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GE's head of IP warns of the dangers of "monkeying with the IP system"

The Intellectual Property Institute hosted the sixth of its lectures on the Future of IP in London on Thursday evening. After five presentations from legislators and policy makers, industry was represented for the first time when GE's Chief IP Counsel Carl Horton gave the talk.

Horton kicked off his lecture by outlining what he considered to be the key pressures on the IP system today. He touched on patent quality, the growing backlog, the responsibility of IP owners to self-regulate in terms of their applications, and the need for patent reform. But, he said, one of the biggest threats to IP is coming from the growing anti-IP contingent. After some success with the pharma companies in the access to medicine debate, Horton explained, these groups are now targeting green tech. Calls for compulsory licensing have been increasing over recent months as the meeting of the United Nations Framework Convention on Climate Change in Copenhagen gets ever closer. If the IP community doesn't want December's meeting to result in compulsory licensing of green technologies, Horton warned, it's time that it took a stand. Innovation, he claimed, is what will drive down the price point of green tech, something that is critical if we are to achieve widespread adoption of climate-saving technologies. And without IP, where's the incentive to innovate?

Horton's presented a three-step plan to fight the anti-IP threat: 

  • Recognise that there is a threat, that it's real and it's growing. 
  • Acknowledge that the potential impact of compulsory licensing will be "sweeping and broad based".
  • Mobilise against the anti-IP activists by building cross-industry coalitions to deliver a strong IP message.

Engaging in the debate and spreading a positive message about the role IP can and will play in tackling climate change, should it be given the opportunity, is key. "The IP community must show willing to be part of the solution to climate change," stated Horton, "not just shout 'IP's not the problem'."

The IP system as it stands, Horton stated, is working just fine in the BRIC countries where the renewable energy sector is rapidly growing. The challenge now is working out how it can work for the rest of the world. Yet it is BRIC countries such as Brazil, India and China that are leading the calls for some kind of compulsory technology transfer from the developed world. Horton is dubious that these countries, and in particular China, are playing a fair game in the climate change debate. Because global warming is overwhelming considered to be the responsibility of the developed world as it has been these countries that have been heavily using fossil fuels since the Industrial Revolution, there is understandably some reluctance from the developing world to now play an equal role in fixing the problem, Horton acknowledged, but he went on to say: "China's stance so far in this debate about green technology has been 'what's yours is ours and what's ours is ours." .

You can read more about the IP issues in the climate change debate in the next issue of IAM magazine, published at the end of November.

Sara-Jayne Clover
IAM Magazine
31 October 2009

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Comments

RE: GE's head of IP warns of the dangers of "monkeying with the IP system"

Interesting points and I wish I could have been there for Mr Horton's talk. But the way its premise is presented in the above article - reducing the whole complex system to the (presumably) rhetorical question of 'Without IP, where's the incentive to innovate?' - demonstrates exactly where we the IP community repeatedly shoot ourselves in the foot. It isn't a rhetorical question, it's precisely the one we need to answer.

Every other business in the world, apart from technology it seems, invests happily based on the prospect of higher market share and increased efficiency. There is nothing peculiar about the technology industry that fundamentally exempts it from normal economic theory in order to justify IP's seemingly arbitrary protectionism. The personal risk/rewards to a farmer who must invest in his fields and machinery are probably roughly equivalent to the hypothetical drug corporate which must invest $1bn to develop a new drug.

As ever, from working in the field we know empirically that IP really does make a difference in the technology sector. But the onus is on us to show this, rather than build all our arguments on the same old recycled, unproven axiom.

Regarding the Chinese and their thoughts on green tech transfer, I don't believe there is much desire there for compulsory licensing. Rather, what I sense in China is an entrepreneurial spirit and a feeling that they can dominate the industry by working IP to their advantage. It is a refreshing optimism. Last week's Shenyang deal for a 600MW wind farm in Texas - Chinese money and know-how, European licensed technology, US partners - shows that it's starting to work that way.

Tom Grek, Yu & Partners - Associated with Rouse Legal on 02 Nov 2009 @ 07:00

RE: GE's head of IP warns of the dangers of "monkeying with the IP system"

Most likely it will take concerted industry action to combat the anti-IP trend. However, I have little doubt that the industry interests will make their voices heard; patenting and patent enforcement are too lucrative for anyone to reasonably expect major corporate players to stand by silently in the face of compulsory licensing.

http://www.GeneralPatent.com

Gena Mason, General Patent on 12 Nov 2009 @ 15:31

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