Intellectual Property Rights Laws (IPR) (1)
Memberships Bangladesh is a signatory of the GATT Uruguay Round and World Trade Organization (WTO) agreements, including the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), and is obligated to bring its laws and enforcement efforts into TRIPS compliance by January 1, 2000. Bangladesh has also been a member of the World Intellectual Property Organization (WIPO) in Geneva since 1985.
Problems Bangladesh has never been mentioned on a the U.S. Trade Representative's "Special 301" Watch List which identifies countries that deny adequate and effective protection for intellectual property rights or fair and equitable market access for persons that rely on intellectual property protection. However, the IPR laws are outdated for the IT times, and an unwieldy system of registering and enforcing intellectual property rights. Intellectual property infringement is common, particularly of computer software, motion pictures, pharmaceutical products and audio and video cassettes. However, the courts are fair: U.S. firms have successfully pursued their IPR rights in Bangladeshi courts.
Improvements The WIPO and the United Nations Development Program (UNDP) in 1995-6 funded a small project providing automation and training for the patent office. The government and WIPO hosted seminars on IPR issues in 1997 and 1998. Bangladesh has begun reforms to increase the level of IPR protection in order to meet its obligations under the WTO TRIPS. In consultation with WIPO, the government began drawing up IPR reforms laws in 1992 and has hired consultants to review the IPR draft laws in view of WTO TRIPS provisions. The completion of the review and subsequent modification and vetting of the drafts is expected to take more than an year, with parliamentary passage taking further time.
Page Index | Site IndexPROTECTION FROM INFRINGEMENT (2)
Infringement is seen as of little significance to U.S. firms in IT. Bangladesh has initiated seminars with the World Intellectual Property Association. Even though enforcement of regulations is slow, the government is trying to generate awareness and update old laws. An update of the laws was initiated in 1990. The amended drafts are in compliance with the Trade-Related Aspects of Intellectual Property (TRIPS) and have been submitted to the ministry of industries for approval. In addition, Bangladesh has been a member of the World Intellectual Property Organization in Geneva since 1985.
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UNIONS Bangladesh's Constitution guarantees the right to join unions, and, with government approval, to form a union. But some people are harassed and fired for trying to organize. With the exception of workers in the railway, postal, telegraph, and telephone sectors, government civil servants, military, and police are forbidden to join unions. Instead they have joined associations which perform functions similar to labor unions. Workers in the EPZs are also prohibited forming unions, despite a government promise to relax this restriction in 1997.
Unions in Bangladesh are highly politicized. Virtually all the unions are affiliated with political parties. One is with the ruling party. Some unions are militant and engage in intimidation and vandalism, lost production, and transportation delays causing missed shipping dates for exports. The Essential Services Ordinance permits the government to bar strikes for three months in any sector deemed "essential." Battles between members of rival labor unions occur regularly, despite dispute resolution mechanisms.
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FORCED LABOR AND CHILD LABOR The constitution prohibits forced and child labor. There are inspection mechanisms to guard against forced and child labor, but resources for enforcement are scarce. Regulations regarding minimum wages, hours of work and occupational safety and health are not strictly enforced. Nevertheless, there is believed to be little use of forced labor, though conditions for some domestic servants resemble servitude, and some trafficked women and children work as prostitutes. In a society as poor as Bangladesh's, the extra income obtained by children, however meager, is sought after by many families. In July 1995, Bangladesh garment exporters signed a memorandum that has virtually eliminated child labor in the garment export sector. Schools and a stipend program were established for displaced child workers. By November 1998, hundreds of schools serving thousands of former child workers were in operation. A system of fines and possible suspension of import/export privileges exists, and a monitoring system has been set up by the International Labor Organization.
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IMPACT OF U.S. FIRMS ON LABOR FORCE There are few manufacturing firms with U.S. investment. Firms with U.S. investment generally try to avoid unions for their workforce. Firms with U.S. capital investment abide by the labor laws. In fact, they pay more and offer shorter working hours.
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Non Regulatory System (2)
Since 1989, the county has moved from extreme over regulation to a slight decrease in governmental obstruction. Many changes are not politically possible to implement, despite ministry commitment, due to influential ($) groups. For instance, the chambers of commerce includes manufacturers in protected industries. They want privatization, but they also want protectionism and subsidies. Policy and regulation is often not clear, consistent, or public. Businesses and political parties have interests in the system which are used as excuses for lack of transparency. Its hard for businesses to get action from civil servants, even with political support. Servants are underpaid, yet they think of themselves as having a monopoly on economic acumen. They know their actions are now being scrutinized, but still ask for bribes. The international community says public administration reforms are central to overall economy reform.
Page Index | Site IndexCorruption (2)
Bangladesh is notorious for corruption. A 1996 report by Transparency International listed Bangladesh as the fourth most corrupt nation in the world! Petty corruption, such as paying fees for government services (Telephone lines, customs clearance) are the biggest complaints. Insider trading is commonly sited too. There is an anti corruption bureau, but "it is not always seen as being free from political presses when determining whom corruption cases should be bought" (2).
Page Index | Site IndexDispute Settlement (2)
There is a weak legal system to enforce contracts. 10 years can pass before a case is resolved. Corruption (Again!) is a serious problem, especially in lower courts. Since the government controls the judiciary system, there is no checks and balances. Its almost like a monarchy. Legislation in this area is 'pending.' Never the less, the supreme court has retained a reputation of fairness and competence. So, if you want you case to be fair, you must take it to the appellate level.
Although Bangladesh is a party to the International Convention for the Settlement of Disputes (ICSID, they have not yet acceded to the U.N. convention of enforcement. The Bengali judicial system is weak to enforce its own system, so foreign judgments aren't expected to be enforced any stronger.
Page Index | Site IndexForeign Investment Issues (2)
Laws in bangladesh are a major impediment to foreign investment. Governmental officials tend to be negative to non Bangladeshi people. On top of that start up costs and risks tend to outlay investment incentives. Customers and excise personnel are also trouble spots. A big issue is tariff schedules of non-pre-inspected goods, regardless of invoiced amounts. The schedule changes every three months o so, and without advanced notice. Changes even apply while goods are in transit!
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However, the drafts of these law are 10 years old. Resource constraints in the law ministry are a problem. Insolvency laws, which mainly apply to individual insolvency, are not being used because of a web of falsified assets and uncollectable loss-indebtness supporting insolvent banks and companies. A new bankruptcy act was enacted in FY97 but has not been put to the test yet. Land laws are in chaos as well. Legislation records ae unreliable. People avoid registering mortgages, liens, etc., because duties and changes are high. Instruments take effect from the date of execution, not of registration, so a bona fide purchase can't be certain of title. Companies put clauses in arbitration agreements for the Bengali to bring disputes to the other county.Proposed Changes in Investment Laws (2)
Page Index | Site IndexCapital Outflow Policy (2)
As of June 1998, Bangladesh continues to discourage capital outflow. Investments abroad require case-by-case approval by various government agencies and the Bangladesh bank. Cases are more favorable considered if the invest contributes directly to the export of goods, services, or labor from Bangladesh. Basically, money can go out of the county if its expected that more money will come back.
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