2014/15 Knowledge Sharing Program with Bangladesh

2014/15 Knowledge Sharing Program with Bangladesh: Policy Consultation on Bangladesh IP and GI Management System

MINISTRY OF STRATEGY AND FINANCE 2014/15 Knowledge Sharing Program with Bangladesh 2014/15 Knowledge Sharing Program with Bangladesh

Project Title Policy Consultation on Bangladesh IP and GI Management System

Prepared by Korea Institute of Intellectual Property (KIIP)

Supported by Ministry of Strategy and Finance (MOSF), Republic of Korea Korea Development Institute (KDI)

Prepared for The Government of the People’s Republic of Bangladesh

In Cooperation with Department of Patents, Designs and Trademarks (DPDT)

Program Directors Si Wook, Lee, Executive Director, Center for International Development (CID), KDI Hong Tack Chun, Dean of KDI School of Public Policy and Management, Former Executive Director, CID, KDI Choi, Changyong, Director, Division of Policy Consultation & Evaluation, CID, KDI

Program Officer Yerim Kim, Research Associate & Program Officer, Center for International Development (CID), KDI Yoohum Goh, Researcher, Korea Institute of Intellectual Property (KIIP)

Senior Advisor Dongman Ha, Professor, Chodang University

Project Manager In Huh, Legal Research Team, Head of Team, Korea Institute of Intellectual Property (KIIP)

Authors Chapter 1. Youngmo Kim, Researcher, Korea Institute of Intellectual Property (KIIP) Chapter 2. Sukyung Nam, Associate Research Fellow, Korea Institute of Intellectual Property (KIIP)

English Editor Seryon Lee, Professor, Chonbuk National University H. Samantha Kim, Lawyer

Government Publications Registration Number 11-1051000-000633-01 ISBN 978-89-8063-966-3 94320 ISBN 978-89-8063-827-7 (set) Copyright ⓒ 2015 by Ministry of Strategy and Finance, Republic of Korea Government Publications Registration Number 11-1051000-000633-01

2014/15 Knowledge Sharing Program with Bangladesh: Policy Consultation on Bangladesh IP and GI Management System

MINISTRY OF STRATEGY AND FINANCE Preface

The main purpose of the Knowledge Sharing Program (KSP) lies in contributing to the social and economic development of partner countries by sharing the experience of Korea. KSP was first introduced in 2004 by the Ministry of Strategy and Finance (MOSF) of Korea and is managed by the Korea Development Institute (KDI). For the last ten years, 46 countries from all around the globe have become KSP partner countries and 606 policy recommendations have been proposed as KSP consulting subjects.

The Knowledge Sharing Program (KSP) is the economic cooperation program through which Korea supports economic and social development of a partner nation and builds a foothold for an amicable economic cooperation by sharing experience and knowledge. Since its commencement in 2004 under the supervision of the Ministry of Strategy and Finance of Korea, KSP has been managed by Korea Development Institute, and consists of mutual policy advice, joint-consulting with international organizations, and modulization business of development experience. Especially as to policy advise, KSP aims to offer a customized policy consult which can contribute to the economic and social development of a partner nation, and performs about 720 studies over a total of 51 nations from 2004 to 2014.

Bangladesh KSP has been carried forward upon a request through the government embassy from the Bangladesh government for sharing Korean experience on the enhancement of capabilities of international intellectual property standard and the operation of geographical indication system. Thereafter Korean Institute of Intellectual Property (KIIP) chosen as an executing institute performed demand survey on policy consults, policy demand seminar, interim reports and training of policy working-level staff, policy conversation among executive professionals and a local final report.

First, KSP carried out a local demand survey and a policy demand seminar in Dacca, capital of Bangladesh in November 2011, and held an interim report on the joint study between Korean and Bangladesh in February 2015. KSP shared the progress of research with policy makers of Bangladesh throughout all project levels, gathered opinions on policy suggestions, discussed the final research outcomes of a policy consult with local professionals, and reflected opinions therefrom into a final report. The final draft was issued at a high-level policy conference and a final meeting held in April 2015. As the world economies entered into the era of intellectual property, intellectual property has been emerging as the source of national wealth and competitiveness. The regime of international intellectual property has been expandedly formed due to the opening of the world economies and the acceleration of competitiveness. Under this global trend, globalization and unification of intellectual property regime is an irreversible trend, and underdeveloped nations have no choice but to pay attention to prepare strategies to cope with changing international regime. Especially Korean is an exceptional example which has developed intellectual property system and policies by adopting international regime and adapting it into domestic environment. It will be said that Korea has an implication on Bangladesh which aims to achieve a sustainable economic growth along with globalization of intellectual property. It is expected that sharing Korea’s experience and knowledge through this Bangladesh KSP will builds a foothold for the improvement of Bangladesh’s intellectual property system in future.

Based on case studies of Korea’s successful intellectual property policies and system operation, this report aims to offer practical and customized policy advice to Bangladesh. Accordingly, researchers of both countries reviewed level of awareness of Bangladesh's intellectual property, legalization of related laws, and progress of national strategies, sought practical and feasible policy alternatives. However, in order to gain a driving force for policy suggestions of this report, above all active support by the Bangladesh government is needed.

With the publication of a final report ahead, we express our gratitude to Mr. Dong Man Ha, senior advisor and KIIP research staff who devoted themselves to this study in order to share their experience on the development of Korea’s intellectual property system, and DPDT and local specialists who sincerely participated throughout the study. We also express our gratitude to reviewers and executive advisors who gave valuable advices at both interim and final stage of the study, and to the staff of KDI International Development and Cooperation who are committed to KSP from planning to working-level support.

Deok-cheol Choi President Korea Institute of Intellectual Property Contents

2014/15 KSP with Bangladesh ...... 011 Executive Summary ...... 021

Chapter 1 Policy Consultancy for the Development of Intellectual Property in Bangladesh

Summary ...... 028 1. Introduction ...... 030 2. Intellectual Property Systems and Economic Development ...... 031 2.1. Overview ...... 031 2.2. Korea’s Experiences ...... 032 2.3. Case of Bangladesh ...... 035 3. IP Policy, Legal & Institutional Framework ...... 040 3.1. IP Policy & Strategy ...... 040 3.2. IP Laws ...... 046 3.3. IP Administration ...... 054 4. IP Awareness & Environment ...... 061 4.1. Current Status in Bangladesh ...... 061 4.2. Introduction of Utility Model ...... 062 4.3. Establishment of Regional Property Center ...... 069 4.4. Introduction of Compensation System for Employee’s Invention ...... 072 4.5. Reformation of Commission Fee ...... 073 References ...... 074

Chapter 2 Proposal on the Management of the Bangladesh GI System

Summary ...... 078 1. Introduction ...... 079 2. Current Situation and Problems of GI Registration System in Bangladesh ...... 080 2.1. Necessity of the GI Registration System ...... 080 2.2. Potential GIs in Bangladesh ...... 082 2.3. Bangladesh GI Registration System ...... 084 3. Korea’s Experiences with Management of the GI Registration Systems ...... 089 3.1. Implementation of the GI Registration Systems ...... 089 3.2. Promotion on the GI Registration Systems ...... 101 3.3. Cases of the Korea’s GIs ...... 104 4. Policy Proposals for the Bangladesh ...... 110 4.1. Improvement on Legal System ...... 110 4.2. Promotion on GI Registration System ...... 113 4.3. Establishment of Inspection System ...... 119 References ...... 121 Appendix ...... 123 Contents | List of Tables

Chapter 1

Sectoral GDP Portion and Growth Rate (Based on 2005~06) in 2013~14 ...... 036
Trend of IP Application and Registration (Five-Year Period) ...... 041
Patent Duration in Korea ...... 052
Number of Applications (Six -Year Period) ...... 056
Manpower at DPDT ...... 056
Number of Examiners, Application, Applications Processed and Duration ...... 059
Utility Model in Nations ...... 069
General of RIPC ...... 070

Chapter 2

Bangladesh Potential GIs ...... 082
GIs Registration Status until 2014 ...... 099
Contents of Support Program ...... 101
Examples of Support Program ...... 102
Contents of Consulting for GI and GI Collective Mark ...... 104
The Effects of the Registration of the GI Collective Mark of Sang-Ju Gotgam ...... 106
The Result of Analysis on Perceptual Differences on GI among Consumer, Producers, and Government Employees ...... 116 Contents | List of Figures

Chapter 1

[Figure 1-1] Number of Patent Applications and Registrations in Korea ...... 033 [Figure 1-2] Royalties from Foreign Nations ...... 034 [Figure 1-3] Korean GDP ...... 034 [Figure 1-4] GDP Growth Rate since 2004 ...... 035 [Figure 1-5] GDP per Capita Growth Rate since 2004 ...... 036 [Figure 1-6] High-tech Exports of Bangladesh ...... 037 [Figure 1-7] Average Annual GDP Growth Rates of Comparators ...... 038 [Figure 1-8] Number of Trademark Applications in Bangladesh ...... 040 [Figure 1-9] Number of Patent Applications by Residents and Non-residents in Bangladesh ...... 041 [Figure 1-10] Patent Applications at the 10 Offices in 2013 ...... 044 [Figure 1-11] Budget ...... 058 [Figure 1-12] Patent and Utility Model Applications of Korean Firms ...... 065 [Figure 1-13] Utility Model Application in the World ...... 066 [Figure 1-14] Patent Applications for Offices of Selected Low-and Middle-Income Countries, 2013 ...... 066 [Figure 1-15] Utility Model Applications for Offices of Selected Low-and Middle-Income Countries, 2013 ...... 068 [Figure 1-16] Increase in Employment and Sales ...... 071 [Figure 1-17] Design and Trademark Application per Region ...... 072

Chapter 2

[Figure 2-1] GI Registration Procedure ...... 085 [Figure 2-2] Double Registration Framework ...... 089 [Figure 2-3] Double Registration Procedure ...... 090 [Figure 2-4] Quality Control Council ...... 092 [Figure 2-5] Schematic Diagram of GI Registration Procedure under the AMPQCA ...... 093 [Figure 2-6] Structure of NAQS ...... 095 [Figure 2-7] Schematic Diagram of the GI Registration Procedure under the TMA ...... 097 [Figure 2-8] Development Sales of 52 Registered Corporation ...... 100 [Figure 2-9] Trend of GI Registration from 2007 to 2014 ...... 100 [Figure 2-10] Cooperation System for Local IP ...... 102 Contents | List of Figures

[Figure 2-11] Korea Geographical Indications Logo ...... 103 [Figure 2-12] Sang-Ju Persimmon Brand of ASGI ...... 106 [Figure 2-13] Quality Management Structure of ASGI ...... 107 [Figure 2-14] Missions of the An-dong Po Association Inc...... 110 [Figure 2-15] Consultation with Government Entities ...... 113 [Figure 2-16] Example of Korea’s GI Logo: Sang Ju Gotgam ...... 117 [Figure 2-17] Examples of GI Logos ...... 118 2014/15 KSP with Bangladesh

Yoohum Goh (Program Officer, Korea Institute of Intellectual Property) Namkyung Kim (Researcher, Korea Institute of Intellectual Property)

1. Outline

Bangladesh is, as of 2013, World’s 8th largest consumption market with a total 154 million population, but still considered a least-developed country (LDC) whose economic volume is 1,300 billion dollar and GDP per capita records 840 dollar. However, Bangladesh has recently maintained a steady economic growth getting out of a long period of economic stagnation since its independence. Despite international

Bangladesh’s GDP Growth Rate since 2004 (Unit: %) 6.8 6.8 6.71 6.63 6.6 6.6 6.43 6.4 6.32 6.4 6.27 6.19 6.2 6.2 6.07 6.01 6.0 5.96 6.0

5.8 5.74 5.8

5.6 5.6 2004 2006 2008 2010 2012 2014

2014/15 KSP with Bangladesh • 011 economic recession caused by global financial crisis of 2008 and Europe’s fiscal crisis of 2010, the country has especially achieved more than approximately 6% of economic growth.

Meanwhile, one of the main reasons Bangladesh is still considered LDC despite the steady economic growth is an excessive population growth. But recent stabilization of such an excessive population growth has been playing as a positive factor in economic growth, which contributes to Bangladesh’s running about 5% growth trend in GDP per capita. In sum, it is estimated that this stabilization of the population growth rate, along with Bangladesh’s abundant workforce, will become a key engine for economic growth.

Bangladesh’s GDP per Capita since 2004 (Unit: USD) 650 650 625.34 597.02 600 600 568.73

550 539.1 550 513.77 500 490.91 500 467.06 450 443.67 450 421.12 402.8 400 384.61 400

350 350 2004 2006 2008 2010 2012 2014

In relation with this, as of 2013, the primary industry such as fishery and agriculture accounts for approximately 19% of Bangladesh’s GDP while the secondary industry including manufacture and construction for about 32%. The tertiary industry including education, finance and health accounts for 49% of the country’s GDP. This breakdown of economic sectors of Bangladesh indicates that the country has been actively making efforts to develop manufacturing and service industry emerging from an agriculture industry-centered underdeveloped country.

012 • 2014/15 Knowledge Sharing Program with Bangladesh 2013 GDP Breakdown of Bangladesh Industries

Industry Classification Weight Growth Rate Agroforestry 14.3% 1.2% Primary Fishery 4.4% 5.5% Industry Sub-Total 18.7% - Mining and Quarrying 1.3% 11.1% Manufacturing 19.5% 9.3% Secondary Electricity·Gas·Water 1.7% 8.6% Industry Construction 9.4% 8.1% Sub-Total 31.9% - Wholesale and Retail 14.1% 4.7% Hotel · Foods and Beverage 0.8% 7.6% Transportation · Storage · Telecommunication 10.8% 6.7% Financial Brokerage 2.2% 9.0%

Tertiary Real Estate · Rent etc. 6.7% 4.1% Industry Public and Defense 2.9% 5.1% Education 2.9% 9.7% Public Health and Welfare 2.5% 7.5% Community Service 6.5% 4.9% Sub-Total 49.4% -

Following 2012, the Knowledge Sharing Program (hereinafter referred to KSP) for Bangladesh which started from the request by the Bangladesh government to the Korean government has been actively continuing in accordance to a project goal. The 2012 KSP worked on the two agendas (1) Improvement of Bangladesh’s established airport and development of a new airport and (2) enforcement of capacity of the Bangladesh’s Treasury Department in foreign debt management. Practical and effective policy advice on each agenda was offered to the Bangladesh government.

In 2014, KSP expanded the scope of the 2012 policy advice, and focused on the intellectual property sector such as patent and trademarks, a core resource for improvement through creative economy. The Bangladesh Department of Patents, Designs & Trademarks (hereinafter referred to DPDT) submitted demand survey forms in January, 2014, and through the following process of narrowing down themes and topics, final topics are selected in September, 2014.

2014/15 KSP with Bangladesh • 013 1. Pre-Demand Survey

□ Acceptance of Demand Survey ○ In January 2014, the DPDT, through Korea Invention Promotion Association, Korea’s government-sponsored intellectual property institution, asked the Korean government to accept KSP Demand Survey Request, and the Ministry of Strategy and Finance(hereinafter referred to MOSF) received it through the Korean Intellectual Property Office(KIPO) ○ In April 2014, the DPDT partially revised the research theme of 2014 KSP, and submitted Demand Request, and the receipt by the MOSF through KIPO

Acceptance □ Contents of Demand Survey of Demand ○ Policy advice topics DPDT finally requested through the demand survey Survey above are as follows Suggesting Agency Suggested Topics DPDT ① Training Programme on Hague, Madrid, PCT (Deparment of Industry) DPDT ② Running the administration of GI goods (Deparment of Industry) DPDT ③ Training Programme on UPOV convention (Deparment of Industry) DPDT ④ Training Programme on establishing CMOs* (Deparment of Industry) * Collective Rights Management Organizations

2. Basic Data Collection and Review of Demand Survey

□ Results of the 1st Demand Survey ○ As a result of the review of demand survey, topics for policy consult were designed as a project of three consecutive years, and are as followings Year Requested Topics for Policy Advice Year 1 ① Training Programme on Hague, Madrid, PCT (2014) ② Running the administration of GI goods Year 2 ③ Training Programme on UPOV convention Review of Year 3 ④ Training Programme on establishing CMOs* Demand ○ Accordingly, this research team collected basic data and made a study Survey plan, focusing on Year 1 topics

□ The 2nd review of Demand Survey ○ The bounds of the policy consult topics requested by DPDT were too comprehensive and lacking of a specific goal. More clear and detailed research topics should be confirmed. ○ Especially as to international application of intellectual properties, WIPO has already began to run a training program for underdeveloped nations. Therefore it was decided that KSP creates its own outcomes.

014 • 2014/15 Knowledge Sharing Program with Bangladesh □ Environmental Condition of Bangladesh’s Intellectual Properties ○ Bangladesh is a least developed country, highly dependant on agriculture and industry. It has a poor record in application and registration of patent, trademarks and design, domestic and international. People’s awareness of intellectual properties is very low, the number of public Research of officials in charge of intellectual properties is only 100, and other related Basic Data infrastructure is insufficient.

□ Condition of Bangladesh’s GIs System ○ Bangladesh recently legislated act on GIs, but GIs goods registered with the authority have not yet existed.

3. Selection of Suggested Topics of Our Own Team □ Materialization of Research Topics ○ In September 2014, this research team, based on the review of basic data, limited research topics to definite and effective ones so as to realize KSP’s distinct features, and set a clear research goal. ○ In case of the topic as to training on international application system of intellectual properties - Considering : that currently Bangladesh has little demand for application and registration to use international application system of intellectual properties : WIPO runs many programs and seminars to educate and train international application system of intellectual properties - it is decided that the study should be performed focusing on policy measures to promote Bangladesh’s international application ○ In case of ‘the management of GIs goods’ Selection of - Considering Suggested Topics : that Bangladesh recently legislated act on GIs, but the act has not been properly implemented - that Bangladesh does not have GIs goods locally registered since the infrastructure related to GIs is very insufficient - It is advised that the study should focus on preparation of policy measures in terms of infrastructure to improve Bangladesh’s GI system

□ Revision of Topics Requested for Policy Advice Through the process of materialization of research topies above, the research team revised topics requested for policy advice to Bangladesh into followings Topics Suggested by the Research Team ① Study of measures to utilize international application of intellectual properties (Patent, Trademarks, Design) ② Study of measure to improve GIs system of Bangladesh

□ Understanding of Additional Demand of a Partner Nation Understanding ○ October 2014, this research team emailed the topics chosen by itself to of Additional Bangladesh’s Office of Patent, Design and Trademarks and asked opinion Demand ○ The Office decided that is would confer on detailed study contents when the team visits

2014/15 KSP with Bangladesh • 015 Final Selection of Study Topics

Suggesting Agency Detailed Study Topics

① Policy Consultancy for the Development of Intellectual Property The Office of Patent, in Bangladesh Design and Trademarks • The Present Situation of the Bangladesh IP System (Industry Department) • Korean Experience on the IP System

The Office of Patent, ② Proposal on the management of the Bangladesh GI System Design and Trademarks • The Present Situation of the Bangladesh GI Registration System (Industry Department) • Korean Experiences on the GI Registration System

When research topics were determined, Mr. Dongman Ha, former commissioner of KIPO who had a long career and abundant international experience, was chosen as chief advisor, and Mr. In Huh, head of Legal Research Team, Korea Institute of Intellectual Property (KIIP), as the chief researcher in charge. Consultation topics and researchers are as followings.

Role Name Position Chief Advisor Dongman Ha Former Commissioner, KIPO Chief Project Manager In Huh Head of Legal Research Team, KIIP Managerial Project Officer Yoohum Goh Researcher, KIIP

Chapter 1: Author Youngmo Kim Researcher, KIIP Policy Consultancy for Hongjoon Ha Senior Research Fellow, KIIP the Development of Intellectual Property Researcher Byeongho Moon Senior Researcher, KIIP in Bangladesh Heonhee Lee Associate Research Fellow, KIIP

Chapter 2: Author Sukyung Nam Associate Research Fellow, KIIP Proposal on the Namkyung Kim Researcher, KIIP Management of the Researcher Bangladesh GI System Siyeol Kim Associate Research Fellow, KIIP

2. High-level Demand Survey and Pilot Study

After forming a research team, three researchers led by Huh In, a general PM with the Korea Institute of Intellectual Property (KIIP) visited Bangladesh from Nov. 16, 2014 through Nov. 21, 2014 to collect policy-related materials and investigate the current conditions facing the country. During their stay, they visited DPDT and Dhaka University to conduct a survey on demand and actual conditions there. They planned to visit Dhaka from November 2 to 6, but due to the strikes, known as Hartarls,

016 • 2014/15 Knowledge Sharing Program with Bangladesh delayed the visiting schedule to November 16 to 21.

First of all, the 1st and 2nd rounds of surveys on demand among high-ranking policymakers were conducted for two days (Nov. 17-18). As a result, the researchers found that Bangladesh had been pushing to establish modern intellectual property laws and regulations that conform to international standards and also working actively to join WIPO treaties, while also having a keen interest in Korea’s patent management system as well as the roles and capabilities of organizations related to the Korean Intellectual Property Office (KIPO). From a legal perspective, a research designed to rework Bangladesh’s IP environment is urgently needed, so the Korean research team sought to obtain consent with respect to the appropriateness of detailed tasks in the KSP. Also, Bangladesh expressed hope to the Korean research team that Korea’s assistance projects in the area of intellectual property will continue so that the expected benefits of the KSP will be fully realized.

After the survey, the research team entered into an agreement with DPDT to cooperate on various activities. The head of DPDT affirmed that he/she would provide whatever support necessary for the advancement of the KSP down the line, including basic materials and information sharing, to ensure effective implementation of the project. And the KIIP promised that it would actively reflect the opinions of Bangladesh’s high-ranking policymakers to produce successful outcomes and that it would continue to make best efforts to enhance cooperation between the two institutions.

In addition, the two sides teamed up with local experts, including Obaidur Rahman, the head of Trademark Examination Policy Division at DPDT, Towhidul Islam, a professor of law at Dhaka University, and Manzur Ahmed, an advisor to the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), and concluded a TOR to clearly define the qualifications and responsibilities of local experts and to effectively seek mutual cooperation in research.

Meanwhile, the research team visited Dhaka University and met with the president Arefin Siddique and the assistant director-general. They introduced the research team to their country’s history and policies related to technological development. They expressed their hope that the KSP being pushed by KIIP will achieve desired outcomes and thereby contribute to their country’s economic development. To that end, they said they will provide all the basic materials and information needed by the research team. The two sides also held a joint seminar with the Department of Law at Dhaka University in which an explanation was provided of Korea’s status of geographical indication protection and the current status facing Bangladesh.

2014/15 KSP with Bangladesh • 017 3. Interim Reporting and Policy Practitioners' Workshop

We invited a total of seven people, including three from DPDT led by director Dabirul Islam and three local professionals, to Korea from Jan. 25, 2015 through Jan. 30, 2015 and held the KSP interim briefing session and the working-level employee training session.

During their stay here, the group of visitors went to the Korea Institute of Patent Information, the National Institute of Biological Resources, Deltatech Korea, the Korea Advanced Nano Fab Center, the Korea Invention Promotion Association, Korea Intellectual Property Office, ETRI, and KOTRA to undergo training on the duties of each institution and Korea’s general patent-related policies, etc,. In addition, KIIP gave a lecture on international trends regarding intellectual property rights related to research tasks, the IP framework, tables, and geographical indication systems, which served as an opportunity to discuss the background of Korea’s joining the international framework on intellectual property rights and its impacts, clarification of the concepts of trademarks and geographical indication system, differences between them, and the scope of protection, etc,.

At the interim briefing session, participants gave presentations on each research subject and subsequently held discussions. They agreed with the view that while Bangladesh’s becoming a member of the PCT is not yet finalized with pending approval of the Ministry of Foreign Affairs, the country still needs to learn a lot about the treaty and therefore needs an organization or a department designated as the one that can lead the way on education. They also saw eye to eye on the opinions that the country should seek to stabilize the domestic patent market through improvement of legal systems and adoption of utility model systems while, at the same time, launching a nationwide public relations campaign to increase awareness about the importance of patents. Also, Bangladesh’s geographical indication has problems with real-life applications due to a lack of subordinate regulations, and the country’s lack of experience in operating such systems, combined with its inability to resolve disputes with India, could lead to conflicts of interests with other statutes such as trademark Act, which necessitates a swift enactment of relevant subordinate statutes. Also needed is an improved geographical indication.

4. High-level Policy Dialogue and Final Reporting in Bangladesh

A high-level policy dialogue and the final reporting workshop were held in Bangladesh from 6 to 10 April 2015 to offer researchers’ policy recommendations for each topic to senior policy makers and policy practitioners in Bangladesh and to share research outcomes with officials at the relevant government agencies and experts based on the research findings with regard to the two research topics of the

018 • 2014/15 Knowledge Sharing Program with Bangladesh 2014 Knowledge Sharing Program (KSP) Bangladesh project. Korean participants were a total of seven persons, including Chief Adviser Dongman Ha, Chief Project Manager In Huh, five other researchers, and Yerim Kim, a research associate at the Korea Development Institute (KDI).

Before the final reporting, a preparatory meeting with local experts took place to discuss the details of the research. At the meeting they expressed great satisfaction about the study for covering all intellectual property of Bangladesh, with the remarks that the study’s focus on the creation of intellectual property was particularly desirable and sharing Korea’s experiences for creating intellectual property served the purpose of this report. Especially, they highly regarded additional suggestions with an example of business operators using geographical indication. In general, the final report of the KSP Bangladesh project was deemed to make a great contribution to the development of the Department of Patents, Designs and Trademarks (DPDT) of Bangladesh.

There was also a seminar where about 20 local experts were invited, including faculty staff of the University of Dhaka and its law school students and other related persons, to discuss the differences between Korea and Bangladesh concerning the meaning of the word “invention” and to seek ideas to bridge such differences. Some Bangladesh participants stressed the necessity to open a class regarding intellectual property at higher educational institutions, such as universities and colleges, as a means to promote intellectual property, and the Institute proposed that an internship program in relation to intellectual property should be introduced to facilitate the development of an intellectual property system.

The final reporting workshop was held at the Pan Pacific Sonargaon hotel in Bangladesh on April 8 to publish and share the research outcomes, and in total, 34 persons attended, including seven Korean researchers, Hyeonju Kim, Counsellor of the Korean embassy in Bangladesh, the director general of the Ministry of Industries, DPDT officials, professors and students of the University of Dhaka, and staff of pharmaceutical companies in Bangladesh. Dong-man Ha, Chief Adviser of the Korean research team, gave opening remarks, followed by welcoming speeches by the director general of the Ministry of Industries and Counsellor Hyeonju Kim. Then presentations for each topic were provided with lively questions and discussion sessions followed. The event was a great success as reported by seven major local news outlets, including Bangla News 24, the News Today and the Bangladesh Today.

Apart from the workshop, a senior policy dialogue was held to report research findings to high-ranking policy makers in Bangladesh, where researchers shared the developments and outcomes of the 2014 KSP Bangladesh project and reported on the final results of the research to senior officials at the country’s relevant agencies,

2014/15 KSP with Bangladesh • 019 including the director general of the Ministry of Industries and the director of the DPDT.

020 • 2014/15 Knowledge Sharing Program with Bangladesh Executive Summary

In Huh (Korea Institute of Intellectual Property)

The Fair Trade Commission carried out the Knowledge Sharing Program (KSP) with Bangladesh in 2014, covering two subjects: “Establishing Foundation for the Intellectual Property in Bangladesh” and “Operation of the Geographical Indication System of Bangladesh.” This report presents policies for each subject, based on the experience of Korea, and the main issues are as follows:

1. Current State of Intellectual Property System in Bangladesh and Scope of Research

Bangladesh fundamentally inherited the intellectual property (IP) system of the United Kingdom. The Patents, Designs and Trademarks Act of 1883 is the first legislation enacted to protect IP. Subsequently, the Patents and Designs Act and the Trademarks Act were enacted in 1911 and 1940, respectively, both of which were amended several times. In 2008, the Trademarks Ordinance was promulgated, while the Trademarks Act was enacted in 2009.

In legal system to protect intellectual property rights (IPR), the fundamental rights are guaranteed by the Constitution of Bangladesh 2004. The framework acts for IPR enacted by the legislative branch include the Trademarks Act 2009, the Patents and Designs Act 1911, and the Copyright Act 2000. Among the IPR-related acts, also legislated by the same branch, are the Right to Information Ordinance 2008, the Penal Code 1860, the Civil Procedure Act 1908, and the Custom Act 1969. In addition, the IPR-related statutes introduced by the executive branch include the SRO No. 312-

Executive Summary • 021 Law/2000 and the National Curriculum and Text-Book Board Ordinance 1983. In order to specifically apply these acts, rules and regulations were formulated, including the Copyright Rules 2006 and the Patents and Designs Rules 1933.

