Innovation Files has moved! For ITIF's quick takes, quips, and commentary on the latest in tech policy, go to itif.org

intellectual property

IPRs and Access to Medicines: New Evidence

Intellectual property rights (IPRs) attempt to balance static and dynamic efficiency. By allowing innovators to appropriate a greater share of the value generated from their ideas, IPRs can create incentives for investment in research and development (R&D). With regard to pharmaceuticals for developing countries, incentives for drug development are critical, since many diseases prevalent in developing countries lack appropriate treatments. However, those in the global health community often allege that prices of new innovative drugs under patent make them unaffordable to most people in developing countries because of the absence of generic competition.

Thus, understanding the effects of IPRs on access and affordability are important for researchers, policymakers, and firms. In December 2014, Margaret Kyle and Yi Qian published a new paper investigating this with the National Bureau of Economic Research. Titled Intellectual Property Rights and Access to Innovation: Evidence from TRIPS, the authors examine the effect of pharmaceutical patent protection on the speed of drug launch, price, and quantity in 60 countries from 2000-2013.

The paper begins by noting that though the introduction of IPRs is an endogenous decision taken by policy makers, developing countries were required by

Read the rest
tina-fey-amy-poehler

Piracy is Unstoppable (Like MySpace)

On Tuesday, Swedish officials shutdown the notorious illegal file-sharing website The Pirate Bay, striking a serious blow against the content thieves that have sucked millions of dollars out of the U.S. economy. Rushing to defend The Pirate Bay, however, was Caitlin Dewey, a blogger at the Washington Post focusing on Internet and digital culture. On her the blog The Intersect, she wrote an article alleging that the removal of The Pirate Bay from the Internet will do nothing to stem the rise of online piracy. Indeed, she argues that The Pirate Bay, “has done something a bit more significant, and a bit more permanent, too: It’s made digital piracy a casual, inarguable part of the mainstream.”

First, her argument that because piracy is common today, it will be common tomorrow reflects a surprisingly poor understanding of the history of the Internet (especially for a tech blogger). If there is one lesson from the Internet economy it is that nothing is permanent. This applies not only to website like MySpace, but also online behavior: how often are you instant messaging these days?

Second, by alleging that piracy is an inevitable part

Read the rest

Newsflash: You Don’t Have to Pirate Content

Today, the Motion Picture Association of America (MPAA) launched its innovative new Website: WheretoWatch.com (WTW).  The search engine is a simple way for consumers to find all the movies and television they are interested in viewing — from new episodes of The Mindy Project to classics like Casablanca and even Oscar contenders still in theaters, such as The Theory of Everything. Indeed WTW allows consumers to:

  • Search for movie/TV show availability on digital downloading sites, streaming sites or in stores;
  • Find theater times and locations for every newly released movies nearby;
  • Receive notifications when the content they are interested in becomes available from their favorite providers.

The site works by aggregating content from a range of outlets, including Netflix, Amazon, iTunes, Xbox and smaller indie sites such as Snag Films and WolfeOnDemand. By simplifying the search process, consumers will be able to find exactly what they are looking for exactly when they want it: it marries accessibility to content for customers with protection of the intellectual property for creators of the content.

Even more importantly, however, WTW reaffirms the commitment that Hollywood is making toward more legally available content.

Read the rest

WikiLeaks-leaked TPP IP Chapter Much Ado About Nothing

Over the past week, critics of the Trans-Pacific Partnership (TPP) Agreement—a free trade agreement (FTA) currently being negotiated by the United States and 11 of its trading partners across the Asia-Pacific region—have made a large hue and cry regarding a draft chapter of the agreement leaked on WikiLeaks pertaining to the TPP’s intellectual property (IP) provisions. Critics have lodged a litany of complaints against the TPP in general and the IP sections of the agreement in particular, including that the TPP has been negotiated “in secret,” that America’s TPP negotiators are attempting to surreptitiously circumvent existing U.S. law in negotiating the agreement, that the “onerous” protections for innovative products such as novel biologics would compromise access to medicines in the developing world, and that the TPP is likely to lead to much greater surveillance by Internet service providers (ISPs) on citizens’ online surfing habits. Yet each of these criticisms is either downright unfounded or significantly overblown, and the reality is that the “leaked TPP IP chapter” is really much ado about nothing, despite its scandalous trumpeting by those who wish to sow fear, doubt, and uncertainty regarding the TPP.

Read the rest

The Best Search Results are the Legal Ones

Last Friday, Google published its new How Google Fights Piracy report with details of the improved methods Google is using to combat piracy across a variety of its services. While the report itself is an impressive overview of the many policies and protocols Google has put in place, as well as the results of such protocols, most notable are the three ways Google has reformed search over the last year: demoting sites with many DMCA takedown notices, removing piracy-related autocomplete terms, and improving ad formats.

