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Did the implementation of the Trade Related Aspects of Intellectual Property Rights
Agreement (TRIPS) in the WTO provide remedy for the deficiencies of the Copyright Act
of 1976 in the United States?
Elisa Barrios
Claudia Mendoza
Stephanie Zambrana
ABSTRACT 3
INTRODUCTION
4
BACKGROUND
OF
TRIPS
4
BACKGROUND
OF
US
COPYRIGHT
LAW
4
ANALYSIS
11
CONSOLIDATE
EXTRATERRITORIAL
EFFECT
11
WAS
THERE
A
CHANGE?
11
IF
SO,
HOW?
WHY?
11
TYPE
OF
CHANGE
11
RAMIFICATIONS
12
ADVANTAGES
12
OTHER
PROPOSALS
AND
RECOMMENDATIONS
13
DISADVANTAGES
13
RECOMMENDATIONS
13
COMPUTER
PROGRAM
RENTAL
PROVISION
13
WAS
THERE
A
CHANGE?
IF
SO,
HOW?
WHY?
13
RAMIFICATIONS
14
OTHER
PROPOSALS
AND
RECOMMENDATIONS
14
ADVANTAGES
14
DISADVANTAGES
14
RECOMMENDATIONS
15
BANNING
BOOTLEGGING
OF
LIVE
PERFORMANCE
15
WAS
THERE
A
CHANGE?
IF
SO,
HOW?
WHY?
15
TYPE
OF
CHANGE
15
RAMIFICATIONS
15
OTHER
PROPOSALS
AND
IMPROVEMENTS
16
ADVANTAGES
16
DISADVANTAGES
16
RECOMMENDATIONS
16
CONCLUSION 17
REFERENCE
LIST
18
U.S. Copyright and the TRIPS Agreement 3
ABSTRACT
The world standards for copyrights established by the Agreement on Trade-Related
Intellectual Property Rights (TRIPS) have had a strong impact on domestic copyright law
around the world since its implementation in 1994 (Copyrights Office, n.d.). Despite the
evolutionary history of copyright laws in the United States, the 1976 Copyright Act had
three major gaps in the US code, mainly technological and territorial (Ibid, n.d.). This
paper will analyze the approval of TRIPS by the United States and the deficiencies
concerning extraterritorial effect, the unprotected computer programs, and, finally, the
INTRODUCTION
Background
of
TRIPS
The Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS),
was negotiated at the end of the Uruguay Round of the General Agreement on Tariffs and
Trade (GATT) in 1994 (WTO, n.d.). Its inclusion was the culmination of a program of
intense lobbying by the United States, supported by the European Union, Japan and other
developed nations (WTO, n.d.). After the Uruguay round, the GATT became the basis for
the establishment of the World Trade Organization (WTO, n.d.). Because ratification of
any country seeking to obtain easy access to the numerous international markets opened
by the WTO must enact the strict intellectual property laws mandated by TRIPS (WTO,
n.d.) Also, TRIPS contains requirements that countries should include in their domestic
copyright laws including the rights of performers, producers of sound recordings and
developers of new plant varieties; trademarks; trade dress; and undisclosed or confidential
information (WTO, n.d.) Therefore, TRIPS is the most important multilateral instrument
for the globalization of intellectual property laws. Furthermore, unlike other agreements
can be disciplined through the WTO's Dispute Settlement Mechanism (WTO, n.d.).
was mainly a reflection to the changes in “technology, commercial and financial interest,
political and social conditions, judicial and administrative developments” (Ibid, 1977).
The Act provided for the protection of works and established a single system under
U.S. Copyright and the TRIPS Agreement 5
common law subject to federal protection (Ibid, 1977). It was implemented under the basis
that it would stimulate national uniformity, reduce the legal significance of publication,
provide for time limits for exclusive rights, and most importantly, it would improve
One of the main deficiencies of domestic laws is the lack of extraterritorial effect
when an infringement takes place outside territorial boundaries. The 1976 Copyright Act
contains a significant gap that has affected the outcomes of landmark cases in the field of
copyright protection. The only section of the Act that extends outside territorial
phonorecords (Copyright Act, 1976). The main issue under the copyright Act of 1976 is
when the infringing conduct consists solely on the authorization within the territorial
boundaries of the United States of acts that occur entirely abroad (Partridge, 2009).