Based on these legal system, the IPR system in Bangladesh presents a variety of challenges, among which two main issues require prompt attention for the development of the system. Firstly, the current state of application for IPR in Bangladesh seems to be undesirable. The number of application for patent and trademark is extremely small, except in the field of design. In particular, the number of domestic application is much smaller than that of foreign application. The Department of Patents, Designs and Trade Marks (DPDT) of Bangladesh, in charge of the IPR-related affairs, has problems associated with human resources and finance. Bangladeshis do not have much knowledge of IP. These circumstances pose implications for the current state of IP in the country. Secondly, Bangladesh adopts the geographical indication (GI) system recently. While a variety of local specialities in the nation can be registered as products with GI, the movement for the legal protection of these products started quite recently. In 2014, the GI Act was enacted and GI-related Rules are still being prepared. In the meantime, the dispute over with India prompts the establishment of the GI system of Bangladesh.

Against this backdrop, priorities should be placed on establishing foundation for IP in Bangladesh and strengthening the GI system. The following Chapters deal with these two subjects and provide implications, based on the experience of Korea. Firstly, an analysis is carried out on the current state of IP in Bangladesh. Following this analysis, several problems are found. After studying the similarities between Korea and Bangladesh, suggestions are offered for establishing secure foundation for IP in Bangladesh. Secondly, an overview is presented on the current GI system of Bangladesh, and the development of GI system of Korea is demonstrated. On the basis of the achievement of Korea, a roadmap is provided for the operation of the GI system of Bangladesh.

2. Study on Consolidation of Foundation for Intellectual Property in Bangladesh

In the first chapter, we suggested a policy proposal for the development of intellectual property system in Bangladesh. For Bangladesh preparing to leap forward, the development of intellectual property, above all, will serve as the foundation for the economic development. We have already witnessed in the course of economic development in Korea that protection and encouragement of creation of intellectual property rights constitute an important axis for the economic development.

022 • 2014/15 Knowledge Sharing Program with Bangladesh First, if we look at our country’s experience, the development process of intellectual property system and policies in Korea can be characterized by three phases (periods): Introductory Stage (1900-1970’s), in which the intellectual property system was modernized to settle into Korea; Settlement Phase (the late 80s and 90s), in which the intellectual property system was repaired and its infrastructure was reinforced for the incorporation into the international system; And Development Stage (late 90s-present), in which the intellectual property system and policies were actively operated as a tool for the industrial and technological development. Korea’s competence in intellectual property is evaluated to have reached the international level through such a dynamic development process, i.e. Introductory Stage → Settlement Phase → Development Stage. In particular, the Settlement Phase was the time when we consolidated our domestic intellectual property infrastructure and repaired the intellectual property system to bring it to the international level, so that the intellectual property system of Korea can be incorporated to the international system.

When we review the current status of Bangladesh in light of our country’s experience, it can be judged that the Bangladesh intellectual property system is now in the introductory stage. In such an introductory stage, what is important for the intellectual property system to take a root is Creation. In this regard, however, Bangladesh Intellectual Property does not seem to be in good conditions. As mentioned above, the insufficient number of application cases for patent and trademarks other than design, and the much lower number of applications filed by nationals than by foreigners are the parts requiring improvement. That Bangladesh DPDT in charge of the said works are lack of human resources and have financial problems, and that the Bangladesh people have poor awareness of the intellectual property, are the challenges to be resolved in advance for the creation of intellectual property in Bangladesh.

We have proposed Korea’s experience as a solution to these challenges. We tried to introduce Korea’s experience by dividing the challenges largely as intellectual property policy, legal system, organization, and raising the Bangladesh people’s awareness. First, with regard to the intellectual property policy, we emphasized the importance of policy-making at the national level for the development of intellectual property. Under the relevant keynote, the development of Intellectual Property would be much empowered to lay the foundation for the goals that Bangladesh seeks to achieve. In case of Korea, we could build a foundation for the knowledge property in the current development status we have attained now by establishing the national policies on the intellectual property. Second, the law needs to be internationalized. In the case of Bangladesh, the concept of invention, the patent term, etc. are the segments that require internationalization. Of course, there are some aspects that want to maintain the status quo for the purpose of

Executive Summary • 023 protecting the domestic intellectual property. On these circumstances, we put an emphasis on the importance of the internationalization of law, and described our country’s internationalization process, to present a blueprint for development of the law in Bangladesh. Third, we examined the government’s administrative system that oversees the intellectual property as a whole in Bangladesh. DPDT is an agency in charge of the intellectual property sector along with the Copyright Office in Bangladesh, and while the Copyright Office is responsible for copyright, DPDT is responsible for the other segments. However, the current situation is that DPDT has financial and personnel problems. With respect to these challenges, we showed in this chapter that how the Korean Intellectual Property Office has evolved, and what kinds of system or methods it used to solve the problems that are similar to those suffered by DPDT now. Fourth, in order to raise the Bangladesh people’s awareness of intellectual property, we suggested the utility model system, regional intellectual property center, and rewards system for employee’s invention, thereby laying the foundation for the economic development through raising the public awareness.

3. Proposals for the Operation of the Geographical Indication System in Bangladesh

The Chapter 2 presented policy proposals with the theme of “proposals for the operation of the geographical indication system in Bangladesh.” Geographical Indications (GIs) are intellectual property rights that developing countries, the total amount of capital of which is limited, can strategically use, in terms of diversifying the structure of economic development, reinvigorating local economies, and contributing to the conservation of cultural heritages in the region. As a member country of WTO, Bangladesh takes on an obligation of implementing the geographical indication system under TRIPs Agreement (Agreement on Trade-Related Aspects of Intellectual Property Rights). In an effort to implement its obligation, Bangladesh enacted the relevant Act in 2013, but the ‘system’ itself has not been implemented due to the absence of sub-regulations. Furthermore, the relevant procedures of the geographical indication system, from application for registration to follow-up management, are quite complicated, and the evaluation of geographical indications requires expertise, such as the decision on the quality, history, and legitimacy of relevant products. Therefore, the lack of expertise and relevant experience of DPDT, which is prescribed as the competent authority, is the task that Bangladesh should overcome from now on.

As Korea currently has dual protection systems—“geographical indication system” under the Agricultural and Marine Products Quality Control Act and “geographical collective mark” under the Trademark Act, it is coming under criticism that such dual systems would lead to the chaos of applicants and waste of administrative powers. Therefore, this study firstly proposed that the affairs of evaluation and

024 • 2014/15 Knowledge Sharing Program with Bangladesh management be entrusted to the DPDT of Bangladesh to unify protection systems. Especially taking consideration into the poor financial conditions of applicants and the loss from delay of registration, the procedures for application for geographical indications should be simplified, and documents to be submitted should be minimized. In addition, the procedures for inquiring opinions of relevant agencies shall be established at the stage of evaluation to improve expertise of evaluation. Secondly, in the proposals of “vitalization of systems,” it was proposed to carry out research for finding geographical indication products, implement various policies to support applicants, raise public awareness of the geographical indications system, and produce a unified logo. Lastly, the “follow-up quality system” for geographical indication products should be established by setting up an independent monitoring body and introducing an honorary observer system.

This study was conducted with a hope that the results from Korea’s experience will be important considerations in setting the Bangladesh government’s directions for intellectual property and the geographical indication systems. The Bangladesh government will understand that strong support and dedication of the Korean government had laid the great foundation for the development of intellectual property rights in Korea. Moreover, in that the success or failure of KSP depends on the active support and cooperation from partner countries, we hope that the Bangladesh government will consider these policy proposals and produce effective policies to ensure the continuous development of intellectual property rights.

Executive Summary • 025

2014/15 Knowledge Sharing Program with Bangladesh: Policy Consultation on Bangladesh IP and GI Management System Chapter 1

Policy Consultancy for the Development of Intellectual Property in Bangladesh

1. Introduction 2. Intellectual Property Systems and Economic Development 3. IP Policy, Legal & Institutional Framework 4. IP Awareness & Environment ■ Chapter 01

Policy Consultancy for the Development of Intellectual Property in Bangladesh

Youngmo Kim (Researcher, Korea Institute of Intellectual Property)* Hongjoon Ha (Senior Research Fellow, Korea Institute of Intellectual Property)** Byeongho Moon (Senior Researcher, Korea Institute of Intellectual Property)** Heonhee Lee (Associate Research Fellow, Korea Institute of Intellectual Property)**

Summary

In the first chapter, we suggested a policy proposal for the development of intellectual property system in Bangladesh. For Bangladesh preparing to leap forward, the development of intellectual property, above all, will serve as the foundation for the economic development. We have already witnessed in the course of economic development in Korea that protection and encouragement of creation of intellectual property rights constitute an important axis for the economic development.

First, if we look at our country’s experience, the development process of intellectual property system and policies in Korea can be characterized by three phases (periods): Introductory Stage (1900-1970’s), in which the intellectual property system was modernized to settle into Korea; Settlement Phase (the late 80s and 90s), in which the intellectual property system was repaired and its infrastructure was reinforced for the incorporation into the international system; And Development Stage (late 90s-present), in which the intellectual property system and policies were actively operated as a tool for the industrial and technological development. Korea’s competence in intellectual property is evaluated to have reached the international level through such a dynamic development process, i.e. Introductory Stage → Settlement Phase → Development Stage. In particular, the Settlement Phase was the time when we consolidated our domestic intellectual property infrastructure and

* Main Author ** Researcher

028 • 2014/15 Knowledge Sharing Program with Bangladesh repaired the intellectual property system to bring it to the international level, so that the intellectual property system of Korea can be incorporated to the international system.

When we review the current status of Bangladesh in light of our country’s experience, it can be judged that the Bangladesh intellectual property system is now in the introductory stage. In such an introductory stage, what is important for the intellectual property system to take a root is Creation. In this regard, however, Bangladesh Intellectual Property does not seem to be in good conditions. The insufficient number of application cases for patents and trademarks other than designs, and the much lower number of applications filed by nationals than by foreigners are the parts requiring improvement. That Bangladesh DPDT in charge of the said works are lack of human resources and have financial problems, and that the Bangladesh people have poor awareness of the intellectual property, are the challenges to be resolved in advance for the creation of intellectual property in Bangladesh.

We have proposed Korea’s experience as a solution to these challenges. We tried to introduce Korea’s experience by dividing the challenges largely as intellectual property policy, legal system, organization, and raising the Bangladesh people’s awareness. First, with regard to the intellectual property policy, we emphasized the importance of policy-making at the national level for the development of intellectual property. Under the relevant keynote, the development of Intellectual Property would be much empowered to lay the foundation for the goals that Bangladesh seeks to achieve. In case of Korea, we could build a foundation for the knowledge property in the current development status we have attained now by establishing the national policies on the intellectual property. Second, the law needs to be internationalized. In the case of Bangladesh, the concept of invention, the patent term, etc. are the segments that require internationalization. Of course, there are some aspects that want to maintain the status quo for the purpose of protecting the domestic intellectual property. On these circumstances, we put an emphasis on the importance of the internationalization of law, and described our country's internationalization process, to present a blueprint for development of the law in Bangladesh. Third, we examined the government’s administrative system that oversees the intellectual property as a whole in Bangladesh. DPDT is an agency in charge of the intellectual property sector along with the Copyright Office in Bangladesh, and while the Copyright Office is responsible for copyright, DPDT is responsible for the other segments. However, the current situation is that DPDT has financial and personnel problems. With respect to these challenges, we showed in this chapter that how the Korean Intellectual Property Office has evolved, and what kinds of system or methods it used to solve the problems that are similar to those suffered by DPDT now. Fourth, in order to raise the Bangladesh people’s awareness

Chapter 1 _ Policy Consultancy for the Development of Intellectual Property in Bangladesh • 029 of intellectual property, we suggested the utility model system, regional intellectual property center, and compensation system for employee’s invention, thereby laying the foundation for the economic development through raising the public awareness.

The utility model and regional intellectual property center are suggested to contribute to the creation and fostering of domestic technology bases and familiarizing the local industry with IPRs, to support policies intended to strengthen the position of small and medium-sized enterprises and to promote research in the form of simple. Under compensation system for employee’s invention, profits from an invention is reasonably distributed to employees who invented a process of a device through their efforts, as well as users who invested in and provided funds and facilities for the invention’s progression. Therefore, it is helpful to keep a balance to prevent an inventor from losing his will to invent.

1. Introduction

As the world economy has changed into an economy based on Intellectual Property (IP), intangible property has become one of the fundamental elements of a state economy. Between nations or global firms, competitions in the intellectual property field are becoming fiercer and more excessive. Moreover, IP competition issues are no longer matters only to developed countries but they have also emerged as an essential component of the national economy growth in developing countries. Particularly, the unification and globalization of IP have become an inevitable task to many nations in the world according to the international IP trends. Nonetheless, due to various reasons nationally and internationally, many developing countries are not ready to cope with the trends yet.

With lack of natural resources, Korea has focused on increasing its trade surplus through innovation in techniques. Particularly, there is common consciousness in Korea that industrial competitiveness is technical competitiveness; technical competitiveness is knowledge information competitiveness; and knowledge information competitiveness is human resources competitiveness. Under this consciousness, a great deal of national capacity has been put forth into the growth of intellectual property industry. Korean economic growth is a remarkable achievement in history, and Korea has various experiences in regards to the processes of its endeavors for the achievement. Intellectual property is considered the one crucial factor for Korea’s economic development.

In this KSP report, the Korean experiences are shared with and explained to Bangladesh. The purposes of this report are i) analyzing the current situations in Bangladesh, especially regarding its IP Policy, Legal & International Framework, and

030 • 2014/15 Knowledge Sharing Program with Bangladesh IP Awareness and Enforcement, and ii) making proper policy recommendations based on the analysis.

2. Intellectual Property Systems and Economic Development 2.1. Overview

Before we take up directly the main subject, the relationship between intellectual property systems and economic development should be addressed because this relationship has been wondered by many economists, scholars and relevant people for a long time and is still controversial among them. Why is it wondered and controversial? The answer is quite simple. It is because i) the definition of the relationship is not easy to be verified, and ii) for policy reflection, a government should figure out what kind of efficiency or utility the relationship bears. It should be explained as to whether or not intellectual property is a power tool for economic growth.

As everyone in this world knows, ‘innovation in techniques’ is a main source for economic development. Therefore, since the mid-twentieth century many nations have focused on how the innovation in techniques is achieved and what the most effective way is to reach the innovation. And for the innovation, there are many individual and combined ways to achieve it.

According to the TRIPS agreements, ‘the protection and enforcement of intellectual property rights should contribute to the promotion of technological innovation and to the transfer and dissemination of technology, to the mutual advantage of producers and users of technological knowledge and in a manner conducive to social and economic welfare, and to a balance of rights and obligations’.1) It means that the innovation can be achieved under intellectual property systems, and its producers and users can have an opportunity for various benefits and economic welfare that can be set up via the systems. Also, where an exclusive right on intellectual property is granted to a producer or an inventor of the intellectual property, under the right holder’s incentive, the property can be opened and accessed to by many people; the innovation can be motivated by the incentive; and finally economic growth can be increasing.2) It means that intellectual property motivates inventors and producers to innovate techniques for their own benefits, and at the same time endeavors, even though the endeavors are for their

1) Article 7 2) Posner, Richard A., Economic Analysis of Law (Boston, Brown and Company, 1977), p. 54.

Chapter 1 _ Policy Consultancy for the Development of Intellectual Property in Bangladesh • 031 own benefits to begin with, can lead and support their own nation’s economic development somehow as well.

Additionally, a WIPO report3) shows more specific causation between intellectual property systems and economic growth by stating that i) patent information facilitates technology transfer and investment; ii) patents encourage R&D at universities and research centers; iii) patents are catalysts of new technologies and businesses; and vi) businesses accumulate and use patents in licensing, joint ventures, and other revenue-generating transactions. It only discusses patents, but the same is true for designs and trademarks (also copyrights and so on). Despite the fact that many opposing ideas and opinions are offered against the positive ones, if you look around the world, you can easily assume that there is a link between intellectual property systems and economic growth even though you cannot define how they are exactly linked to each other. Intellectual property and economic development lead and support each other. There is no doubt that their relationship has become symbiotic. As mentioned above, intellectual property systems encourage innovations, promote investments in science and technology and allow technologies to benefit countries as a result. Thus, it is crucial to establish the foundation of intellectual property systems for a nation’s economic growth.

2.2. Korea’s Experiences

There is no doubt that Korea is one of the nations that have rapidly become developing countries from being one of the least developed countries. The remarkable result is attributing to various factors, such as the Korean government, public and private institutes, schools, companies and the Korean people.

According to one literature4), at initial stage, Korean inventor’s filings tended to for utility models. At the second stage, many inventors filed more regular patent applications. At this time, there were less corporate patents than individual patents, but later on the number of corporate patents surpassed that of individual patents. At the third stage, the proportion between domestic and foreign patents in Korea changed dynamically.

In the past, foreign applicants used to have no interest in patent registrations in Korea. As a result, there was no single patent application filed by foreign applicants. Thus, we saw the dominance of domestic patents during this. However, this biased view changed soon after. Foreign applicants started filing most of the patent

3) Idris, Kamil, Intellectual Property (a power tool for economic growth), WIPO, 2003. 4) Lee, K. and Kim, Y.K., IPR and Technological Catch-Up in Korea, intellectual property Rights, Development and Catch-up, edited by Odagiri, H., Goto, A. and Nelson, R., London: Oxford University Press

032 • 2014/15 Knowledge Sharing Program with Bangladesh application in Korea. Still, with the growth of capabilities of domestic inventors, the proportion of patent applications by domestic inventors (mostly corporations) increased and became more than the proportion of patent applications by foreign inventors. In brief, before the mid-1980s, Korea accumulated absorptive technological capacity while concentrating on utility models. And then, in the mid- 1980s, Korea began focusing on its in-house R&D with aggressive investments. It was great for establishment of indigenous R&D capabilities.

Since 1986, three important changes took place in Korea: i) In 1986, the substance patent system was introduced to Korea; ii) Korea joined TRIPS Agreement in 1994; and iii) Korea faced IMF financial crisis in 1997. In 1986, Korean Patent Act allowed inventions on chemical substances to be granted patents, and the number of patent applications increased largely. As Figure 1-1, the number of applications was 12,759 in 1986 and 17,062 in 1987. It was increased every year by 2,000~3,000. In 1994, Korea joined TRIPS Agreement. Since that time, the number of applications increased by 1996. IT and automobiles were the focus of the patents granted. From 1986 to 1996, this happy scenario did not seem to be ending. However, Korea fell into the IMF financial crisis. The tragedy resulted in a negative effect on R&D investments and a decrease in economic growth. And then, naturally the number of patent application decreased rapidly. But the pharmaceutical field survived the crisis. After the crisis, the Korean economy started growing again, and the growth had a positive influence on intellectual property. The number of applications increased again. Since 1998, inventions on biotechnology have been allowed to be granted patent.

[Figure 1-1] Number of Patent Applications and Registrations in Korea

180

160

140

120

100

80

60

40 Number (Unit: Item / Thousand)

20

0

1880 1882 1884 1886 1888 1890 1992 1994 1996 1998 2000 2002 2004 2006 Application Registration

Source: Han, Ji-Young and Jang, Kwang-Chul, Impact of the Intellectual Property System on Economic Growth, p. 1.

Chapter 1 _ Policy Consultancy for the Development of Intellectual Property in Bangladesh • 033 Through its technological expertise, Korea began to receive royalties from the U.S., China and some East Asian countries. In fact, from 1978 to 1996, Korea could not gain any economical benefit from any foreign nations, but it started changing in 1997. ‘Taking into consideration the relationship of GDP to domestic economy, GDP appears to be largely related to domestic economy, and so closely related to intellectual property protections.’5) Figure 1 and Figure 3 depict the relationship accurately.

[Figure 1-2] Royalties from Foreign Nations

1800 1600 1400 1200 1000 800 600 Unit: Millions $ 400 200 0

1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005

Source: Han, Ji-Young and Jang, Kwang-Chul, Impact of the Intellectual Property System on Economic Growth, p. 4.

[Figure 1-3] Korean GDP

800,000

700,000

600,000

500,000

400,000

300,000 Unit: Billion Won 200,000

100,000

0 1970 1975 1980 1985 1990 1995 2000 2005

Real GDP (AT 2000, Billion Won)

Source: Han, Ji-Young and Jang, Kwang-Chul, Impact of the Intellectual Property System on Economic Growth, p. 5.

5) Han, Ji-Young and Jang, Kwang-Chul, Impact of the Intellectual Property System on Economic Growth, p. 5.

034 • 2014/15 Knowledge Sharing Program with Bangladesh 2.3. Case of Bangladesh

2.3.1. Potential for Economic Development

Bangladesh is the eighth-most populous country (over 160 million people) and one of the most densely populated countries in the world. With the $175 billion economy and per capita income of $1,190 in 20146), Bangladesh is called one of the Next Eleven emerging economies in the world. As Figure 1-4 shows, its GDP growth rate has been over 5~6% since 2004.

[Figure 1-4] GDP Growth Rate since 2004 (Unit: %) 6.8 6.8 6.71 6.63 6.6 6.6

6.43 6.4 6.4 6.32 6.27 6.19 6.2 6.2 6.07 6.01 6.0 5.96 6.0

5.8 5.74 5.8

5.6 5.6 2004 2006 2008 2010 2012 2014

Source: http://ko.tradingeconomics.com/bangladesh/gdp-growth

Also, its GDP per capita growth rate has been increasing since 2004 as Figure 1-5. In 2014, it was 625.34 USD, an almost two-fold increase from the GDP per capita in 2004.

6) Bangladesh’s per capita income was $1,190, bdnews24.com. http://bdnews24.com/economy/2014/05/21/ bangladesh-s-per-capita-income-1190

Chapter 1 _ Policy Consultancy for the Development of Intellectual Property in Bangladesh • 035 [Figure 1-5] GDP per Capita Growth Rate since 2004 (Unit: USD) 650 650 625.34

597.02 600 600 568.73

550 539.1 550 513.77 500 490.91 500 467.06 450 443.67 450 421.12 402.8 400 384.61 400

350 350 2004 2006 2008 2010 2012 2014

Source: http://ko.tradingeconomics.com/bangladesh/gdp-growth.

Sectoral GDP Portion and Growth Rate (Based on 2005~06) in 2013~14

Selectoral Share Selectoral Growth Rate Industrial Origin Sector of GDP of GDP Agriculture and Forestry 14.3% 1.2% Fishing 4.4% 5.5% Mining and Quarrying 1.3% 11.1% Manufacturing 19.5% 9.3% Electricity, Gas and water Supply 1.7% 8.6% Construction 9.4% 8.1% Wholesale and Retail Trade 14.1% 4.7% Hotel and Restaurants 0.8% 7.6% Transport, Storage & Communication 10.8% 6.7% Financial Intermediations 2.2% 9.0% Real Estate, Renting and Business Activities 6.7% 4.1% Public Administration and Defense 2.9% 5.1% Education 2.9% 9.7% Health and social Works 2.5% 7.5% Community, Social and Personal Services 6.5% 4.9%

Source: Bangladesh Bureau of Statistics, http://bbs.gov.bd/WebTestApplication/userfiles/Image/GDP/GDP_2013-14. pdf.

036 • 2014/15 Knowledge Sharing Program with Bangladesh As Table 1-1 shows, the proportion of the primary industry (agriculture and forestry, and fishing) is almost 19%. The secondary industry (mining and quarrying to construction) is around 32%. The tertiary industry (wholesale and retail trades to community, social and personal services) is around 49%. And while the growth rate of the primary industry is 1.2% and 5.5%, growth of rate of secondary and tertiary industries are relatively higher. It shows that Bangladesh is trying to emerge from a primary industry nation. Then is it proper to call Bangladesh a labor-intensive industry nation? According to Figure 1-6, Bangladesh is also focusing on high technology industry. As it shows, the average value amounts for Bangladesh was 14.81 million U.S. dollars with a minimum of 0.27 million U.S. dollars in 1997 and a maximum of 133.7 million U.S. dollars in 2007. The Bangladesh industry and its industrial structures have been changing rapidly, and its massive population (over 160 million) helps its transition accelerate faster.

[Figure 1-6] High-tech Exports of Bangladesh (Unit: Million USD) 160 High-tech Exports

120

80

40

0 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007

Source: http://www.theglobaleconomy.com/Bangladesh/High_tech_exports/

Indeed, Bangladesh is an emerging economy that has been witnessing its economic expansion on many great levels. The underlying vision of the strategy is that Bangladesh can become the 30th largest economy of the world by the year 2030 by exploiting the fundamentals of the Vision 2021 announced by the present government. To reach this target, Bangladesh must accelerate its annual economic growth to 8% by 2017, sustain and increase the present level of remittance growth, and increase the investment-GDP ratio to 38% from the existing 25%.

Furthermore, over the past 40 years since its independence, Bangladesh has increased its real per capita income by more than 130 percent, cut the poverty rate by sixty percent, and is well set to achieve most of the millennium development goals. Bangladesh also is now much more capable of handling natural disasters with

Chapter 1 _ Policy Consultancy for the Development of Intellectual Property in Bangladesh • 037 a minimum loss of life. Indeed, Bangladesh achieved this remarkable progress in development despite numerous internal and external constraints.7)

However, despite the progress in economic growth, Bangladesh is lagging behind in some of its high-performing comparators. Figure 1-7 provides a comparison of annual average GDP growth rates among Bangladesh, China, India, and Vietnam during the 1990s and 2000s. Even though the Bangladesh’s growth path is rising, the average growth rate of Bangladesh during the 2000s was much lower than those of China, India and Vietnam.

[Figure 1-7] Average Annual GDP Growth Rates of Comparators

20

1990’s 10 2000’s Growth Rate

0 China India Bangladesh Vietnam

As explained above, Bangladesh does not appear to rely only on labor-intensive industries. But, there is a portion for the high-tech industry. Therefore, its own economic strategy is required to catch up with those of other developing nations. The relationship between the high-tech industry and the intellectual property system is intimate, and one has an effect on the other. Development in intellectual property seems to have a positive and decisive effect on economic growth. Specific details are explained in the later part of this paper.

2.3.2. Tools for Bangladesh Economy

What about Bangladesh? Is an intellectual property system also a power tool for Bangladeshi economy? Many scholars are insisting that there is no relationship between intellectual property systems and economic growth in developing countries. For the developing countries, while indigenous technological capability is a significant determinant to economic growth and poverty reduction, no exact relationship has been established between the intellectual property systems and economic growth.8)

7) Bangladesh: Poverty Reduction Strategy Paper, IMF Coungty Report No. 13/63(2013), p.1. 8) Hossain, Arif and Lasker, Shamima Parvin, Intellectual Property Rights and Developing Countries,

038 • 2014/15 Knowledge Sharing Program with Bangladesh Furthermore, the report states that ‘for example, without strong intellectual property protections as well as no protection for pharmaceutical products, South Korea achieved economic growth which led to their economic transformation from developing to developed country’.9) It is assumed the report infers that intellectual property protection is a good thing only for developed countries.

As stated in one report from World Bank10) that developed countries made an annual gain of 20 billion USD while developing countries had an annual loss of 7.5 billion USD on royalties and license fees, it can be internationally unfair. Also it can be nationally unfair. Posner states in “Intellectual Property: The Law and Economics Approach” that a balance between right holder’s gains and royalty a patentee should pay is not optimal anymore.11) Then are intellectual systems always bad for developing countries and patentees?

Intellectual property systems and protection are not always negative and cruel to developing countries. For example, the pharmaceutical industry in Bangladesh has one of the most developed technologies. Bangladesh is the only one of the 50 Least Developed Countries (LDCs) that has the capacity to produce quality medicines. Already now, Bangladesh fulfills 97% of its pharmaceutical requirements from its domestic productions. Bangladesh exports medicines to the global market, and its pharmaceutical companies are expanding their businesses with the goal to expand the export market.12) For the national economic growth, it is time to get ready to protect the Bangladesh medicines and agricultural chemicals under intellectual property systems. Significantly the knowledge based on intellectual property is not to be considered a distinct or self-contained domain any longer. It should be perceived as a crucial and efficient policy investment that is related to a wide range of social economic, technological and political concerns.

Bangladesh Journal of Bioethics 2010, 1(3), pp. 43-46, p. 43. 9) Ibid., p. 45. 10) World Bank 2002, Global Economic Prospects and the developing countries 2002. 11) Posner, Richard A., Intellectual Property: The Law and Economics Approach, Journal of Economic Perspectives Vol. 19, No. 2-Spring 2005, pp. 57-73, p. 57. 12) https://www.bharatbook.com/pharmaceuticals-market-research-reports-83885/bangladesh- pharmaceuticals-and-healthcare-report.html

Chapter 1 _ Policy Consultancy for the Development of Intellectual Property in Bangladesh • 039 3. IP Policy, Legal & Institutional Framework 3.1. IP Policy & Strategy

3.1.1. Bangladesh’s IP Policy & Strategy

As mentioned above, Bangladesh is ready to work its way out of the LDCs. Then, what about its current status with respect to intellectual property? The current situation is not catching up to its level of economic growth, unfortunately. According to Graph 3, the average numbers for Bangladesh during that period were 292.83 trademark applications with a minimum of 450 trademark applications in 1976 and a maximum of 8,632 trademark applications in 2011. The number of design applications was 992 in 2009.

