IPP vs FDI

PIRACY OF intellectual property rights (IPR) is one of the most important and rising policy issue for developed countries. The absence of IPR in developing countries is not only becoming an increasing burden to their economy, but also costs a lot for developed countries. Intellectual property protection (IPP) is not meant to protect multinational companies, or to protect only developed economies; IP system also provides opportunity to developing economies to participate in economic activities of the developed world. In the wake of information technology this participation is way beyond the limits. At microeconomic level, copyright, patent, and similar forms of IP protection provides resources to innovators and investors to recover their investment of time and money, and to enhance or bring a new product to market. At macroeconomic level, it brings foreign direct investment (FDI) by encouraging domestic innovation, when investors are confident that risks are manageable, and protected, they are more willing to invest abroad. Intellectual property also promotes new technologies as a source of the main economic activities, because by almost every segment of the economy is relying upon IPR. In developed countries the level of protection is higher than the developed countries, although it varies widely. In case of Pakistan, certain IP laws are there (although we need proper laws), but the major issue is the implementation and enforcement of those laws. Government of Pakistan has invested its best human capital in the Policy Board of Intellectual Property Organization of Pakistan (IPO-Pakistan). The IPO-Pakistan Policy Board comprises of five members each from public and private sector; and four members from provinces, all public sector members are Secretary level officers. Moreover, IPO-Pakistan is directly working under the administrative control of the Cabinet Division, which is headed by the Prime Minister of Pakistan; to make IPO-Pakistan an authoritative and vibrant organization. But even then, the enthusiasm with which intellectual property rights are implemented or enforced by the government varies even more than the level and scope of the protection. Due to the minimal standards of IPR protection and law enforcement in Pakistan, pirates have been able to copy a wide range of branded goods and protected products, limiting foreign investors. With the globalization of world economy, maintaining competitiveness is a critical factor for Pakistan. The ability to develop and commercialize applied knowledge is the key to the success which is hidden in research and development. The lack of intellectual property protection in Pakistan has created an unfriendly environment both for foreign and domestic investors and innovators, which has hampered our economic growth potential. Pakistan, being a signatory to Trade Related Intellectual Property Rights Agreement (TRIPs) under WTO, has firm commitment, pursuant to raise its standards of intellectual property protection. The government requires up-gradation of its IP infrastructure in align with global trends, but how quickly increased standards of protection will be adopted, and what form those standards will take, remains an open question.