Ltd. v. MGM-Pathe Communications Co., (9th Cir. 1994) the court held that authorizing
acts of infringement were not cognizable under U.S. copyright laws, because they occurred
entirely outside the United States, hence there was no claim for infringement under the
Copyright Act (ibid, 1994). The court based its holding on The U.S. Supreme Court
contrary intent appears, is meant to apply only within the territorial jurisdiction of the
United States (Thornburg, 2005), and § 411(1)(a-d) of the Copyright Act, specifying
copyright protection of ‘United States work’ within the United States. Copyright owners
1
Section 602(a) Importation into the United States, without the authority of the owner of copyright under this title, of
copies or phonorecords of a work that have been acquired outside the United States is an infringement of the exclusive
right to distribute copies or phonorecords under section 106 [17 USC 106], actionable under section 501 [17 USC 501].
U.S. Copyright and the TRIPS Agreement 6
are particularly susceptible to infringement through the Internet because of the ease with
which copyrighted material can be copied and widely disseminated over the web.
However, U.S copyright law in the cyberspace is limited to cases when the infringer
violates the law within U.S boundaries (Crews, 2001). Thus, the conventional rule under
choice of law has been that U.S. copyright law may only apply if there is a specific step or
action within the United States affecting or causing a foreign infringement, traditionally
actionable under the Copyright Act. In all other circumstances the US copyright Act lacks
extraterritorial effect when injuries to ‘United State works’ are performed abroad.
The Act covered many aspects of intellectual property, but still did not provide for
software protection on the list of protected works under Article 102(a)2 (Elsevier, 2007).
The Act provided specific time frames under three categories to which copyright could be
granted: Basic Term, Joint Works, Anonymous and Pseudonymous Works (Library of
Congress, 1977). Section 302 states that Basic Term is referred as the life of the author
and fifty years after his death, Joint Works were granted fifty years from the date of death
of the last surviving author; and Anonymous Works seventy-five years were granted since
its publication or a hundred since its creation (Ibid, 1997). However, computer programs
did not fall under the established definition, in ProCD, Inc. v. Zeindenberg, it was
concluded that federal law did not provide protection for databases nor conferred
reproduction and its distribution; it was a matter of state law (Bauer, 2007). Yet, the
judiciary in numerous lower court cases recognized the need for a framework protecting
computer programs (Elsevier, 2007). The first case, Synercom Technology v. University
2
Section 102 provides seven categories listed as Literary works; musical works,
including any accompanying words; dramatic works; including any accompanying music;
pantomimes and choreographic works; motion pictures and other audiovisual works; and
sound recordings.
U.S. Copyright and the TRIPS Agreement 7
Computing In which the court decided that software were protected, only if they were
identified as a work that needed the assistance of an instrument to be discerned, yet, it was
not guaranteed (ibid, 2007). In a second case, Data Cash Systems v. JS. & A, it was
identified that software were in the form of a flow diagram, under the rationale that those
were visually detectable, meaning that the non-visible were not protected (Ibid, 2007).
Finally, in Tandy v. Personal Micro Computers, it was decided that software, as protected,
were not defined only as tangible mediums of expression in a ROM, but could be in form
of information databases (Ibid, 2007). Hence, the cases made a clear differentiation
between computer components and computer programs under the general rules of
intellectual property in the Act, but none of them analyzed the possible effects of the
existent time frames, nor provided a general uniformity to the concept of software.