According to Figure 1-8 and 1-9, while the total number of applications is slightly increasing each year as indicated, it is still just a small number, and the number of those by non-residents is relatively much higher than those by residents. This could mean that Bangladesh people are not familiar with intellectual property.

Additionally, enforcement of all IP laws in Bangladesh is related to the customs, police and judiciary of the country. National IP education in Bangladesh is not noticeable, with only a few public and private universities teaching IP with a limited number of IP related books and teaching materials.

[Figure 1-8] Number of Trademark Applications in Bangladesh

Trademark Applications 10,000

7,500

5,000

2,500

0

1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013

Source: http://www.theglobaleconomy.com/Bangladesh/Trademark_applications/

040 • 2014/15 Knowledge Sharing Program with Bangladesh [Figure 1-9] Number of Patent Applications by Residents and Non-residents in Bangladesh

Non-resident Resident 400

294 288 287 260 268 270 278 275 276 269

200

66 67 58 48 50 60 55 22 29 37 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: http://www.theglobaleconomy.com/Bangladesh/Patent_applications_by_nonresidents/

Trend of IP Application and Registration

Application (Amount) Registration (Amount) Year Patent Design Trademark Patent Design Trademark 2008 338 551 9,862 37 434 554 2009 278 992 9,306 78 394 1,079 2010 342 896 10,231 91 824 1,518 2011 306 1,297 11,645 86 646 1,409 2012 354 1,198 11,429 153 1,156 2,520 2013 302 1,232 11,581 157 984 3,021

Source: http://www.theglobaleconomy.com/Bangladesh/Patent_applications_by_residents/

Given this situation, improving the IP environment is considered a main goal under the National Strategy for Accelerated Poverty Reduction II (2009-11). In addition, Bangladesh policy agenda for strengthening Department of Patents, Designs and Trademarks (DPDT), the Copyright Office and the internal capacity is also recognized as a key factor to develop and modernize the national IP System. The policy concentrates on the importance of encouraging innovation in techniques and patenting of brand-new products. It is the National Industrial Policy of 2010 to recognize the importance of intellectual property rights (IPR) in industrial development and the establishment of technical capacity.13)

The intellectual property regime of the government of Bangladesh underscored the need of coherent IP policy & strategy in the country. The focus of the IPR regime

13) Saana Cunsulting, Factual overview on technical & financial cooperation for DCs related to TRIPs, 2013, p. 14.

Chapter 1 _ Policy Consultancy for the Development of Intellectual Property in Bangladesh • 041 is now on consolidation as well as promoting a fair balance among IP protections, public interests and strengthening intellectual property. By declaring the Decade 2013-2023 as the ‘Decade of Innovation’, Bangladesh constituted National & Sectoral Innovation Council to create Roadmap for 2023. The establishment of national systems for the creation and protection of intellectual property and compliance with the international standards of intellectual property are required.14) And, it is also necessary to prepare National IPR Strategy Implementation Roadmap. A document called ‘National IPR Strategy Implementation Roadmap’ is to be prepared on the basis of inputs provided by the members of the Sectoral Innovation Council. The objective of this exercise is to prepare a policy statement on the steps that the government needs to take to promote innovation and creation of IP and encourage its utilization.

3.1.2. Importance of National IP Strategy

The paradigm of the world economy has changed. Revenues in intellectual property licensing are significant and increasing. And, corporations are including intellectual property in their balance sheets as part of company assets. Economies advance based on intellectual property. Now intellectual property-based economies lead national wealth.

Korea has recognized the increasing importance of enhancing technological innovation, creative contents and industrial development through facilitation, creation, utilization and protection of intellectual property, and is making national efforts to further develop and foster IP industries as part of its new growth engine for the future.

However, there is an increase in patent lawsuits worldwide. Particularly, the battle between Samsung and Apple is famous. Intellectual property litigations are not just simple legal suits, but they are a matter of survival for companies and national interests.

What is behind those legal battles is that Samsung, Apple, Google and many IT companies are competing in growth industry fields, such as mobiles, mobile communications and computer programs. The main issue in these fields is patent. It means that patent is not only for protection of R&D and inventions, but one of the main business strategies as well. Furthermore, intellectual property policy is regarded as part of the national strategy for national development. Nowadays many developing nations tend to declare their own IP policies and strategies. For example, Tanzania is currently finalizing its IP policy while Nepal and Cambodia have initiated the process. In Cambodia, a significant step towards consolidating IPR policy-making,

14) Uddin, M.Kamal, A Project of World Intellectual Property Organization (WIPO), 2010. p. 13.

042 • 2014/15 Knowledge Sharing Program with Bangladesh enforcement, and technical assistance was taken through the establishment of the National Committee for Intellectual Property Management in 2008.

As mentioned a moment ago, Bangladesh started to establish the IP strategy at the national level, and the Bangladesh's endeavor seems to have a positive influence on its economic growth. Developing nations should focus on their own national policies of intellectual property for strengthening interagency cooperation, preparing and disseminating new laws and regulations, and acting as a clearinghouse for technical assistance to intellectual property. At the same time, an overall national IP strategy or a development plan complements the national IP policy.

3.1.3. Recommendations

3.1.3.1. Legislation for National IP Strategy

In 2011, the Korean government enacted ‘Framework Act on Intellectual Property’ in order to implement comprehensive policies on intellectual property. Prior to the Act, there has been limited coordination among different governmental agencies and local governments in implementing their intellectual property-related policies and regulations. Consequently, there were overlaps and inefficiencies in implementation of intellectual property policies.

Therefore, the Act declares that the government builds a national system for effectively creating, protecting, and utilizing intellectual property under common spirits and principles on intellectual property and sets up five-year plans on intellectual property policy.

There have been increasing needs for actively responding to the changes in the environment of technological innovation in the knowledge-based society and for proactively tackling the changes in the intellectual property strategies in neighboring developed countries. Particularly in Korea, establishments and implementations of the intellectually property policies were dispersed among numerous ministries and were being carried out separately. Therefore, it was necessary to promote solutions for user inconveniences, enhancements of domestic services, and increases in overseas applications and so forth for intellectual property by integrating and adjusting the intellectual property policy. With this background, this Act enacted in 2011 stipulates duties of the state for intellectual property policy directions and establishments, and standardizes and clarifies the terminologies pertaining to intellectual property. Also, it was allowed to function as a higher-level legal authority as the fundamental law in the intellectual property area, and set up a control tower for intellectual property strategies. Further, Presidential Council on Intellectual Property was also set up by this Act.

Chapter 1 _ Policy Consultancy for the Development of Intellectual Property in Bangladesh • 043 The cases where intellectual property policies are carried out by legislation such as this can be found in Japan and the United States aside from Korea. Japan enacted the Intellectual Property Basic Act in 2003, under which the Intellectual Property Strategy Headquarters was established with the Prime Minister as its chief, and is carrying out government-wide policies. Also, the United States enacted the Prioritizing Resources and Organization for Intellectual Property Act in 2008, and in accordance with the bill, it established the frameworks for intellectual property including setting up the Office of the U.S. Intellectual Property Enforcement Coordinator directly under the President and so forth. In light of the Korean experience such as this, the government of Bangladesh needs to establish a control tower for the intellectual property policy by an intellectual property basic act, and to consider courses for systemically carrying out its intellectual property policies.

3.1.3.2. Creation, Protection and Commercialization

We make three basic approaches in intellectual property policies – creation, protection and utilization. For creation, a government should put money (subsidies) in R&D, and the outcome of R&D should be protected under patent, copyright or trade secret. The most important thing is generating economic value from the creation. Now, the Korean government’s intellectual property policies focus on utilization and commercialization of intellectual property because these aspects increase the national values and capacity.

As a result of the government efforts, Korea Intellectual Property Office (KIPO) has become one of the Five IP Offices (IP5) in the world. Korea has ranked the 4th highest country in term of the number of patents the nation possesses.

[Figure 1-10] Patent Applications at the Top 10 Offices in 2013

Resident Non-resident 800,000

600,000

400,000

Applications 200,000

0

USA EPO India China Japan Korea Russia Brazil Canada Germany

Source: http://ipstats.wipo.int/ipstatv2/keysearch.htm?keyId=221

044 • 2014/15 Knowledge Sharing Program with Bangladesh Creation, protection and commercialization are fundamental and crucial notions for the development of intellectual property. According to the Korea’s National Strategy for Intellectual Property, ‘the purpose of this Act is to contribute to the economic, social and cultural development of the Republic of Korea and the improvement of people’s quality of life by formulating basic government policies and establishing the system for promotion thereof in order to facilitate creation, protection and utilization of intellectual property and create the foundations thereof, thus enabling the value of intellectual property to be displayed in our society to the fullest extent’.15) Further, formulation of intellectual property denotes creation, protection and utilization of intellectual property.16)

These three notions should be kept in mind at all times. However, depending on a nation’s industrial structure and its current situation of intellectual property, its government and relevant departments should decide which notion needs to be focused on to be more timely suitable for its intellectual property system.

3.1.3.3. IP Strategies per Economic Development Level

Meanwhile, intellectual property strategies should vary according to each stage of the industrial development. Also the government should establish its patent policy that clarifies and changes a patent object, scope and duration according to the level of technical development. It means the role and function of patent system for innovation in technique and industrial development can be varied under the industrial circumstance each nation faces. The Korean government chose certain policy options depending on how firms behaved as a response to changed intellectual property rights systems.17) With the 1960s to 1970s as a period of stabilization and modernization, Korea adopted and introduced its intellectual property system and policy to stabilize domestic technology development activities. During the 1980s to 1990s, to open the door to the international intellectual property world, Korea focused on strengthening domestic intellectual property infrastructure and organizing relevant domestic acts, laws and rules. Lastly, in the late 1990s, domestic companies’ capacity of innovation in technique was increased to the level of that of developed nations. The government was also promoting a policy for utilization of intellectual property. In other words, before the late 1990s strengthening intellectual property was centered on by the government, and after a time the government focused more on the establishment of the environments for its effective creation, protection and utilization.

15) Framework Act on Intellectual Property, Korea’s National Strategy for Intellectual Property, http:// www.ipkorea.go.kr/uploads/FullText.pdf 16) Shintaro Takahara, Formulation of IP Policies. http://www.wipo.int/edocs/mdocs/aspac/en/wipo_inn_ tyo_12/wipo_inn_tyo_12_ref_t4a1takahara.pdf 17) Lee K, Intellectual Property System, business innovation and patent strategy, KIPO, 2003.

Chapter 1 _ Policy Consultancy for the Development of Intellectual Property in Bangladesh • 045 Like India, the Korean government was not interested in strengthening patent rights when the Korean companies’ technical innovation capability was low. It is because the government wanted to protect domestic companies against powerful foreign companies.18) On the other hand, once the domestic companies obtained sufficient level of capacity and the number of patent applications reached high and was increasing, the government changed its policy to strengthening patent rights for the promotion of technology innovation activities, FDIs and R&Ds.19) As to Bangladesh, the proportion of its high-tech industry in Bangladesh is higher than any other developing nations, and its potentiality is huge. To increase its potentiality, the Bangladeshi government needs to promote domestic inventions and technical developments, and modernize its legal system to attract FDIs.

3.2. IP Laws

3.2.1. Circumstances and Problems (Globalization)

Under the Constitution of Bangladesh 1972 (2014), fundamental rights are essentially preserved. As part of the laws of intellectual property, the Trademarks Act 2009, the Patents and Designs Act 1911 and the Copyright Act 2000 were enacted. The Bangladesh legislature also enacted the Right to Information Act 2009, the Penal Code 1860, the Civil Procedure Code 1908 and the Custom Act 1969. For these Acts above, the Bangladesh administration enacted SRO No. 312-Law/2000, and the National Curriculum and Text-Book Board Ordinance 1983. There are the Copyright Rules 2006 and the Patents and Designs Rules 1933.

In Bangladesh, patents are registered and governed under the provisions of the Patent and Design Act 1911. A person may apply for a patent regardless of whether he or she is a citizen of Bangladesh or not, and either by himself or herself or with any other person.20) Any person who is interested in getting a patent letter or patent protection he must file an application to the Patent Office by fulfilling the conditions of the Act, that is, ‘an invention must have industrial applicability, novelty and non- obviousness (inventive step); it should not be contrary to law or morality.’

It is an infringement against a patent, without a license of the right holder, where any person produces, sells or uses an invention, or counterfeits it, or imitates it.21) If there is an infringement against a patent by any person, the right holder

18) Lee K, Intellectual Property System, business innovation and patent strategy, KIPO, 2003. 19) Jung, Cha Ho, Korea’s changes in Patent System: History f strong patent right, Science and Technology Policy Study, Vol. 5, 2004. 20) Section 3 (1), the Patent and Design Act, 1911. Section 3 Application (1) An application for a patent may be made by any person whether he is a citizen of Bangladesh or not, and whether alone or jointly with any other person. 21) Section 29, the Patent and Design Act 1911.

046 • 2014/15 Knowledge Sharing Program with Bangladesh may institute a suit against the infringer in a District Court having jurisdiction.22) In Bangladesh, the legislation system includes various remedies for any patent infringement. Basically, the characteristic of the remedies is civil. And, it also includes both interim and final remedies. There is an order for an injunction, inspection or account in the interim, or preliminary remedies while final remedies include financial compensations.23)

Designs are registered through DPDT and governed under the provisions of the Patent and Design Act 1911. Where the shape, configuration, pattern or ornament given to an article by any industrial process or means is new (or original) or did not exist previously in Bangladesh, the design of the article can be registered.24) Any mode or principle of construction or anything that is in substance a mere mechanical device cannot be registered under the Act.25) Trademarks, trade names and mere pictures or photographs cannot be registered as designs. Where the registration of a design is completed, the applicant is granted five years of copyright in the first instance.26)

30) Section 29 (1) A patentee may institute a suit in a District Court having jurisdiction to try the suit against any person who, during the continuance of a patent acquired by him under this Act in respect of an invention, makes, sells or uses the invention without his license, or counterfeits it, or imitates it: 30) Provided that where a counter claim for revocation of the patent is made by the defendant, the suit, along with the counter claim, shall be transferred to the High Court Division for decision. 30) (2) Every ground on which a patent may be revoked under section 26 shall be available by way of defense to a suit for infringement. 22) Section 29, the Patent and Design Act 1911. 23) Section 31, the Patent and Design Act 1911. 23) Section 31 Oder for inspection, etc, in suit 23) In a suit for infringement of a patent, the Court may, on the application of either party, make such order for an injunction, inspection or account, and impose such terms and give such directions respecting the same and the proceedings thereon, as the Court may see fit. 24) Section 43, the Patent and Design Act 1911. 24) Section 43 Application for registration of designs 24) (1) The Registrar may, on the application of any person claiming to be the proprietor of any new or original design not previously published in Bangladesh, register the design under this Part. 24) (2) The application must be made in the prescribed form and must be left at the Department of Patents, Designs and Trade Marks in the prescribed manner and must be accompanied by the prescribed fee. 24) (3) The Same design may be registered in more than one class, and, in case of doubt as to the class in which a design ought to be registered, the Registrar may decide the question. 24) (4) The Registrar may, if he thinks fit, refuse to register any design presented to him for registration; but any person aggrieved by any such refusal may appeal to the Government. 24) (5) An application which, owing to any default or neglect on the part of the applicant, has not been completed so as to enable registration to be effected within the prescribed time shall be deemed to be abandoned. 25) Section 2(5), the Patent and Design Act 1911. 26) Section 47, the Patent and Design Act 1911. 26) Section 47. Copyright on registration 26) (1) When a design is registered, the registered proprietor of the design shall, subject to the provisions of this Act, have copyright in the design during five years from the date of registration. 26) (2) If before the expiration of the said five years application for the extension of the period of copyright is made to the Registrar in the prescribed manner, the Registrar shall, on payment of the prescribed fee, extend the period of copyright for a second period of five years from the

Chapter 1 _ Policy Consultancy for the Development of Intellectual Property in Bangladesh • 047 Any person who uses or applies or imitates the design without the consent of the registered proprietor who deceives consumers, he infringes upon the provisions of the Act.27) The Act provides several civil remedies such as compensations, damages and injunctions against an infringement of the registered design copyright.

Under the Trade Mark Act 2009, ‘Trademark’ means a trade mark registered through DPDT, or a mark used for goods or services, or a mark used or proposed to be used for any services or goods indicating a connection in the course of trade between the goods and the right holder to use the mark, either as a proprietor or as a registered user.28) In Bangladesh, the term 'trademark' includes service marks too.29)

expiration of the original period of five years. 26) (3) If before the expiration of such second period of five years application for the extension of the period of copyright is made to the Registrar in the prescribed manner, the Registrar may, subject to any rules under this Act, on payment of the prescribed fee, extend the period of copyright for a third period of five years from the expiration of the second period of five years. 27) Section 53, the Patent and Design Act 1911. 27) Section 53 Privacy of registered design 27) (1) During the existence of copyright in any design it shall not be lawful for any person- 27) (a) for the purpose of sale to apply or cause to be applied to any article in any class of goods in which the design in registered the design or any fraudulent or obvious imitation thereof, except with the license or written consent of the registered proprietor, or to do anything with a view to enable the design to be so applied; or, 27) (aa) to import for the purposes of sale, without the consent of the registered proprietor, any article belonging to the class in which the design has been registered, and having applied to it the design or any fraudulent or obvious imitation thereof; or 27) (b) Knowing that the design or any fraudulent or obvious imitation thereof has been applied to any article in any class of goods in which the design is registered without the consent of the registered proprietor, to publish or expose or cause to be published or exposed for sale that article. 27) (2) If any person acts in contravention of this section, he shall be liable for every contravention- 27) (a) to pay to the registered proprietor of the design a sum not exceeding five hundred taka recoverable as a contract debt, or 27) (b) if the proprietor elects to bring suit for the recovery of damages for any such contravention, and for an injunction against the repetition thereof, to pay such damages as may be awarded and to be restrained by injunction accordingly: 27) Provided that the total sum recoverable in respect of any one design under clause (a) shall not exceed one thousand taka. 27) (3) When the Court makes a decree in a suit under sub-section (2), it shall send a copy of the decree to the Registrar, who shall cause an entry thereof to be made in the register of designs. 28) Section 2(8), The Trade Mark Act 2009. 28) Section 2(8): “trademark” means 28) (a) in relation to Chapter X of this Act, other than section 77- 28) (i) a registered trademark or a mark used I relation to goods for the purpose of indicating a connection in the course of trade between the goods and the person having the right as proprietor to use the mark; 28) (ii) a mark used in relation to a service so that it may be indicated that the person has the right as proprietor to use the mark in the course of trade; 28) (b) in relation to the other provisions of this Act, a mark used or proposed to be used in relation to any service or goods indicating a connection in the course of trade between the goods and the person having the right, either as proprietor or as registered user, to use the mark; 28) (c) certification trademark; 29) Section 2(8), the Trade Mark Act 2009.

048 • 2014/15 Knowledge Sharing Program with Bangladesh Essentially, the same criteria can be applied to both service marks and trademarks due to the similarities in nature between them. In Bangladesh, a registered trademark or service mark owner can enjoy exclusive rights to his mark. By applying these rights he can exclude others from using it; he can bring an action if anyone uses his mark without his consent. At the same time, he can use the mark for his goods or services; he has the right to permit others to use the same mark, give a license to use or give up his rights in favor of any other person by way of an assignment.

Copyrights in Bangladesh were originally from the British system. And now the Copyright Act 2000 (amended in 2005) applies to copyrights in Bangladesh.

The Bangladesh government put its efforts into the modification of legal and administrative structures to catch up with the international standards by 2006. For example, the Bangladesh Copyright Act 2000 was revised and modernized to comply with the requirements of the TRIPS Agreement. The Trademarks Act 2002 was also finalized to comply with the TRIPS Agreement. In addition to these efforts, Bangladesh should also immediately amend the laws on intellectual property to develop a harmonious system of IP right protection. For example, the patent duration is only 15 years, which is less than the duration the TRIPS requires.

3.2.2. Korea’s Experiences

3.2.2.1. System of Korean Intellectual Property Law

The Korean IP laws consist of several Acts pertaining to intellectual properties, such as the Patent Act, the Utility Model Act, the Design Protection Act, the Trademark Act, the Copyright Act, the Unfair Competition Prevention and Trade Secret Protection Act and so on.

Most of the first Korean intellectual property acts were enacted in the 1940s and 50s, but their substantial applications were accomplished in the 1970-80s during industrialization. Several elements affected the development of the Korean Intellectual property legal system.

First, multilateral international agreements such as the Berne Convention for the Protection of Literary and Artistic Works, the Universal Copyright Convention (UCC), the International Convention for the Protection of Performers, the Producers of Phonograms and Broadcasting Organization, the WIPO Copyright Treaty (WCT), the WIPO Performances and Phonograms Treaty (WPPT), the WTO TRIPS, and the International Convention for the Protection of New Varieties of Plants affected the development of the Korean intellectual property legal system. Based on these agreements, Korea enacted or changed laws.

Chapter 1 _ Policy Consultancy for the Development of Intellectual Property in Bangladesh • 049 The second element is bilateral free trade agreements (FTA). Korea entered many FTAs by which intellectual property laws have been changed. For example, in 2011, the Korean government revised the Copyright Act to implement Korea-US FTA, which was signed on June 30, 2007. It strengthened the level of protection to be higher than the international standards – for example, the copyright term extension by additional 20 years, adopting new protections against the circumvention of technological measures for access control, and the stipulations of temporary reproduction and so on.

The last element is legislation by domestic needs. The Industrial Technology Drain Prevention Act in 2006 is one good example and Korea is the only country having this kind of law. This law includes pre-regulations such as the law designating “national core technology” and provides protections from illegal drain of “the national core technology” to the outside world.

• Patent Act

Patent Act was first enacted in 1946 and at that time the Patent Institute was also established. It was later divided into four industrial property laws: the Patent Act, the Utility Model Act, the Trademark Act, and the Design Act in 1961.

1977: The Korean Intellectual Property Office (KIPO) was established as an independent office under the Ministry of Commerce, Industry and Energy.

1979: Korea joined the World Intellectual Property Organization (WIPO).

1980: Korea joined the Paris Convention.

1984: Korea joined the Patent Cooperation Treaty (PCT).

The rules governing what is “patentable” vary slightly from one country to another. Most inventions are new machines, products or industrial processes, and these generally can be patented. However, aesthetic creations or scientific discoveries without any specified application, cannot be patented. And things that exist in nature, which are discovered and not invented, machines that defy the laws of nature, and scientific theories or mathematical methods also cannot be patented.

• Trademark Act

Trademark is an indication of origin, guarantee of quality, or marketing and advertising device. A trademark refers to all sensible methods of expression used to distinguish one’s goods from those of another.

050 • 2014/15 Knowledge Sharing Program with Bangladesh • Design Act

Design is type of a broad conception and is very comprehensive. However, in the Industrial Design Act, design refers to the shape, pattern, color or combination of these. And the protection under the Design Act also includes a part of an article. As of July 1, 2001, a partial design of articles such as the heels of socks, necks of bottles, and handles of coffee cups were allowed to be registered as well. Therefore, design in the Act can be defined in relation to the appearance of goods (or movable property) which can be independently transacted.

3.2.2.2. Improvement on IP law

Since the late 1970s, Korea began to globalize the Patent Act by joining many international IP treaties. As a result, according to the Paris Convention, the Korean government adopted publications of the application system to prevent overlapped investments and researches by opening the common regulatory, multiple claim system on claims, priority clauses and contents of the inventions. Also, the examination request system was adopted. Under the examination request system, only requested applications are allowed to be examined.

Furthermore, the Articles for the PCT have changed several times simply because of the amendments to the relevant laws. Specifically, the term, “Ordinance of Trade, Industry and Energy” of law in force changed in 201330) after several amendments over the years, such as “Ordinance of the Ministry of Commerce, Industry and Energy”, “Ordinance of the Ministry of Trade and Industry”, “Ordinance of the Ministry of Industry and Energy”, and “Ordinance of Ministry of Knowledge Economy” in 1993, 1995, 2001, and 2008, respectively.31)

And, there is a matter of the extension of the patent duration. In 1946, the patent duration was 17 years. It was 12 years in 1961. In 1986, it was extended to 15 years. Finally, to comply with WTO/TRIPS it became 20 years in 1995. The extension of the patent duration seems to continue being extended as part of the globalization of the Patent Act.

30) Law no. 11690. 31) Law no. 4541, law no, 5080, 6411, 8852.

Chapter 1 _ Policy Consultancy for the Development of Intellectual Property in Bangladesh • 051

Patent Duration in Korea

Amendment year of the Patent Act Duration 1946 17 years from the Publication date 1961 12 years from the Publication date 1986 15 years from the Publication date 1995 20 years from the Publication date

In sum, since it adopted the PCT system in 1984, Korea has played an indispensable role as a Receiving Office, an International Searching Authority, and an International Preliminary Examination Authority in the international patent system by amending its Patent Act and supporting international patent practitioners by law.

3.2.3. Recommendations

3.2.3.1. Definition of Invention

According to Section 2- (1) of the Korea Patent Act, the term “invention” means a highly advanced creation of technical ideas utilizing the laws of nature.

According to Section 2- (8) of the Patents and Designs Act 2003 of Bangladesh, ‘Invention’ means any manner of new manufacture and includes an improvement and alleged invention; however, the definition of ‘Invention’ of Bangladesh currently in effect is ambiguous to show whether or not it includes matter patents, and may possibly become subjected to criticisms that it is unable to adapt to the advancement of new technologies. Even recently in Korea, there have been controversies over the definition of ‘Invention’ by scholars, and in the background of such controversies lies the advent of the inventions of computer programs or inventions pertaining to bioengineering. What are at issue are whether or not we can recognize the former as a form of invention applying computer programs and the latter as a form of invention of an object as to the product of bioengineering concoctions.32) On the other hand, according to Section 1-(16) of the Draft Patents and Designs Act of Bangladesh, invention means any new, sufficiently inventive and useful- (a) art, process, method or manner of manufacture, (b) machine, apparatus or other article, (c) substance produced by manufacture, and include any now, sufficiently inventive and useful improvement of any of them alleged invention. This Article precisely connotes matter patents as part of the concept of invention corresponding to the TRIPS provision(s), thus amendments such as this would be required later

32) Park, Joonseok. “Study of Concept of Invention under Korean Patent Act.” Seoul National University School of Law, 54, no. 3 (2003): 1.

052 • 2014/15 Knowledge Sharing Program with Bangladesh on. Additionally, Korea has introduced matter patents before under pressure from the United States and so forth. As such, notwithstanding the fact that the concept of invention is a major point at issue for patent laws such as this, passivity remains concerning establishing the concept of invention because we cannot be completely free of external pressures from developed countries.33) However, urgent efforts are necessary for Bangladesh to establish the concept of invention on its own to best meet local circumstances.

3.2.3.2. Service Marks

According to the trademark laws both in Korea and Bangladesh, trademarks include service marks. Provisions relevant to service marks in Korea are as follows:

Article 2 (1) No. 2. The term “service mark” means a mark which is used by a person who carries on service business for the purpose of distinguishing his/her service business from those of others;

Article 7(3) (3) Except as otherwise prescribed by this Act, the provisions of this Act concerning trademarks shall apply to service marks, collective marks, certification marks and business emblems.

Accordingly, an issue is being raised that distinctions between trademarks and service marks are not clear under the trademark laws in Korea, and there is also a problem with the concept of service industry being unclear. In case of Bangladesh, on the other hand, it provides a definition provision for services as follows:

Article 2(30) “services” means services rendered for money or money’s worth in the course of trade or business, but does not include goods.

Service marks, unlike trademarks, are identification marks applying to services that are intangible goods, and can be considered trademarks in a broad sense. Hence, international trends are to protect service marks under trademark laws. Our trademark laws apply the provisions for trademarks to service marks as they are, thus bear an institutional problem incapable of fully reflecting their characteristics as service marks. And, this criticism would also be valid as to the current trademark laws of Bangladesh as well. When issues arise later in regards to the scope of service marks, misidentification or likelihood of confusion of trademarks, transfer and so forth, problems may occur that we have to abide by the trademarks standards. Thus, reformations on legal provisions with respect to this area are required.34)

33) Ibid. 34) Yim, Deok-Ki. “Services and Trademarks”. Research Report of Korea Institute of Intellectual Property (November 2007): 38.

