[Congressional Record Volume 151, Number 52 (Tuesday, April 26, 2005)]
[Senate]
[Pages S4345-S4348]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
EXPRESSING SENSE OF CONGRESS ON WORLD INTELLECTUAL PROPERTY DAY
Mr. FRIST. Mr. President, I ask unanimous consent that the Senate now
proceed to the consideration of S. Con. Res. 28, which was submitted
earlier today.
The PRESIDING OFFICER. The clerk will report the concurrent
resolution by title.
The legislative clerk read as follows:
A concurrent resolution (S. Con. Res 28) expressing the
sense of Congress on World Intellectual Property Day
regarding the importance of protecting intellectual property
rights globally.
There being no objection, the Senate proceeded to consider the
concurrent resolution.
Mr. LUGAR. Mr. President, today, on World Intellectual Property Day,
I rise in support of a resolution I have submitted recognizing the
importance of
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protecting intellectual property. One of the key benefits of protecting
intellectual property is preserving innovation. Only with enforcement
of protections will there be incentives for inventors to create and
protect their innovations. As the sharing of goods and ideas transcends
national boundaries, it is vital that these protections be able to
accompany the ideas that they protect globally.
Although most of our trading partners have national domestic laws
protecting intellectual property piracy and are even parties to
agreements which contain intellectual property protections, piracy
continues largely due to lack of enforcement. Theft of intellectual
property results in competitive disadvantages to U.S. industries and
job loss for American workers.
Counterfeiting and digital piracy have increased dramatically in
recent years. In addition to the direct impact on the sales and profits
of the subject industries, there is also significant harm and deception
to consumers who believe they are purchasing legal and legitimate
goods. Piracy and counterfeiting of copyrighted products in digital and
other formats have grown to an enormous scale because these illegal
activities offer a high rate of return with minimal risk to the
criminal producing element. This element can conduct piracy with little
capital investment, and in many countries, little chance of
apprehension. Even if apprehended, the penalties may be so minor that
they offer no deterrent.
There are various agreements between nations implemented at different
levels for the protection of intellectual property. One of these is
part of the World Trade Organization, WTO, charter, the Trade Related
Aspects of Intellectual Property Rights, TRIPS. Key TRIPS provisions
require all WTO members to provide certain minimum standards of
protection for patents, copyrights, trademarks, trade secrets,
geographical indicators, and other forms of intellectual property.
There is also a requirement to provide effective enforcement of each
nation's domestic intellectual property regulations.
Also currently in force are two copyright treaties of the World
Intellectual Property Organization: the WIPO Copyright Treaty and the
WIPO Performances and Phonograms Treaty, which entered into force in
2002. These treaties help raise the minimum standards of intellectual
property protection around the world, particularly with respect to
internet-based delivery of copyrighted works. As with the TRIPS
agreement, enforcement of obligations by member countries remains the
issue.
This resolution focuses on two nations, China and Russia, with which
we have significant trading relationships, yet, are still not offering
the necessary enforcement of protections. China has become a leading
exporter of counterfeit and pirated goods to the world. It is,
therefore, critical that we address the issue of protection and
enforcement in China. At the April 2004 meeting of the Joint Commission
on Commerce and Trade, JCCT, the Chinese Government indicated that it
would undertake a series of actions to significantly reduce
infringement throughout the country. Piracy rates in China have
remained at extremely high levels for the past decade, despite numerous
actions by the Chinese Government such as the seizure and destruction
of millions of pirated products, often via highly publicized
steamrollings of counterfeited discs. As a fellow member of the WTO, we
must ensure that China fulfills its commitments to enforce intellectual
property protections under the rules of the WTO.
Piracy in Russia continues to be a growing problem. Only a few pirate
optical disc factories existed in Russia in the late 1990s. Reports
indicate that there are now over 30 such plants producing pirated
products in Russia, ruining the Russian market for American right-
holders and substantially undermining other markets in Europe as well.
The Russian Government has made many promises to solve this problem,
but meaningful results have yet to occur. Russia recognizes that its
domestic laws and enforcement measures still do not meet TRIPS
requirements; however, the required legislation has not been
implemented. We should encourage the Government of Russia to act
promptly and implement these measures so that it can fully comply with
the rules of the WTO.
