The U.S. and Copyright in Asia: An Asian Perspective

"Imperialism" in the New Millennium?

Wong Su Lingsulingw@gmail.com

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IPR & KM APPLICATIONIPR & KM APPLICATION• Singapore IP Owners

– SoundBlaster (Creative Technologies)

– dragon-fly (Hyflux)– Musicals (Dick Lee)– Novels (Catherine Lim)– Workforce Scheduling software

(FriarTuck)• Copyright protection of KM

products– U.S. vs. Asia

•• Part of KM StrategyPart of KM Strategy

Partner Partner RelationRelation

--ship ship MgtMgt

PartnerEco-

systemDevt

IntellectualIntellectualCapital Capital

MgtMgt

Patents Mgt of IP

Tech Investment

CustomerCustomerRelationRelation

--ship ship MgtMgt

CustomerCare, B2C

Info Mgt Info Mgt & KM& KM

ConnectP-to-P

P-to-Info

HumanHumanCapitalCapital

MgtMgt

HRM HRD

Corp Univ

InnovationInnovationMgtMgt

FosteringInnovative

Organization

Knowledge Strategy

Balanced Scorecard / Corporate StrategyMission, Vision, Values

Focus 1

Focus 2

Focus 3

Focus 4

Focus 5

Focus 6

ProcessProcessMgtMgt

DesigningProcess

Innovation

Focus 7

Benchmarking (e.g. SQA Framework)

Source: Kan Siew Ning (2004)

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Building Blocks of Knowledge StrategyBuilding Blocks of Knowledge Strategy

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AGENDAAGENDA• Intro & Background• Underlying Issues in Copyright Law• Copyright Laws of U.S., China, & Singapore• U.S. & Copyright in Asia:

– The US-China Joint Commission for Commerce & Trade (JCCT)

– US-Singapore Free Trade Agreement (USSFTA)• Discussion: Imperialism or Necessity?• Conclusion

– Is continued U.S. intervention really necessary?

INTRO & BACKGROUNDINTRO & BACKGROUNDAdvent of the Internet

Emergence of digital media format

Proliferation of mp3 media files exchanged online

A cascading cause-and-effect conundrum

for both © holders & law-makers

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INTRO & BACKGROUNDINTRO & BACKGROUND

• 2003: “Year of recording industry litigation” (Yu, 2005)

• Pressure mounts in Asia to tighten © laws•• Rise of bilateral trade agreements incorporating Rise of bilateral trade agreements incorporating

©© provisionsprovisions between developed & developing nations

© www.wto.org

•• More stringentMore stringent than those of Trade Trade Related Aspects of Intellectual Related Aspects of Intellectual Property Rights Agreement Property Rights Agreement (TRIPs)(TRIPs) & World Intellectual World Intellectual Property Organisation Property Organisation (WIPO)(WIPO)

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SCOPESCOPE

Q: Is mounting U.S. intervention on Asian copyright laws necessary or necessarily good for a rapidly developing Asia?

• Focus on China & Singapore

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COPYRIGHT LAW: COPYRIGHT LAW: General TermsGeneral Terms• Copyright:

– A form of protection provided to authors of “original works of authorship” fixed in a tangible form of expression (DiMatteo & Dhooge, 2006)

–– Exclusive rightExclusive right to reproduce, publish, perform + (with recent revisions) communicate & distribute using online & electronic means

•• Copyright InfringementCopyright Infringement•• PiracyPiracy

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COPYRIGHT LAW: Underlying IssuesCOPYRIGHT LAW: Underlying Issues

• Territorial Nature vs. “Internationalisation”– © law is inherently territorial

(DiMatteo & Dhooge, 2006; Timofeeva, 2004)

– “Internationalisation”: from Berne Convention to TRIPs to bilateral treaties, e.g. FTAs (Okediji, 2003; DiMatteo & Dhooge, 2006)

•• Advent of Internet & Rapid Technological Advent of Internet & Rapid Technological ChangesChanges– Idea-expression dichotomy– Technology changing too fast

for law-makers to respond

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COMPARATIVE LAW: U.S. vs. ChinaCOMPARATIVE LAW: U.S. vs. China• U.S. Copyright Act

– Exclusive but limited rights to reproduce, prepare derivative works based on original, distribute copies to public by transfer of ownership (Chheda, 2005; DiMatteo & Dhooge, 2006)