Chapter 1 _ Policy Consultancy for the Development of Intellectual Property in Bangladesh • 053 3.2.3.3. Three-Dimensional Marks

Three-dimensional trademarks are trademarks where a three-dimensional shape such as a shape of a good or packing of the good (including container(s)) makes up a primary element of composition for a trademark, and the three-dimensional shape itself functions as a trademark.

Typical examples of three-dimensional trademarks are the shapes of Coca-Cola bottles, dimple-shaped bottles and so on, KFC’s Colonel Sanders dolls (in a shape of an old man) and so on for three-dimensional service marks. From early on, the trademark laws of developed countries such as the United States, European countries and so forth have been protecting three-dimensional shapes as trademarks. Korea has also been providing their protections since the introduction in 1998, and it is based on the following provisions:

Article 6(1)-3. A trademark consisting of a mark indicating in a common way the origin, quality, raw materials, efficacy, use, quantity, shape (including shapes of packages), price, producing method, processing method, using method or time of the goods;

In case of Bangladesh, it is unclear whether or not three-dimensional trademarks are protected under the provisions of the trademark law. When introducing three- dimensional trademarks in accordance with the international trends, it is necessary to provide solutions in regards to the determination of distinctiveness of a three- dimensional trademark, the determination of an acquisition, and the determination of infringement of a three-dimensional trademark.35)

3.3. IP Administration

3.3.1. Current Status

3.3.1.1. General Information of Department of Patents, Designs and Trademarks

In Bangladesh, intellectual property policies are administered by two separate ministries. The two offices responsible for IP matters within the two different ministries are Department of Patents, Designs and Trademarks (DPDT) and the Copyright Office.

In 1989, the Ministry of Establishment issued an order for unification of the Patent

35) Recently, there has been a lawsuit between pharmaceutical companies in Korea where three- dimensional trademarks and protection rights for designs were at issue.

054 • 2014/15 Knowledge Sharing Program with Bangladesh Office and the Trademarks Registry. In 2003, the Trademark Act 1940 and the Patents & Designs Act 1911 were amended. Department of Patents, Designs and Trademarks started functioning as a department under the Ministry of Industries in 2004.36)

DPDT is located in the capital city Dhaka. And, it has one additional regional office in Chittagong. There is no institutional arrangement or organization to provide services to people in other regions in Bangladesh. Also DPDT operates in inadequate office spaces. But it does have a separate library for preserving records. The records are maintained manually within the office premises such as in drawers that there are chances of loss or misplacement of documents.

3.3.1.2. Shortage of Manpower and Not Enough Skilled Personnel

A total manpower at DPDT is 113.37) The Registrar is the head of the department. Four deputy registrars are assigned in four areas: 1) Patent and Design, 2) Trademark, 3) WTO and International and 4) Administration and Finance. Under the deputy registrars, there are assistant registrars, examiners and officers. A team of assistant registrar(s), examiners and staff is formed under the leadership of each deputy registrar. At present, the head of the department and other senior employees are appointed by the Ministry of Public Administration. But the general rule is that Public Service Commission (PSC) will employ entry-level examiners in the department. And gradually those examiners will be promoted to higher-ranking posts and consequently one of them will occupy the post of the Registrar. But the problem is most of the examiners do not stay long enough in this department to be able to reach the post of the Registrar.38)

These offices, however, operate within other limitations including shortages of adequate financial resources and manpower. Moreover, the officials have limited legal backgrounds. The technical personnel and managers of DPDT do not have any opportunity to participate in domestic or foreign trainings in intellectual property. Also, they do not normally have any chance to acquire knowledge specialized in intellectual property issues. And many of the processes conducted at DPDT are only through limited automation.

36) Jan. 1, 2004. 37) Registrar - 1, Deputy Registrar - 4, Assistant Registrar - 9, System analyst - 1, Programmer - 1, Assistant Programmer - 1, Examiner(Patents) - 10, Examiner(Designs) - 2, Examiner(Trademarks) - 12, Examiner(WTO & International Affairs), Assist Examiner(Trademarks) - 3, Administrative Officer - 1, Librarian - 1 and Supporting Staffs - 66. 37) See. Country Report: Facilitating Technology Transfer and Management of IP Assets: Bangladesh by Registrar Mohammad Sanowar Hossain for Regional Seminar on Intellectual Property, Technology Transfer and Commercialization. 38) From high level demand survey and pilot study, 2014 KSP with Bangladesh on 16~20 Nov. 2014.

Chapter 1 _ Policy Consultancy for the Development of Intellectual Property in Bangladesh • 055 • Too Many Tasks to One Examiner

As Table 1-4 shows, the number of designs and trademarks applications is relatively higher than that of patents. In 2013, the number of trademark applications was 11,581. However, only 15 examiners are in charge of trademark applications (12 examiners and 3 assistant examiners) as shown in Table 1-5. It means that one trademark examiner examines average around 772 applications a year. Unfortunately, patents and designs applications share the same problem.

113 is not a sufficient number for DPDT to function as the intellectual property headquarter in Bangladesh. The number of staff should be increased, but particularly there is more urgent need for more staff for trademark application examinations.

Number of Applications (Six -Year Period)

Year Patents Application Designs Application Trademarks Application 2008 338 511 9,862 2009 278 992 9,306 2010 342 896 10,231 2011 306 1,297 11,645 2012 354 1,198 11,429 2013 302 1,232 11,581

Manpower at DPDT Total Manpower 113 Registrar 1 Deputy Registrar 4 Assistant Registrar 9 System Analyst 1 Programmer 1 Assistant Programmer 1 Examiner (Patents) 10 Examiner (Designs) 2 Examiner (Trademarks) 12 Examiner (WTO & International Affairs) 1 Asst. Examiner (Trademarks) 3 Administrative Officer 1 Librarian 1 Supporting Staffs 66

Source: http://www.wipo.int/edocs/mdocs/aspac/en/wipo_reg_ip_sin_14/wipo_reg_ip_sin_14_t8_a.pdf

056 • 2014/15 Knowledge Sharing Program with Bangladesh • Not Sufficient Training

The officials at DPDT have limited legal backgrounds. The technical personnel and managers at DPDT do not have enough opportunities to participate in domestic or foreign trainings of intellectual property. Additionally, generally they do not have any chance to gain specialized knowledge in intellectual property issues. On top of that, job rotation cycles at DPDT make this situation worse.

DPDT does not have its own training center. That’s why there is no scope for DPDT personnel to train up themselves in Bangladesh. Nonetheless, the DPDT personnel are given some opportunities to go abroad for training with the help of WIPO, KIPO, JIIP and a few other countries. All in all, though, these training programs are totally inadequate in the human resources development’s perspective.

Carrying out a well-coordinated/synchronized? Collaborative work on examinations of intellectual property among examiners by sharing and utilizing examination results of one another, particularly in regards to patent examinations, demands a high degree of skills. It would also be necessary to exhibit/demonstrate an adequate level of expertise in order to instill confidence on a global level in the quality of IP examinations. However, any national and international training programs currently available are not simply enough to help improve an examiner’s examination skills. In this regard, additional training program options should be developed to enhance the DPDT personnel’s capabilities.

• Not Enough Budget39)

As shown, it was 29,656,000 BDT in 2012-13, 31,217,000 BDT in 2013-14, and 34,893,000 BDT in 2014-15. As to Korea, the budget of the Korea Intellectual Property Office for its annual expenditure in 2014 was about 461,300,000,000 KRW40). For reference purposes, 34,893,000 taka is equivalent to 486,757,350 KRW41). Even with the economic development gap between Bangladesh and Korea being taken into consideration, the Bangladesh budget is simply not enough for DPDT to achieve its missions and visions. Further, DPDT cannot act as the key organization in Bangladesh for the preservation of industrial and intellectual properties in the forms of patents, industrial designs, trademarks and geographical indications (GIs).

DPDT is funded by the government of Bangladesh. The revenues it earns from the application fees and other charges are considered government revenues and DPDT

39) Country Report: Facilitating Technology Transfer and Management of IP Assets: Bangladesh by Registrar Mohammad Sanowar Hossain for Regional Seminar on Intellectual Property, Technology Transfer and Commercialization. 40) 643,974,800 BDT. 41) 2015. 1. 20.

Chapter 1 _ Policy Consultancy for the Development of Intellectual Property in Bangladesh • 057 cannot use any fraction of those revenues. The government provides expenditures of DPDT but takes back its earnings in return. Hence, DPDT does not retain any operating surplus. DPDT is audited by the Local and Revenue Audit Directorate., and audit findings are partially published in the Annual Report of the Ministry of Industries.42)

[Figure 1-11] Budget

Amount (Taka) 40,000,000 34,893,000 29,737,000 31,217,000 24,687,000 24,254,000 20,000,000 13,227,000

0 2009 2010 2011 2012 2013 2014

Source: Country Report: Facilitating Technology Transfer and Management of IP Assets: Bangladesh by Registrar Mohammad Sanowar Hossain for Regional Seminar on Intellectual Property, Technology Transfer and Commercialization, p. 7.

In 2013, DPDT’s budget was 31,217,000 BDT; meanwhile its revenues from patents, designs and trademarks were 109,886,800 BDT. Ultimately, the budget for DPDT needs to be increased and readjusted to be in line with the Bangladesh economic development.

3.3.2. Korea’s Experiences

3.3.2.1. Establishment of the International Intellectual Property Training Institute (IIPTI)

In 1987, the establishment of International Intellectual Property Training Institute (IIPTI) was proclaimed, and it was launched as a sub-organization of Korea Intellectual Property Office in the capital city Seoul the same year. IIPTI was later relocated to Daedeok Science Town in Daejeon City in part with the assistance of WIPO and UNDP. Since its establishment, IIPTI has focused exclusively on intellectual property education, making a variety of IP training programs available to people of different national backgrounds.

42) Bazlul H Khondker, Sonia Nowshin, Developing National Intellectual Property Policy for Bangladesh, p. 8.

058 • 2014/15 Knowledge Sharing Program with Bangladesh IIPTI’s function is to follow objectives of the achievement of the purposes of improving domestic and international intellectual property professionals to become leaders in the information and knowledge society and of laying a foundation for the creation of IP through the promotion of education on inventions. Furthermore, it aims to become a world-class IP training organization by strengthening international cooperation in the field of IP. The objectives43) are 1) to intensify its educational specialty and innovative capacity so as to become a world-class global institute of IP education and training, 2) to provide the best quality education services by designating course managers, inviting prominent lecturers and creating a comfortable academic atmosphere, 3) to better accommodate the needs of participants and have them reflected in its diversified and customized educational programs, 4) to lead the way in international affairs by consolidating international cooperation and exchanging experiences in IP education and 5) to evaluate Korea’s IP educational programs and services in a fair and open manner.

3.3.2.2. Increase in Number of Examiners

KIPO continues its efforts to strengthen its examination quality by reducing patency period and computerizing the administrative process in the patent system. Also, KIPO increased the number of examiners rather than increasing the number of assigned applications for examination per examiner. For the good examination quality, KIPO increased the number of examiners from 658 in 2009 to 813 in 2012. Therefore, in spite of the increasing number of patent applications, duration of examination can be reduced.

Number of Examiners, Application, Applications Processed and Duration

Number of Number of Duration of Number of Number of Processed Year Applications Examination Examiners Applications Applications Processed (Month) per Examiners 2009 658 352,119 122,434 188 15.4 2010 725 412,448 158,750 219 18.5 2011 795 427,934 215,222 271 16.8 2012 813 407,507 206,097 254 14.8

Source: KIPO, Intellectual Property Statistics for 2014.

3.3.2.3. Independent Profit System

In 1980s, pressures to open Korea to intellectual property opportunities were

43) See. http://iipti.kipo.go.kr/index.jsp.

Chapter 1 _ Policy Consultancy for the Development of Intellectual Property in Bangladesh • 059 getting stronger, and the importance of intellectual property interests at home and abroad was increasing. These changes resulted in the increase in the KIPO funding and the independent profit system. With a budgetary expansion and the Patent Management Special Accounting plan, KIPO increased its commissions six times and adjusted them three times. As a result, KIPO achieved 100% of its financial independency in 1998. By 1999, benefited by the independent profit system, KIPO achieved a remarkable result in its IT system development.44)

3.3.2.4. Working Pattern

As a way to enhance examiner’s expertise, an examiner who is employed for a specific technical post is allowed to continue doing an identical task for 5 years., An examiner’s grade and rank are determined based on his or her experience in the examination under the ‘examiner class system’, which was introduced in 2000. There are 4 classes in the system, and any examiner is eligible to be promoted to the next class by evaluation results. The results are evaluated based on the completion of education pertinent to examination skills, experience in his or her tasks and any other relevant factors.

3.3.3. Recommendations

Bangladesh DPDT is the office for patents, designs and trademarks (also geographical indications). The office is struggling with many obstacles. As explained before, intellectual property is a key element to lead and to support economic growth. However, the Bangladesh’s current intellectual property situation is not able to lead or to support Bangladesh economic development.

DPDT is suffering from shortage of manpower, limited budgets and non-existing training programs (or institutes). It is probably common for many LDCs. Also, the Bangladesh government is unable to properly allocate its resources to establish intellectual property capacities because Bangladesh is still dealing with more pressing issues such as food security, primary education, and health care services and infrastructure development and so on.

However, capacity building for DPDT to be a specialized IP agency is one of the most important agendas because examinations of IP are a daunting task. It requires special knowledge and experiences to decide on inventive steps, novelty and so on. Korea has attempted to improve upon specialties of examiners in the last decade, and now KIPO is playing a role as a special examination agency for international patent applications through PCT. In case of Bangladesh, first of all, the quality of

44) An office automation system that enables complete electronic management of intellectual property right activities, such as on-line filing and patent information searches.

060 • 2014/15 Knowledge Sharing Program with Bangladesh examinations of IP applications needs to be improved significantly. Registration procedures should be expedited by new recruitment and capacity augmentation through human resources development. Secondly, applying the Korea’s experiences, it is necessary to avoid putting examiners on a rotation cycle . Further, the number of examiners should be increased before the number of foreign patent applications will rise upon signing the PCT. Thirdly, an IP training institution should be established. The organizational capacity and efficiency of the relevant administrative branch should be upgraded qualitatively and quantitatively so that they can function properly and effectively. Fourthly, the capacity building for DPDT should be targeted towards private sectors as well as DPDT or public officials. To do so, introducing courses covering the basic concepts of IP rights in colleges and universities of Bangladesh is necessary. Finally, even at the organizational level as well, it will be necessary to evaluate whether or not restructuring of the institution including an option of possible merger of all IP issues under one umbrella to improve its efficiency and effectiveness.

4. IP Awareness & Environment 4.1. Current Status in Bangladesh

The IP rights (IPR), particularly concerning patents, face great challenges because of their highly technical contents and the complexity of the patent laws. Due to these aspects of patents, every stakeholder should acquire correct and sound information, and knowledge of the domestic patent system and other foreign patent systems where he or she is doing his or her business in. And they need to figure out whether or not the system they are dealing with is providing any easier and more convenient way to protect their inventions. In Bangladesh, awareness on IPR among institutions, business researchers and the public is very low and limited.45) Compared to other countries, the awareness of IP in Bangladesh is poor among even researchers, scientists, industrialists and others.46) Lack of awareness on IPR is viewed as a problem of the intellectual property system in Bangladesh.

Due to lack of awareness on intellectual property, the Bangladesh economy has lost many opportunities to obtain benefits. Imitations and copying are prevailing everywhere in Bangladesh. This has a negative influence on the intellectual property system in Bangladesh. Even enforcing agencies at times have no knowledge as to which laws should be applied to in relation to intellectual property protections.

The poor number of applications filed by Bangladesh people could be attributed

45) M.Kamal Uddin, A Project of World Intellectual Property Organization (WIPO), 2010. p. 13. 46) Ibid., p. 38.

Chapter 1 _ Policy Consultancy for the Development of Intellectual Property in Bangladesh • 061 to the current level of awareness. Therefore, the Bangladesh government has introduced and proposed its intellectual property policy and strategy to raise public awareness of the intellectual property rights. For creation and protection of intellectual property, the public needs to understand the IPRs and to know why the intellectual property must be protected.

In Korea, to increase the public awareness, a policy was implemented under Article 29 of the Framework Act on IP. Specifically, education and campaign measures were provided to establish an environment in which intellectual property can be respected and protected.

4.2. Introduction of Utility Model

4.2.1. Korea’s Experiences

• Utility Model Act

According to Article of Utility Model Act, “device” means the creation of technical ideas applying the laws of nature. “Registered utility model” means a device for which a utility model has been granted. “Working” means an act of manufacturing, using, assigning, leasing, importing, or offering for assigning or leasing. “Subject to be protected” is the creation of technical ideas utilizing the laws of nature, which relates to the shape of structure of an article or a combination of articles and is industrially applicable.

The purpose of the utility model is to encourage, protect and utilize practical devices, thereby improving and developing technology, and to contribute to the developing technology, and to contribute to the development of industry. Under Article 23, the owner of an utility model right shall have the exclusive right to work the registered utility model commercially and industrially: provided, that where the exclusive license is granted to a third party under Article 100 (1) of the Patent Act as applied mutatis mutandis pursuant to Article 28 of this Act, the same shall not apply to the extent that the exclusive licensee has the exclusive right to work the registered utility model under Article 100 (2) of the Patent Act. And an exclusive licensee who received an exclusive license from a utility model right holder shall hold the right to exercise the utility model as a business within the scope of the registration.

Under Article 12 (1), the examination of utility model registration shall be initiated only upon request. According to (2) of the same Article, any person may file a request for initiating an examination of utility model registration with the commissioner of the Korean Intellectual Property Office within three years from the filing date of utility model registration: Provided that any person who has filed for

062 • 2014/15 Knowledge Sharing Program with Bangladesh utility model registration may initiate a request for examining the application only when he or she has filed the application accompanied by a description in which the claim is described.

The purpose of the rule & comment on Article 12 says provides that substantive examination is conducted on application requested for examination. The system of request for examination has been introduced together with the system for the laying-open of applications to reduce the backlog of applications of utility model registrations. Not all applications of utility model registrations need to be registered, for instance, defensive applications used as tools to prevent others’ applications from being registered or applications unnecessary to be registered due to the change in technology or the relationship with competitors.

Under Article 4, requirements for utility model registration are as follows: (1) A utility model may be granted for a device related to a shape or a structure of an article, or a combination of articles industrially practicable, unless the device falls under any of the following subparagraphs: 1. A device publicly known or worked inside or outside the Republic of Korea prior to the filing of utility model registration; 2. A device reported by a publication published and distributed inside or outside the Republic of Korea prior to the filing of utility model registration or made available to the public through one of telecommunication lines specified by Presidential Decree.

(2) Notwithstanding Paragraph (1), no utility model shall be granted for a device, if the device could easily have been made, prior to the filing of utility model registration, by a person with ordinary skills in the art to which the device pertains, on the basis of a device set forth in any subparagraph of Paragraph (1).

(3) Notwithstanding Paragraph (1), no utility model shall be granted for a device, if the device for which utility model registration is filed is identical with a device or invention described in the description or drawings originally attached to another utility model registration or a patent application, and if another application for utility model or patent has been filed prior to the application at issue and either another application is laid open or utility model registration is published after the utility model registration for another application after the filing date of the application at issue: Provided, That this shall not apply where the person who has devised or invented the subject matter of the application at issue is the very person who has devised or invented the subject matter of another application or where the applicant at the time of utility model registration at issue is the very person who has filed another application for either utility model or patent.

(4) For the purposes of applying Paragraph (3), where another filing of utility model registration or a patent application falls under any of the following

Chapter 1 _ Policy Consultancy for the Development of Intellectual Property in Bangladesh • 063 subparagraphs, “laid open” in Paragraph (3) shall be construed as “laid open for public inspection or internationally published pursuant to Article 21 of the Patent Cooperation Treaty”; and “device or invention described in the description or drawings originally attached to an application” shall be construed as “device or invention described in the description, claims or drawings submitted on the international filing date” if it is applied for in the Korean language, and shall be construed as “device or invention described in the description, claims or drawings submitted on the international filing date and the translated version of the said documents” if it is applied for in a foreign language: 1. Where another utility model registration is an international application (including an international application which shall be deemed utility model registration pursuant to Article 40 (4)) which is regarded as the utility model registration pursuant to Article 34 (1); 2. Where a patent application is an international application (including an international application which shall be deemed a patent application pursuant to Article 214 (4) of the Patent Act) which is deemed a patent application pursuant to Article 199 (1) of the Patent Act.

According to the purpose of the rule & comment of the Article 4, the purport of Article 4 Paragraph (2) of the Utility Model Act is not to grant a utility model registration to articles that could be easily made by a person skilled in the art because granting a utility model registration to such an article that does not contains any inventive step in technology compared to a prior art is against the objectives of the utility model system and not only gives an exclusive right to an inventor, but also even hampers the technical progress due to the limitation of accessing the technology by a third party.

• Role of Utility Model in Korea’s Technological Development

Utility model focuses on second-tier protections for minor inventions, for example, devices, tolls and implements, particularly in the mechanical, optical and electronic fields. Protection is guaranteed for 6 to 10 years. Technical information is disclosed. Application fees are less. Substantive examination is not needed. While requirements for the inventive steps are low, the invention must exhibit a practical or functional advantage over the existing prior art.47)

Patents protect innovations with a relatively high degree of inventiveness, while utility models protect innovations with a relatively low degree of inventiveness. Thus, utility model is easier to obtain, especially for smaller inventions. Utility model used to be crucial in the initial period of Korea’s development. Korea focused more on reverse engineering and importing equipment and machinery from foreign

47) Beneito, P., the innovative performance of in-house and contracted R&D in terms of patents and utility models, Research policy Vol. 35(2000), pp. 502-517.

064 • 2014/15 Knowledge Sharing Program with Bangladesh nations because of insufficient local technological ability before 1980s. Therefore, minor inventions that modified imported products were qualified for utility model protections rather than conventional patents.48) In Korea, inventors preferred to file utility model protections, and the number of utility model applications was much higher than that of normal patents till the late 1980s. Utility model has been a foundation for real innovation in the course of Korea’s catch-up process.49)

[Figure 1-12] Patent and Utility Model Applications of Korean Firms

50,000 8

40,000 6 30,000 4 20,000 2 10,000

0 0 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995

Patent, left (A) Utility models, left (B) Ratio, right (B)/(A)

Source: Yee Kyoung Kim, Keun Lee and Ki-Neung Choo, Intellectual Property Rights and Innovation in Economic Development in Korea, The Economics of Intellectual Property in the Republic of Korea, pp. 22-41, p. 26.

4.2.2. Recommendations

Countries may envisage the adoption of utility models for various reasons: (i) To contribute to the creation and fostering of domestic technology bases and familiarizing the local industry with intellectual property rights, (ii) To support policies intended to strengthen the position of Small and Medium-sized Enterprises (SME), (iii) To promote research in the form of simple, but practical and useful solutions, (iv) To expand the archives of knowledge to potential innovators through disclosure and to enhance the diffusion of such legally protected innovations.50) The United Kingdom, Luxembourg and Sweden do not have utility model systems. France, Belgium, Croatia and Holland are using utility model systems. As Figure 1-13 shows, utility model applications are continuously increasing in the world, and have been increasing faster since 2010.

48) Yee Kyoung Kim, Keun Lee and Ki-Neung Choo, Intellectual Property Rights and Innovation in Economic Development in Korea, The Economics of Intellectual Property in the Republic of Korea, PP. 22-41, p. 23. 49) Ibid., p. 23. 50) N Ayse Odman Boztosun, Exploring the Utility of Utility Models for Fostering Innovation, Journal of Intellectual Property Rights Vol 15, November 2010, pp. 429-439, p. 430.

Chapter 1 _ Policy Consultancy for the Development of Intellectual Property in Bangladesh • 065 [Figure 1-13] Utility Model Application in the World

Growth rate Application 900,000

700,000

500,000

34.7 300,000 27.4 24.6 Applications 23.4 18.2 15.1 15.2 9.4 8.4 9.4 9.8 8 100,000 1.5 2 -12.9 -11.7 6.8 13.1 -100,000 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: World Development Indicators (Dec 2014).

In low-cost and mid-cost nations, patent applications by non-residents are much higher than those of residents. However, there is no such difference in Bangladesh. This situation is due to a big gap in technical innovation capability between developing and developed nations. However, it is not the same for utility model applications. Applications by residents are higher than those by non-residents. The difference between patent and utility model means that utility model has a more positive influence on the promotion of inventions.

[Figure 1-14] Patent Applications for Offices of Selected Low-and Middle-Income Countries, 2013

Resident Non-resident

91.3 83.4 47.2 86.5 5.8 83.8 93.3 68.8 87.6 94.2

7,295 7,205 Growth rate (%): 2012-13

5,412 4,772 4,661

3,435 3,285 Applications 2,057 2,032 1,266

South Africa Malaysia Ukraine Argentina Turkey Eurasian Philippines Egypt Colombia Peru Patent Organization

Resident Non-resident

72.4 83.8 99.3 83.9 98.8 80.2 47.3 97.2 81.5 40.0

• 066 2014/15 Knowledge Sharing1,144 Program with Bangladesh Growth rate (%): 2012-13

934

692

552 Applications

323 303 241 217 119 30

Morocco Pakistan ARIPO OAPI Guatemala Bangladesh Kenya Honduras Jamaica Nepal Resident Non-resident

91.3 83.4 47.2 86.5 5.8 83.8 93.3 68.8 87.6 94.2

7,295 7,205 Growth rate (%): 2012-13

5,412 4,772 4,661

3,435 3,285 Applications 2,057 2,032 1,266

South Africa Malaysia Ukraine Argentina[Figure 1-14]Turkey continuedEurasian Philippines Egypt Colombia Peru Patent Organization

Resident Non-resident

72.4 83.8 99.3 83.9 98.8 80.2 47.3 97.2 81.5 40.0

1,144 Growth rate (%): 2012-13

934

692

552 Applications

323 303 241 217 119 30

Morocco Pakistan ARIPO OAPI Guatemala Bangladesh Kenya Honduras Jamaica Nepal

Source: World Development Indicators (Dec 2014).

Under the utility model system, such novel approaches may lead to other creative uses of utility model protections and proliferating their functions. By not requiring an inventive step, utility model may be quite well-suited to protect innovations especially in the biotechnology and pharmaceutical industries, achieved through skilled labors and investment-intensive foreseeable researches.51) At the same time, utility model may meet the legal protection requirements of innovators in industries such as semiconductors, and computer and software, providing cheaper alternatives with a shorter term of protections than that for patent rights.52) Finally, by adopting utility model rights as an alternative to patents, countries may prefer to conduct examination procedures and be able to help applicants save money and time.

51) Ibid. 52) Ibid.

Chapter 1 _ Policy Consultancy for the Development of Intellectual Property in Bangladesh • 067 [Figure 1-15] Utility Model Applications for Offices of Selected Low-and Middle-Income Countries, 2013

Resident Non-resident

77.1 - 11.4 -5.8 -3.1 22.4 - 5.7 -5.5 66.7 372 349 Growth rate (%): 2012-13

273 261 253 213 212 184 173 145 Applications

Bulgaria Indonesia Vietnam Colombia Hungary Republic of Kazakhstan Argentina Uzbekistan Malaysia Moldova

Resident Non-resident

2.2 14.7 -1.3 -1.4 -10.7 30.6 0.0 52.9 0.0 -16.7

140 Growth rate (%): 2012-13

78 77 69 67 64

Applications 41 26 10 10

Peru Kenya Serbia Tajikistan Romania Georgia Armenia Guatemala Costa Rica Honduras

Source: World Development Indicators (Dec 2014).

For these reasons, utility model is worth adopting for Bangladesh. Utility model system can be adopted differently depending on each nation’s current economic level. In doing so, the scope of protection, object and degree of novelty and creativity should be carefully considered.

068 • 2014/15 Knowledge Sharing Program with Bangladesh

Utility Model in Nations

No limitation Ireland, Croatia, Austria Only production invention Denmark, Germany, Finland, Slovenia, the Scope of But process invention Czech Republic, Slovakia Protection Only production invention Bulgaria, Greek, Italy, Poland, Portugal, with shape Spain, Yugoslavia, Uruguay Bulgaria, Finland, Greek, Ireland, Italy, No difference in comparison Yugoslavia, Croatia, Poland, Portugal, with patent Novelty Slovakia, Slovenia, the Czech Republic Relived than patent Germany, Spain, Uruguay Same level as patent Ireland, Croatia, Uruguay, Portugal Denmark, Germany, Finland, Yugoslavia, Different level in comparison Inventive step Austria, Spain, Slovenia, the Czech with patent Republic. Etc. Bulgaria, Greek, Italy, Poland, Portugal

4.3. Establishment of Regional Property Center

4.3.1. Korea’s Experiences

RIPC stands for Regional Intellectual Property Center. It is a special semi-public legal entity which can be established by a private person but needs to meet certain regulations and be registered to the commissioner of KIPO (Invention Promotion Act §23 ③).

