Intellectual property violations hurt us all

Coast regional Anti-Counterfeit Agency Manager Osman Yusuf destroys counterfeit goods, at Clay Works Limited in Mombasa on September 14, 2019. PHOTO | FILE | NATION MEDIA GROUP

What you need to know:

  • We know that when patents and trade secrets are stolen, revenues diminish, and governments, businesses, artists, and consumers lose.
  • Given the very real economic significance of IP protection, and the important role WIPO plays, strong leadership matters.

President Abraham Lincoln famously said that the United States’ patent system adds “the fuel of interest to the fire of genius”.

Intellectual property (IP) rights assure inventors, industrial designers, and creative artists that their ideas will be protected, and that they will receive payment for the use of their creations.

Because of the strong IP rights control in the US, IP-intensive industries account for nearly one-third of all employment and approximately 40 per cent of the US gross domestic product – an estimated $6.6 trillion.

In Kenya, the existing and potential benefits of strong IP systems are enormous. According to the US Chamber International IP Index, economies with robust IP protection are 26 per cent more competitive globally, 39 per cent more likely to attract foreign investment, and 55 per cent more likely to adapt sophisticated technology.

Conversely, intellectual property crimes hurt us all. For instance, counterfeits undercut legitimate manufacturing, leading to loss of jobs, reduced return on investment, and reduced tax revenue.

FAKE PRODUCTS

The US economy, for example, suffers an estimated loss of $180 billion annually from theft of trade secrets, $18 billion from pirated software, and $29 billion due to counterfeiting.

Kenyan media has recently run stories on the devastating impact fake goods have on Kenya’s economy, safety and health.

Counterfeit drugs endanger health. Counterfeit auto parts are a threat to road users. Counterfeit clothing and personal care items damage consumer confidence and waste our hard-earned money.

This is why it is important that an environment of respect and protection for intellectual property flourishes here, and why it makes sense that Kenya’s constitution, just like ours, demands strong intellectual property protection.

Such protections will boost innovation and secure Kenya’s national heritage from misuse.

They encourage inventors and creators to make their innovations available to others, and share knowledge that enables others to come up with advanced solutions.

LOSS OF REVENUE

The US Embassy has been a long-time partner with Kenya in defending intellectual property rights.

We supported the creation of Kenya’s Anti-Counterfeit Agency (ACA). Our support for the Kenya Association of the Pharmaceutical Industry helped the two-year “Fagia Bandia” campaign raise public awareness on the dangers of counterfeit medicines.

In partnership with ACA, Kenya Copyright Board, Kenya Industrial Property Institute, and the Strathmore University Centre for Intellectual Property and Information Technology Law, the US Embassy has facilitated discussions and events on how Kenyan musicians, movie makers and artists can protect and benefit from their work.

We know that technological progress drives economic growth, and that intellectual property rights provide incentives for investment in research and development, and ensure that creative industries can thrive.

We also know that when patents and trade secrets are stolen, when counterfeits are produced and traded openly and trademarks infringed upon, competition is stymied, revenues diminish, and governments, businesses, artists, and consumers lose.

NECESSARY STEP

In March, the World Intellectual Property Organisation (WIPO) will hold elections for its next Director-General.

Given the very real economic significance of IP protection, and the important role WIPO plays, strong leadership matters.

The next WIPO leader must come from a country with a record of supporting strong IP protection and enforcement.

It matters to businesses of all sizes. It matters to inventors, creators, artists, and designers. It matters to consumers who rely on protections that ensure product safety.

It matters to strong market economies that drive innovation. And it matters to the United States and to Kenya.

The writer is the US Ambassador to Kenya