Tolerance
for
Bootlegging
of
Live
Performances
statutory construction (Fischer, 2003). It was a problem because live performances were
simultaneously recorded while being transmitted. The Copyright Act did not address such
recorded performance as being “fixed”. Fixed refers to modified sound recordings alleged
to be legal falling within the first sentences of the statutory definition of fixation is section
101 of such Act (Ibid, 2003). On the other hand, prior to 1994 and the enactment of the
18th United State Code (U.S.C.) no federal protection existed for the unrecorded live
existed for musical compositions since 1831 stated in 17th U.S.C providing that musical
works including any accompanying words are protectable subject matter (Martignon,
2004). Still no federal protection extended to unrecorded live performances and the
duplication of such performances (Ibid, 2004). Basically the only protection the
performers had was the Anti-bootlegging clause of the Copyright Act (Ibid, 2004). This
U.S. Copyright and the TRIPS Agreement 8
statute, a measure that would protect performers from the unauthorized duplication of their
Despite the Berne Convention’s assertion that all countries should accord national
treatment towards foreign entities seeking copyright protection, TRIPS fails to provide any
2005). Even though the U.S. has ratified TRIPS, the Copyright Act of 1976 remains flawed
in theory, however, not completely in practice. U.S Courts are now willing to protect US
competitors against copying in foreign markets- and do not necessarily defer to the
decisions of foreign copyright offices (Barton, 1986). In recent cases, the Second Circuit
and its lower trial courts have greatly expanded the extraterritorial jurisdiction so that it not
only to applies to U.S. domestic copyright law, but also to engage, under choice of law, in
There are three cases in U.S. courts that corroborate this remedy. Basically if the
claim states that even only one part of the system takes place outside the United States,
extraterritorial application of the copyright law of the United States is appropriate (Kramer,
1995). In an unprecedented move, the Federal Circuit, in AT&T v. Microsoft Corp, held
that copying in a foreign country of software made in the United States infringed United
States copyright under United States law (White, 2006). Such a holding "provides
extraterritorial expansion to U.S. law by punishing under U.S. law 'copying' that occurs
abroad" (ibid, 2006). In addition, in NFL v. TVRadioNow Corp, (W.D. Pa. 2000), the NFL
sued a Toronto-based communications company, alleging that the company had infringed
on its copyright by capturing signals of copyrighted footage from television stations in this
U.S. Copyright and the TRIPS Agreement 9
country, converting the signals into computerized data, and "streaming" the data over the
The Microsystems Software Inc v. Scandinavia Online case, (Mar. 28, 2000) well
defines the outer limits of subject matter jurisdiction in copyright litigation (United States
Court of Appeals For the First Circuit, 2000). Despite the fact that the infringing conduct
alleged by the plaintiff occurred in Canada and Sweden, the court held that subject matter
jurisdiction existed because the defendants promoted their bypass program through e-mail
press releases sent to the United States which encouraged persons to download copies of
The Berne Convention of 1971, which is now part of the TRIPS Agreement,
created laws that provided the system with higher standards in regards to new technologies
based on information, i.e. computer programs (Karjala, 1988). Although the Berne
Copyright Office where authors of computer programs could register their work, which
would later be used as evidence by attorneys to impose fees and statutory damages (Ladas
& Perry, 2000). The only problem was that U.S authors could not use their registered work
because there was no Act aiming the protection of Computer Software (Ibid, 2000). It was
not until 1980 that the Computer Software Act was enacted (ibid, 2000). Section 117 of the
1976 Act which was eventually repealed added computer programs as intellectual property,
and defined them as "a set of statements or instructions to be used directly or indirectly in a
computer in order to bring about a certain result" (Ibid, 2000). In addition, this facilitated
the implementation of TRIPS in 1994, which was taken as an attempt to “strengthen bonds
computer software was also a cause of concern (Elsevier, 2007). Moreover, Articles 10
U.S. Copyright and the TRIPS Agreement 10
and 27 of the Agreement provides that software containing readable content or in any other
form, constitute intellectual property. Therefore, patents have to be available to authors for
any invention in all fields of technology without discrimination of any type at national and
international levels3 (TRIPS, 1994). Such provisions reviewed Section 109(b) of the 1976
Act, by identifying the scope and length of software. This section provides ‘that the owner
of a lawfully-made copy can display publicly to viewers present at the same place as the
copy’ (Library of Congress, 1977). In other words, the copy of software could be owned.
