Transcript Economic Aspects of Intellectual Property Rights

Giorgi Gvalia
Ilia State University
Conference Presentation
Conference Organizers:
World Intellectual Property Organization (WIPO),
Hungarian Intellectual Property Office (HIPO)
Hungary, Budapest
April 2013

IP Rights Protection Systems and Economic Growth: Some Theoretical
Considerations

Brief Overview of Georgia’s Legislative and Institutional Framework
Regulating Intellectual Property Rights

Current Situation in Regards of IP Rights Protection in Georgia

Major Challenges Hindering Efficient Functioning of IP Rights System in
Georgia

Brief Overview of Georgia’s Economic and Political Profile

Macro, Meso and Micro Level Factors Hampering Innovative Development
in Georgia

Georgia’s Technology Transfer Center (TTCG) – Link Between Private
Sector and R&D Institutions

Concluding Remarks
Major Trends in Research on IP Rights and Economic Growth
1.
Strong IPR protection systems positively impact economic growth
2.
Strong IPR protection systems negatively impact economic growth
in transitional economies
3.
IPR protection system is just one variable among complex set of
variables affecting economic growth
4.
The issue of causal direction - Do efficient IPR protection systems
lead to economic growth or economic growth leads to efficient IPR
protection?

ENP AP Priority Area – Protection of Intellectual and Industrial
Property Rights

The National Intellectual Property Center – Sakpatenti

Interagency Coordination Council for Copyright Protection –
Established in 2010
The Major Laws Regulating IP Rights System in Georgia:
1.
2.
3.
4.
5.
6.
7.
8.
The Patent Law of Georgia
The Trademark Law of Georgia
The Law of Georgia on Appellations of Origin and the
Geographical Indications of Goods
The Law on Topographies on Integrated Circuits
The Law on Copyright and Neighboring Rights
The Law on Protection of New Varieties of Plants
The Law on Border Measures Related to Intellectual
Property
The Law of Georgia on Design

Georgian legislation governing Intellectual Property Rights is
harmonized with its European equivalent

The major problem – Video Piracy and the use of unlicensed
software

According to Business Software Alliance and IDC Global
Software Georgia is one of the largest user of pirated software

Problems in the enforcement of the legislation

Lack of public awareness

Passivity in the business sector

Low indicator of court disputes related to IP Rights

Low level of competence among judges in this area

Lack of trust towards the courts

Georgia’s Soviet legacy and path dependency

Economic recovery and infrastructural development in the 2000s

The world’s top reformer in “ease of doing business” by the World Bank
and International Financial Corporation

Despite the reforms poverty in both rural and urban areas still the major
challenge

Georgia is currently at a stage of technology absorption rather than
developing innovations

According to the Global Competitiveness Index 2012-2013, Georgia ranks
77th worldwide.
120
100
80
60
40
20
0
Source: Competitiveness of Georgia: Analysis and
Perspectives, 2010
Year
RANK
2012-2013
77
2011-2012
88
2010-2011
93
Source: World Economic Forum. The Global Competitiveness Report
2012–2013.
10
Country
RANK
Azerbaijan
46
Georgia
77
Armenia
82
Source: World Economic Forum. The Global Competitiveness Report
2012–2013.
11

Policy document defining national innovation policy/strategy is not elaborated yet

Poor involvement of the business community in innovation policy elaboration

Lack of education in the field of IPR

Lack of cooperation among universities, R&D institutes and private sector

Low output of patentable ideas (patent activity ratio 0.3)

Low technological level

Low state funding of R&D (around 0.2% of GDP, no data available for private
sector investment)

Low qualified labor force

According to Sakpatenti by December 2011 a total of 45,380 trademarks had
been registered

2038 Patents are currently in force (1021 foreigners, 1017 locals)

251 certificates have been issued for design

Majority of trademarks have been registered by large companies, notably by
companies engaged in pharmaceutical sector

Pharmaceutical sector - Company ``Aversi Pharma``

Wine and Alcoholic Sector - Company ``Chateau Mukhrani``

Banking Sector - ``Liberty Bank``

Food Sector – Company ``Barambo``
Registration of Intellectual Property and GDP Growth
Source: Economic Policy Research Center (EPRC),
Sakpatenti

TTCG could play significant role in efficiently linking private
sector and R&D institutions

The major mission of the Center
1.
2.
3.

Rise Awareness in the field of Technology Transfer
Strengthening Innovative Culture in Georgia
Strengthening of MSME Competetiveness
Success story: InnoGeorgia 2012 – Innovation and
Technology Transfer Competition
TTCG Founders and possible partners
Foreign partners
(TTCs, R&D
institutions, etc)
Universities
Tbilisi State University
Ilia State University
Batumi Shota Rustaveli
State University
Agrarian University
Kutaisi Akaki Tsereteli
State University
Government:
Sakpatenti
and Shota
Rustaveli
Science
Foundation
(Min. of
Education)
TTCG
Business:
Georgian Employers
Association,
Georgian Chamber
of Commerce and
Industry, Georgian
Small and Medium
Enterprise
Association
33%
Public
Sector
33%
Educational
Sector
33% Private
Sector

No One Size Fits all Solution

IP Rights related challenges are multilayered and require complex approach

Better coordination between macro, meso and micro level actors is required

Importance of establishing National Innovation Council

Importance of establishing regional TTCs

More emphasis on public awareness rising activities

More funding for R&D activities

More emphasis on strengthening human capital
Contact:
[email protected]