in supplementing worldwide innovation and financial growth.
AMUN 2020 WIPO Guidebook - page 18

3. Asia:
Online trading is much more convenient today, yet a downside of it is the boom in
fake and pirated products across various e-commerce platforms, social media channels
(Facebook, Instagram, TikTok) and a number of local websites. Consumers are offered
a wide variety of counterfeit and pirated products. These items can be labelled with a
counterfeit trademark or just replicate the appearance of the original goods, and they
are sold at any price-scale. Products majorly exposed to online counterfeiting are fash-
ion retail, electronics, perfume and cosmetics, pharmaceuticals, FMCG, baby products,
alcohol and automotive. The origin of the fake products being sold in SEA varies, they
can be produced locally or imported from other countries notorious for manufacturing
counterfeits, such as China, India and Turkey.

4. European Union:
The EU has a particular interest in IPR enforcement considering that European
companies are leading providers of IP-protected goods and services in third countries’
markets. n. In the EU, counterfeit and pirated goods amount to up to 5% of imports or as
much as EUR 85 billion. The quantification of intellectual property rights (IPR) infringe-
ment studies recently prepared by the European Observatory on Infringements of Intel-
lectual Property Rights confirmed that counterfeiting and piracy cause serious sales and
revenue losses for companies leading to direct and indirect jobs losses in the European
Union and government revenue losses in the EU Member States.

VII. Suggested solutions


1. Make protecting intellectual property part of business culture
Staff can be a source of IP leakage. Staff and management should be educated about the im-
portance of intellectual property and how to use confidential information. Ensure that staff
keep information secret. Ensure all employees and contractors are contractually bound
to maintain confidentiality and their inventions made during the course of employment
belong to your business. Moreover, decent treatment of a fired employee which includes
proper contract compensation, financial support during joblessness, employment recom-
mendation elsewhere,... is recommended to reduce the risks of former staff members re-
taining access to their previous employer’s database
AMUN 2020 WIPO Guidebook - page 19

2. Raise consumers’ awareness


More campaigns and programs targeting intellectual property should be launched with
a view to raising public awareness about IP so that all people and businesses can com-
prehend the significance of IP integrity in promoting innovation and supporting the cre-
ation of valuable intellectual products, encourage technology transfer, heighten efficiency
and quality, devise highly competitive products and fortify socio-economic advancement.
Moreover, IP knowledge should be made a compulsory part of basic curriculum.

3. Policies amendment
There are aspects of intellectual property protection policies that have room for further
improvements:
(i) The amount and distribution of financial investment in intellectual property ac-
tivities should be increased and refined for the modernization of intellectual property pro-
tection technologies. The investment can also come in the form of sponsorship for the
promotion of innovative activities and the practical application and transfer of intellectual
assets.
(ii) Agencies that are directly involved in the process of granting patents and protec-
tion of intellectual properties should be streamlined and specialized.
(iii) The quality of intellectual property human resources should be enhanced and
the training of IP-related personnel should be renovated.

4. Cooperation
(i) Internal collaboration: The communication and coordination among the Gov-
ernment, specialized agencies, related organizations and enterprises ought to be designed
in such a way that ensure the integrity of the intellectual property as well as guarantee the
maximization of the benefits that these assets can deliver to the community, stakeholders
and the owners.
(ii) International cooperation: A nation should exchange intellectual property situ-
ation data with fellow countries in order to safeguard the integrity of its intellectual assets
overseas.Countries around the world are also recommended to also share experience in
dealing with intellectual property theft.

