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TPP: Intellectual Property Rights (IPR) (CRS Report for Congress)

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Release Date July 26, 2016
Report Number IF10442
Report Type In Focus
Authors Shayerah Ilias Akhtar; Ian F. Fergusson
Source Agency Congressional Research Service
Summary:

The Trans-Pacific Partnership (TPP) is a proposed free trade agreement (FTA) among the United States and 11 Asia-Pacific countries that would reduce and eliminate tariff and non-tariff barriers on goods, services, and agriculture, and establish trade rules and disciplines, including on IPR protection, which expand on World Trade Organization commitments (“WTO-plus”). IP—creations of the mind embodied in physical and digital objects—are a key source of U.S. comparative advantage. IPR are time-limited rights that governments grant to inventors and artists to exclude others from using their inventions and creations without permission. Advancing IPR protection globally has been a U.S. trade negotiating objective since 1988 (P.L. 100-418), first reflected in the North American Free Trade Agreement (NAFTA) and WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). The 2015 Trade Promotion Authority (TPA, P.L. 114-26 ) includes prior U.S. trade negotiating objectives for U.S. trade agreements to “reflect a standard of protection similar to that found in U.S. law” (“TRIPS-plus”), and new objectives to combat cyber theft and protect trade secrets. TPP and IPR debate focuses on how to protect and enforce IPR to incentivize innovation, while also securing public benefits from these innovations. The TPP area is a mix of developed countries, historically IP generators, and developing countries, historically IP importers, but now are growing sources of innovation. The region presents a range of IPR challenges (Fig. 1), such as high counterfeiting and piracy rates, including in the digital environment, and weak enforcement of IPR laws. TPP potentially could address IPR concerns in the broader region, including with respect to China and India.