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Siting of Technology Organizations | |
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Last Updated 12/10/01 |
One of the greatest problems plaguing multinational corporations (MNCs) in many of the developing economies around the world is intellectual property theft.
A US Congressional study placed the total annual cost to American companies from foreign economic espionage at US$100 billion (which includes all industries not just IT)
Intellectual Property Rights
The percentage of firms indicating that intellectual property protection has a major effect on their foreign direct investment decisions depends greatly on the type of investments
in question. In the survey conducted by Edwin Mansfield for investment in sales and distribution outlets, only about 20 percent of the firms reported that intellectual property
protection was of importance. For investment in rudimentary production and assembly facilities, about 30 percent said that such protection was important. For investment in
facilities to manufacture components or complete products, about 50-60 percent said it was important, and for investment in R&D facilities, about 80 percent said it was
important[12] India's well-established framework for protecting intellectual property rights has been an important inducement to
business investment: well-known international trademarks have been protected by Indian laws, even when they were not registered in India. In 1999, major legislation was
passed to protect intellectual property rights in harmony with international practices and in compliance with India's obligations under TRIPS (Trade-Related Aspects of Intellectual
PropertyRights).
According to administrator of investment in China at the OECD Ken Davis, China, was late as compared to its asian nations such as India, Thiailand in attracting MNCs on its main land.
One key reason was that these companies were concerned about intellectual property rights protection. It can be argued that China's legal system and intellectual property rights protection environment were not
up to the standards demanded by foreign investors, but China is now working
to improve these areas. Vice-Premier Wu Yi had said at a recent international investment forum that China was committed to strengthening its intellectual property rights
protection, improving its laws and regulations on foreign investment and providing a stable, transparent and efficient administrative environment to attract more foreign investment.[13]
ASEAN countries have also worked together in enhancing IPR protection, and in creating lasting awareness among stakeholders and the general public.
The ASEAN Working Group on Intellectual Property Cooperation (WGIPR) has contributed to all these efforts. Efforts to improve the IP policy framework include monitoring
the conformance of Member Countries' IP legislation to the TRIPS Agreement; consolidation of listing of patent and law enforcement agencies for networking purposes among
the Member Countries; simplification of IP administration systems, plus the strengthening of procedures and remedies against IPR infringements; and regular exchange of IP policy
experiences. Note
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