–– Focus on individual rightsFocus on individual rights:: primary distinguishing factor btw. U.S. & Chinese © law

•• ExceptionsExceptions– Fair use– First sale– Materials belonging to public domain

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COMPARATIVE LAW: U.S. vs. ChinaCOMPARATIVE LAW: U.S. vs. China

•• ChinaChina’’s Copyright Law s Copyright Law is framed byis framed by– Confucianism + Socialism

•• Society above selfSociety above self– Recent history: Cultural Revolution

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COMPARATIVE LAW: U.S. vs. ChinaCOMPARATIVE LAW: U.S. vs. China

• First came into effect June 1, 1991• Amended in 2001, in accordance with

TRIPs– Reasons for revision: (1) changes in changes in

international & domestic environmentsinternational & domestic environments, (2) development of ITdevelopment of IT, & (3) ChinaChina’’s entry into WTOs entry into WTO

•• New laws to curb piracy of branded goods New laws to curb piracy of branded goods & software& software

© 2006 www.goingtochina.com

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COMPARATIVE LAW: U.S. vs. ChinaCOMPARATIVE LAW: U.S. vs. China•• Legal Application IssuesLegal Application Issues

–– Ambiguities in legal remedy applicationAmbiguities in legal remedy application•• What constitutes What constitutes ©© infringement?infringement?•• 8 types of infringement in P.R.C vs. 3 in U.S.8 types of infringement in P.R.C vs. 3 in U.S.•• 12 types of fair use exceptions12 types of fair use exceptions•• Lack of clarity in defining criminal behaviourLack of clarity in defining criminal behaviour•• Ambiguity in determining value of infringed productAmbiguity in determining value of infringed product•• EndEnd--users not held liableusers not held liable

–– Penalties not high enough in P.R.C.Penalties not high enough in P.R.C.•• Max. damages of US$60,000 Max. damages of US$60,000 •• US$150,000 in U.S.US$150,000 in U.S.

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COMPARATIVE LAW: U.S. vs. ChinaCOMPARATIVE LAW: U.S. vs. China•• Enforcement IssuesEnforcement Issues

–– Complicated enforcement structure in P.R.C.Complicated enforcement structure in P.R.C.–– Judge has Judge has ““final sayfinal say”” in U.S.in U.S.–– 2 alternate prosecution tracks in P.R.C.2 alternate prosecution tracks in P.R.C.

•• Judicial Judicial •• AdministrativeAdministrative

–– This makes IPR enforcement in China a more This makes IPR enforcement in China a more challenging & challenging & ““troublesometroublesome”” affairaffair(Lau Marshall, 2005, pp. 205(Lau Marshall, 2005, pp. 205--207)207)..

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U.S. INTERVENTION & CHINA U.S. INTERVENTION & CHINA ©© LAWLAW•• U.S.U.S.--China Joint Commission on China Joint Commission on

Commerce & Trade (JCCT)Commerce & Trade (JCCT)– 2004: IPR action plan

•• U.S. Trade Representative (USTR) Special U.S. Trade Representative (USTR) Special ReportsReports– 2005: China on top of Priority Watch List– 2006: U.S. to scrutinise IPR protection &

enforcement through “unprecedented special provincial review” (USTR, 2006)

– Focus on Guangdong, Beijing, Zhejiang, Fujian

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SINGAPORE COPYRIGHT ACTSINGAPORE COPYRIGHT ACT

•• Modeled on Australian copyright lawsModeled on Australian copyright laws, , which is in turn based on the U.K. Copyright Act

•• ““Fair dealingFair dealing”” in Sin S’’pore vs. pore vs. ““Fair UseFair Use”” in in U.SU.S.– (Personal) Research and study – Review and criticism– Reporting of current events– Judicial proceedings or professional advice

(www.ipos.gov.sg)

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SINGAPORE COPYRIGHT ACTSINGAPORE COPYRIGHT ACT

•• First enacted 1987First enacted 1987•• Amended in 1999 toAmended in 1999 to ““keep pace with keep pace with

developments in the digital medium and developments in the digital medium and with new ways of exploiting works on the with new ways of exploiting works on the InternetInternet”” (Ng-Loy, 2004)

•• Amended again in 2005 due to USSFTAAmended again in 2005 due to USSFTA

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U.S. INTERVENTION & SU.S. INTERVENTION & S’’PORE PORE ©© LAWLAW•• U.S.U.S.--Singapore FTASingapore FTA