The problem of protecting intellectual property is evident. Going
forward, our focus should be on the solutions. What enforcement methods
should be utilized that have not been thus far? Should our
international agreements and treaties with our trading partners be
better utilized to ensure enforcement of intellectual property rights
laws? Some progress has been made in these areas, yet there is much
more ground to cover. I encourage the administration to insure that our
trading partners fulfill their commitments and agreements to abide by
global intellectual property rules.
I ask unanimous consent that relevant material be printed in the
Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
[From the International Intellectual Property Alliance, Apr. 26, 2005]
Statement of the International Intellectual Property Alliance
Celebrating World Intellectual Property Day
Washington, DC.--The International Intellectual Property
Alliance (IIPA), a coalition of six trade associations
representing 1,300 U.S.-based copyright companies, today
celebrates 2005 World Intellectual Property Day. Eric H.
Smith, President of IIPA, issued the following statement:
``The theme for 2005's World Intellectual Property Day is
`Think, Imagine, Create.' This message from the Director
General of the World Intellectual Property Organization
(WIPO), Kamil Idris, is directed at the world's young people
to build awareness about the importance of creativity--and
the protection of the intellectual property that supports
that creativity--to the daily lives of every global citizen.
Without providing this protection, many of the great cultural
and technological assets that we now take for granted would
never have been available to us to improve our lives. Strong
protection and enforcement of the world's laws that nurture
the creativity embodied in intellectual property are all too
often taken for granted or viewed by a few as no longer
necessary. We too often forget the important cultural and
economic benefits, jobs, contributions to GDP and tax
revenues that are dependent on a strong intellectual property
system.
``U.S. creators have benefited significantly from a strong
global system of protection enshrined in treaties and
conventions to which virtually all the world's nations
belong. Yet weak laws and inadequate enforcement of those
laws continue to plague all those individuals and companies
that contribute to this great global creative and
technological explosion.
``Today, Senators Lugar and Baucus introduced a Sense of
the Congress Resolution, celebrating World Intellectual
Property Day, and highlighting the massive damage done--over
$4 billion just to U.S. creators of copyright products
alone--to global creativity by just two countries, China and
Russia, through their failure to abide by internationally-
agreed standards of protection and enforcement. The message
to these countries is clear: they are cheating themselves by
failing to take effective action to prevent the creative
works of their own citizens, U.S. citizens and those of other
countries, from blatant theft. IIPA members join with the
sponsors of this Resolution to call upon these governments to
take earnest measures to halt this theft and upon the U.S.
government to use all the tools provided by Congress to see
that these countries take effective action to prevent pirates
from stealing intellectual property with impunity. Economic
and cultural development is increasingly dependent on the
creation and protection of intellectual property of all
kinds. The resolution hits the mark in targeting two of the
world's worst offenders of intellectual property rights.''
____
[From the Association of American Publishers News]
Publishers Applaud Senate Resolution on Safeguarding Intellectual
Property Worldwide
Washington, DC, April 26, 2005.--The U.S. publishing
industry enthusiastically welcomed today's introduction in
the Senate of a bipartisan Concurrent Resolution stressing
the importance of protecting intellectual property rights
around the world. The Association of American Publishers
(AAP) expressed special thanks to Senator Richard Lugar (R-
IN), Chairman of the Foreign Relations Committee, and Senator
Max Baucus (D-MT), Ranking Member of the Finance Committee,
who joined in sponsoring the resolution to mark the
observance of World Intellectual Property Day.
Noting that the theft of intellectual property hurts the
U.S. economy and costs American jobs, and citing deep concern
over the failure of many U.S. trading partners to fulfill
obligations to protect intellectual property, the resolution
is particularly critical of China and Russia, where piracy
threatens the very existence of legitimate markets for
copyright products. The resolution calls on the
Administration to use ``all available tools provided by
Congress,'' and the leverage provided by bi-lateral and
multi-lateral
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trade agreements (including, where appropriate, WTO
commitments) as well as terms regulating benefits such as the
Generalized System of Preferences (GSP) program, to protect
the intellectual property rights of American businesses.
AAP President and CEO Pat Schroeder congratulated Senators
Lugar and Baucus for focusing attention on the serious matter
of international piracy. ``Chinese pirates are decimating
markets for legitimate commercial best sellers, academic arid
professional works and English language learning materials.
Russia leads its region in consumption of pirated books in
both English and translation, and the impact on American
publishers will only deepen as demand for English language
materials grows in the region. Piracy cost American
publishers an estimated $50 million last year in China, and
$42 million in Russia, and the situation is worsening with
the growth of the Internet as a distribution channel for
pirated works,'' Mrs. Schroeder said. ``In marking World
Intellectual Property Day, this strong statement of
Congress'' commitment to protect American creativity is very
welcome.''