However, its public display was limited, and could not be held exclusively to be display
computer programs rental rights are set and identified4 (Ibid, 1977). Furthermore, TRIPS
identifies in Article 13 that there can be an exception. However, such exception should not
The enactment of the anti-bootlegging statute grew out of the Uruguay Round of
trade negotiations under the General Agreement on Tariffs and Trade (Martignon, 2004).
In April 1994, 111 nations signed the Final Act embodying the results of the
Uruguay Round of Multilateral Trade Negotiations, and in so doing adopted the TRIPS
Agreement (Ibid, 2004). Therefore, the United States fulfilled its obligation under TRIPS
3
Article 10 Computer Programs and Compilations of Data. 1.Computer programs, whether in source or
object code, shall be protected as literary works under the Berne Convention (1971). 2. Compilations of data
or other material, whether in machine readable or other form, which by reason of the selection or
arrangement of their contents constitute intellectual creations shall be protected as such. Such protection,
which shall not extend to the data or material itself, shall be without prejudice to any copyright subsisting in
the data or material itself.
4
Article 11. Rental Rights In respect of at least computer programs and cinematographic works, a Member
shall provide authors and their successors in title the right to authorize or to prohibit the commercial rental to
the public of originals or copies of their copyright works. A Member shall be excepted from this obligation
in respect of cinematographic works unless such rental has led to widespread copying of such works which
is materially impairing the exclusive right of reproduction conferred in that Member on authors and their
successors in title. In respect of computer programs, this obligation does not apply to rentals where the
program itself is not the essential object of the rental.
5
Article 13. Limitations and Exceptions. Members shall confine limitations or exceptions to exclusive rights
to certain special cases which do not conflict with a normal exploitation of the work and do not unreasonably
prejudice the legitimate interests of the right holder.
U.S. Copyright and the TRIPS Agreement 11
by enacting 18th U.S.C. that provides the criminal sanction for bootlegging as follows:
Whoever, for purposes of commercial advantage or private finance gain. Such as fixes,
reproduces, transmits, distributes, sells or offers to rent, and traffics of any copy of sound
the United States, the infringer shall be imprisoned for not more than 5 years or fined in
ANALYSIS
Consolidate
Extraterritorial
Effect
due to the application of the TRIPS agreement in matters of interpretation of law. Even
though the document was not amended and no provision was added to explicitly allow
outside of national boundaries. Not only the increased number of cases involving foreign
conduct, but also the frequent intangibility of foreign based infringing elements had made
it more and more difficult to make domestic copyrights reach activities outside their
the conclusion that "subject matter jurisdiction exists where the infringement has an effect
U.S. Copyright and the TRIPS Agreement 12
within the United States", and according to Art.41.16 of the TRIPS agreement Members
shall ensure that enforcement procedures are available under their law so as to permit
effective action against any act of infringement of intellectual property rights. By having
infringing acts occurring outside the United States with effects inside the U.S, the
infringement is transmitted to U.S laws where the Copyright Act is implicated, hence
district court possesses jurisdiction. Applying this principle to copyright cases, the court
holds that when a foreign corporation is alleged to have purposefully injected itself into the
through an importer – the defendant should not be allowed to use the principle of non-
territoriality to shield itself from the reach of American courts and American copyright
law.
Ramifications
There hasn’t been a concrete change in legislation that focuses on the
extraterritoriality issue, particularly when TRIPS enables by all means the prevention of
Advantages
An advantage of incorporating extraterritoriality of copyright laws is that people
will know their works will be protected, so more people would be willing to invest in
research and development because law would allow them to market their works, recoup
their cost, and most importantly protect them beyond U.S boundaries.
6
Art. 41.1(a) Members shall ensure that enforcement procedures as specified in this Part are available under
their law so as to permit effective action against any act of infringement of intellectual property rights
covered by this Agreement, including expeditious remedies to prevent infringements and remedies which
constitute a deterrent to further infringements. These procedures shall be applied in such a manner as to
avoid the creation of barriers to legitimate trade and to provide for safeguards against their abuse.
U.S. Copyright and the TRIPS Agreement 13
of patent law.
