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BSA Applauds Release of Annual USTR Report on Intellectual Property

REL, NTPC To Go Nuclear

IISc fine-tuning IP policy for its tech

A Search Engine For Tech Prospectors

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BSA Applauds Release of Annual USTR Report on Intellectual Property

Special 301 Report Identifies Countries With Lax IP Protections

Washington, D.C. (May 3, 2004) -- The Business Software Alliance (BSA) today commended U.S. Trade Representative Robert Zoellick for his annual report that identifies countries that fail to provide adequate and effective protection for intellectual property.

BSA said Zoellick’s annual Special 301 report closely tracks the recommendations submitted earlier this year by the copyright industries, and that it is committed to working with USTR and those countries to promote meaningful reforms that will benefit their economies.

BSA, as part of the International Intellectual Property Alliance (IIPA), earlier this year recommended that USTR include 56 countries in its annual Special 301 report. Special 301 identifies nations that have failed to adopt legal reforms and enforcement programs necessary to comply with the World Trade Organization’s (WTO) Trade-Related Intellectual Property Rights (TRIPs). This year’s report lists 51 countries that need to make improvements in IP protection.

“We commend Ambassador Zoellick for his work to identify those countries that need to take more action to enforce intellectual property laws. And we look forward to working with those nations to help them take the measures necessary to boost their economies while meeting their international treaty obligations,” said Robert Holleyman, president and CEO of BSA.

“The software industry has made great strides in its efforts to assist nations working in good faith to update their intellectual property protections for the digital age. However, piracy remains the largest trade barrier for our industry. In 2002, global losses from software piracy totaled more than $13 billion,” Holleyman said.

Globally, 39 percent of all commercial software in use is pirated. Reducing that rate by just 10 percentage points by 2006 could deliver 1.5 million jobs, $64 billion in new tax revenues and $400 billion in economic growth, according to a study conducted for BSA last year by the global research firm IDC.

TRIPs requires all WTO members to adopt legal frameworks that include enactment and strong enforcement of internationally compatible copyright laws that prohibit online and end user piracy and establish adequate civil and criminal penalties for software theft.

Strong legal reforms are critical to increased investment and development of the software industry worldwide. Among the countries identified in today’s 301 filing:

  • Ukraine -- Rampant copyright piracy in this and other Eastern European countries continues to impede the meaningful development of the legitimate business software industry.

  • Paraguay -- The explosion of new forms of piracy, combined with laws and a judicial system that continue to treat piracy as a minor offense, prevent legitimate software development in Paraguay.

  • India has a dynamic, export driven software industry, but software piracy within India remains widespread. To address this problem, India needs to significantly strengthen enforcement efforts against software piracy and streamline the cases once they enter the courts.

  • The Indonesian government worked with industry throughout the year to increase public awareness about software copyrights following adoption of criminal penalties against corporate end user piracy in the latest copyright amendments, but enforcement is also needed to act as a deterrent.

  • Canada is one of the software industry’s largest markets outside the U.S., and has a higher piracy rate than many developed countries. The slow pace of copyright reform in Canada is a matter of great and growing concern for the industry. A recent Canadian Federal Court decision has highlighted how far Canada lags behind much of the world in addressing digital piracy. Legal reform is urgently needed.

“BSA looks forward to continuing its efforts in working with policy makers worldwide to establish the laws and programs necessary to the continued development of global trade and e-commerce,” said Holleyman.

For a complete list of countries submitted to USTR by BSA and other copyright-related industries, please visit www.iipa.com.

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REL, NTPC To Go Nuclear
 

ANUPAMA AIRY Financial Express
 

NEW DELHI, MAY 7: The country’s largest private sector group, Reliance, and the public sector power major National Thermal Power Corporation (NTPC), are planning to diversify into nuclear generation. Both are separately examining the possibility of forming a joint venture with Nuclear Power Corporation (NPC) for putting up nuclear power capacities in the country.

At present, both the companies are tightlipped about their plans. On being contacted, NTPC chairman and managing director, CP Jain refused to comment but agreed that the corporation was examining the proposal to get into a joint venture with NPC. A Reliance spokesman, too, declined to comment but did not deny it either.

Sources in the government disclosed that discussions on NTPC’s entry into nuclear generation had already taken place at the highest level of decision-making.

At a recent meeting with NTPC brass, the power ministry had asked it to make a foray into the field of nuclear generation as part of its larger plan to become an important utility for the country. In response NTPC had told the power ministry that it was examining the proposal for a joint venture with NPC for setting up power projects using nuclear fuel.

Sources said the Reliance group, through Reliance Energy, is also looking at forming a joint venture with NPC, as is currently required under the law.

At present, entire nuclear generation in the country is done by NPC, which is under the control of the Department of Atomic Energy India. No new capacities can come without the active participation of the corporation.

It is significant to note here that despite being the cheapest option and the fact that India is sitting on a 30,000 to 40,000 tonne of surplus heavy water, generation from nuclear power stations has been declining every year and is showing negative growth. According to official figures, nuclear generation capacity in the country declined by 8.3 per cent, from 19.32 billion units (BU) in 2002-03 to 17.72 BU in 2003-04. For 2004-05, the generation target set by the government is 15.44 BUs, a fall of 12.9 per cent.

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IISc fine-tuning IP policy for its tech

Madhumathi D.S. , Business Line,

Bangalore , May 11

IMAGINE a public research and academic body talking business with companies across the table, setting terms of ownership of its intellectual sweat, the royalty and profits it deserves or sharing revenues and costs of taking tech to market. Or can you?

