The Economics of Trademarks The Development Dimension and the Role of WIPO

1. The Economics of Trademarks The Development Dimension and the Role of WIPO Esteban Burrone WIPO Alicante, June 5 and 6, 2008

2. Context Following IP legislation reform since the mid-1990s increasing attention to development impact of IP system Interaction of IP with other areas of public policy (e.g. public health) has brought issue to the limelight and attracted much interest among policy-makers and civil society Increasing importance of intangibles in knowledge economy combined with limited use of system by domestic enterprises has raised many concerns WIPO Increasingly asked to work with countries to understand the development impact of the IP system (e.g. WIPO Development Agenda adopted in Sept. 2007) Very limited empirical research on IP in dev-ing countries (almost none on TMs) Yet TMs are widely used (and registered) in many developing countries WIPO has launched a series of programs to promote more empirical economic research on IP in developing countries What type of empirical research on TMs could be done in dev-ing countries? Background

3. Use of Trademarks in Developing Countries Evidence from national IP offices Share of TMs and patents in total number of resident IP titles granted in 2005 Source: WIPO IP Statistics, 2005

4. Use of Trademarks in Developing Countries Evidence from national IP offices Share of residents in total trademarks registered and patents granted (latest available year)

5. Use of Trademarks in Developing CountriesEvidence from innovation surveys in Latin America Colombia (2003-2004) Brazil (2001-2003) Use of appropriability mechansms by firms undertaking innovation activities Use of appropriability mechanisms by firms succeeding in commercializing / using at least one innovation during the relevant period Source: López and Orlicki, 2007, based on data from DANE-DNP-COLCIENCIAS (2005) Source: López and Orlicki, 2007 based on data from IBGE (2005)

6. Trademarks as innovation indicators: particularly relevant in developing countries? Trademarks and firm performance: To what extent does trademark activity correlate with indicators of firm performance in a developing country context? Trademarks and Trade: what is the relation between TMs and trade? To what extent do trade flows correspond to flows in trademark registrations? Does this vary across sectors? What is the situation for developing countries? Can easier access to TM registration abroad facilitate export market entry? (Baroncelli, Fink and Javorcik, 2003) Trademarks and catching up economies: Do catching-up economies experience an increase in resident trademark applications prior to an increase in resident patent applications (e.g. China in Centi and Rubio, 2005)? Possible Research Areas on TMs in Developing Countries

7. Trademarks and global value chains: Manufacturers in some sectors in developing countries participate in global value chains but are often not in a position to place their own trademark on their products. Could the rise of trademarks in such sectors be an indicator of greater local value added? Trademarks and FDI: what is the possible impact of stronger trademark protection (and enforcement?) on FDI in developing countries? Possible Research Areas on TMs in Developing Countries

8. WIPO Trademark Statistics • Information available on: Classified by: Office Country of Origin of the Applicant Office and Class (Nice Classification) Resident, Non-Resident and Madrid System Applications Patent Applications and Grants PCT System Trademark Applications, Registered Trademarks, Trademarks in Force* Utility models Designs Plant varieties Microorganisms Data from: National/Regional Trademark Offices Madrid System *Country information may be missing for a particular year if no communication from the national office was received