– 2001: Singapore removed from USTR’s Special 301 “Black List” for first time

– “Most significant development in Singapore’s IP scene in recent years” (Ng-Loy, 2004)

– TRIPs/WIPO-plus– All WTO countries to enjoy same level of

IPR protection in Singapore under the “Most-Favoured-Nations Treatment”

– Led to Copyright Amendment Bill 2005

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U.S. & U.S. & ©© IN ASIA: THE CASE IN ASIA: THE CASE FORFOR•• U.S.: progress of IPR legal devt. in Asia too U.S.: progress of IPR legal devt. in Asia too

slowslow•• Asian businesses feeling the sting & Asian businesses feeling the sting &

fighting back in courtfighting back in court– Jackie Chan’s famous lament after

seeing pirated DVDs of The Mythsold for 7 yuan each in China

– Kingsoft• Virtues of USSFTA

– Lower tariffs, increased bilateral trade & foreign investments

– Higher international profile: strongest IPR regime in Asia

© 2006 jackiechan.com

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U.S. & U.S. & ©© IN ASIA: THE CASE IN ASIA: THE CASE AGAINSTAGAINST•• ImperialismImperialism in the new millennium?in the new millennium?•• The The ““WelfareWelfare--Enhancing?Enhancing?”” questionquestion

– Manner of application is key issue– IPR protection vs. real needs of developing

countries– Western-based IP principles vs. unique Asian

historical & socio-political systems– “Political trade-offs masquerading as positivist

obligations imposed by law” (Okediji, 2005, p.339)?

•• Benefits of USSFTA:Benefits of USSFTA:– Who really benefits & how much?

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CONCLUSION: Is U.S. Intervention CONCLUSION: Is U.S. Intervention Really Necessary?Really Necessary?

•• Rise of FTAs & trade forums Rise of FTAs & trade forums – Start of more U.S. intervention in Asian IPR

environment?

•• Reasons for slow adoption of Western IP Reasons for slow adoption of Western IP principles: principles: – Fundamental economic/socio-

political/cultural differences – IT advancements too rapid to keep up

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CONCLUSION: Is U.S. Intervention CONCLUSION: Is U.S. Intervention Really Necessary?Really Necessary?

•• Asian businesses fighting back actually forms Asian businesses fighting back actually forms case case against against U.S. incursion U.S. incursion

•• More robust IP laws needed but changes More robust IP laws needed but changes cannot be expected overnightcannot be expected overnight– The territorial nature of IP laws suggests that

sovereign states be given right to cater their laws to own real needs & unique socio-political systems

– More time & autonomy needed for change to stick & benefit Asian states

© 04-06 www.artspower.org

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THANK YOUTHANK YOUsulingw@gmail.comsulingw@gmail.com

“Asia” ©© earthobservatory.nasa.gov

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REFERENCESREFERENCES• Associated Press. (2005, June 2). Jackie Chan joins campaign against pirate goods.

CTV.ca.• Associated Press. (2006, July 2). Piracy zaps China's tech industry. Wired News.• Chheda, T. (2005). Intellectual property implications in a virtual reality environment. John

Marshall Law School Review of Intellectual Property Law, 483-508.• DiMatteo, L. A., and Dhooge, L. J. (2006). International business law: A transactional

approach (2nd ed.). Thomson South-Western.• Lau Marshall, J. (2005, January). Online music piracy: Can American solutions be exported

to the People’s Republic of China to protect American music? Pacific Rim Law & Policy Journal, 14 (1), 189-221.

• Ng-Loy, W. L. (2004). The IP Chapter in the US-Singapore Free Trade Agreement. Singapore Academy of Law Journal, 16, 42-75. Singapore: Singapore Academy of Law.

• Okediji, R. L. (2003). The international relations of intellectual property: Narratives of developing country participation in the global intellectual property system. Singapore Journal of International & Competitive Law, 7, pp. 315-385.

• Timofeeva, Y. A. (2005, Summer). Worldwide prescriptive jurisdiction in Internet content controversies: A comparative analysis. Connecticut Journal of International Law, 20 (2), 199-226.

• United States Trade Representative (USTR) Office. (2006). 2006 Special 301 Report: Executive Summary.

• United States Trade Representative (USTR) Office. (2006). 2006 Special 301 Report: Priority Watch List.

• Yu, P. K. (2005, Summer). P2P and the future of private copying. University of Colorado Law Review, 76 (3), 653-765.