Historically, in 1978, Regional Patent Archives were established in the 15 Regional Chambers of Commerce and Industries located in major cities and provinces to make the patent information available to the locals. They were reformed into Regional Patent Information Centers in 2000 to provide counseling as well as information on intellectual property. In January 2004, Regional Patent Information Centers changed their names to RIPCs. Currently in 2015, there are 30 RIPCs nationwide.

They provide residents and SME: 1) information and counseling on industrial properties, 2) education and promotion of industrial properties, 3) aid on creating, protecting and utilizing industrial properties, and 4) any other supports needed regarding industrial properties.

Particularly, RIPCs focus on supporting local IP creations, and for this purpose they carry out the following sub-projects.

Chapter 1 _ Policy Consultancy for the Development of Intellectual Property in Bangladesh • 069 ① Starting up IP: education on IP, research on preceding patents, subsidizing local patent application fees. ② Scaling up IP: subsidizing local and foreign patent application fees, helping SMEs produce 3-dimensional samples & patent maps, helping SMEs develop brands & designs. ③ Providing financial supports for IP Star Entrepreneurs: selecting “Star Es” and providing the ② “Scaling up IP” supports above plus branding supports on non-English countries, and granting support on brand-design fusions and design-patent fusions. ④ Establishing infrastructure for regional IP development: systematic educations on IP, holding various IP promotion events, building regional IP networks, running an IP managers’ club, IP educations on soldiers, running IP creation zones, etc. ⑤ Promoting IP competitiveness in traditional industry: supporting registrations of traditional GI rights & geographical collective marks.

A substantial part of their operational costs comes from government funding supports, but they can also run their own profitable businesses to cover expenses (Invention Promotion Act §23 ⑥, ⑦).

The total budget of the year 2006 (7.87 billion KRW) was increased to about 45 billion KRW in the year 2013, with the increase rate of about 570%. The number of centers is maintained roughly around 31, while the number of consultants working for RIPCs increased from 95 to 177~180. Only three local governments participated in the program in the year 2006, but nearly 130 participated in the year 2013, showing that the matching program has successfully spread nationwide.

General of RIPC

Year ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 Number of Centers 31 29 29 30 31 32 31 31 Budget (Billion KRW) 6.12 6.86 8.97 11.21 15.33 21.25 23.17 24.66 Budget (Billion KRW) 1.75 1.9 3 4.44 10 16 19.1 20.4

Number of Upper Level 3 9 13 16 17 17 17 17 Participating Local Governments Lower Level - - - - - 55 91 114 Numbers of Consultants 95 123 131 149 175 175 183 177

“Star Entrepreneurs” supported by RIPCs created more jobs aes

070 • 2014/15 Knowledge Sharing Program with Bangladesh [Figure 1-16] Increase in Employment and Sales

Enterprises selected Increase in Employment (%) and supported by RIPC 20 12.7 11.1 SMEs 6.4 10 0.8

0 -2.8 -0.8 -10 2009 2010 2011

Increase in Sales (%) Enterprises selected and supported by RIPC 40 30.3 25.5 SMEs 20.8 15.2 20 7.8 9.3

0 2009 2010 2011

Source: https://www.ripc.org/main/sub02/sub0299.jsp

4.3.2. Implications

Korea has attempted to develop IP systems regionally as well as in the capital city by establishing the RIPCs. As the figure shows below, in Korea, there are a number of regional applications. It means that awareness on IP has increased across the nation, in spite of big gaps from the capital city, Seoul. In Bangladesh, there are only two offices, located in the capital city-Dhaka and Chittagong.53) It is doubtful to establish the type of RIPCs for developing IP system in regions at this stage, because infrastructures are limited to create inventions in Bangladesh regions except for Chittagong. Under these circumstances, Bangladesh needs to concentrate on a centralized IP environment. However, as regional economies develop, introducing RIPCs would be worthy of consideration for IP-friendly environment in the local economies.

53) Chittagong is the second-largest city and main seaport of Bangladesh. It is located in the southeastern region of the country, at the mouth of the Karnaphuli River, straddling hilly terrain and facing the Bay of Bengal. Chittagong is one of the fastest growing cities in the world. It hosts the Port of Chittagong, which handles 80% of Bangladesh’s external trade. (http://en.wikipedia.org/wiki/Chittagong, 2015.4.1.)

Chapter 1 _ Policy Consultancy for the Development of Intellectual Property in Bangladesh • 071 [Figure 1-17] Design and Trademark Application per Region

Applications Applications Seoul 15,335 Seoul 44,233 Gyeo... 14,608 Gyeonggi... 20,240 Inche... 2,832 Busan 3,506 Daegu 2,727 Incheon 3,147 Busan 1,673 Daegu 2,814 Chun... 1,172 Chungch... 2,391 Gyeo... 1,107 Daejeon 2,329 Gyeo... 964 Gyeongs... 2,012 Daej... 817 Gyeongs... 1,703 Chun... 808 Gangwon... 1,568 Gwa... 701 Chungch... 1,512 Jeolla... 628 Jeollabuk... 1,486 Ulsan 556 Jeju-do 1,111 Jeolla... 432 Gwangju 1,095 Gang... 402 Jeollana... 1,013 Jeju-... 160 Ulsan 560 Design Trademark Sejong 49 Sejong 136

4.4. Introduction of Compensation System for Employee’s Invention

Knowledge-based society should enhance national competitiveness by creation and diffusion of knowledge and information. Therefore, roles of companies and universities become more important. Since its infant industrial stage, Korea has been trying to establish an environment for creation of IP, where the significance of inventions and knowledge can be widely diffused. As a result, Implementation of the Employee Invention Compensation System was established. Under the system, profits from an invention is reasonably distributed to employees who invented a process or a device through their creative efforts, as well as users who invested in and provided funds and facilities for the invention’s progression. The portion of the inventions related to the duties in the whole application is over 80% in Korea and other developed nations. Therefore, it is crucial to keep a balance to prevent an inventor from losing his will to invent.

072 • 2014/15 Knowledge Sharing Program with Bangladesh 4.5. Reformation of Commission Fee

There are about 6 million industries in Bangladesh, including micro, small and medium-sized industries (MSMEs). 30 million people who take up 87% of the whole industrial labor forces, can be employed directly or indirectly by them. Over 33 % of the total industrial values are created in these sectors (MSMEs). In addition, there are more than 347,000 cottage industries and a huge number of hand and power loom companies.54) Like this, small and medium-sized businesses can be a key for Bangladesh economic development. A plan to promote application by the business should be recognized. Due to the examination requests, fees should be paid for patent examination. For small and medium-sized businesses, individuals, joint researches between the business and major companies and public research institutes, application fees, examination request fees, patent fees for 3 years and utility model registration fees are reduced. The reduced fees can promote patent application filings by individuals and businesses. In Bangladesh, commission fees are too high for individuals and businesses. By reducing commission fees, Bangladesh can promote domestic inventions.

54) Uddin, M.Kamal, A Project of World Intellectual Property Organization (WIPO), 2010. p. 13.

Chapter 1 _ Policy Consultancy for the Development of Intellectual Property in Bangladesh • 073 References

Agarwal, Sanjeev, and Michael J. Barone, Emerging issues for geographical indication branding strategies. Midwest Agribusiness Trade Research and Information Center, Iowa State University, 2005. Bernard O’Connor, the Law of Geographical Indications, 2004. Cerkia Bramley, the economics of geographical indication; towards a conceptual framework for geographical indication research in developing countries, the economics of intellectual property, 2012. Daniel Hanssan Sylvette Monier-dilhanm Valerie Orozoco, “Measuring Consumers’ Attachment to Geographical Indications: Implications for Competition Policy?”, TSE working paper series 11-225, 2011. Das Kasturi. “Socio-economic implications of protecting geographical indications in India.”, Centre for WTO studies, 2014. Dwijen Rangnekar, “Geographical Indications, A review of Proposal at the TRIPS Council; Extending Article 23 to Products other than Wines and Spirits”, Intellectual Property Right and Sustainable Development Issue Paper No 4, 2003. Dwijen Rangnekar, D. ‘the Law and Economics of Geographical Indications: Introduction to Special Issue of the Journal of World Intellectual Property’, 13(2), 2000. Dwijen Rangnekar, the pros and cons of geographical indications, Bridges, 6(3), 2002. Denis Sautier, Estelle Bienabe, Claire Cerdan. “Geographical Indication in Developing countries”, CAB International, 2011. Gorge Larson, “Relevance of geographical indications and designations of origin for the sustainable of use of genetic resources”, 2007. Kwon, Ki Dae, Park, Won Jon, Kim, Shin Ae, “Marketing Strategy of GI and Collective Brand of Cheon-Yang Gugija”, A Study on Food Distribution 25(2), 2008. Hyung, Yun-Young, “Comparative Study on Current Situation and Problems from Geographical Indication System”, Kyoung Buk Univertity, 2014. Lisa Hyunjung Kim, Don-Jin Kim, Jung-Eun Cho, “A Study on the perception of Consumers, Producers, and Government Employees toward Geographical Indications”, The Korean Journal of Culinary Research, Vol. 16, No 4, 2010. Jo, Youn-su, “The image formation and its effect of Co-brand through the classical conditioning model-Focusing on The Collective Marks For Geographical Indications”, Korea Design Forum Vol. 35, 2012. Jung, Tae-Ho, “A Study on Problems and Solutions of them in Collective Mark System for a Geographical Indication”, Wonguang Law Jouranal, Vol. 27, No 4, 2011.

074 • 2014/15 Knowledge Sharing Program with Bangladesh Korea Rural Economics Institute, Current Status and Improvement Plan of GI for Development of Regional Industries, 2011. Sunder, Madhavi. “The invention of traditional knowledge.” Law and contemporary problems, 2004. Shahid Alikhan, R. A. Mashelkar, Intellectual Property and Competitive Strategies in the 21st Centry, Kluwer Law International, 2004. Korea Institute for International Economic Policy, Discussion on extend of GI protection in TRIPs; confrontation Strategy for protection of Korea GI, 2002. Van Caenegem, William. Registered Geographical Indications: Between Intellectual Property and Rural Policy-Part I. Law papers 3, 2003. Wagle, S, “Geographical Indications under TRIPS Protection Regimes and Development in Asia, SAWTEE Policy Brief No. 8, 1-8, South Asia Watch on Trade”, Economics and Enviroment, Kathmandu, Nepal, 2004. WIPO, Geographical Indications an introduction (http://www.wipo.int/edocs/pubdocs/en/geographical/952/wipo_pub_952.pdf) WIPO, National Report, 2013 http://www.independent-bangladesh.com/culture/nakshi-kantha.html http://en.banglapedia.org/index.php?title=Hilsa http://www.banglapedia.org/HT/H_0153.htm http://www.prothom-alo.com/todays-paper http://www.nongmin.com/article/ar_detail.htm?ar_id=211156 http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=102&oid=038&a id=0001979388 http://www.andongpo.org/

Chapter 1 _ Policy Consultancy for the Development of Intellectual Property in Bangladesh • 075

2014/15 Knowledge Sharing Program with Bangladesh: Policy Consultation on Bangladesh IP and GI Management System Chapter 2

Proposal on the Management of the Bangladesh GI System

1. Introduction 2. Current Situation and Problems of GI Registration System in Bangladesh 3. Korea’s Experiences with Management of the GI Registration Systems 4. Policy Proposals for the Bangladesh ■ Chapter 02

Proposal on the Management of the Bangladesh GI System

Sukyung Nam (Associate Research Fellow, Korea Institute of Intellectual Property)* Namkyung Kim (Researcher, Korea Institute of Intellectual Property)** Siyeol Kim (Associate Research Fellow, Korea Institute of Intellectual Property)**

Summary

Geographical Indications (GIs) are intellectual property rights that developing countries, the total amount of capital of which is limited, can strategically use, in terms of diversifying the structure of economic development, reinvigorating local economies, and contributing to the conservation of cultural heritages in the region. As a member country of WTO, Bangladesh takes on an obligation of implementing the geographical indication system under TRIPS Agreement (Agreement on Trade- Related Aspects of Intellectual Property Rights). In an effort to implement its obligation, Bangladesh enacted the relevant Act in 2013, but the ‘system’ itself has not been implemented due to the absence of sub-regulations. Furthermore, the relevant procedures of the geographical indication system, from application for registration to follow-up management, are quite complicated, and the evaluation of geographical indications requires expertise, such as the decision on the quality, history, and legitimacy of relevant products. Therefore, the lack of expertise and relevant experience of DPDT, which is prescribed as the competent authority, is the task that Bangladesh should overcome from now on.

As Korea currently has dual protection systems – “geographical indication system” under the Agricultural and Marine Products Quality Control Act and “geographical collective mark” under the Trademark Act, it is coming under criticism that such dual systems would lead to the chaos of applicants and waste of administrative

* Main Author ** Researcher

078 • 2014/15 Knowledge Sharing Program with Bangladesh powers. Therefore, this study firstly proposed that the affairs of evaluation and management be entrusted to the DPDT of Bangladesh to unify protection systems. Especially taking consideration into the poor financial conditions of applicants and the loss from delay of registration, the procedures for application for geographical indications should be simplified, and documents to be submitted should be minimized. In addition, the procedures for inquiring opinions of relevant agencies shall be established at the stage of evaluation to improve expertise of evaluation. Secondly, in the proposals of “vitalization of systems,” it was proposed to carry out research for finding geographical indication products, implement various policies to support applicants, raise public awareness of the geographical indications system, and produce a unified logo. Lastly, the “follow-up quality system” for geographical indication products should be established by setting up an independent monitoring body and introducing an honorary observer system.

1. Introduction

Protecting Geographical Indications (GIs) is one of the long-standing European public policies devoted to the modernization of the agro-food sector.55) However, since the adoption of Agreement on Trade-Related Aspects of Intellectual Property Right (TRIPS) in 1994, which contains a section on geographical indications (GIs), this form of intellectual property has increasingly drawn attention from policymakers and trade negotiators, as well as producers.56) Articles 22.2-22.4 establish the basic obligation for the protection of all GIs. Members must provide the “legal means for interested parties” to secure protection of their GIs.57) Under Article 22, protection is composed of three elements: (a) protection against the use of indications in a manner that might mislead or deceive the public, (b) protection against the use of indications in a manner that constitute acts of unfair competition, and (c) provisions for refusal or invalidation of trademarks that contain or consist of indications, where such may mislead the public. Therefore, all members including Korea and Bangladesh are obliged to implement GI protection in their respective national legal system.

Although they are free to determine the appropriate implementation mechanism, there are three different approaches which can be categorized as follows; sui generis system, geographical collective marks and preventive consumer protection against unfair competition and passing off. These approaches, which are different in terms of

55) Daniel Hanssan Sylvette Monier-dilhanm Valerie Orozoco, “Measuring Consumers’ Attachment to Geographical Indications: Implications for Competition Policy?”, TSE working paper series 11-225, 2011, p. 1. 56) WIPO, Geographical Indications an introduction, p. 6. 57) Dwijen Rangnekar, “Geographical Indications, A review of Proposal at the TRIPS Council; Extending Article 23 to Products other than Wines and Spirits”, Intellectual Property Right and Sustainable Development Issue Paper No 4, 2003, p. 4.

Chapter 2 _ Proposal on the Management of the Bangladesh GI System • 079 the conditions and scope of protection, vary from one country to another depending on their legal framework and economic conditions.

But the common aim of protection GI is to protect consumers from false or misleading and right holder from misappropriation.58) In addition, GI features collective asset rather than exclusive property right, thus GI registration system not to guarantee economic profit proprietarily but to preserve intangible value of GI goods institutionally. GI have emerged in the debate on continuous expansion of IP, and now begins to attract attentions from developing countries. According to the WIPO National Report (2013), Bangladesh acknowledged the difficulty of registering its famous and reputed agricultural and manufactured goods due to the lack of relevant law to protect geographically originated products.59) It means that Bangladesh is lagging behind among other nations, where GI strategies are highly required to strengthen competitiveness in the world’s market.

Fortunately, considering its valuable contribution made out of natural and artificial resources, Bangladesh has finally enacted the Geographical Indication of Goods (Registration and Protection) Act 2013. Accordingly, the Department of Patent, Design, and Trademark (DPDT) should take a necessary step to manage the GI registration system in accordance with the Act. Korea has attempted to maximize benefits from GI registration system in various ways since the adoption of the system in 2002. For this reason, Korea’s experience with management of the system may have significant implications for DPDT to undertake the newly enacted law on GI. Therefore, this study, entitled “Bangladesh KSP in 2014”, focused on sharing the knowledge and experiences in GI registration system.

2. Current Situation and Problems of GI Registration System in Bangladesh 2.1. Necessity of the GI Registration System

Article 24.9 of the TRIPS Agreement categorically provides that: “There shall be no obligation under this Agreement to protect geographical indications which are not or cease to be protected in their country of origin, or which have fallen into disuse in that country.” So, in order to invoke a violation of the WTO TRIPS Agreement a member concerned must first protect its GI inexistent form. Alternatively anyone may be a free rider of a GI if it is not legally protected in its country of origin or

58) The possibility of combination of two or more of the approaches advantage developed countries as well as developing countries, because the diversity of legal framework may provide the opportunity to find the best way for GI protection. 59) WIPO National Report, op. cit., p. 118.

080 • 2014/15 Knowledge Sharing Program with Bangladesh it has become generic or otherwise “has ceased to be protected”. GIs can never become generic once registered.60) It means that the strongest protection of GIs is provided through registration for use, in trade, of names that indicate the origin of the product.61) According to the WIPO, GIs do not merely refer to a name or a symbol; instead they reflect a reputation strongly linked to geographical areas of varying sizes, giving them an emotional component. Moreover, the WIPO also emphasized that a GI’s reputation is a collective and intangible so that if not properly protected, it could be used without restriction, thereby diminishing and eventually losing its value.62) Indeed, many geographical names in developing countries have been usurped outside the region or country concerned.63) For the reasons, it is imperative for Bangladesh to provide legal means to register GI for the protection of Bangladesh potential GI. Moreover, the ever expanding horizon of globalization is now affecting the pedigree of traditional practices and indigenous lifestyles. Protection of traditional GI through registration is an indispensable mechanism to prevent bio-piracy and similar unfair practices.

GI registration system in Bangladesh may bring economic benefit. GI is a form of intellectual property based on the ‘territory’, thus, it has the product-place link which makes GIs product more valuable. Therefore, without a huge capital, GI products inherently possess competitive marketing tool. In addition, since most of these GI goods or potential GI goods have their origin in rural areas, the increased sales of these goods as a result of protection under the GI Act has the potential to lead to enhanced income to the producers’ communities and hence to rural development.64) Notably, the willingness of at least a niche section of the consumers to pay a premium for GI-products has been revealed in quite a few empirical studies, though predominantly in the context of developed countries. As a developing country with a strong agricultural sector, artistry and traditional knowledge, GI law can be an extremely important public policy tool for economic development and the livelihood of farmers and skilled worked in the field.65) For example, the one of the famous potential GI is ‘Jamdani Saree’– a handicraft item produced in its state, ‘Nakshi ’ produced in and ‘Fazli mango’ grown in the Malda district of West Bengal state. Compared to 1,600 jamdani weavers in the year 2000, their number rose to approximately 15,000 in 2013. It is estimated that about

60) Van Caenegem, William. Registered Geographical Indications: Between Intellectual Property and Rural Policy-Part I. Law papers 3, 2003, p. 3. 61) Gorge Larson, Relevance of geographical indications and designations of origin for the sustainable of use of genetic resources, 2007, p. 10. 62) WIPO, op. cit., p. 23. 63) Denis Sautier, Estelle Bienabe, Claire Cerdan. Geographical Indication in Developing countries, CAB International, 2011, p. 141. 64) Das Kasturi. “Socio-economic implications of protecting geographical indications in India.”, Centre for WTO studies, 2014. 65) Dwijen Rangnekar, D. ‘the Law and Economics of Geographical Indications: Introduction to Special Issue of the Journal of World Intellectual Property’, 13(2), 2000, pp. 77-80.

Chapter 2 _ Proposal on the Management of the Bangladesh GI System • 081 2,000 jamdani are produced a week in the Dhaka region, at a price range of Tk 5,000 to Tk 150,000. The total export of jamdani saris, including to India, jumped from $4.84 million in fiscal 2008-09 to $10.41 million in 2010-11.

Lastly, GI are compatible with the nature of traditional knowledge (TK) and traditional cultural expressions (TCEs) in that they provide protection that is potentially unlimited in time, as long as the qualitative link between the products and the place is maintained and the indication has not fallen into genericity.66) Accordingly, GI registration system can contribute to preserve TK and TCEs for future generations in several ways, because, through GI registration system, producers less resort to costly ones instead of traditional ones, and also right of use GIs name is collective asset, and not private property.

2.2. Potential GIs in Bangladesh

IPR are mostly concentrated in developed countries, because conditions of technology development are insufficient relatively in developing countries. When it comes to GI, the situation is not quite different, in that GIs are not inventions with novelty, but recognitions at a point in time. What is needed is only appropriate registration system. Developing countries, therefore, have the potential for a more equitable distribution of intellectual property.67) Bangladesh is rich in flora and fauna, culture and traditional outfits. Its knowledge on such valuable resources often contributes to manufacturing goods.68)

shows potential GIs which have its geographical origin in Bangladesh.

Bangladesh Potential GIs Product Geographical Area Tat (handloom) sari Tangail Kancha Golla (sweets) Nator Chom Chom (sweets) Porabari Rosogolla (sweets) Jam tola, Jessore Katan Mirpur Tiler Khaza (sweets) Kustia Hunny Sundorban Mango Rajshahi Doi Bogra Ros-malay(sweets) Matri Vandar, Comilla

66) WIPO, op. cit., p. 18. 67) Denis Sautier, op. cit., p. 141. 68) Most commonly, a GI consist of the name of the place of origin of the good, but non-geographical names, such as “Vinho Verde”, “Cava” or “Argan Oil”, or symbols commonly associated with a place, can also constitute a GI. In essence, whether a sign functions as a GI is a matter of national law, and consumer perception. (WIPO, Geographical Indications an introduction, p. 9)

082 • 2014/15 Knowledge Sharing Program with Bangladesh The prominent GI goods of Bangladesh are as follows:

: the Ingenuity of the Women Folk of Bangladesh69)

Nakshi kantha or embroidered quilt is a type of folk art of Bangladesh and West Bengal, India. The art has been practiced in rural Bengal for centuries. The basic material used is thread and old cloth. Kanthas are made throughout Bangladesh, but the greater Mymensingh, Rajshahi, Faridpur and Jess ore areas are most famous for this craft. The colorful patterns and designs that are embroidered resulted in the name “Nakshi Kantha”, which was derived from the Bengali word “naksha”, which refers to artistic patterns. The early kanthas had a white background accented with red, blue and black embroidery; later yellow, green, pink and other colors were also included. The running stitch called “kantha stitch” is the main stitch used for the purpose. Traditionally, kantha was produced for the use of the family. Today, after the revival of the nakshi kantha, they are produced commercially.

Nakshi Kantha (embroidered quilt), said to be indigenous to Bangladesh, is made from old clothes, predominantly discarded sari, dhoti and lungi. The term nakshi kantha, popularly used in Bangladesh, is found even in medieval literature. The name nakshi kantha became particularly popular among literate people after the publication poet of Jasimuddin’s poem Naskhi Kanthar Math (Field of Embroidered Quilt) (1929). A large number of kanthas show the ingenious use of the running stitch for working motifs and border patterns. The Chatai Nakshi Kantha stitches are found in some places of Jessore, Kushtia, Pabna, Rajshahi, Rangpur and Mymensingh. Other types of kanthas include the pad tolakantha, which is embroidered entirely with sari border patterns, and the lohori kantha, in which thick yarn is used for close pattern darning. In the most intricate of pad tola kanthas, there is no space between the concentric border patterns, so that the entire kantha seems apparently to be a piece of woven cloth.70)

• Hilsa: National Fish of Bangladesh

According to national encyclopedia of Bangladesh, Hilsa (ilish) any of the members of the genus Tenualosa of the family Clupeidae, order Clupeiformes. Locally known as Ilish, the fish has been designated as the national fish of Bangladesh.71) Hilsa has a wide range of distribution and occurs in marine, estuarine and riverine environments. The fish is found in the Persian Gulf, Red Sea, Arabian Sea, Bay of Bengal, Vietnam Sea and China Sea. The riverine habitat covers the Satil Arab, and the Tigris and Euphrates of Iran and Iraq, the Indus of Pakistan, the rivers of Eastern

69) http://www.independent-bangladesh.com/culture/nakshi-kantha.html 70) http://www.independent-bangladesh.com/culture/nakshi-kantha.html (accessed 20 Dec 2014) 71) http://en.banglapedia.org/index.php?title=Hilsa

Chapter 2 _ Proposal on the Management of the Bangladesh GI System • 083 and Western India, the Irrawaddy of Myanmar, and the Padma, Jamuna, Meghna, Karnafully and other coastal rivers of Bangladesh.72) The fish is exploited by intensive fishery for the mature migrating adults in the estuaries and river channels, and to a lesser extent by the capture of the jatkain the river. Nearly 16.4 percent of the country’s total fish production is contributed by this fishery. In terms of production and quantity exported, hilsa has played a significant role in the economy of Bangladesh in recent years. An amount of Tk 1,34,79 million was earned by the fish and fisheries commodities in 1996-97, with hilsa alone contributing about Tk 4,88 million. It is estimated that about 2 million fishermen and traders are engaged in hilsa fishing in the country.73) In 2013-14 year 3 lakh 85 Metric tons Hilsha has been caught in Bangladesh.74) Bangladesh contributes 60 percent of the World’s total supply of Hilsha.75) So Bangladesh has a strong case to register a GI over Hilsha. It should be protected under additional protection scheme.

2.3. Bangladesh GI Registration System

2.3.1. The Bangladesh Geographical Indication of Goods Act 2013

The Bangladesh Geographical Indication of Goods Act 2013(the GI Act) provides legislative protection to geographical indications as required under Article 62.1 of the TRIPS. However, the Act is not yet implemented, because the enforcement details – such as prescribed forms, procedure, fees etc. – have yet been devised.

The definition included in the GI Act is fairly broad. Section 2.9 defines a GI as follow;

“Geographical indication of goods” means a geographical indication of agricultural or natural or manufactured goods which identifies its originating country or territory, or a region or locality of that country or territory, where any specific quality, reputation or other characteristic of the goods is essentially attributable to its geographical origin and in case where such goods are manufactured goods, one of the activities of either production or processing or preparation of the goods concerned conceivably takes place in such territory, region or locality as the case may be;

Apparently protective projection of the Act covers both GI and appellation of origin. Goods qualified for protection may include natural species (e.g. certain CORAL species of ornamental value found in the coastal area), agricultural species

72) ibid 73) http://www.banglapedia.org/HT/H_0153.htm 74) http://www.prothom-alo.com/todays-paper (19 Dec, 2014) 75) Ibid

084 • 2014/15 Knowledge Sharing Program with Bangladesh (e.g. traditional aromatic rice species ) and products of handicraft or industry including foodstuffs (e.g. “Jamdani”, “nakshikantha”, “Mangoes from Rajshahi”, “Yoghurt from Bogra”, “Monda from Muktagacha”(Mymenshing). For the purpose of registration goods will be classified as per the WIPO NICE classification regime.76)

For the well-functioning the GI registration system, there must be a Geographical Indication Unit within the Department of Patents, Designs and Trademarks under the Ministry of Industry. This Unit, which is in charge of the GI registration and supervising, should carry out all the necessary functions related to geographical indication of goods. The Geographical Indications Unit at the DPDT under the Ministry of Industry is the GI registration and superintendent authority in Bangladesh.77)

The application procedure includes filing of application, examination, publication, objection, counter-objection and reply, registration (if objection does not sustain) and non-registration (if objects sustains).

[Figure 2-1] GI Registration Procedure

Filling of Application (sec-9)

Registration as authorized user (Sec-10)

Refusal of Application If Accepted (Sec-11)

Examination of Application and Notice of Application (Sec-12)

Registration Objection to of Counter-objection Registration Hearing in geographical and reply by (within the Tribunal- indication the applicant 2 months of Approval/ of goods (Sec-14) advertisement) Rejection (Sec-15) If Accepted (Sec-13)

The Registration of geographical indications of goods and awarding certificate of registration (Sec-15) of Directors

Source: DPDT.