The report notes that in 2013, Google received just over 224 million DMCA requests for Google search results and they removed over 222 million of them, with an average turnaround time of six hours or less. But in addition to removing these infringing pages from search results (whether through its content removal webform or the Trusted Copyright Removal Program that allows trusted content owners to submit bulk takedown requests), Google has improved and refined its search algorithm to rank sites in part by how many removal notices it has received. Consequently, sites with high numbers of removal notices are demoted to lower search results. This

Read the rest

The Creative Cost of Piracy

Proponents of effective intellectual property (IP) rights have long argued that weak IP protections will lead to less intellectual property creation.  The logic appears clear: if content creators and other innovators know that a significant share of their work will be pirated or otherwise stolen they will have both less incentive and less revenue to create new ideas, creative goods, and innovations.

But how strong is this effect? To find out, we compared IP protection data from the World Economic Forum’s 2014-2015 Global Competitiveness Report, which incorporates the strength of IP laws and the stringency and effectiveness of anti-counterfeiting laws, and creative outputs scores from the 2014 Global Innovation Index, a report from Cornell, Insead and WIPO.

Put simply, countries that score higher on IP protection also score higher on creative outputs relative to the size of their economy. Over a sample of 136 countries there is a strong positive correlation of 0.72 between the strength of IP protections and score on creative outputs.

The Global Innovation Index has three distinct measures of creativity in an economy. First, “intangible assets” combines measures of domestic and international trademark applications

Read the rest

Spoiler Alert! Illegal Downloaders Steal Content Even When Legally Available

The film and TV industry receives a lot of flak from critics for being its own worst enemy. If Hollywood studios want consumers to pay for content, the argument goes, then they should make it easier to download legally. If piracy is a problem for the industry, then maybe it should take a hard look in the mirror.

The only problem with this argument is that it’s completely false. KPMG just released a first of its kind study assessing the availability of movies and TV shows online. It found that as of December 2013, 81 percent of the 808 unique films studied were available on at least 10 of the 34 online video-on-demand (VOD) service providers. Only 50 of the films studied were not available on any of the 34 online video offerings that KPMG reviewed. The study also found rapid growth in the number of TV viewing options available to audiences. Overall, 85 percent of the most popular and critically acclaimed TV titles were available in the U.S. through legitimate online video services.

This development could not be timelier, with both the ramp up to the Oscars and Fall

Read the rest

Cast pf Firefly

They Aim to Misbehave

Last Monday night, the television world was abuzz with anticipation for what seemed like the perfect end to the “McConaissance”: an Emmy, in the same year as his Oscar, for actor Matthew McConaughey’s performance in the acclaimed HBO drama True Detective. Defying all expectations (and perhaps the Vegas odds) McConaughey lost to repeat winner Bryan Cranston, for his equally acclaimed work on the hit AMC series Breaking Bad. The triumph of TV stardom over movie stardom is rare in Hollywood, and as host Seth Meyers noted at the beginning of the night, “[TV’s] not like that high-maintenance diva movies, who expect you to put on pants and drive all the way over to her house and buy $40 worth of soda.” Perhaps this is why TV is also gaining on movies in another area besides awards: piracy.

Piracy in TV is rapidly increasing, as just about every Emmy-nominated show—broadcast, cable, pay-per-view and streaming—suffers from illegal downloads. In fact, surprisingly, according to Tru Optik, it is Netflix’s Orange is the New Black (OITNB) that secured the second spot this year, behind oft-cited industry statistic, HBO’s Game of Thrones.

Read the rest

The Expendables: Pirates vs. Action Heroes

Last week, the Expendables 3 was leaked online three weeks prior to the movie’s on-screen release date. It was downloaded close to 100,000 times in the first 12 hours and days later had already surpassed 500,000 downloads, making it the most pirated movie of the week.  Pre-release privacy costs films millions, while reducing creativity, stalling innovation, and harming free speech. While our beloved action heroes were unable to protect their movie from copyright infringement, the Internet community can adopt initiatives to reduce future leaks.

The Expendables III is not the first movie to be pirated before it was released in theaters. This type of leak has occurred for a variety of prominent movie releases, including Star Wars Episode III, Revenge of the Sith, Disney’s the Avengers and X-Men Origins: Wolverine, an incomplete work print copy of which appeared several weeks before the official theatrical release in 2009. Pre-release piracy hurts films because the people who are most interested in seeing the film are those most likely to pirate the pre-release, and therefore not pay to see it in theaters.

The Governmental Accountability Office (GAO) estimates that

Read the rest

piracy graphic

China Acts on Digital Piracy

Digital piracy is a serious problem affecting content and software creators in a range of industries. In fact, at least 1 in 4 bits of traffic on the Internet is related to infringing content. One country in which piracy has been particularly rampant is China and the United States and international agencies such as the World Trade Organization have repeatedly called on the government to enhance enforcement.

Given this, there was some cause for optimism recently when the popular streaming video program, QVOD, was shut down by the Chinese government. The order cited the large amount of pirated and pornographic content that were delivered through the service as the key cause of the decision. In addition, the Chinese have also fined Kuaibo, the firm that runs QVOD, approximately $40 million for distributing pirated content. These actions symbolize the government’s larger effort to crack down on piracy and have led several large Internet sites, such as Sina, to publically apologize for distributing pirated or pornographic content.

It should be noted that pornography is illegal in China and some have argued that the actions by the government were designed principally to reduce

Read the rest