Speeches and Remarks 2006
May 15, 2006
As prepared for delivery
"The Bush Administration's Framework for Engaging India
on Intellectual Property and Promoting Trade"
Remarks by
Chris Israel
International IPR Enforcement Coordinator
U.S. Department of Commerce
Taj Palace Hotel
May 15, 2006
Thank you for the introduction. I would like to thank the Confederation of Indian Industry (CII) for hosting this event today. It is great to be here in New Delhi and I want to thank all of you for being here, as well.
Through the Bush Administration's pro-growth agenda we have created more jobs, opened new markets to U.S. products and services, created incentives for private sector innovation, and sharpened our focus on intellectual property rights protection. President Bush has made it clear to us that the protection of intellectual property rights (IPR) is a very high priority for his Administration. And there is a serious commitment throughout the U.S. Government to heighten our efforts.
As the United States Intellectual Property (IP) Coordinator, my office leverages the capabilities and resources of the U.S. to promote effective, global enforcement of intellectual property rights. We have developed an overall global strategy for targeting organized piracy that we refer to as the STOP! Initiative.
1. First, empower innovators to better protect their rights at home and abroad.
2. Second, increase efforts to seize counterfeit goods at our borders.
3. Third, pursue criminal enterprises involved in piracy and counterfeiting.
4. Fourth, work closely and creatively with industry.
5. And fifth, aggressively engage our trading partners to join our efforts.
The Bush Administration's STOP! Initiative involves extensive outreach with the private sector and our international partners. We are addressing this issue actively, aggressively and with a results-oriented approach. We have built a coordinated enforcement model that includes trade, commerce, law enforcement and customs agencies. Our combined efforts are extensive, and this allows us to bring even greater focus, energy and prioritization to our IPR efforts.
We are pleased to be in India this week to build on President Bush's visit to India in March and focus specifically on our efforts to strengthen intellectual property protection. We will meet with a number of Indian Government Officials and representatives of U.S. and Indian industry.
Apart from our meetings in New Delhi, later this week we will also be in Bangalore and Mumbai. And last week, part of my delegation was in Calcutta, participating in CII's IP enforcement program, where they also held meetings with local West Bengal state government officials and industry.
One of our main goals is to engage private-sector stakeholders and to continue our efforts to promote increased trade and economic development through effective intellectual property protection.
From Prime Minister Singh's visit to Washington last July to President Bush's visit to India in March, we can see just how far the U.S.-India relationship has grown and how quickly it is moving to the next level. As the ties between our two nations expand, we must continue working together to build on the progress that we have made. The United States and India are natural partners, the world's oldest democracy working together with the world's largest --- we share a number of common goals and values.
When President Bush talks about India, he emphasizes the importance of our strategic partnership --- our relationship. An important component of this relationship is built on the idea of free and fair trade. We recognize that through increased trade we will create new jobs, improve standards of living and in the end provide hope and opportunity to countless individuals.
A strong and economically vibrant India is not just good for India, it is good for the United States and our citizens, and in the end it will help promote global security and economic stability.
Twenty-five years ago U.S.-India bilateral trade was only $2.8 billion - today it is over $25 billion. Though we have experienced incredible growth, that number could be much higher because there is unrealized potential.
The U.S. is India's single largest national trading partner. U.S. exports to India have gone from only $4.1 billion in 2002 to almost $8 billion today, making India the 22nd largest export market for U.S. goods. India's purchasing power has increased dramatically over the past decade and American companies want to sell their goods to Indian consumers.
U.S. foreign direct investment (FDI) in India reached $6.2 billion in 2004 making the United States the largest foreign investor in India. Though these are all impressive numbers, U.S. companies are investing larger amounts in other countries around the globe. There is obviously room to grow. And having a strong and effective intellectual property rights system will help make India a first choice for foreign investment and trade.
Major American companies increasingly recognize India as an indispensable market. Their growth has been good for America and it has been good for India.
We have been partners in growth. Now we need to be partners in IP protection. Successful entrepreneurs take an idea, create a business around it, and add new jobs as they drive economic growth. We need to protect the incentives that motivate entrepreneurs to pursue their ideas. A thriving, diversified economy must protect its intellectual property rights.
I do want to commend the Indian government for the steps it has taken to protect intellectual property rights. It is important to recognize that intellectual property protection and stopping the trade in fake and counterfeit goods is not only an economic issue for India, but also a public health and safety concern for the Indian people.
President Bush and Prime Minister Singh want to double trade between our two countries every three years. Our goals are high and to achieve them we need to increase our level of cooperation and correspondingly raise our benchmarks for success.
But to meet these goals we need to work together to promote strong innovation-led economic growth. Intellectual property is the fuel that powers the engine of prosperity, fostering invention and innovation. Protecting it is an issue at the very heart of the global economy. And, as a center of scientific talent, India has enormous potential to innovate and grow.
It is clear that countries that protect IP will invite and nurture the type of innovation that leads to economic growth. One only needs to look at the United States' IP-related industries to understand how important they are to our economy.
U.S. IP industries account for over half of all U.S. exports. They represent 40% of our economic growth and employ 18 million Americans, who earn 40% more than the average U.S. wage. The 2006 Economic Report to the President states that IP accounts for over one-third of the value of all U.S. corporations, an amount equal to almost half of our GDP. Quite simply, our ability to ensure a secure and reliable environment for intellectual property around the world is critical to the strength and continued expansion of the U.S. economy. The reasons for the Bush Administration's leadership on IP enforcement and for its prioritization are clear.