76) Section 2.15 77) Section 4.1 of GI act

Chapter 2 _ Proposal on the Management of the Bangladesh GI System • 085 The Act incorporated provision to designate two types of registration: registration for GI and registration as authorized user. Those applicant who claim to produce, extract or process relevant GI goods may get them registered as authorized user of such goods. These two types of registration have to be accomplished through separate applications.78) This two-track systems is derived from the Indian GI Act. In India, the GI Registrar is required to issue each to the applicant and the authorized users, if registered with the GI, a certificate of registration.79) In addition, it is the ‘authorized users’ and not the ‘registered proprietor’ who have the exclusive right to use the GI. This approach gels well with the ‘collective right’ nature of GIs, since those who might enter the trade subsequent to the registration could also get registered as ‘authorized users’.80) However, both the ‘registered proprietor’ and the ‘authorized users’ can take infringement actions.81)

2.3.2. Problems and Tasks

Though GI Act 2013 was enacted in Bangladesh for the registration and protection of GI, GI system does not function properly due to the absence of relevant rules for GI. Implementation Rules for GI needs to be legislated after thorough review of the Draft Rule 2014. The legislation of the implementation Rule is not an easy task for the following reasons: 1) Whether GI relevant rule is appropriated to TRIPS agreement should be considered; 2) All interest of the relevant parties should be coordinated, 3) All requirements and procedures should be identified and be simple, not complicated.

Compared the GI Act of India, an issue as to the relationship between registered proprietor and authorized uses is ambiguous. More specifically, it is submitted that provisions for registration as an authorized user have been adequately outlined neither in the GI Act nor in the Draft Rules. For the issues such as the relation between registered proprietor and authorized user of the GI, whether an authorized user should have got letter of consent from the authorized user or whether the notion of authorized user is only limited to foreign GIs are still unsettled. It is also not clear when an authorized user would be considered as “a producer, extractor, processor or manufacturer of a GI”.

There are not any detailed provisions related to the organization of GI unit and appointment of officials. Also according to article 9 of the GI Act, any association, institution, government body or authority, which is established or registered under existing laws and representing the interest of persons producing geographical

78) Das, Kasturi. op. cit., p. 13. 79) Das, Kasturi. op. cit., p. 16. 80) Section 21(1)(b) and 21(1)(c) of the India GI Act 81) Section 67 of the India GI Act

086 • 2014/15 Knowledge Sharing Program with Bangladesh indication of goods, may apply in writing to the Registrar in the prescribed form and manner along with the payment of prescribed fees for registration of geographical indication of goods. In fact, this article does not mention an application form and kind of documents to be submitted. As the GI Act explains in its preamble, “it is expedient and necessary to make provisions for the registration and protection of geographical indication of goods and for matters ancillary thereto.” Bangladesh, firstly, should finalize implementing Rules to fully facilitate the GI Act 2013.

The effects of a right obtained in a particular jurisdiction are subject to territorial jurisdiction. Thus, the scope of protection is confined to the jurisdiction where the right over a GI is obtained, and it does not extend overseas.82) However, to regulate the misuse of a GI and utilize the potential benefit from GIS, it become necessary to obtain an appropriate legal protection for GIs at the international level. In India, the Geographical Indications of Goods Act entered into force in September 2003 and 106 GIs were registered by 15 August 2009.83) Since Bangladesh shares a common heritage with India, Bangladesh needs to prepare the strategies for international disputes concerning GIs.84)

GIs can be protected a) by obtaining protection directly in the jurisdiction concerned; b) through the Lisbon Agreement of Appellations of Origin and their International Registration; c) through the Madrid System for the International Registration of Marks (in which the GI concerned is protected in the country of origin as a collective or certification mark); and d) by concluding bilateral agreements between States or commercial partners.85) However, Bangladesh is not a signatory to Madrid system and Lisbon Agreement. Moreover direct registration in foreign countries can be a daunting task, because, significant divergences exist among countries with regard to the modes of GIs protection.

In such circumstances, Bangladesh has to depend on protection under the TRIPS Agreement in spite of the lowest level of protection. However, it should be noted that the obligation to protect GI exists only regard to such indication that is protected in their country of origin in accordance with Article 24.9 of the TRIPS Agreement.86) In

82) WIPO, op. cit., p. 35. 83) Das, Kasturi, op. cit., p. 18. 84) There are several similar case concerning international dispute of GIs. The legal dispute over the right to use the word “Champagne” on sparkling wines would be one of the most well-known cases regarding Geographical Indication rights. Rhee Bros. Inc., a US corporation, has been selling “Rhee Chun Rice(A name that suggests that the rice is produced within the region of Icheon)” to the customers in the US and Europe for more than 30 years. Respectively, the committee of Makgeolli professionals in Pocheon registered “Pocheon Makgeolli” as a GI collective mark in 2010 and the rice farm corporation of Icheon registered “Icheon rice” as a GI in 2005. Rhee Bros. Inc. voluntarily quit selling “Rhee Chun Rice” when Icheon Rice HQ applied for the registration of GI collective mark at the U.S. Patent Office in 2010. 85) WIPO, Geographical Indications an introduction, p. 35. 86) Shahid Alikhan, R. A. Mashelkar, Intellectual Property and Competitive Strategies in the 21st Centry,

Chapter 2 _ Proposal on the Management of the Bangladesh GI System • 087 other words, a GIs must be protected nationally before an obligation for protection falls on other Members states.87) Accordingly, in the absence of prior protection in Bangladesh, claims on misappropriation of GI are legally incorrect under the TRIPS Agreement. However, Bangladesh potential GI cannot be protected in other WTO members in the absence of relevant rules. Consequently, implementing GI registration system is the very first step for protecting a GI abroad at the present stage. Furthermore, when considering signing of a bilateral treaty (FTA) with other countries, Bangladesh can secure a better position in negotiations by having already registered GI list under its law.

In addition, for developing countries, the design and implementation of GI protection frameworks is not a question of deciding which type of protection to choose – preventive or positive, rather it is a matter of identifying the best way of developing both to their benefit and with the lowest possible transaction costs.88) Within GI implementation strategies, indications of source, basic labeling of generics, the possibility of registering GIs according to the specific value chain, and promoting innovative approaches to marketing with a geographical identity, should all be taken into account.89) After all, it is core not only to provide legal means for the protection of GI, but also to promote the GI registration system.

Lastly, given that current economy status and low awareness of GI system, a local community may have difficulty to file application by their own efforts. Therefore, Bangladesh should take a measure to enable a local community to obtain collective right by registration. Especially the procedures subject to GI are very complex and the examination of GI requires high level of professionalism due to judgments on the quality, origin, history of GI goods. However DPDT is short on manpower, along with the lack of the relevant experiences and knowledge.90) In short, it is urgent tasks for Bangladesh to establish the management of GI system and to improve the relevant capacity in preparation for the implementation in the immediate future.

2004, p. 18. 87) Dwijen Rangnekar op. cit., p. 24. 88) Gorge Larson, op. cit., p. 70. 89) Gorge Larson, op. cit., p. 3. 90) The Current situation of DPDT is covered under first chapter precisely.

088 • 2014/15 Knowledge Sharing Program with Bangladesh 3. Korea’s Experiences with Management of the GI Registration Systems 3.1. Implementation of the GI Registration Systems

3.1.1. Two GI Registration Systems and Registration Authorities

Korea incorporated the protection of GIs into several domestic laws, such as the Korean Trademark Act (TMA), Agricultural Fishery Products Quality Control Act (AFPQCA), Unfair Competition Prevention and Trade Secret Protection Act, Act on Investigation of Unfair International Trade Practices and Remedy against Injury to Industry, and Liquor Tax Act. When it comes to GI registration system, in 1999, Korea adopted the registration of GIs through Agricultural and Fishery Products Quality Control Act and also implemented GI collective marks into the Korean Trademark Act in 2005. As a consequence, in Korea, there exists two separate systems-the GI registration system under the AFPQCA and the GI collective mark registration system under TMA.

[Figure 2-2] Double Registration Framework

Agricultural MAFRA (Ministry of Agricultural product Food and Rural Affairs) GIs AFPQCA Fishery MOF (Ministry of Oceans product Fisheries)

Geographical KIPO TMA All good (Korea Intellectual Collective Marks Property)

As mentioned a moment ago, Bangladesh established single protection framework and DPDT which is a special agency for intellectual property will deal with the management of the system under the GI act 2013. In contrast, Korea’s protection framework is divided into GI under the AMPQCA and GI collective mark under TMA. In spite of differences of legal system, the reason why Korea’s experiences have implication for Bangladesh is that the relevant Korea agencies have extensive experience in this of area. Indeed, it is successful to promote the both of system, given that about 200 GI is registered in Korea. A Key to success of the GI system is the various measures taken by relevant agencies such as KIPO, MAFRA, and these attempts deserve special consideration for DPDT in Bangladesh. Following Figure shows outline features of Korea the GI registration systems briefly. More specific

Chapter 2 _ Proposal on the Management of the Bangladesh GI System • 089 explanation is covered in succeeding section.

[Figure 2-3] Double Registration Procedure

GI Registration Applicant GI Collective Mark Procedure Registration Procedure

Application Application

NAQS Consultation (National Agricultural Recipe of Application Recipe of Application KIPO Products Quality Management Service)

GI Registration Examination Examination KIPO Subcommittee

Registration as GI Registration as GI Collective Mark

Post Management of Cancellation Trial on IPT NAQS (IP Products Bearing GI the GI Registration Tribunal)

3.1.2. Agricultural and Fishery Product Quality Control Act

• Definition

The purpose of the Agricultural and Fishery Product Quality Control Act (AMPQCA) is to contribute to 1) increasing the income of farmers and fishermen and 2) protecting consumers by securing the safety of agricultural and fishery products, 3) improving the merchantable quality thereof and 4) facilitating fair and transparent trade through the appropriate quality control of agricultural and fishery products.91) Under the Act, the Minister for Agriculture, Food and Rural Affairs shall implement a geographical indication registration system to improve the quality of agricultural and fishery products or processed agricultural and fishery products having geographical

91) Article 1 of the AMPQCA

090 • 2014/15 Knowledge Sharing Program with Bangladesh characteristics, to foster regional specialty industries, and to protect consumers.92) The term “geographical indication” means, where the reputation, quality and other distinctive features of agricultural and fishery products or processed agricultural and fishery products fundamentally result from the geographical characteristics of a specific region, an indication describing that the relevant agricultural and fishery products or processed agricultural and fishery products have been produced, made or processed in the specific region;93)

• GI Registration Subcommittee

The Minister of Agriculture, Food and Rural Affairs or the Minister of Oceans and Fisheries should establish the Council on the Quality Control of Agricultural and Fishery Products (hereinafter referred to as the “Council”) under its jurisdiction to deliberate on matters concerning the quality control of agricultural and fishery products, processed fishery products, etc. under the AMPQCA.94) The Council is comprised of no more than 60 members, including one chairperson and one vice chairperson.95) The term of office of members is three years. In order to deliberate on the registration of geographical indications of agricultural and fishery products and processed agricultural and fishery products, a subcommittee for deliberation on the registration of geographical indications shall be established in the Council.96)

The member of the council shall be 1) those appointed by the head of each affiliated agency, from among public officials belonging to the relevant ministry, such as the Ministry of Education, Science and Technology, the Ministry of Knowledge Economy, 2) those appointed by the Minister of Agriculture, Food and Rural Affairs or the Minister of Oceans and Fisheries from among public officials belonging to the Ministry of Agriculture, Food and Rural Affairs or the Minister of Oceans and Fisheries, 3) those appointed by the heads of the relevant organizations and institutions from among executives and employees belonging thereto, 4) those appointed the Minister of Agriculture, Food and Rural Affairs or the Minister of Oceans and Fisheries from among persons recommended by civic groups, 5) those appointed by the Minister of Agriculture, Food and Rural Affairs or the Minister of Oceans and Fisheries from among persons with professional knowledge of and extensive experience in the fields of production, processing, distribution or consumption of agricultural and fishery products, as Figure 2-4.97)

92) Article 32(1) of the AFPQCA 93) Article 2(8) of the AFPQCA 94) Article 3(1) of the AFPQCA 95) Article 3(5) of the AFPQCA 96) Article 3(6) of the AFPQCA 97) Article 3(4) of the AFPQCA

Chapter 2 _ Proposal on the Management of the Bangladesh GI System • 091 [Figure 2-4] Quality Control Council

Quality Control GI Registration Council Subcommittee (60 members)

Executives or Public Employees Civic Specialist officer among Public Group Agency

• GI Registration Procedure

Only a corporation comprised of persons who produce, manufacture or process agricultural and fishery products or processed agricultural and fishery products having geographical characteristics in a specific region may apply for registration of a geographical indication. Provided, that if only one person produces or processes a specific agricultural or fishery product or processed agricultural or fishery product having geographical characteristics, such person may solely apply for registration thereof.

Any person intending to have a GI registered under the AFPQCA must apply for GI registration with the following documents;

(i) Articles of incorporation (in case of legal entities only); (ii) plans for production (including the production plan for each member in case of an organization); (iii) explanation of the characteristics of the product concerned; (iv) evidence showing the reputation of the product; (v) explanation of the relationship between the product’s characteristics and its geographical environment;(vi) scope of region for the GI; (vii) internal quality standards; (viii) plans for quality management of the product.

The Minister for Agriculture, Food and Rural Affairs or the Minister of Oceans and Fisheries in receipt of an application for registration shall determine to make an official announcement of an application for registration of a geographical indication (hereinafter referred to as “determination to make an official announcement”) in

092 • 2014/15 Knowledge Sharing Program with Bangladesh case no grounds exist for the rejection of registration and subsequent to in case no grounds of rejection exist and deliberation is duly conducted by the subcommittee in accordance with Article 3.6. The Minister for Agriculture, Food and Rural Affairs or the Minister of Oceans and Fisheries must hear an opinion of the Commissioner of the Korean Intellectual Property Office in advance as to whether a geographical indication which is the subject matter of application for registration conflicts with another person’s trademark (including a collective mark of geographical indication; hereinafter the same shall apply) under the Trademark Act.98)

[Figure 2-5] provides a schematic diagram demonstrating the GI registration procedure in Korea under the AMPQCA.

[Figure 2-5] Schematic Diagram of GI Registration Procedure under the AMPQCA

Application

Examination by GI Registration Subcommittee

No grounds exist for the rejection of registration If no Notice of Rejection

Publication of If rejection is cured Amendments & Application Response

If not

Request for Opposition

If rejection is cured Decision on Opposition

If not Decision for Final Rejection Registration Appeal GI Protection Trial Commuittee Registration Appeal

Patent Court

Use of GIs and Post Appeal management Supreme Court

98) Article 32(4) of the AFPQCA

Chapter 2 _ Proposal on the Management of the Bangladesh GI System • 093 • Protection of GI

A person entitled to use a geographical indication may demand for prohibition for those who have already infringed or are likely to infringe on its right. A person entitled to use a geographical indication may claim damages from a person who infringes on his/her right to use the geographical indication intentionally or by negligence. In such cases, it is presumed that the person who infringed on the right to use the GI had been already aware of the registration of the concerned GI.99)

• Post Management of Products Bearing Geographical Indications

The Minister for Agriculture, Food and Rural Affairs or the Minister of Oceans and Fisheries may instruct the relevant public officials to do the following acts in order to maintain the quality level of products bearing geographical indications and to protect consumers:

1) Examining whether products meet criteria for registration of products bearing a geographical indication; 2) Inspecting related books of account or documents of the owners, occupants, managers, etc. of products bearing a geographical indication; 3) Collecting samples of products bearing a geographical indication for inspection or entrusting a test to a specialized testing institution, etc.100)

The Minister for Agriculture, Food and Rural Affairs or the Minister of Oceans and Fisheries shall delegate the authority to the Director of the National Agricultural Products Quality Management Service.101) The authority of post management is delegated from the Director of the National Agricultural Products Quality Management Service to Director of Experimental Research Institute and Director of Provincial Office as following figure. Director of Provincial Office may appoint an investigator who has professional knowledge and experience to investigate quality of GI product, and investigator shall carry on an investigation regularly or unregularly when it is necessary in season of harvest.

99) Article 115(1) of the AFPQCA 100) Article 39 of the AFPQCA 101) Article 39 of the AFPQCA

094 • 2014/15 Knowledge Sharing Program with Bangladesh [Figure 2-6] Structure of NAQS

National Agricultural Products Quality Management Service (NAQS)

General Planning & Farm Business Quality Consumer Place-of-origin Certification Affairs Coordination Information Inspection Information & Management Management Div. Div. Service Div. Div. Food Safety Div. Div. Team

Provincial offices

Experiment Gyeonggi Gangwon Chungbuk Chungnam Research Provincial Provincial Provincial Provincial Institute Office Office Office Office

Jeonbuk Jeonnam Gyeongbuk Gyeongnam Jeju Provincial Provincial Provincial Provincial Provincial Office Office Office Office Office

3.1.3. GI Collective Mark under the Trademark Act

• Definition

The term “geographical indication” refer to an indication which identifies goods as being produced, manufactured, or processed in a region or locality where a given quality, reputation or any other characteristic of the goods is essentially attributable to their geographical origin.102)

Under the TMA, there is no specific limitation on the kinds of products that can be protected. Therefore, even industrial products (especially, handicrafts), as well as agricultural products, fishery products, and their processed products are entitled to be registered as GI collective marks; however, the service industry is not subject to protection in accordance with TRIPS.

• GI Registration Procedure

Under the TMA, a GI collective mark may only be registered by a legal entity (comprised only of producers, manufacturers or processors of goods eligible for the geographical indication) which has the function of representing its members and the

102) Article 2(3-2) of the TMA

Chapter 2 _ Proposal on the Management of the Bangladesh GI System • 095 relevant geographic area.

Any person intending to have a collective mark registered, shall file an application for collective mark with documents attesting to the fact that it conforms to the definition of geographical indication.103) The documents required are as following104),

1) Documents regarding specific quality, reputation or other specific characters of the goods; 2) Documents regarding intrinsic relationship between the geographic surroundings and the specific quality, reputation or other specific characters of the goods; 3) Documents regarding the area which is the object of geographical indication; 4) Documents evidencing that the legal person being the applicant of geographical collective mark consists solely of persons operating businesses of production, manufacture or processing of the goods that can bear the geographical indication; 5) Papers evidencing that the geographical indication is protected in the country of origin (limited to cases of applying for registration of geographical collective mark regarding foreign geographical indications).

When application is published, any person may raise an objection to the Commissioner of the Korean Intellectual Property Office against the registration of the relevant trademark.105) Where an application for registration of a geographical collective mark is filed with respect to items entitled for registration of geographical indication the Agricultural and Fishery Products Quality Control Act, the Commissioner of the Korean Intellectual Property Office must hear opinions from the Minister for Agriculture, Food and Rural Affairs or the Minister of Oceans and Fisheries about whether it falls under geographical indication.106)

Following figure provides a schematic diagram demonstrating the GI registration procedure in Korea under the TMA.

103) Article 9(4) of the TMA 104) Article 1-3 of the rule 105) Article 25 of the TMA 106) Article 22-2(3) of TMA

096 • 2014/15 Knowledge Sharing Program with Bangladesh [Figure 2-7] Schematic Diagram of the GI Registration Procedure under the TMA

Application

Substantive Examination

If examiner finds rejection If no grounds Office Action

Publication of If rejection is cured Amendments & Application Response

If not

Request for Opposition

If rejection is cured Decision on Opposition

If no Decision for Final Rejection Registration Appeal

IPT Registration Appeal

Patent Court

Appeal

Supreme Court

• Right to Seek Injunction, etc. against Infringement

Any act which falls under any of the following subparagraphs shall be deemed to infringe a geographical collective mark right107)

1) Using a trademark (excluding a homonymous geographical indication; hereafter the same shall apply in this paragraph) similar to a registered geographical collective mark of another person on the goods identical or recognized as identical with the designated goods; 2) Delivering, selling, forging, imitating or possessing a trademark identical with or similar to the registered geographical collective mark of another person

107) Article 66(2) of TMA

Chapter 2 _ Proposal on the Management of the Bangladesh GI System • 097 with intention to use or make a third person use it on any goods identical or recognized as identical with the designated goods; 3) Manufacturing, delivering, selling or possessing tools used for making the registered geographical collective mark of another person with intention to forge or imitate or to make a third person forge or imitate the registered geographical collective mark; 4) Keeping, for a purpose of transfer or delivery, goods identical with the designated goods on which a trademark identical or recognized as identical with or similar to another person’s registered geographical collective mark is used.

Where an owner of a GI right claims compensation from a person who has intentionally or negligently infringed a trademark right or exclusive license for damages caused by the infringer’s transfer of infringing articles, the amount of damages may be calculated as the number of transferred articles multiplied by the profit per unit of the articles that the owner of the trademark right or exclusive licensee might have sold in the absence of the said infringement.108)

With respect to a person who makes an owner of a trademark right or exclusive licensee lose his/her business reputation, by infringing intentionally or negligently on the trademark right or exclusive license, the court may, upon request of the owner of the trademark right or exclusive licensee, order any measures necessary for recovering the business reputation of the owner of the trademark right or exclusive licensee in lieu of, or along with, a compensation for damages.109)

• Cancellation

If a registered GI falls under any of the following subparagraphs, a cancellation trial on the GI registration may be requested:110)

1) Where for a collective mark, a third person misleads consumers as to the quality or geographical origin of goods, or makes them confused with goods related to any business of another person, by using the collective mark, and, in spite of such fact, an owner of the collective mark right does not take a proper measure therefor on purpose; 2) Where, after effecting the registration of a geographical collective mark, the owner of the geographical collective mark right prohibits any person who produces, manufactures, or processes designated goods entitled for the geographical indication as a business from joining the organization through

108) Article 66(1) of TMA 109) Article 69 of TMA 110) Article 73 of TMA

098 • 2014/15 Knowledge Sharing Program with Bangladesh the articles of association of the organization concerned, or includes very strict conditions of entry into the organization in the articles of association concerned, which do not substantially allow any other person to join the organization, or allows any person disqualified for using the geographical indication to enter the organization; 3) Where for a geographical collective mark, the owner of the geographical collective mark right or a member of the organization concerned misleads consumers as to the quality of the goods or makes them confused with the geographical origin of the goods by using the collective mark in contravention of Article 90-2;

• Renewal

The duration of the protection of a GI collective mark (like a normal trademark right) is ten (10) years from the date of registration, which may be renewed every ten (10) years. To renew a GI collective mark, the registrant must file a renewal application with KIPO within the one (1) year period preceding the expiration of the registration validity period. With the payment of a late-fee, however, the renewal application can be filed up to six (6) months after the expiration date of the registration.111)

3.1.4. Current Status of the Korea’s GI

As of May 2014, there are GI registration for 92 agricultural products, 51 forest products, and 19 fishery products registered with the MFFAF. As of June 2014, the total number of GI collective mark registered with KIPO is 250. Among the above 250 GI collective mark, 128 are agricultural products, 46 forest products and 43 fishery products. The number of double registered GI with MFFAF and KIPO is 72.

GIs Registration Status until 2014

Collective Mark AFPQCA Double registration Under TMA Agricultural products 92 128 38 Forest products 51 46 22 Fishery products 19 43 12 Etc. 0 33 0 Total 162 250 72

Source: NAQS, NFQS, KSF, KIPO.

111) Meanwhile, a GI registration with the MFFAF is perpetual with no need for renewal, unless otherwise cancelled by authorities.

Chapter 2 _ Proposal on the Management of the Bangladesh GI System • 099 NAQS studied increase of total sale after registration of GI among 52 registered corporation from 2009 to 2012, and the total sales were increased more than 100 billion as following figure. Also, there is a growing trend in GI registration after adoption of the registration systems as Figure 2-9. 112)

[Figure 2-8] Development Sales of 52 Registered Corporation

6,204 5,908

5,085 5,138

2009 2010 2011 2012

Source: NAQS.123)

[Figure 2-9] Trend of GI Registration from 2007 to 2014

59 53

46 41 36 23

16

2007 2008 2009 2010 2011 2012 2013

number of registered GI

Source: NAQS, NFQS, KFS, KIP.

112) http://www.nongmin.com/article/ar_detail.htm?ar_id=211156

100 • 2014/15 Knowledge Sharing Program with Bangladesh 3.2. Promotion on the GI Registration Systems

3.2.1. Korea Intellectual Property Office (KIPO)

To promote the GI collective mark system, KIPO has undertaken continuous endorsement through various activities. For example, the Office operates regional Intellectual Property Centers in 30 places, and publishes ‘a guide book for the geographical collective marks’. Furthermore, KIPO published Guidebook titled ‘White Paper’ which provides explanation on the Madrid Agreement to help GI brand to be expanded into overseas market in 2006.113)

In 2011, KIPO and Ministry of Government Administration and Home Affairs (MOGAHA) signed the MOU. Since 2012, KIPO have searched and investigated local specialties every year with help from MOGAHA according to the MOU. Since 2006, KIPO and RIPC114) has supported GI registration for an organization of producers & manufacturers of local specialty, and 134 GI collective mark was registered through the program. The support includes financial support, basic education on local specialties, consultant with GI registration, research on relevance with characteristic of product, and branding and support for application. It is based on cooperation system with KIPO, RIPC and local government for region’s traditional industries.

Contents of Support Program

organizations of producers & manufacturers of local specialty products Objects (excluding corporations)

Items other than those already chosen by Ministry of Items Administration(20 items) will be selected by January after a consultation with the local governments

Approximately 25 million KRW per occasion Amount of Grant * additional 5 million KRW when applying to overseas

Number of Grants 1 per organization

Source: KIPA.

113) The Madrid Agreement does incrementally raise the level of international protection for GIs. Owing that not only false but also deceptive indications are prohibited under Article 1(1), whether used directly or indirectly, the scope of protection is greater than the Paris Convention. Furthermore Article 3bis prohibits the use of false representations not only on the product itself, but also in advertising or other forms or public announcements. It means that Strategy to utilize Madrid international application system is available for GIs protection internationally. 114) RIPC is dully organized under KIPO, and it has 31 branches.

Chapter 2 _ Proposal on the Management of the Bangladesh GI System • 101 [Figure 2-10] Cooperation System for Local IP

Cooperation System for Local IP

Region’s Traditional KIPO Industry RIPC

Local GOV

Examples of Support Program

GI Agency Yangyang shongcheon ricecake KIPO RIPC Gangwon Province Mudeungsan Watermelon KIPO KIPA Pohang Guryongpo Gwamegi KIPO CCI RIPC Sejong peach MOPAS KIPO Se-jong City KIPA Andong jjim dak KIPO An-dong City CCI RIPC KIPO KIPA Ulleungdo mung-e Gyeongsangbukdo Province

Source: KIPA.

3.2.2. The Ministry of Agriculture, Food and Rural Affairs (MAFRA)

The Minister of Agriculture, Food and Rural Affairs or the Minister of Oceans and Fisheries established labeling system-KPGI (Korea Protected Geographical Indication)- to indicate that an agricultural or processed agricultural products are from a specific geographical location or origin in Korea in cases where the reputation, quality or characteristics of the product is fundamentally attributed to its geographical origin. By the logo, Consumer can recognize a product as a GI product in Korea, and decide to purchase it with premium price in the market.

102 • 2014/15 Knowledge Sharing Program with Bangladesh [Figure 2-11] Korea Geographical Indications Logo

Source: NAQS.

National Agricultural Products Quality Management Service (NAPS)115) and distribution companies (agro food) signed the MOU to expand sale of GI product and promote distribution in 2014. According to MOU, Online sale of GI product became possible, so that producer can maximize profits by reducing retail margin. In addition, MAFRA provided financial support for wrapping materials to new right holders in 2013.

3.2.3. Civil body - Traditional Intellectual Property Headquarters Inc. (TIPHQ)

As a civil body registered under the Ministry of Government Administration and Home Affairs in 2002, TIPHQ is an organization for the development of regional industry by utilizing generic resources and regional specialties. The organization provide support for the registration of GI as following Table.

115) As an organization dully launched under the Ministry of Agriculture, Food and Rural Affairs, its function is registration and management of GI and it has 10 province offices in domestic area.

Chapter 2 _ Proposal on the Management of the Bangladesh GI System • 103

Contents of Consulting for GI and GI Collective Mark

Consulting for GI Holding briefing sessions for the locals about Geographical Indication Consulting on incorporation of an entity which will apply for the registration Conducting researches on the specific quality of the local specialty products Searching for materials to prove the historical reputation of the local specialty products Conducting researches on the correlations between the specific quality and the geographic features Defining a certain area as relevant of the Geographical Indication and searching for materials to justify it Helping on setting the quality standards of the specialty products Helping on drafting the quality control plans

Consulting for Geographical Collective Mark Consulting on promoting an organization for the application Giving help on drafting the memorandum of association Searching for materials to prove that the products have a specific quality ∙ reputation or any other characteristics Conducting researches on the correlations between the specific quality and the geographic features Searching for materials to prove a certain location and its range is relevant of the Geographical Indication Helping on setting the standards to manage the specific quality ∙ reputation or any other characteristics of the product Helping on drafting the plans to maintain the specific quality ∙ reputation or any other characteristics of the product Consulting on the designs of the collective mark

Source: TIPHQ.