The Association of American Publishers is the national
trade association of the U.S. book publishing industry. AAP's
approximately 300 members include most of the major
commercial book publishers in the United States, as well as
smaller and non-profit publishers, university presses and
scholarly societies. The protection of intellectual property
rights in all media, the defense of intellectual freedom, and
the promotion of reading and literacy are among the
Association's primary concerns.
____
[From the Motion Picture Association of America]
MPPA Chief Praises World Intellectual Property Day Resolution
Washington, DC.--Motion Picture Association President and
CEO Dan Glickman today praised a concurrent resolution
introduced by Senator Richard Lugar (R-IN) and Senator Max
Baucus (D-MT) that expressed the sense of the Congress
stressing the importance of protecting intellectual property
rights, particularly in China and Russia where piracy and
counterfeiting are rampant.
``I thank Senator Lugar and Senator Baucus for this
resolution celebrating World Intellectual Property Day, and
more importantly, for taking a leadership role in fighting
for intellectual property rights across the globe.''
``Of course, my special concern is protecting the magic of
the movies. Our industry loses $3.5 million each year through
hard goods piracy, and billions more in internet piracy. If
the black market is allowed to flourish, and if thieves are
allowed to continue to steal our products, it makes it more
and more difficult to make the movies that entertain people
the world over.''
``But this isn't just about the movies. As the resolution
itself says, the American economy depends increasingly on the
work of authors, inventors, programmers and many others who
create intellectual products of high value. In fact, close to
twelve million Americans are employed by the copyright
industries. For America, intellectual property means jobs.''
``But intellectual property is important for the rest of
the world as well. Enforcing intellectual property laws in
China and in Russia will only help these economies prosper in
the long run.'' ``I applaud this bold resolution and I thank
both Senator Lugar and Senator Baucus for introducing it
today.''
____
Universal Music Group,
Santa Monica, CA, April 25, 2005.
Hon. Richard G. Lugar,
U.S. Senate, Hart Senate Office Building, Washington, DC.
Dear Senator Lugar: I am the President and Chief Operating
Officer of Universal Music Group, the worlds' largest music
company. I write to tell you how much my company and I
appreciate Congress' commitment to the fight against piracy.
We recognize that you and Senator Baucus have been particular
champions of this cause for some time now. The Resolution
that you and Senator Baucus are introducing is another
indication of your commitment to the many Americans who earn
their livelihoods by bringing new artists and sounds to
consumers around the globe.
It is clear that innovation and the strong protection of
intellectual property laws will be vital to America's
economic future. The United States Government must do all
that it can to ensure that our trading partners vigorously
enforce the treaties and other commitments they make to the
United States, and it is our hope that your Senate colleagues
will join you in sending that message by supporting the
Lugar-Baucus Resolution.
Very truly yours,
Zach Horowitz,
President and COO.
____
[From the Recording Industry Association of America, April 26, 2005]
Statement on World Intellectual Property Day
On behalf of America's music community, we wish to thank
Chairman Lugar and Senator Baucus for the resolution that
they have jointly introduced today highlighting the need for
greater vigilance in the fight against piracy in global
markets. In particular, there is an urgent need to direct
attention to markets like Russia and China, which remain
essentially closed to U.S. businesses due to stifling piracy
rates. As the Senators aptly mention, piracy in these markets
and elsewhere around the world ``is open, notorious and
permitted to operate without meaningful hindrance from the
government.''
There may be no single economic issue that has a greater
bearing on American competitiveness in the 21st century than
the protection of intellectual property. As such, it is
imperative that we not shy away from demands that our trading
partners meet their obligations under international
agreements as well as the criteria for participating in US.
trade programs affording unilaterally extended trade
benefits. We simply cannot enter into political arrangements
that fail to protect our greatest economic assets.
On the occasion of World Intellectual Property Day, we wish
to call upon the Russian and Chinese governments to reform
their approach to this critical issue and to begin to
seriously address the rampant piracy that is so endemic in
their societies today. It is of utmost importance that the
Sino-U.S. and U.S.-Russia relationships are built upon a
mutual understanding of shared obligations and a strong
commitment to embracing and enforcing the rule of law. While
we very much want to see Russia join the community of nations
bound to one another in the World Trade Organization,
negotiations cannot conclude without marked improvement and a
commitment on the part of the Russian government to the
protection of intellectual property.
