The European Union and United States

“The European Union and United States: Leading on Intellectual Property Globally” Stakeholder Day at the 9th Negotiating Round of the Transatlantic and Trade Investment Partnership Remarks Prepared for Delivery April 23, 2015

Good morning and thank you for having me here today. My name is Ashley Mergen, and I’m a Manager for International Intellectual Property at the U.S. Chamber of Commerce’s Global Intellectual Property Center.

Those of you in this room are likely very familiar with the U.S. Chamber of Commerce, which is the world's largest business organization representing the interests of more than 3 million businesses of all sizes, sectors, and regions.

The Chamber has also been a longstanding supporter of the Transatlantic Trade and Investment Partnership and has brought together a wide-cross cutting swath of industry through the Business Coalition in Transatlantic Trade.

From regulatory cooperation and procurement to the streamlining of the global supply chain, customs and trade facilitation- the business community and our subsequent consumers all have eyes on what is occurring this week at the Transatlantic Trade and Investment Partnership negotiations.

This is especially the case for the intellectual property-intensive business community which drives 60% of U.S. exports, according to the U.S. Department of Commerce. The IP community drives high-tech innovation. The IP community enriches our lives through the arts and literature. The IP community propels access to breakthrough treatments in healthcare.

And best of all, the IP community is not limited to one side of the Atlantic (or even to any side of the world, for that matter). Innovators are everywhere and IP empowers them – trade agreements like TTIP are essential to setting regional and global standards which further tap into and unleash innovation.

The importance of IP is well-documented through data on both sides of the pond. The same U.S. Department of Commerce study that I previously cited also found that IP- intensive industries account for 40 million American jobs and the European Patent Office and the Office for Harmonization in the Internal Market similarly found these same IP industries create 77 million jobs. These workers in turn generate $5 trillion U.S. GDP and 40% of the total economic activity throughout the EU.

The sheer mass of jobs, exports, and economic output spurred by IP industries underscores how critical it is to get the right kind of IP rights in trade agreements like TTIP.

The Chamber’s IP arm, the Global Intellectual Property Center (of which I am representing here today) also recently examined how IP infrastructures attract this kind of job creation and investment.

The third annual GIPC International IP Index, titled UP: Unlimited Potential, is the first cross-sectoral intellectual property study of its kind. It measured the IP environments of 30 economies and found direct and significant correlations between the strength of IP regimes and important socioeconomic indictors like foreign direct investment, job creation, and accessibility of technology.

The index surveyed 30 countries –representing 80% of global GDP and found that the United States and European Union member states consistently ranked at the top of nearly every indicator: patents, copyrights, trademarks, trade secrets, you name it— underscoring the common interest in protecting and promoting IP in TTIP.

Furthermore, in the GIPC Index, three European economies out-rank the United States in the enforcement of IP, highlighting the mutually beneficial need for the sharing of best- practices, greater collaboration, and dedicated resources in the enforcement space.

It is clear that our two economies have a strong shared interest in obtaining the highest of standards in intellectual property.

Broadly speaking- the TTIP, first and foremost, presents an opportunity to solidify areas for commitment and shared interest in IP. Secondly, it should provide a foundation for international cooperation on IP between the U.S. and EU. And finally, TTIP should identify and provide for substantive targeted commitments, such as in the area of trade secrets.

What is so fascinating about the TTIP is that it’s not about pure harmonization of our IP systems, but instead about cooperation on issues of common concern that as the High Level Working Group said: “would not only be relevant to bilateral commerce, but would also contribute to the progression strengthening of the multilateral system.”

The U.S. and EU are distinct leaders in IP policy. Standing together in lock-step on intellectual property rights—whether in the multilateral context or with other trading partners—is a necessary partnership in order to make the case to those who pride themselves on being net-importers of IP, and for those countries to truly realize the possibilities and benefits of that come along with being a net-exporter of IP.

The establishment of a robust IP framework with proper protection and enforcement mechanisms in TTIP will be crucial to ensuring that these job-creating, innovation-yeilding, and investment-laden IP-intensive companies in both the United States and Europe can continue to bring new products to market, in turn furthering economic growth and job creation.

The opportunity for the United States to collaborate with the European Union creates an unprecedented opportunity to enhance the level of global innovation.

With a Trade Promotion Authority bill now moving through the Congress, the U.S. commitment to advancing a strong trade policy is crystallizing. Europe should not miss the opportunity this represents. As the Trans-Pacific Partnership talks move toward a conclusion, the time to seize the momentum is now.

The Chamber looks forward to hearing how this week’s negotiations enable the United States and Europe to seize the opportunity to further innovation, promote growth, and stimulate economic competitiveness.