Disadvantages
Having extraterritorial jurisdiction may bring some obstacles along with their
enforcement. For both practical and diplomatic reasons, investigations within another
country require the acquiescence, consent, or preferably the assistance, of the authorities of
the host country (Doyle, 2007). The United States has mutual legal assistance treaties with
several countries designed to formalize such cooperative law enforcement assistance (ibid,
Recommendations
Copyrights and patents are both equally threatened by the Internet revolution,
boundaries both in TRIPS and U.S domestic law. If there was a provision in the US
Copyright Act similar to section 271(f) 7 of the US Patent Act specifying the combination
of circumstances in which actions outside the United States are considered infringement to
national law, extraterritoriality issues would become questions of fact, not questions of law
the time it was drafted Software did not exist and were not included in it; the 1980 Act
provided for a clear definition and included them. However, TRIPS eliminated the “sunset
date” or expirations imposed to computer program patents and providing for author
exclusive rental rights over software’s (Copyright Office, n.d.) Also, the implementation
piracy cases, an international copyright office where programs could be registered, and,
Ramifications
After the implementation of the TRIPS Agreement, lower court cases with binding
broadly described the scope in which patents are ought to be granted; by stating that these
should be available for inventions in all fields of technology, the specific inclusion of
computer programs would not be then considered an implicit extension (Eupat, 2004).
Advantages
Although there were pre-existent state laws created by case law, TRIPS promoted
national uniformity to US copyright law. And it created a set of standards and definitions
concerning the time of application and scope of the law regarding software.
Disadvantages
Article 13 of TRIPS delineates in very general terms the scope of copyright protection, in
regard to computer programs and data compilations, identifying these exceptions were
author’s would loss their exclusive right as subject to the “fair use” its which can be hard
Recommendations
Article 13 of TRIPS is too broad, in the sense that other members can impose
limitations, as long as such limitations do not conflict the "normal" interest of an author's
work under the justification that an author’s exclusive rights are not unreasonable. In other
the right of public performance is a core right for the owners of copyright in musical
works. Public performance is one of the major ways in which such works are exploited.
However, when TRIPS was implemented such exploitation was terminated, because such
Agreement protects copyright laws. In addition TRIPS would allow business entities of
any size to use copyrighted music for free in order to entertain their customers, and
thereby stimulate sales of their own goods or service, a financial benefit that does not
background music services and other licensing arrangements that provide revenue to
Ramifications
The Copyright Office has concerns about the impact of a number of these
provisions on the practical ability of copyright owners to enforce their rights and obtain a
fair return for the use of their works. These concerns arise in part from the nature and
includes provisions that would force universities to institute policies and procedures
regarding illegal downloading and file sharing. They would be required to "develop plans
for alternatives to online bootlegging to be offered to students and plans for exploring
Advantages
The extent of protection and enforcement of rights concerning Bootlegging of Live
Performances varied widely around the world; and as intellectual property became more
relations. New internationally-agreed trade rules for intellectual property rights were seen
as a way to introduce more order and predictability, and for disputes to be settled more
systematically. The Agreement states performers must also have the right to prevent
no less than 50 years. Producers of sound recordings must have the right to prevent the
Disadvantages
Industry representatives complain of the economic and social harm caused by
bootlegging of live performance, because illegal musical production and consumption that
harm the music industry still occurring, and affects in essence the concept of intellectual
property laws.
Recommendations
It should not be forgotten that TRIPS is an Agreement concerned with the
such Agreement is to force strong laws upon such crimes. Also, the lack of protection and
CONCLUSION
Agreement (TRIPS) in the WTO provided remedy for the deficiencies of the Copyright
Act of 1976 in the United States through both the modification of Articles in the Copyright
Act, and through the interpretation of law in copyright infringement cases at local courts.
Despite the principle of non-extraterritoriality of the U.S congress, TRIPS was able to
provide remedy for injuries caused by copyright infringement outside U.S boundaries
where domestic laws did not apply. In addition, TRIPS updated the Copyright Act to
infringement such as the recording of live performances for illicit distribution of works.
Notwithstanding, the Copyright Act along with TRIPS have reduced the lost in revenue for
illicit distribution of U.S works and has strengthening the protection of Copyrights both
U.S. Copyright and the TRIPS Agreement 18
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