3.3. Cases of the Korea’s GIs

3.3.1. Case of Sang-Ju Gotgam (Dried Persimmon)

• Territory and Biodiversity

The city of Sang-Ju is located at the Northwestern inland area of Gyeongsang- bookdo province. It has a continental climate; the annual temperature range is large and the precipitation is low. The average temperature of the city is approximately 12.7ºC annually, -3.4ºC for January and 26.4ºC for August; the average annual precipitation is 1,050mm, and during the past 10 years 156 days were sunny each

104 • 2014/15 Knowledge Sharing Program with Bangladesh year in average. The region has a good agricultural and environmental condition, such as wide plains, suitable amount of rain, hot summer days, plenty of sunshine, etc.

Wild persimmon had been growing in the Sang-Ju area since the 16th century, and according to the records116), it was cultivated regularly in 1530. About 200 varieties of persimmon grows spontaneously in Korea, but 90% of the persimmon growing around Sang-Ju are of a variety named Doong-Shi(which got its name for being round). The Sang-Ju region has, wide gently sloping fields and deep fertile soil with good natural drainage which is an ideal agricultural condition for Doong-Shi orchard cultivation; and low temperature, low humidity with dry northwester winds which gives perfect natural draft in the Gotgam(dried persimmon) drying seasons.

• Knowledge and Practices

Sang-Ju was traditionally called “the home of three whites” for its reputable rice, , and Gotgam. As one of the three whites, Sang-Ju Gotgam has specific qualities such as sapid natural sweetness, rich amino acids, and its distinguishable flavor. Basically, Gotgam is made by skewering peeled persimmons and letting them dry where it is sunny and windy for about 35 to 60 days. However, Doong-Shi which Sang-Ju Gotgam is made from is generally larger than an ordinary persimmon; therefore Sang-Ju Gotgam requires around 60 days of drying by natural wind to be made. The traditional Sang-Ju Gotgam producing methods are presumed to be found and spread some 550 years ago. According to the Annals of King Ye-Jong, Gotgam was presented to him in 1468, his coronation year. A human geography book in the Joseon Dynasty and many other old documents also mention persimmon and Gotgam as a local specialty of Sang-Ju.

• Economics

7000 tons of Gotgam is made in Sang-Ju which is 65% of all Gotgams made in Korea, and its economic value is presumed to be up to 200 billion KRW. The number of producers, the quantity produced, and the gross value of the products made have increased by 41%, 23%, and 23% respectively, after Sang-Ju Gotgam had been registered as a GI collective mark at the Korean Intellectual Property Office.

116) Sinjeungdongkookyeojeeseungram: The Korean geographic analysis document written in the Chosun dynasty

Chapter 2 _ Proposal on the Management of the Bangladesh GI System • 105

The Effects of the Registration of the GI Collective Mark of Sang-Ju Gotgam117)

Before Registration After Registration Increase Rate (2007) (2008) Producers 1,570 2,210 41% Quantity 6,100 (tons) 7,478 (tons) 23% Gross Value 87,100 (million KRW) 106,800 (million KRW) 23%

Source: ASGI.

• Management 117) “Association for Sang-Ju Gotgam Improvement (ASGI)” is an organization composed of about 420 Gotgam producers of Sang-Ju, and this organization of producers holds the rights to the GI and the GI collective mark of Sang-Ju Gotgam. In the process of obtaining such GI rights, the producers autonomously organized a farming corporation in 2005, prepared the documents required for application through a professional institution (TIPHQ: Traditional Intellectual Property Headquarters Inc.),118) and had the registration approved in 2007. Chunnyun-Gosu, a co-brand of Sang-Ju Gotgam, means literally that they will preserve this tradition for a thousand years, and was awarded the Best National Brand Prize in 2008 and 2010 respectively.

[Figure 2-12] Sang-Ju Persimmon Brand of ASGI

Source: Sangju City.

117) Jo, Youn-su, “The image formation and its effect of Co-brand through the classical conditioning model-Focusing on The Collective Marks For Geographical Indications”, Korea Design Forum Vol. 35, 2012, p. 339. 118) Hyung, Yun-Young, “Comparative Study on Current Situation and Problems from Geographical Indication System”, Kyoung Buk Univertity, 2014, p. 40.

106 • 2014/15 Knowledge Sharing Program with Bangladesh ASGI and the government both cooperate and contribute to maintain Sang-Ju Gotgam’s high level of quality. The organization charts and the number of people working for quality management in ASGI are as depicted below. ASGI examines the products regularly through its Quality Investigation Department. Additionally, ASGI as well as its members are required to complete and keep the books to manage the production and its traceability, and the members are provided with up to 4 sessions of education and technical supports annually. Meanwhile, supports and contributions from the central and local governments include as follows; the National Agricultural Products Quality Management Service’s quality inspection and sample survey through its local branch office of Sang-Ju, construction of the sorting house and the distribution center for Sang-Ju Gotgam, designation of the Gotgam specialized district, creation of the Gotgam theme park, and sponsoring the Sang-Ju Gotgam festival. 119)

[Figure 2-13] Quality Management Structure of ASGI

Representative Director

The Board of Directors Auditors

Board of Quality Managers

Substandard Products Quality Investigation Department

Members (Producers)

Source: ASGI.119)

3.3.2. Case of An-dong Po (Hemp Cloth)

• Territory and Biodiversity

Hemp is one of the oldest sources of botanic fiber in human history. The city of Andong, Gyeongsangbookdo province, which is located in the Nakdong river basin, has perfect geological environment for cultivating hemp; the soil having good

119) Hyung Yun-young, op. cit., p. 49.

Chapter 2 _ Proposal on the Management of the Bangladesh GI System • 107 natural drainage, and the seasonal winds being weak due to the nearby mountains. The earliest documented records mentioning hemp cultivation in this region are from the book by Seo Yoo Goo, and the published by the Japanese in 1911 introduces Andong as the main source of hemp in Korea.

• Knowledge and Practices

Korean Hemp cloth, made from the inner skin of hemp after removing its outer skin, is called “Sam-Be”. Sam-Be easily absorbs moisture such as sweat and dries quickly while being breathable; thus, clothes made from Sam-Be can keep its wearer cool in the summer. In addition, its extremely high durability makes it possible to withstand the Korean traditional style of laundry, which is basically beating the clothes on a stone with a wooden bat by a brook. Such features of Sam-Be made it the fabric most widely used from the early ages of Korea, and a material still very familiar to Koreans.

Sam-be was made practically everywhere throughout the nation, but those made in Hamkyungbookdo province, Kangwondo province, and Kyungsangbookdo province were called Book Po, Kang Po, and Young Po respectively, and were recognized for their distinguishable quality. And especially, Young Po from the region of An-dong were called An-dong Po, and were esteemed to be the best of the best.

It takes over 100 fastidious procedures to complete a roll of An-dong Po, from cultivating the hemp to the fabric, and even today they are all done manually. Following and keeping the tradition of this extremely complicated process was possible because the region was always abundant of highly skilled professionals. The simplified processes are basically as follows : cultivating and harvesting, steaming, drying, skinning, sorting out of the outer skin, bleaching by sunlight, splitting, spinning, preparing the warp and the weft, , washing, and dyeing.

An-dong Po, made according to the procedures above, is said to be so durable that it does not deteriorate nor get worm-eaten even after a thousand years, thus you can never wear it enough in this life, so you will keep wearing it in the afterlife.

• Economics

Geumso-ri, Imha-myeon is an area within the An-dong city well known for its largest amount of An-dong Po production, that is, more than 1/4 of all of the products produced in An-dong. About 250 households reside in this area and more than 90% of them have traditional looms and skills; and about half of those who are able are still weaving, usually in the agricultural off-season. About 2,000 rolls of

108 • 2014/15 Knowledge Sharing Program with Bangladesh An-dong Po are produced in this area annually, which is worth more than 2 billion KRW.120) The positive effect of the area’s An-dong Po industry on the local economy is estimated to be much larger than this, if values added by manufacturing secondary products such as clothes and other goods get included in the calculation.

The price of the products made from An-dong Po differs according to its quality. NACF(National Agricultural Cooperative Federation: also known as NongHyup), the exclusive distributor of An-dong Po, classifies its level of quality by the fineness of its weaves; a set of shroud made of 6 Sae(level 6 fineness) An-dong Po would cost 3.8million KRW, 7 Sae would cost 4.3million KRW, and 8 Sae would cost 4.95million KRW.

• Management

The An-dong Po Association Inc. holds the rights to the Geographical collective mark of An-dong Po, which was approved in November 2011 under the Korean Trademarks Law. The registration was a result of a collaboration project of the Korean Intellectual Property Office, the local government of An-dong city, the Korea Invention Promotion Association, and the An-dong Intellectual Property Center to reserve the rights to An-dong Po Geographical collective mark. An-dong Po Association Inc. manages the overall process of An-dong Po business as depicted below. A genuine An-dong Po has an easily recognizable authentication hologram mark on it, so that the customers can purchase them with confidence. Moreover, the production traceability system discloses the whole production process to the customers, from the cultivation of the raw material to the distribution of the final products.

By these efforts to improve the quality and promote the sales of the product, An- dong Po Association Inc. contributes to the development of the An-dong Po industry. Moreover, the government of the Kyungsangbookdo province launched a project to develop new designs for An-dong Po (Total budget of 390million KRW) and another project to produce various secondary products from An-dong Po(Total budget of 400million KRW). The government of An-dong city designated “An-dong Po Town” as a special district and promoted it as a tourist attraction, and suggested a travel route to tourists that includes a visit to the town and the Independence Memorial Hall. With the town having various exhibition and experience programs for the visitors, the attempt to allure tourists to the place has been successful by far.

120) http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=102&oid=038&aid=0001979388

Chapter 2 _ Proposal on the Management of the Bangladesh GI System • 109 [Figure 2-14] Missions of the An-dong Po Association Inc.

Production Management

Quality Other Management Projects

An-dong Po Product Origin Industry Management Research Development

Public Policy Relation Proposal

Technology & Management Education

Source: An-dong Po Association Inc.121)

121)

4. Policy Proposals for the Bangladesh 4.1. Improvement on Legal System

4.1.1. Maintaining Single Protection Framework

DPDT is a sole authority to deliberate on GI registration under the Bangladesh GI act. In contrast, in Korea, there are two separate systems for protection of GI by registration, the GI registration system of MAFRA and the GI collective mark registration system of KIPO. This double registration can be beneficial as follows. For example, GIs may be claimed for the double protection by registrations under the both systems. Of course, claiming for the double protection is only up to applicant’s choice, and it is not mandatory. The possibility of the double protection may allow a right holder to choose an effective way to protect an exclusive right against infringement or misuse.

121) http://www.andongpo.org/

110 • 2014/15 Knowledge Sharing Program with Bangladesh Double framework, however, may result in wasteful use of administration. The separate authorities should respectively operate each system in pursuit of GI registration. Secondly, it can cause an increase in the costs and efforts to register GI. An applicant who may have difficulty in comparing advantage and disadvantage of each system, is likely to apply for the double registration. Considering underprivileged farmer or fishermen in Bangladesh, an excessive expenses for registration may have negative effect on communalization of GI. Lastly, double registration may lead to consumer confusion, where the GI registration system is not fully established. Some experts asserted that GI registration of MAFRA and GI collective mark of KIPO should be unified for preventing the problems fundamentally. This Korea’s experience has a policy implication that Bangladesh should set the single protection framework to avoid double expenses, and to raise effectiveness of system.

4.1.2. Simplifying Registration Procedure

The time period of registration depends on the complexity of the registration procedure and possible opposition procedure.122) An applicant should file an application and documents to prove the historical reputation and specific quality of the local specialties, or the correlations between the specific quality and the geographic features, etc. However, the registration procedure should not be complicated and difficult.

In Korea, in 2011, an empirical study proved that preparing document for application is burden to a group of producers and/or processors. In the study, it took an enormous time for an applicant to prepare documents that should be affixed, and also to apply for GI registration.123) The study analyzed that pending period is various from 6 months to 5 years, depending on regional circumstances. Also, delegating to an outside specialized agency to prepare application and documents is very frequent, and the estimated costs of the service is from around 20 million KRW to 50 million KRW. It may effect negatively for settlement of the system that applicants take a step by themselves without any support, because they cannot fully understand legal procedures and requirements under the TMA and AMPQCA. For the reason, it is suggested that the procedures and requirement is simplified and education is performed proceeding the application in Korea.124)

The simple registration procedure and documents enable the group of producers and/or processors to file application by themselves without any outsourcing, and time consuming registration may help a GI to become generic in a competitive business

122) Bernard O’Connor, The Law of Geographical Indications, 2004, p. 84. 123) Korea Rural Economics Institute, Current Status and Improvement Plan of GI for Development of Regional Industries, 2011, p. 40-45. 124) Jung, Tae-Ho, “A Study on Problems and Solutions of them in Collective Mark System for a Geographical Indication”, Wonguang Law Jouranal, Vol. 27, No 4, 2011, p. 54.

Chapter 2 _ Proposal on the Management of the Bangladesh GI System • 111 environment. Under Bangladesh GI act, the registration procedure seems to be too cumbersome and protracted. Considering the reasons, procedure for registration should be made transparent, expedient and speedy curtailing unnecessary formalities.

The list of document that supplements an application for GI registration differs among the countries. But generally, it is essential to obtain information concerning; a) the name, address and nationality of the person making the application and the capacity in which the applicant is applying for registration; b) the geographical indication for which registration is sought; c) the geographical areas to which the geographical indication applies; d) the goods to which the geographical indication applies; e) the quality reputation or other characteristic of the goods in respect of which the geographical indication is used.125) These documents should be basically submitted for GI examination, and DPDT should require applicant to file a particular reference precisely.

4.1.3. Establishing Consultation in Examination

In case of a decision to publish the GI application, the Minister for Agriculture, Food and Rural Affairs or the Minister of Oceans and Fisheries shall hear the opinion of the Commissioner of KIPO.126) In addition, where an application for registration of a geographical collective mark is filed with respect to items entitled for registration of geographical indication under the Agricultural Products Quality Control Act or the Quality Control of Fishery Products Act, the Commissioner of the Korean Intellectual Property Office shall hear opinions from the Minister for Agriculture, Food and Rural Affairs or the Minister of Oceans and Fisheries about whether it falls under geographical indication.127) Furthermore, The Commissioner of the Korea Intellectual Property Office may hear opinion of the relevant local government on the following matters regarding the examination of an application for registration of geographical collective mark, and he/she may, when necessary, ask for cooperation.128) The head of a local government may submit his/her opinion on the following matters regarding an application for registration of geographical collective mark to the Commissioner of the Korean Intellectual Property Office, and when necessary for the proper protection of such geographical indication, he/she may consult or coordinate with the applicant.

As following figure shows, Korea’s GI registration system is based on consultation with government entities in order to strengthen the expertise in GI examination.

125) Bernard O’Connor, op. cit., p. 82. 126) Article 32(4) of AFPQCA 127) Article 22-2(3) of TMA 128) Article 1-4(1) of Enforcement Decree of the TMA

112 • 2014/15 Knowledge Sharing Program with Bangladesh Meanwhile, examination of GI application is one of major challenge for DPDT, because GI examination needs professional knowledge a) to ascertain whether applicant is bona fide entrepreneurs or real producer of GI goods, b) to determine the correlations between the specific quality and the geographic features, and c) to avoid conflict with TMA. In short, the consultation with government entities is worthy of adoption.

[Figure 2-15] Consultation with Government Entities

KIPO

Hearing opinion Hearing opinion

Hearing opinion & asking for Hearing opinion cooperation

Local Gov MAFRA & MOF

Hearing opinion & asking for cooperation

In addition, consultative group may advantage GI unit within DPDT. In Korea, under the AFPQCA, a GI subcommittee is established within the Council on Quality Control of Agricultural and Fishery Products, whose members are individuals with professional knowledge of and extensive experience. Rule 27 of the Draft Rules requires the Registrar to form “consultative group” to examine the applications for GI registration. But the rule does not clearly spell out the persons who are eligible to be there in the “consultative group”. The rule should be amended and re-drafted in such a way that precisely spells out at least the fields of art from where the members would be elected.

4.2. Promotion on GI Registration System

4.2.1. Identifying and Assessing Potential GIs

In order for a GI to effectively create brand equity for a product, or to have a positive effect on rural development or the preservation of TK, TCEs or biodiversity, it is necessary to develop a comprehensive GI scheme.129) As initiative steps in setting

129) WIPO, op. cit., p. 21.

Chapter 2 _ Proposal on the Management of the Bangladesh GI System • 113 the scheme, identifying potential GIs and assessing its economic value in internal or external market are important actions. The research should be conducted in various way. For example, a survey conducted in Vietnam, based on interviews with 169 consumers form Hanoi, Ho Chi Minh City, listed 265 Vietnamese food products that were associated with specific geographical areas and had a special quality reputation.130) Apparently, survey can be effective way to identify potential GI and estimate public preference at reasonable expense. In order to conduct the research across the nation, Bangladesh needs to organize specialized research team, and establish co-work system. Furthermore, the research should include activities as follows, a) publicly cataloging specialties in region, b) demarcating special regions for targeted rural development, c) estimating the number of employee and d) estimating value of product with level of added-value.

4.2.2. Design Support Measures

GI may contribute to a rural development according to Korea’s experiences. This rural development potential could indeed constitute a very powerful rationale for developing countries to embrace and support origin-labeled products within their territory.131) In other words, GI registration system is not only protect local specialties by registration, but provides incentives which lead to improve quality of it, by developing competitive producer for rural development.132) In addition, the registered corporation may play the crucial role for rural development by operating coordination133), which allows producers to collectively devise a common marketing plan and to develop a competitive advantage around the product’s specificity.134) Likewise, local corporations or entities have public interest in terms of managing collective asset in certain region, thereby generating adequate ground and reason to request for governmental support.

In many developing counties, GI implementation is result of the necessary adoption of the TRIPS agreement, whereas in Southern Europe it was the result of the mobilization of producers form the bottom up.135) At the moment, Governments of developing countries must encourage producers to be organized, committed, and empowered for registration and utilization of GI. In case of Korea, through support measures taken by various government agencies, the large number of GI application

130) Trans 2005 131) Cerkia Bramley , the Economics of geographical indication; towards a conceptual framework for geographical indication research in developing countries, the economics of intellectual property, 2012, p. 114. 132) Korea Institute for International Economic Policy, Discussion on extend of GI protection in TRIPS; confrontation Strategy for protection of Korea GI, 2002, p. 70. 133) Kwon, Ki Dae, Park, Won Jon, Kim, Shin Ae, “Marketing Strategy of GI and Collective Brand of Cheon-Yang Gugija”, A Study on Food Distribution 25(2), 2008, pp. 77-105. 134) Cerkia Bramley, op. cit., p. 113. 135) Denis Sautier, op. cit,. p. 141.

114 • 2014/15 Knowledge Sharing Program with Bangladesh was filed and approved. To accomplish the complete support in GI registration, Bangladesh should establish a national authority that would provide legal and technical support to local GI proprietors to get their GIs registered in the domestic and foreign counties. Specifically, Bangladesh should devise support measures to increase capacity of local GI proprietors, so that they can register their potential GI and to differentiate their product in domestic or foreign market. The support may include financial aids, training and consulting-such as packaging, labeling, naming and branding. In addition, in Bangladesh, there are relevant public and civic bodies including Bangladesh Agricultural Research Institute (BARI), Bangladesh Rice Research Institute (BRRI) and Center for Policy Dialogue (CPD) etc. Therefore, developing partnership or establishing cooperation between public and civic body can be considered for the effectiveness of support measures. Especially, application of GI in foreign counties needs more substantial support as it can be quite time- consuming and costly.136)

4.2.3. Raising Awareness of GI Registration System

When it comes to reaping commercial benefit out of GI status, the market potential for this ‘niche’ depends on the consumer recognition and valuing the product-place link.137) Hence, the success in exploiting the commercial potential of a GI is, to great extent, dependent on effective marketing and promotional efforts to develop consumer perceptions about the product, its quality and value.138) A study indicated that consumers’ low-awareness is mainly attribute to hindrance of the system rather than lack of promotion, insufficient government cooperation. According following figure, consumers and government employees attributed the reason for the low level of vitalization of geographical indications to the low level of consumer recognition.139) After all, producer or processor recognize that the registration of GI cannot assure the commercial success due to low level of consumer recognition.

136) As mentioned, Bangladesh is not a signatory to Madrid system and Lisbon Agreement. Therefore, obtaining protection directly in the jurisdiction concerned is the only way to protect GU in abroad more that the level of TRIPS Agreement. However, it should be considered for Bangladesh to sign Madrid system and Lisbon Agreement. In case of Lisbon Agreement, there are 26 contracting parties, a total of 891 AOs have been recorded in the international Register, of which 817 are currently in force. 137) Kasturi Das, op. cit., p. 28. 138) Kasturi Das, op. cit., p. 28. 139) Lisa Hyunjung Kim, Don-Jin Kim, Jung-Eun Cho, A Study on the perception of Consumers, Producers, and Government Employees toward Geographical Indications, The Korean Journal of Culinary Research, Vol 16, No 4, 2010, p. 177.

Chapter 2 _ Proposal on the Management of the Bangladesh GI System • 115

The Result of Analysis on Perceptual Differences on GI Among Consumer, Producers, and Government Employees

Complicated Consumers’ Insufficient registration Lack of Items low Government procedure total promotion recognition Cooperation & consumer preferences Consumers 75.4% 7.2% 10.3% 4.3% 100% Producers 22.2% 17.8% 17.8% 42.2% 100% Government 51.6% 9.7% 9.7% 29.0% 100% employees

Source: Lisa Hyunjung Kim, Don-Jin Kim, Jung-Eun Cho, p. 184.

Therefore, one of essential condition for GI system is that consumer can recognize GI product, and willingly buy GI product with premium price. For the reasons, Bangladesh needs to raise consumer awareness.

Awareness-raising among public may be crucial issue for promotion of GI registration system. Because GI registration system is new, as well as GI is new type of intellectual property. Therefore, there should be effort by government to introduce GI registration system to Bangladesh people. It must be instrumental in organizing awareness program including seminar, conferences, and workshop. According to Korea’ experiences, KIPO took the lead in informing the public of the need for a new system. The workshops were held in the region across the nation, and ‘White Book’ was published and distributed in the small town. These efforts were made in an attempt to provide explanation about registration procedure and to encourage them to register specialties in the region. For the reason, Bangladesh have to make an effort to raise awareness of GI registration system by publishing the book and holding workshops in even a small town.

4.2.4. Making Unified Logo

GI labeling allows producers to differentiate themselves in the market and to communicate such differences to consumers in global, national and regional markets.140) Hence, Branding of GI products141) through logo and marks is an essential marketing tool to enable the product to find its niche market. The GI management regime of Bangladesh has so far taken no initiative for the branding of GI products either through sign (logo) or labeling.

140) Gorge Larson, op. cit., p. 18. 141) On the necessity and strategy of branding of GI Products, see, for example, Agarwal, Sanjeev, and Michael J. Barone. Emerging issues for geographical indication branding strategies. Midwest Agribusiness Trade Research and Information Center, Iowa State University, 2005.

116 • 2014/15 Knowledge Sharing Program with Bangladesh [Figure 2-16] Example of Korea’s GI Logo: Sang Ju Gotgam

Given the wide geographical spectrum of some GIs in Bangladesh like nakshi kantha, the Government should specify a unified logo for relevant GIs. In Korea, the logo was changed three times. As a result, the right holder have had difficulty to respond to the change. For example, they had to discard packing material which is labeled old logo, and to advertise GI product with new logo again. For the reason, it is recommend to be cautious about changing the logo to avoid confusion and inconvenience. When Bangladesh designs the uniform logo, the following factors should be considered, a) whether it distinguishes Bangladesh GI logo from others, b) whether it conveys exactly the meaning of GI registration system to public, c) whether it foresees counterfeiting or prevent misusing in domestic or foreign market, d) whether it deserve symbol to represent Bangladesh. To create appropriate logo, Bangladesh should hear opinions from producers, consumers, relevant groups. [Figure 2-17] shows some examples of logos.

Chapter 2 _ Proposal on the Management of the Bangladesh GI System • 117 [Figure 2-17] Examples of GI Logos

EU Indonesia

China Cambodia

Thai France

Korea

Source: EU - COMMISSION DELEGATED REGULATION (EU) No 664/2014 Indonesia - IAGI (The Indonesian Association of Geographical Indications) China - China Trademark Office Cambodia - Department of intellectual property rights, Ministry of Commerce of Cambodia Thai - Department of Intellectual Property, Ministry of Commerce of Thailand France - INAO (Institut National des Appellations d’Origine) Korea - NPQS (National Plant Quarantine Service).

118 • 2014/15 Knowledge Sharing Program with Bangladesh 4.3. Establishment of Inspection System

4.3.1. Post Management System

A GI is a form of collective monopoly right, therefore, for the group of producers (and their products) that quality for protection, GI provides an opportunity to capture the rent embedded in the appellation.142) Hence, the collective nature of the production process necessitates controls to prevent free riding and opportunistic behavior.143) Since an individual producer cannot apply for registration in individual capacity a concern remains whether a real producer, extractor or manufacturer of GI goods is divested from being a beneficiary. In the socio-economic reality of Bangladesh the bona fide producers of GI goods are not always in a position to bargain and exploit the benefit offered to them by the society. Influential traders and local vested interest groups144) may separate themselves from the benefit accrued to them under the GI Act. This trend may leave the GI Act to be counterproductive since the genuine intention and entrepreneurs behind a GIs are excluded from being benefited. This is the reason why a post-registration / post-GI mechanism should be set to monitor whether bona fide entrepreneurs or genuine producers of GI goods who are the historical reservoirs of GIs are being benefited from the GI regime. In addition, in order to protect GI reputation and consumer’s trust, the quality of GIs products needs to be controlled. In Korea, support measures subject to GI registration system have encountered criticism, in that it has been biased towards registration, not quality inspection and post-management.145)

In the respect, most registration system provide for some form of inspection of compliance with the product specification, and applicants have to nominate an inspection body in the application for registration.146) In Korea, NAQS was delegated authority by MAFRA and MOF to maintain the quality level of products bearing geographical indications. On the other hands, in Bangladesh, the Draft Rules has made no reference to GI Inspection structure which is required to ensure and maintain the purported quality of the GI goods. Therefore, Bangladesh should set up post-management system by establishing inspection agency. In addition, civil body-such as Center for Policy Dialogue (CPD) can be inspection body instead of government, because the inspection body might be a public or private body. Under the EC legislation, private inspection bodies are required to be accredited to European Standard EN 45011, and designated inspection bodies authorities

142) Dwijen Rangnekar, the pros and cons of geographical indications, Bridges, 6(3), 2002, p. 15. 143) Cerkia Bramley , op. cit., p. 113. 144) Within a recognized “association,” traditional leaders may impose their will on members, reifying traditional hierarchies. Sunder, Madhavi. “The invention of traditional knowledge.” Law and contemporary problems, 2004, pp. 97-124. 145) Jung, Tae-Ho, op. cit., p. 55. 146) Bernard O’Connor, op. cit., p. 89.

Chapter 2 _ Proposal on the Management of the Bangladesh GI System • 119 and/or approved private body must offer adequate guarantees of objectively and impartiality with regard to all producers or processors subject to their control.147) Consequently, the structure of inspection system combine components linked to collective commitments, private and third-party controls and public recognition procedures.148)

4.3.2. Honorary Monitor System

Introducing honorary monitors of GI products should be considered as supplement. In Korea, the Minister for Agriculture, Food and Rural Affairs or the Minister of Oceans and Fisheries or each Mayor/Do Governor may commission members, employees, etc. of the organizations of consumers or producers as honorary monitors of agricultural and fishery products to have them monitor, guide, and instruct on order in the distribution of agricultural and fishery products.149) Where honorary monitor find misuse of GI names by unauthorized user, they report to inspection agency (NAQS) and then its public officer start to investigate in detail. Bangladesh should deliberate on adoption of this honorary monitors to raise effectiveness of inspection activities and to induce civil participation. It needs not to be limited in agricultural and fishery product; matters necessary for qualification for honorary monitors, methods of commission, duties should be prescribed by relevant rules.