5. Confidentiality enhancement
Businesses can take more rigorous measures to counter industrial espionage and intellec-
tual property infringement:
(i) Tighten the entrance and exit of laboratories and research facilities
(ii) Assign supervisors to overlook if the products are assembled or experimented
overseas
(iii) Keep secret of the deciding components: Do not attach the proprietary factors
until the products are consigned back to the business’ premise so that the features that de-
cide the uniqueness of the properties will remain concealed.
AMUN 2020 WIPO Guidebook - page 20

VIII. Question to consider

1. How has your allocated country tackled the problem? Look for any
laws/governmental bodies/non-governmental bodies from your countries that
regulates the use of intellectual property. What are their methods of protecting IP
rights and what achievements have they gained?
2. Are there any drawbacks to the aforementioned organizations' protocols? How
can
you fix them?
3. What can the international community do to solve the issue? Look up past
achievements and actions. What are their advantages and drawbacks? How can you
contribute to the improvement of these laws and actions?

IX. Bibilography

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Statista, 2020, https://www.statista.com/statistics/318566/hacker-affected-organisa-
tions-by-frequency-of-theft-or-fraud-suffered-in-the/.
Burgess, Christopher, and Richard Power. Secrets Stolen, Fortunes Lost. Syngress,
2008.
Dinh, Phi Huu. “IP Activities Need to Improve for the Country’s Development and
International Integration.” Vietnam Law and Legal Forum Magazine, 6 Feb. 2019,
vietnamlawmagazine.vn/ip-activities-need-to-improve-for-the-countrys-develop-
ment-and-international-integration-6561.html.
Gambino, Megan. “Ten Famous Intellectual Property Disputes.” Smithsonian.com,
Smithsonian Institution, 21 June 2011, www.smithsonianmag.com/history/ten-fa-
mous-intellectual-property-disputes-18521880/.
Halbert, Debora. Intellectual Property Theft and National Security: Agendas and
Assumptions. 6 Sept. 2015, www.ipeg.com/wp-content/uploads/2019/04/Intellectu-
al-property-theft-and-national-security-Agendas-and-assumptions_Halbert.pdf.
Inside WIPO, www.wipo.int/about-wipo/en/.
McIllwain, Jeffrey. Intellectual Property Theft And Organized Crime: The Case Of
Film Piracy. 2005, https://www.researchgate.net/profile/Jeffrey_Mcillwain/publica-
tion/248139450_Intellectual_Property_Theft_and_Organized_Crime_The_Case_of_
Film_Piracy/links/5b3675210f7e9b0df.
Neville-Rolfe, Baroness. The Challenge of Protecting Intellectual Property. Nov. 2016,
www.wipo.int/wipo_magazine/en/2016/si/article_0004.html.
OECD/EUIPO (2019), Trends in Trade in Counterfeit and Pirated Goods, Illicit
Trade, OECD Publishing, Paris, https://doi.org/10.1787/g2g9f533-en.
AMUN 2020 WIPO Guidebook - page 21

OECD/EUIPO (2020), Trade in Counterfeit Pharmaceutical Products, Illicit Trade,


OECD Publishing, Paris, https://doi.org/10.1787/a7c7e054-en.
Treverton, Gregory, et al. Film Piracy, Organized Crime, and Terrorism. RAND Cor-
poration, 2009, apps.dtic.mil/dtic/tr/fulltext/u2/a497848.pdf.
Walterbach, Maureen. “International Illicit Convergence: The Growing Problem of
Transnational Organized Crime Groups’ Involvement in Intellectual Property Rights
Violations.” Florida State University Law Review, 2007, ir.law.fsu.edu/cgi/viewcontent.
cgi?article=1184&context=lr.
“Intellectual Property Crime.” Intellectual Property Crime | The Crown Prosecution
Service, www.cps.gov.uk/legal-guidance/intellectual-property-crime.
“Protecting Intellectual Property and the Nation’s Economic Security.” American Bar
Association, www.americanbar.org/groups/intellectual_property_law/publications/
landslide/2013-14/may-june/protecting-intellectual-property-nations-economic-secu-
rity/.
“Top Ten Cases of Chinese IP Theft.” CPA, www.prosperousamerica.org/top_ten_cas-
es_of_chinese_ip_theft.
“Trade in Fake Goods Is Now 3.3% of World Trade and Rising.” OECD, www.oecd.
org/newsroom/trade-in-fake-goods-is-now-33-of-world-trade-and-rising.htm.

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