Catching Up with the Competition: Trade Opportunities and Challenges for Arab Countries

9. Strengthening Intellectual Property Rights in Lebanon

CHAPTER 9 Strengthening Intellectual Property Rights in Lebanon Keith E. Maskus An issue of great concern to decision makers in many developing countries is the impact of strengthening protection of intellectual property rights (IPRs). In this chapter, simple partial equilibrium models are used to analyze and discuss the likely economic impacts of introducing stronger IPR protection in Lebanon. Such strengthening will be required by the WTO agreement on Trade-Related Intellectual Property Rights (TRIPs). The chapter begins with a brief description of the IPR system in Lebanon as of 1996 and a summary of a survey of Lebanese manufacturing and service firms in key sectors that provided information on industrial structure and use of IPRs, along with anticipated impacts of a new intellectual property regime. Most of the chapter focuses on the economic effects that could emerge in a small economy such as Lebanon in response to strengthened IPRs. Illustrative calculations are undertaken of the possible static impacts of stronger IPRs on key sectors, using partial equilibrium techniques. The IPRs System in Lebanon, 1996 Legislation in Lebanon covers patents, industrial designs, trademarks, copyrights, unfair competition, and penalties for infringement. The provisions of the law stem directly from related French intellectual property law developed in the nineteenth century. The law rests on two foundations. First, Lebanese IPRs officials undertake no substantive examinations of applications for industrial property protection (patents, designs, trademarks) for novelty, but rather inspect applications solely for their satisfaction of formal requirements. 252 CatchingUpwiththeCompetition Opportunities are provided for private opposition of grants. Second, enforcement of IPRs is left largely to private actions, in which firms assemble evidence of infringement and use the police and courts to achieve its elimination or deterrence. These principles are commonly followed in developing countries. Lebanon is unusual primarily in having an enforcement system that provides effective disciplinary action against infringement in some circumstances. As in many developing countries, existing IPR protection is inconsistent with requirements under the WTO TRIPs agreement in a variety of respects. While Lebanon is not a WTO member, these inconsistencies will have to be removed if the government decides to seek accession. Patents are awarded in Lebanon without substantive examination for novelty relative to prior art in the field; the applicant need only fulfill certain formalities in the application. Any interested party can file an opposition claim in the courts (not with the Intellectual Property Office [IPO]), claiming that the invention is not sufficiently novel, that the claim is misleading, or that the technical specifications in the application are inadequate to reveal the nature of the invention to skilled practitioners. Patents are awarded for fifteen years from the filing date. Patents are not awarded for pharmaceutical compositions (drug products), an exclusion that is standard in developing countries but would have to be removed under the TRIPs agreement. Approximately 10 to 15 percent of patent applications are denied by patent officials during initial review, largely because the technical specifications are inadequate. Patentees have exclusive rights to exploit their inventions through production, importation , and licensing, subject to revocation for non-working. Industrial designs and models are protected upon filing, subject to a requirement of novelty and originality, again enforced by potential opposition claims in the courts. Protection implies the exclusive right to sell or otherwise work the design or model. The initial period of protection is 25 years, with an automatic renewal upon application of a further 25 years. This duration far exceeds standard international practice. Protection lapses if the applicant does not publicize the design or actively request maintenance of its secrecy within five years. Trademarks are protected upon filing subject to certain formalities and basic exclusions relating to government symbols and public morality. There is no protection for geographical indications and no explicit protection of wellknown marks that are not registered in Lebanon. Filings are subject to opposition within five years in the courts if other firms have written proof of first use. Trademarks provide exclusive rights to market products using the names and marks and to prevent use of confusingly similar names and marks. Protection of registered marks lasts 15 years and is indefinitely renewable. Approximately 20 percent of trademark applications are denied on the basis of inadequate satisfaction of formalities or prior registry of marks. StrengtheningIntellectualPropertiesRightsin Lebanon 253 The Lebanese copyright law protects all types of literary, artistic, and musical creation without explicit exclusions. Copyrights are provided for life of the author plus 50 years and...