We also wish to express our great concern about the current
state of affairs in China and the apparent determination of
the Chinese government to limit the ability of U.S. companies
to meaningfully engage in the Chinese market. At present, the
Chinese government continues to maintain significant barriers
to entry for some of our nation's most competitive
industries, particularly in the area of music and film
production and distribution. In addition, the government
continues to permit Chinese pirate businesses to be built on
the back of American creativity. Without question, these
practices must change if China wishes to maintain a secure
and stable relationship with the United States.
We appreciate the continued attention of our nation's
political leaders to this pressing issue--on both the
occasion of World Intellectual Property Day and beyond. We
look forward to working with Congress and the Administration
to help produce--and if necessary, demand--effective changes
to create a more level playing field and a global environment
that values and respects American intellectual property.
Mitch Bainwol,
Chairman and CEO.
Mr. BAUCUS. Mr. President, the theme of this year's World
Intellectual Property Day, which we commemorate today, is ``Think,
Imagine, Create.''
Think, imagine, create, these simple words are at the center of what
makes America great and what continues to drive our progress. American
thought produced our Constitution and our system of government.
American imagination put a person on the moon. And American creativity
has made U.S. culture the envy of the world.
It is astounding how important intellectual property has become in
our everyday life. It is even more astounding how much we take human
creativity and intellectual property for granted. Just think about it
for a moment and imagine what a world would be like without
intellectual property rights.
Without copyrights, who would want to write the books we read,
produce the movies we watch, or compose the music that fills our ears?
Without trademarks, who would want to invest the enormous time,
energy, and resources required to develop a brand name synonymous with
quality and reliability?
And without patents, who would have the incentive to innovate and
produce inventions that change our world and save our lives?
Intellectual property rights are not just some abstract legal concept
the sole province of lawyers and judges. They are an essential motor of
our economy.
Look at the copyright industry. These are the folks who produce
newspapers, books, movies, computer software, and radio/TV
broadcasting. This industry alone accounts for 12 percent of our gross
domestic product. That's $1.25 trillion.
If these numbers don't impress, then let's look at the impact the
copyright industries have on U.S. jobs. They alone employ roughly 11.5
million workers. That is nearly 8.5 percent of total U.S. employment.
Believe it or not, that number approaches the level of employment in
the heath care sector or the entire manufacturing sector. And between
1997 and 2002, the rate of
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job growth in the copyright industry exceeded that of the U.S. economy
as a whole.
That is why protecting intellectual property rights worldwide is
critical. It is not just a concern for the overall health of the U.S.
economy. And it is not just a concern of this or that company. It is a
concern of each and every worker that the intellectual property
industries employ. And it is a concern of each and every one of us that
enjoys going to see the latest movie, likes wearing a hip new pair of
Nike shoes, or needs the most innovative life saving drug.
Unfortunately, while we have a robust IPR regime here in America,
some of our trading partners do not. In certain countries, IPR theft is
rampant.
China is probably the most notorious example. USTR reports that
counterfeiting and piracy in China are at ``epidemic levels and cause
serious harm to U.S. businesses in virtually every sector of the
economy.'' In fact, as USTR pointed out, one U.S. trade association
claims that counterfeiting and piracy in China exceeds 90 percent.
Estimates of the value of counterfeit and pirated goods in China are
between $19 billion and $24 billion in 2001. That translates into
losses of $2.5 to $3.8 billion to U.S. industry.
Russia is also a serial IPR violator. The scale of intellectual
property rights infringement there is vast and growing. Russia's legal
framework has huge gaps, and the enforcement of existing laws is lax.
This has real costs. Estimated losses to U.S. copyright industries due
to piracy of films, videos, sound recordings, books, and computer
software continue to exceed $1 billion annually. Over 80 percent of all
DVDs on the Russian market are estimated to be pirated. Pirated music
is estimated at 66 percent of sales, and software piracy is estimated
at about 88 percent.
IPR violations in Brazil are also very troubling, particularly given
that Brazil is both a WTO member and receives benefits from the United
States under the Generalized System of Preferences. USTR reports that
estimated losses in Brazil due to piracy of copyrighted materials
totaled over $930 million in 2004 alone. An estimated 75 percent of
audiocassettes sold in Brazil are pirated.