We value our heritage of innovation and exploration - it is not only part of our history; it is the key to our future. And this future - a future of innovation, exploration and growth that benefits the entire world rests -- on a basic, inherent respect for intellectual property rights and a system that protects them. Fair, strong and non-discriminatory IPR enforcement creates economic incentives that encourage innovation. A strong IPR regime helps attract new investment and allows innovators to develop new technologies.
According to a recent IDC/BSA study, with only a 10-point reduction in India's software piracy rate you could create 115,000 new IT jobs and add almost $6 billion into the Indian economy. It is clear that with strengthened IP protections India could see increased tax revenues, more jobs and greater economic growth.
Our leaders recognize that weak intellectual property enforcement is a major barrier to increased trade and improving IPR protection will be an important element to increasing and making the climate in India more attractive to private investment.
We do appreciate and recognize the progress that India has made. India recently passed a law modernizing its patent system, and we will continue to work with India as it fine-tunes its patent laws and on other issues such as data protection, increased criminal IPR enforcement, and improved copyright and trademark protections.
The United States and India must be committed to continue working together to promote innovation, trade and advance the entrepreneurial spirit by effectively protecting intellectual property rights. I am here today to discuss the Bush Administration's approach for engaging India on intellectual property enforcement and cooperation. Our efforts revolve around three key areas: bilateral cooperation; education and capacity building; and engaging both the U.S. and Indian private sectors.
BILATERAL COOPERATION
Bilateral Cooperation serves as the cornerstone of the relationship between our two countries. We are currently working with the Indian Government on intellectual property through three venues: the Trade Policy Forum, the High Technology Cooperation Group and the Commercial Dialogue.
President Bush and Prime Minister Singh announced the creation of the Trade Policy Forum last summer. In any sophisticated and growing trade relationship there will be issues to address and resolve and the Trade Policy Forum provides an effective process for discussing issues such as strong IP enforcement measures, data protection, copyright and trademark piracy. The Trade Policy Forum has already had a number of successful meetings and an Innovation and Creativity working group has been established which will focus on intellectual property rights among other things.
Also, as I am sure that Under Secretary of Commerce Frank Lavin mentioned when he was in India earlier this month, the U.S.-India Commercial Dialogue was recently expanded to include discussion on intellectual property. The Commercial Dialogue, being run on the U.S. side by the Department of Commerce, has an important role to play particularly in focusing on our capacity building and education initiatives with the Indian Government.
EDUCATION
The March 2006 U.S.-India Joint Statement announced by President Bush and Prime Minister Singh places a clear emphasis on the importance of IP education, which includes capacity building activities, human resource development and public awareness programs.
Since 2001, the United States has conducted several hundred IP training and capacity building programs around the world, helping train thousands of individuals and improve criminal and civil IPR protection. To continue our ongoing efforts, the Bush Administration has established a Global Intellectual Property Academy in Washington to consolidate and expand our education programs for foreign judges, enforcement officials and administrators.
We are working with the Indian Government and Indian Industry, as we saw in the recent CII program, to help provide the necessary training and capacity building for law enforcement, patent examiners and the judiciary in India. We look to continue working cooperatively with the Indian Government as they carry on in their efforts to modernize and improve India's IPR system.
Our Embassy and Consulate officers on the ground are another valuable asset for industry. We are providing training for U.S. Embassy personnel in India so that they can be effective first responders on IPR issues. They are working to identify problems and assist rights holders before fakes enter the market and the supply chain.
I am pleased to announce that we are currently developing an India-specific IPR Toolkit. These country-specific IPR toolkits help guide businesses through securing and enforcing their rights in key markets across the globe. These toolkits are available at the StopFakes.gov and Embassy websites.
PRIVATE SECTOR ENGAGEMENT
This morning we had an IPR roundtable with Industry representatives to discuss IP-related issues and to exchange ideas on ways to promote innovation and economic growth. A large part of my trip is devoted to engaging both U.S. and Indian private industry.
Formally, U.S. and Indian private sector engagement on IP and Trade occurs primarily through two venues - the U.S.-India High Technology Cooperation Group (or HTCG) and the CEO Forum. The HTCG is unique in that it is the only forum that gives the business community an opportunity to contribute directly to our bilateral discussions with the Indian Government. The HTCG works with the U.S.-India Business Council (USIBC), the Confederation of Indian Industry (CII) and the Federation of Indian Chambers of Commerce and Industry (FICCI) to engage both the U.S. and Indian private sectors on issues concerning intellectual property.
Companies need to be aggressive advocates of their own IP. We will be looking to you, members of the business community, for assistance and leadership as we go forward. You are our eyes and ears on the ground and know better than anyone how inadequate IPR enforcement affects yours and your clients' businesses. We will continue to work together to find solutions and lead enforcement efforts.
By increasing private sector interaction, through industry events and targeted outreach activities we will continue to promote increased trade, economic development and effective IP protection.
By laying out to you today the Bush Administration's framework for engaging India on intellectual property and promoting trade, I wanted all of you to see the number of initiatives we have in place and understand that our commitment to working with India runs deep and that we are looking forward to a long and productive relationship.
In the end, our combined efforts to provide a secure and predictable global environment for intellectual property are driven by a commitment to foster economic growth, to secure the safety and health of consumers everywhere, and an abiding respect for the innovative spirit that is driving our nations and will determine our future. We must all take advantage of the opportunity to work together to promote the knowledge industries of today so that we may continue to see the innovations of tomorrow.
We must all take advantage of the opportunity to work together to better protect the knowledge industries of today so that we may continue to see the innovations of tomorrow.
Again, I appreciate the opportunity to talk to you today about the importance of intellectual property and innovation to the future of both of our countries and how we can work together to seize the potential we all sense.