The "hitherto sleeping partner" has woken and will soon be demanding its pound of flesh in intellectual property. The Indian Institute of Science, turning 100 in five years, is giving the final touches to an Intellectual Property Policy. Replete with an IP cell under an IP management committee, the policy will define how IISc and partner companies would legally split ownership of its technology, besides profits and costs from it.

The policy should be out in June or July. "The institute has been interacting with over 400 domestic and global companies on sponsored and joint research projects. We dealt with them in an open-ended manner. Now, this institute will not have any interaction with industry without (including) the IP issue," IISc Director, Dr Goverdhan Mehta, told Business Line.

The only exception would be socially relevant or public health areas where Prof Mehta said, "IISc would happily waive the IP issue."

On a day celebrated by CSIR labs and research institutes as Technology Day, Dr Mehta unveiled 100 select patented technologies ready for transfer from IISc to the industry. These, he said, were only 60 per cent of the best of the IISc portfolio in biology, bioinformatics, vaccines, diagnostics and communications.

As for their material worth, Dr Mehta said one indication was the turnover that IISc's industry links, the Centre for Scientific & Industrial Consultancy and the Society for Innovation & Development, earn Rs 20 crore a year.

"Let's say I'm looking for a blockbuster, not just worth crores but at something like a billion dollars. And we are on the way."

IISc has also signed an MoU with IIT-Mumbai, on a joint IP strategy, said Prof M.L. Munjal, Chairman of Mechanical Sciences Division and chairman of the IP policy drafting committee.

Prof Munjal called it a shift from "common sense to commerce" in the way the institute was treating its research products today. "Until recently, we were just old fashioned scientists and engineers who were happy to publish papers while industry collaborators took away the IP by default. Only in the last few years, we started waking up to this new reality."

IISc is trying to convince its purists about the benefits of business and the culture of entrepreneurship. "Our motivation is not only to augment resources, but to promote enterprise." Yet, that would not dent the basic research that the institute prides itself in.

Two new start-ups on cards: Three years ago, IISc began encouraging scientists to take time off, form start-ups and itself took a stake in them. Soon, Prof Mehta said, two new start-ups would join its band of four that includes PicoPeta Simputer and bioinformatics company Strand Genomics.

The new ones will be virtual enterprise solutions company VXP from the Mechanical Engineering stable and Esqube (`s-cube') in the field of sensors and wireless communication solutions.

A sample from the store

`STRATIFIED charge engine' may sound awesome.

Its low-fuel, low-exhaust effect should soon be felt on the roads. Here is a concept that TVS Motors nursed and bought from IISc's Mechanical Engineering Department for its upcoming two-wheeler. IISc got Rs 10 lakh each for two years and will soon be receiving one per cent of royalty on engine cost.

The TVS product itself would be riding on six IISc patents and over Rs 3-crore investment.

This, says IISc, is just a sample of its ammunition in which several industry majors have shown interest, from GM, Tata Motors, Mahindra & Mahindra and Ashok Leyland. From aerospace, mechanical and electrical engineering to biochemistry and ecological sciences, IISc's departments are telling industries about their wares, that range from high energy density lead acid battery, truly disposable, single-use syringes; high-return silica ash from rice husk to cryo-grinding for the food industry.

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A Search Engine For Tech Prospectors

CHI uses a strictly quantitative method based on evaluating the strength of public companies' patent portfolios. Based in Haddon Heights, N.J., the firm got its start in 1968 reviewing patents for the National Science Foundation. It still consults for corporate clients, but its investment-research method, on which it has its own patent, is gaining renown. Here's how it works: Every month, CHI looks over the patents of 477 innovators, from mighty General Electric (GE ) to the likes of genomics outfit Lynx Therapeutics (LYNX ). It checks not just how many patents each company holds but what it refers to as "citation impact" -- how often they are cited in later patent applications. CHI also checks how many references a patent makes to academic papers, a way to see how closely to basic science the company is working. And it notes how quickly the companies exploit scientific advances by checking the median age of patents cited in their patent applications. Finally, CHI considers the companies' stock-price-to-book-value ratios.

Naturally, CHI's research isn't foolproof. Of the 10 picks listed in BusinessWeek in 2002, three had negative returns, including CHI's then-favorite, optical networker Ciena (CIEN ). Now, its favorites (table) include several biotech names, such as Maxygen (MAXY ), Transgenomic (TBIO ), and Caliper Life Sciences (CALP ), a repeat from 2002. Patrick Thomas, a CHI senior analyst, said basic materials companies lately are climbing the ranks. One is Arch Chemicals (ARJ ), which Olin (OLN ) spun off in 1999. CHI is keen on its patents for polishing copper-coated wafers and on the relatively low age of its patents -- indicating fast innovation.

Cabot, (CBT ) another name on the list that many investors may not associate with high tech, is a longtime producer of carbon black, a key material used by tiremakers. But Cabot also sells specialty powders for ink jets, fuel cells, and flat-panel displays. And it knows how to cash in on innovation. In 2000 it spun off Cabot Microelectronics (CCMP ), a supplier of polishing slurries and pads for microelectronics. Before the spin-off, Cabot had a market value of $2.2 billion. Within a year, the parent and offspring's total value topped $5 billion.

Expecting Cabot to hit another such lode is unreasonable, just as it's unlikely the NASDAQ will have another year like 2003 soon. Still, CHI's list strikes me as a good place for tech investors to keep prospecting.

 

(Source: Business Week).
 

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