These violations run counter to the entire spirit and purpose of
World Intellectual Property Day. Rather than foster an environment that
encourages thought, imagination, and creativity, IPR violations in
China, Russia, Brazil, and other countries stifle creativity and
innovation. They send the chilling message that the short-term profit
of pirates, counterfeiters, and other IPR thieves matter more than the
long term gains of society.
We need to crack down on countries that fail to protect and enforce
intellectual property rights. We should use all tools at our disposal
to address barriers to thought, imagination, and creativity.
In my view, we are long overdue in initiating a WTO case with China
for its failure to comply with its obligations under the WTO's TRIPS
agreement, particularly in the area of copyrights.
In my view, we should not give a green light to Russia's bid to join
the WTO until Russia makes visible and sustained improvements to its
legal regime as well as a demonstrable commitment to long-term
enforcement.
And in my view, we should not continue to give countries with serious
intellectual property deficiencies, like Russia and Brazil, GSP
benefits until they clean up their act.
That is why I am today cosponsoring with Senator Lugar a sense-of-
the-Senate resolution on the importance of protecting intellectual
property. Among other things, this resolution urges the administration
to use all effective remedies to address the lack of intellectual
property protection. It also urges the administration to take action to
ensure that China, Russia, and our other trading partners comply with
their international trade obligations.
Think, imagine, create, that is the theme of this year's World
Intellectual Property Day. I hope that next year we can celebrate an
improved global environment that truly fosters these important
aspirations.
Mr. FRIST. Mr. President, I ask unanimous consent that the concurrent
resolution be agreed to, the preamble be agreed to, and the motion to
reconsider be laid upon the table.
The PRESIDING OFFICER. Without objection, it is so ordered.
The concurrent resolution (S. Con. Res. 28) was agreed to.
The preamble was agreed to.
The concurrent resolution, with its preamble, reads as follows:
S. Con. Res. 28
Whereas protection of intellectual property is critical to
our nation's economic competitiveness, cultural diversity,
health and scientific development;
Whereas the United States economy depends increasingly on
the work of authors, artists, inventors, programmers, and
many others who create intellectual products of high value;
Whereas theft of intellectual property results in
competitive disadvantages to United States industries and job
losses for American workers, and for the United States
economy as a whole;
Whereas the copyright industries employ approximately
11,500,000 workers or 8.41 percent of total employment in the
United States, a number that approaches the levels of
employment in the health care and social assistance sector
(15,300,000 employees) and the entire manufacturing sector
(14,500,000 workers in 21 manufacturing industries);
Whereas there is great concern about the failure of many of
our trading partners to live up to their international
obligations in the area of intellectual property protection;
Whereas counterfeiting of copyrighted products in digital
and other formats, as well as counterfeiting of all types of
trademarked products, has grown to an enormous scale;
Whereas many of our trading partners, in particular Russia
and China, have laws in place to prevent piracy and
counterfeiting, but are failing to enforce the laws;
Whereas Russia and China alone are responsible for over
$4,000,000,000 in losses a year to United States industries
due to piracy;
Whereas piracy in Russia and China is open, notorious, and
permitted to operate without meaningful hindrance from the
governments of those countries;
Whereas China should be encouraged to meet its intellectual
property protection obligations as a member of the World
Trade Organization (WTO);
Whereas Russia should be encouraged to explore means to
provide effective piracy protection enabling compliance with
the rules set forth by the WTO;
Whereas the United States Government must convey to these
countries that failure to act will have political and
economic consequences for relationships with the United
States; and
Whereas Congress has enacted legislation regarding the
protection of intellectual property, including measures which
direct the Administration to censure countries that fail to
provide adequate and effective protection for intellectual
property: Now, therefore, be it
Resolved by the Senate (the House of Representatives
concurring), That--
(1) the Administration should utilize effective remedies
and solutions in addressing the lack of intellectual property
protection in China and Russia, using all available tools
provided by Congress;
(2) the Administration should ensure that any country that
enjoys benefits under the Generalized System of Preferences
(GSP) program, such as Russia, lives up to its obligations to
provide adequate and effective protection for intellectual
property rights, or lose its eligibility to participate in
trade preference programs;
(3) the Administration should ensure that action is taken
against any country with which the United States shares
mutual commitments under the WTO, such as China, when the
country fails to live up to its WTO commitments;
(4) the Administration should urge Russia to promote
measures to enforce intellectual property protection which
will enable compliance with the intellectual property
commitments required by the WTO; and
(5) the President should take any additional action the
President considers appropriate to protect the intellectual
property rights of United States businesses.
____________________