147) Bernard O’Connor, op. cit., p. 89. 148) Denis Sautier, Estelle Bienabe, Claire Cerdan, op. cit., p. 142. 149) Article 104(1) of the AFPQCA

120 • 2014/15 Knowledge Sharing Program with Bangladesh References

Agarwal, Sanjeev, and Michael J. Barone. Emerging issues for geographical indication branding strategies. Midwest Agribusiness Trade Research and Information Center, Iowa State University, 2005. Bernard O’Connor, the Law of Geographical Indications, 2004. Cerkia Bramley, the economics of geographical indication; towards a conceptual framework for geographical indication research in developing countries, the economics of intellectual property, 2012. Daniel Hanssan Sylvette Monier-dilhanm Valerie Orozoco, “Measuring Consumers’ Attachment to Geographical Indications: Implications for Competition Policy?”, TSE working paper series 11-225, 2011. Das Kasturi. “Socio-economic implications of protecting geographical indications in India.”, Centre for WTO studies, 2014. Dwijen Rangnekar, “Geographical Indications, A review of Proposal at the TRIPS Council; Extending Article 23 to Products other than Wines and Spirits”, Intellectual Property Right and Sustainable Development Issue Paper No 4, 2003. Dwijen Rangnekar, D. ‘the Law and Economics of Geographical Indications: Introduction to Special Issue of the Journal of World Intellectual Property’, 13(2), 2000. Dwijen Rangnekar, the pros and cons of geographical indications, Bridges, 6(3), 2002. Denis Sautier, Estelle Bienabe, Claire Cerdan. “Geographical Indication in Developing countries”, CAB International, 2011 Gorge Larson, “Relevance of geographical indications and designations of origin for the sustainable of use of genetic resources”, 2007 Kwon, Ki Dae, Park, Won Jon, Kim, Shin Ae, “Marketing Strategy of GI and Collective Brand of Cheon-Yang Gugija”, A Study on Food Distribution 25(2), 2008. Hyung, Yun-Young, “Comparative Study on Current Situation and Problems from Geographical Indication System”, Kyoung Buk Univertity, 2014. Lisa Hyunjung Kim, Don-Jin Kim, Jung-Eun Cho, “A Study on the perception of Consumers, Producers, and Government Employees toward Geographical Indications”, The Korean Journal of Culinary Research, Vol. 16, No 4, 2010. Jo, Youn-su, “The image formation and its effect of Co-brand through the classical conditioning model-Focusing on The Collective Marks For Geographical Indications”, Korea Design Forum Vol. 35, 2012. Jung, Tae-Ho, “A Study on Problems and Solutions of them in Collective Mark System for a Geographical Indication”, Wonguang Law Jouranal, Vol. 27, No 4, 2011.

Chapter 2 _ Proposal on the Management of the Bangladesh GI System • 121 Korea Rural Economics Institute, Current Status and Improvement Plan of GI for Development of Regional Industries, 2011. Sunder, Madhavi. “The invention of traditional knowledge.” Law and contemporary problems, 2004. Shahid Alikhan, R. A. Mashelkar, Intellectual Property and Competitive Strategies in the 21st Centry, Kluwer Law International, 2004. Korea Institute for International Economic Policy, Discussion on extend of GI protection in TRIPs; confrontation Strategy for protection of Korea GI, 2002. Van Caenegem, William. Registered Geographical Indications: Between Intellectual Property and Rural Policy-Part I. Law papers 3, 2003. Wagle, S, “Geographical Indications under TRIPS Protection Regimes and Development in Asia, SAWTEE Policy Brief No. 8, 1-8, South Asia Watch on Trade”, Economics and Enviroment, Kathmandu, Nepal, 2004. WIPO, Geographical Indications an introduction (http://www.wipo.int/edocs/pubdocs/en/geographical/952/wipo_pub_952.pdf) WIPO, National Report, 2013 http://www.independent-bangladesh.com/culture/nakshi-kantha.html http://en.banglapedia.org/index.php?title=Hilsa http://www.banglapedia.org/HT/H_0153.htm http://www.prothom-alo.com/todays-paper http://www.nongmin.com/article/ar_detail.htm?ar_id=211156 http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=102&oid=038&a id=0001979388 http://www.andongpo.org/

122 • 2014/15 Knowledge Sharing Program with Bangladesh Appendix

List of Korea’s GIs under the AMOQCA and TMA

Act S.NO Geographical Indications Goods State (AMPQCA / TMA) From 2002- 2006 1 Boseong Green Tea Agricultural Jeollanam-do A&T 2 Hadong Green Tea Agricultural Gyeongsangnam-do A 3 Gochang Black Raspberry Wine Agricultural Jeollabuk-do A&T 4 Yeongyang Red Pepper Powder Agricultural Gyeongsangbuk-do A 5 Uiseong Garlic Agricultural Gyeongsangbuk-do A&T 6 Goesan Red Pepper Dried Agricultural Chungcheongbuk-do A 7 Sunchang Traditional Gochujang Agricultural Jeollabuk-do A&T 8 Seongju Chamoe Agricultural Gyeongsangbuk-do A 9 Haenam Winter Baechu Agricultural Jeollanam-do A 10 Icheon Rice Agricultural Gyeonggi-do A 11 Cheorwon Rice Agricultural Gangwon-do A 12 Yangyang Pine-mushroo Forestry Gangwon-do A&T 13 Goheung Yuja Agricultural Jeollanam-do A&T 14 Jangheung Pyogo Mushroom Forestry Jeollanam-do A&T 15 Hongcheon Waxy Corn Agricultural Gangwon-do A 16 Sancheong Persimmon Dried Forestry Gyeongsangnam-do A 17 Ganghwa Mugwort Agricultural Incheon A 18 Jeongan Chestunt Forestry Chungcheongnam-do A 19 Hoengseong Hanwoo Beef Agricultural Gangwon-do A 20 Jeju Pork Agricultural Jeju-do A&T 21 Korean Red Ginseng Agricultural 국내(domestic) A 22 Korean Taekuk Ginseng Agricultural 국내(domestic) A 23 Chungju Apple Agricultural Chungcheongbuk-do A 24 Ulleungdo Samnamul Forestry Gyeongsangbuk-do A 25 Ulleungdo Miyeokchwi Forestry Gyeongsangbuk-do A 26 Ulleungdo Chamgobi Forestry Gyeongsangbuk-do A 27 Ulleungdo Bujigaengi Forestry Gyeongsangbuk-do A

Chapter 2 _ Proposal on the Management of the Bangladesh GI System • 123 continued

Act S.NO Geographical Indications Goods State (AMPQCA / TMA) 28 Miryang Eoreumgol Apple Agricultural Gyeongsangnam-do A 29 Hansan Mosi Agricultural Chungcheongnam-do A&T From 2007- 2008 30 Gyeongsan Jujube Forestry Gyeongsangbuk-do A 31 Bonghwa Pine-mushroom Forestry Gyeongsangbuk-do A 32 Jindo Hongju Agricultural Jeollanam-do A&T 33 Jeongseon Hwanggi Agricultural Gangwon-do A 34 Cheongyang Gugija Forestry Chungcheongnam-do A 35 Namhae Garlic Agricultural Gyeongsangnam-do A 36 Danyang Garlic Agricultural Chungcheongbuk-do A 37 Icheon Korean beef Agricultural Gyeonggi-do T 38 Changnyeong Onion Agricultural Gyeongsangnam-do A 39 Sangju Persimmon Dried Forestry Gyeongsangbuk-do A 40 Muan Onion Agricultural Jeollanam-do A&T 41 Yeoju Rice Agricultural Gyeonggi-do A&T 42 Muan White Lotus Tea Agricultural Jeollanam-do A 43 Changsun Fern Forestry Gyeongsangnam-do A 44 Cheongsong Apple Agricultural Gyeongsangbuk-do A 45 Gochang Black Raspberry Agricultural Jeollabuk-do A 46 Gwangyang Maesil Agricultural Jeollanam-do A&T 47 Jeongseon Waxy Corn Agricultural Gangwon-do A 48 Chinbu Dangui Agricultural Gangwon-do A&T 49 Icheon Ceramics Manufactural Gyeonggi-do T 50 Korean Fresh Ginseng Agricultural Nation A 51 Cheongyang Hot Pepper Agricultural Chungcheongnam-do A Cheongyang Powdered Hot 52 Agricultural Chungcheongnam-do A Pepper From 2008- 2009 53 Yeongam Fig Agricultural Jeollanam-do A&T

124 • 2014/15 Knowledge Sharing Program with Bangladesh continued

Act S.NO Geographical Indications Goods State (AMPQCA / TMA) 54 Yeongdeok Pine-mushroom Forestry Gyeongsangbuk-do A 55 Boseong Hemp Cloth Agricultural Jeollanam-do A 56 Gurye Corni Fructus Forestry Jeollanam-do A 57 Haman Watermelon Agricultural Gyeongsangnam-do A&T 58 Korean ginseng products Agricultural Nation A 59 Namwon wooden vessel Manufactural Jeollabuk-do T 60 Gangjin Celadon Manufactural Jeollanam-do T 61 Gunsan Glutinous Barley Agricultural Jeollabuk-do A&T Gwangyang baekwnsan Acer 62 Forestry Jeollanam-do A mono sap 63 Jeju Green Tea Agricultural Jeju-do A 64 Hongcheon Hanwoo Agricultural Gangwon-do A 65 Yeongwol Daebong Persimmon Forestry Jeollanam-do A 66 Yeongwol Red Pepper Agricultural Gangwon-do A 67 Cheonan Walnut Forestry Chungcheongnam-do A 68 Seosan garlic Agricultural Chungcheongnam-do T From 2009- 2010 69 Yeongcheon Grapes Agricultural Gyeongsangbuk-do A&T 70 Yeongju Apple Agricultural Gyeongsangbuk-do A&T 71 Mungyeong Omija Forestry Gyeongsangbuk-do A 72 Muju Wild Grape Forestry Jeollabuk-do A 73 Boseong Beolgyo cockle Fishery Jeollanam-do A 74 Wando abalone Fishery Jeollanam-do A&T 75 Wando seaweed Fishery Jeollanam-do A&T 76 Wando kelp Fishery Jeollanam-do A&T Busan 77 Gijang seaweed Fishery A (Gyeongsangnam-do) Busan 78 Gijang kelp Fishery A (Gyeongsangnam-do) 79 Jangheung pen shell Fishery Jeollanam-do A

Chapter 2 _ Proposal on the Management of the Bangladesh GI System • 125 continued

Act S.NO Geographical Indications Goods State (AMPQCA / TMA) 80 Seosaengganjeolgot Pear Agricultural Gyeongsangnam-do A&T 81 Uljin Pine-mushroom Forestry Gyeongsangbuk-do A 82 Muju Apple Agricultural Jeollabuk-do A&T 83 Agyang Daebong Persimmon Forestry Gyeongsangnam-do A&T 84 Heongseong Deodeok Forestry Gangwon-do A 85 Yeongdong Persimmon Dried Forestry Chungcheongbuk-do A&T 86 BRUNELLO DI MONTALCINO Manufactural Foreign country T 87 Gapyeong Korean Pine nuts Forestry Gyeonggi-do A&T 88 Andong powder Chinese yam Forestry Gyeongsangbuk-do T Ulleungdo Korean Pumpkin Malt 89 Manufactural Gyeongsangbuk-do T Candy 90 Chuncheon Makguksu Manufactural Gangwon-do T 91 Hampyeong Hanwoo Agricultural Jeollanam-do A 92 Samcheok Garlic Agricultural Gangwon-do A&T 93 Goheung yujacha Agricultural Jeollanam-do T 94 Samcheonpo Dried Filefish Fishery Gyeongsangnam-do T 95 Namhae jukppang anchovy Fishery Gyeongsangnam-do T 96 Wonju lacquer Forestry Gangwon-do T 97 Eumseong chili Agricultural Chungcheongbuk-do T 98 Jeungpyeong ginseng Agricultural Chungcheongbuk-do T 99 Hongcheon pine nuts Forestry Gangwon-do A 100 Jinju Silk Manufactural Gyeongsangnam-do A 101 Gimcheon Jadu (plum) Agricultural Gyeongsangbuk-do A 102 Yeongdong Grapes Agricultural Chungcheongbuk-do A 103 Muju wild grapes wine Forestry Jeollabuk-do A&T 104 Muju Cheonma Forestry Jeollabuk-do A&T From 2010- 2011 105 Bongdong ginger Agricultural Jeollabuk-do T 106 Hamyang Macheon lacquer Forestry Gyeongsangnam-do T

126 • 2014/15 Knowledge Sharing Program with Bangladesh continued

Act S.NO Geographical Indications Goods State (AMPQCA / TMA) 107 Boeun Jujube Forestry Chungcheongbuk-do A&T 108 Namwon Jiri Mountain Maple sap Forestry Jeollabuk-do T 109 Andong Apple Agricultural Gyeongsangbuk-do T 110 Youngduk kingcrab Fishery Gyeongsangbuk-do T 111 Jeonju-style Bibimbap Manufactural Jeollabuk-do T 112 Jindo Welsh Onion Agricultural Jeollanam-do A&T 113 Gimcheon Grapes Agricultural Gyeongsangbuk-do A Cheongdo Seedless Flat 114 Forestry Gyeongsangbuk-do A&T Persimmon 115 Yeongam watermelon Agricultural Jeollanam-do T 116 Wonju Chiacsan peach Agricultural Gangwon-do A&T 117 Yeongwol Red Pepper Powder Agricultural Gangwon-do A 118 Yeonggwang Glutinous Barley Agricultural Jeollanam-do A&T 119 Yesan Apple Agricultural Chungcheongnam-do A&T 120 Anheung Jjinppang Manufactural Gyeonggi-do T 121 Jindo Ulgeum Agricultural Jeollanam-do A&T 122 Jindo Black rice Agricultural Jeollanam-do A&T 123 Jeongseon Gondre Forestry Gangwon-do A 125 Jeonju Hanji Manufactural Jeollabuk-do T 126 Jeju tile fish Fishery JeJu-do T 127 Yeosu Dolsan leaf mustard Agricultural Jeollanam-do A 128 Yeosu Dolsan mustard Kimchi Agricultural Jeollanam-do A&T 129 Inje Yongdae Hoangtae Fishery Gangwon-do T 130 Tongyeong quilting Manufactural Gyeongsangnam-do T 131 Wando laver Fishery Jeollanam-do A&T 132 Wando halibut Fishery Jeollanam-do A&T 133 Cheongdo Hanjae water dropwort Agricultural Gyeongsangbuk-do A&T 134 Jinan red ginseng Agricultural Jeollabuk-do T 135 Geochang granite stone Gyeongsangnam-do T

Chapter 2 _ Proposal on the Management of the Bangladesh GI System • 127 continued

Act S.NO Geographical Indications Goods State (AMPQCA / TMA) 136 Cheonan Bae Agricultural Chungcheongnam-do A&T 137 Sinan sea salt Fishery Jeollanam-do T 138 Big Yeonggwang Yellow Corvina Fishery Jeollanam-do T 139 Pocheon makgeolli Agricultural Gyeonggi-do T 140 Geoje Maengjong bamboo shoot Forestry Gyeongsangnam-do A&T 141 Gangjin Cassia seed Agricultural Jeollanam-do T 142 Buan mulberry leaves Forestry Jeollabuk-do T 143 Jeju fusiformis Fishery Jeju-do T 144 Gochang watermelon Agricultural Jeollabuk-do T 145 Pohang Guryongpo Gwamegi Fishery Gyeongsangbuk-do T 146 Geochang apple Agricultural Gyeongsangnam-do T 147 Gwangyang plum Agricultural Jeollanam-do T 148 Damyang ttalgi (strawberry) Agricultural Jeollanam-do A 149 Boseong Ungchi Olbyeossal Agricultural Jeollanam-do A 150 Sacheon Green Garlic Agricultural Gyeongsangnam-do A 151 Gwangyang barbequed beef Manufactural Jeollanam-do T 152 Taebaek Komchwi (Edible Greens) Forestry Gangwon-do A&T 153 Inje Komchwi Forestry Gangwon-do A&T 154 Imsil Cheese Manufactural Jeollabuk-do T 155 Geumsan Insam Agricultural Gyeongsangnam-do T 156 Andong Korean beef Agricultural Gyeongsangbuk-do T 157 Gwangyang Baegun pear Agricultural Jeollanam-do T 158 Gwangyang Dried Persimmon Forestry Jeollanam-do T 159 Jangsu Apple Agricultural Jeollabuk-do T 160 BAROLO Manufactural Foreign country T 161 BARBARESCO Manufactural Foreign country T 162 Geumsan Perilla leaf Agricultural Chungcheongnam-do A&T 163 Jangheung laver Fishery Jeollanam-do A&T

128 • 2014/15 Knowledge Sharing Program with Bangladesh continued

Act S.NO Geographical Indications Goods State (AMPQCA / TMA) From 2011- 2012 164 Yeongwol KimSatgat grape Agricultural Gangwon-do T 165 Yuga glutinous rice Agricultural Gyeongsangbuk-do T 166 Sangju grape Agricultural Gyeongsangbuk-do T 167 Deogyusan acer mono sap Forestry Jeollabuk-do A 168 Gangneung Hangwa Agricultural Gangwon-do T 169 Goryeong Watermelon Agricultural Gyeongsangbuk-do A 170 Uiryeong Manggae-dduck Agricultural Gyeongsangnam-do A&T 171 Jindo Gukijai Agricultural Jeollanam-do A&T Hoengseong charcoal 172 Forestry Gangwon-do A (hardwood charcoal) 173 Damyang Bamboo Shoot Forestry Jeollanam-do A 174 Sokcho fermented squid Fishery Gangwon-do T 175 Goesan Daehak Waxy corn Agricultural Chungcheongbuk-do A&T 176 Daegu Apple Agricultural Gyeongsangbuk-do T 177 Andong Salt mackerel Fishery Gyeongsangbuk-do T 178 Choraktto wormwood Forestry Chungcheongnam-do T 179 Yeongyang red pepper Agricultural Gyeongsangbuk-do T 180 Chungju Bam (Chestnut) Forestry Chungcheongbuk-do A 181 Geumsan Perilla leaf Agricultural Chungcheongnam-do A&T 182 Jangheung maesaengi Fishery Jeollanam-do A&T 183 Yeonggwang mosiip songpyeon Agricultural Jeollanam-do T 184 Gangneung Hangwa Agricultural Gangwon-do A&T 185 Chujado chamgulbi Fishery Jeju-do T Gwangyang Seomjingang 186 Fishery Jeollanam-do T corbicula 187 Jangseong Dried Persimmon Forestry Jeollanam-do T 188 Inje Kong (Soybean) Agricultural Gangwon-do A&T 189 Gimpo ssal (Rice) Agricultural Gyeonggi-do A

Chapter 2 _ Proposal on the Management of the Bangladesh GI System • 129 continued

Act S.NO Geographical Indications Goods State (AMPQCA / TMA) 190 Geumjeongsanseong Makgeolli Agricultural Jeollanam-do T 191 Hamyang Dried Persimmon Forestry Gyeongsangnam-do A 192 Goheung Pomegranate Agricultural Jeollanam-do A&T 193 Jinbu Korean angelica Agricultural Gangwon-do A 194 Jecheon Hwang-gi Forestry Chungcheongbuk-do T 195 Gwangsan Urimill Agricultural Jeollanam-do T 196 Damyang Hangwa Manufactural Jeollanam-do T 197 Gwangyang Baegunsan bracken Forestry Jeollanam-do T 198 Jangsu Korean beef Agricultural Jeollabuk-do T 199 Jindo Dog Goods Jeollanam-do T 200 Suncheon Dangam Agricultural Jeollanam-do T 201 Buyeo Chestnut Forestry Chungcheongnam-do T 202 Hadong Seomjingang Jaecheop Fishery Gyeongsangnam-do T Gwangyang Baegunsan Gorosoe 203 Fishery Jeollanam-do T (acer mono) 204 Yeonggwang Hanwoo Agricultural Jeollanam-do A From 2012- 2013 205 Jeonju Bean sprouts Agricultural Jeollabuk-do T 206 Uiseong Black Garlic Agricultural Gyeongsangbuk-do T 207 Yeosu Jiwipo Fishery Jeollanam-do T 208 Punggi Artificial silk Agricultural Jeollanam-do T 209 Geoje yuja (citron) Agricultural Gyeongsangnam-do T 210 Suncheon Woldeung Peach Agricultural Jeollanam-do T 211 Damyang Changpyeong Ssaryeot Manufactural Jeollanam-do T 212 Yeosu Oyster Fishery Jeollanam-do A 213 Ulleungdo Usan A Ccer mono sap Forestry Gyeongsangbuk-do A Kangneung gaedureup 214 Forestry Gangwon-do A (Kalopanax Sprouts) 215 Naju Bae (Pear) Agricultural Jeollanam-do A&T

130 • 2014/15 Knowledge Sharing Program with Bangladesh continued

Act S.NO Geographical Indications Goods State (AMPQCA / TMA) 216 Changnyeong Maneul (Garlic) Agricultural Gyeongsangnam-do A 217 Jeongeup Jasengcha Agricultural Jeollabuk-do T Pohang mulhoe 218 Fishery Gyeongsangbuk-do T (Cold Raw Fish Soup) 219 Gangwon Goseong Pollack Fishery Gangwon-do T 220 Damyang juknocha Agricultural Jeollanam-do T 221 Daegu Sang-dong Cherry Agricultural Gyeongsangbuk-do T 222 Sinan salted shrimp Fishery Jeollanam-do T 223 Imsil red pepper Agricultural Jeollabuk-do T 224 Imsil red pepper powder Agricultural Jeollabuk-do T 225 Hwasun Jakyak (Peony Root) Forestry Jeollanam-do A Hwasun Mokdan 226 Forestry Jeollanam-do A (Moutan Root Bark) 227 Go-heung Hanwoo Agricultural Jeollanam-do A&T 228 Yangyang Seoraksan jangnoesam Agricultural Gangwon-do T 229 Suncheon Naganbae (peer) Agricultural Jeollanam-do T 230 Jangseong Apple Agricultural Jeollanam-do T 231 Ulsan Oegosan Onggi Manufactural Gyeongsangnam-do T 232 Wonju Rhus lacquer Forestry Gangwon-do A 233 Damyang hanwoo Agricultural Jeollanam-do T 234 Gimcheon walnut Forestry Gyeongsangbuk-do T 235 Wonju Chiaksan Hanwoo Agricultural Gangwon-do T 236 Geomoondo Ssuk (Mugwort) Agricultural Jeollanam-do A&T 237 Siheung Lotus Forestry Gyeonggi-do T 238 Jeju abalone Fishery Jeju-do T 239 Namwon loach Fishery Jeollabuk-do A 240 Goheung Seaweed Fishery Jeollanam-do A 241 Goheung Kelp Fishery Jeollanam-do A

Chapter 2 _ Proposal on the Management of the Bangladesh GI System • 131 continued

Act S.NO Geographical Indications Goods State (AMPQCA / TMA) Boryeong Nampo Oseock 242 Goods Chungcheongnam-do T (obsidian) 243 Busan Daejeo Tomato Agricultural Gyeongsangnam-do A 244 Hongcheon Myeongi Agricultural Gangwon-do A 245 Andong po Agricultural Gyeongsangbuk-do T From 2013- 2014 246 Hampyeong Wang-gol Mat Manufactural Jeollanam-do T 247 Haenam laver Fishery Jeollanam-do A&T 248 Yeoju Dolsan Gotkimchi Agricultural Gyeonggi-do T 249 Geoje Yujacheong Agricultural Gyeongsangnam-do T 250 JINDODOG Goods Jeollanam-do T 251 Anseong Bae(Pear) Agricultural Gyeonggi-do T Cheongyang Pyogo 252 Forestry Chungcheongnam-do A (Oak mushroom) 253 Cheongyang Bam (Chestnut) Forestry Chungcheongnam-do A 254 Muju Hodu (Walnut) Forestry Jeollabuk-do A&T 255 Gyeongju Cherry Agricultural Gyeongsangbuk-do T 256 Jingang fragrant grass Manufactural Nation 257 Jeju Agar Fishery Jeju-do T 258 Hampyeong Makgeolli Agricultural Jeollanam-do T 259 Andong jjim dak Manufactural Gyeongsangbuk-do T 260 Andong Hanji Manufactural Gyeongsangbuk-do T 261 Gwangcheon Togul salted shrimp Fishery Chungcheongnam-do T 262 Seosan Dalrae Agricultural Chungcheongnam-do T 263 Hansan Sogokju Agricultural Chungcheongnam-do T 264 Eunpung A Dried persimmon. Agricultural Gyeongsangbuk-do T 265 Inje Mokgi Manufactural Gangwon-do T 266 Byeongcheon sundae Manufactural Chungcheongnam-do T 267 Gumi Pork Agricultural Gyeongsangbuk-do T 268 Banyawol lotus Agricultural Gyeongsangbuk-do T 269 Nonsan strawberry Agricultural Chungcheongnam-do T

132 • 2014/15 Knowledge Sharing Program with Bangladesh continued

Act S.NO Geographical Indications Goods State (AMPQCA / TMA) 270 Eulleungdo Vegetarian Bibimbap Manufactural Gyeongsangbuk-do T 271 Gimhae Jang-guncha Agricultural Gyeongsangnam-do T 272 Wonju Chiaksan peer Agricultural Gangwon-do T 273 Wonju Chiaksan Peach Agricultural Gangwon-do T 274 Haenam Sebalnamul Forestry Jeollanam-do T 275 TAEBAEK HANWOO (beef) Agricultural Gangwon-do T 276 Yangju Bulgoksan Makgeolri Agricultural Gyeonggi-do T 277 Gokseong Apple Agricultural Jeollanam-do T 278 Hwacheon Tomato Agricultural Gangwon-do T 279 Mungyeong Omija Forestry Gyeongsangbuk-do T 280 Gongju Bam (chestnut) Forestry Chungcheongnam-do T Jinyeong dangam(Sweet 281 Agricultural Gyeongsangnam-do T persimmons 282 Muju Hodu (walnut) Forestry Jeollabuk-do T 283 Ganghwa Hwamunseok Manufactural Gyeonggi-do T 284 Jeongeup Gujeolcho Forestry Jeollabuk-do T 285 Yeonggwang Cheonilyeom Fishery Jeollanam-do T 286 Busan Gijang Myeolchijeotgal Fishery Gyeongsangnam-do T 287 Haenam Jeonbok Fishery Jeollanam-do A&T 288 Jindong Mideodeok Fishery Gyeongsangnam-do A 289 Sokcho Myeongranjeot Fishery Gangwon-do T 290 Boseong Hoecheon potato Agricultural Jeollanam-do T 291 Gunsan Ssal (rice) Agricultural Jeollabuk-do T 292 Punggi Ingyeon (artificial silk) Manufactural Gyeongsangbuk-do T 293 Hongcheon Myeongi Agricultural Gangwon-do A Seosan Palbongsan Gamja 294 Agricultural Chungcheongnam-do A (Potato) 295 Hamyang Sanyangsam Agricultural Gyeongsangnam-do T 296 Goheung Maneul Agricultural Jeollanam-do T Gangdong Dolmiyeok 297 Fishery Gyeongsangnam-do T (sea mustard)

Chapter 2 _ Proposal on the Management of the Bangladesh GI System • 133 continued

Act S.NO Geographical Indications Goods State (AMPQCA / TMA) 298 Dangjin Hwangto Potato Agricultural Chungcheongnam-do T 299 Geoje Aloe Agricultural Gyeongsangnam-do T 300 Pohang Cho (herb) Agricultural Gyeongsangbuk-do T Yeonggwang Gochu 301 Agricultural Jeollanam-do A (Dried Red Pepper) Yeonggwang Gochutgaru 302 Manufactural Jeollanam-do A (Dried Red Pepper Powder) 303 Goryeong Potato Agricultural Gyeongsangbuk-do A Tongyeong Najeonchilgi 304 (lacquerwork inlaid with nother of Agricultural Gyeongsangnam-do T pearl) From 2014- 305 Suncheon Plum Agricultural Jeollanam-do T 306 JINJU STRAWBERRY Agricultural Gyeongsangnam-do T 307 Sinan Leak Agricultural Jeollanam-do T 308 Sinan Maneul Agricultural Jeollanam-do T 309 Sinan Onion Agricultural Jeollanam-do T 310 Sinan Sesame Agricultural Jeollanam-do T 311 Yeoncheon Yulmu Agricultural Gyeonggi-do T 312 Seosan Saenggang Hangwa Agricultural Chungcheongnam-do T 313 Gupo Noodle Manufactural Gyeongsangnam-do T 314 Pohang Guryongpo Gwamegi Manufactural Gyeongsangbuk-do T 315 Ulreungdo Myeongi Agricultural Gyeongsangbuk-do T Baekryeongdo Kkanari Aekjeot 316 Manufactural Gyeonggi-do T (Fish source) Cheongyang Pyogo 317 Agricultural Chungcheongnam-do A (Oak mushroom) 318 Cheongyang Bam (Chestnut) Agricultural Chungcheongnam-do A 319 Sinan Gim(dried laver) Manufactural Jeollanam-do A 320 Jangseong Jandi Agricultural Jeollanam-do T 321 Jeju Eungalchi (hairtail) Fishery Jeju-do T

134 • 2014/15 Knowledge Sharing Program with Bangladesh continued

Act S.NO Geographical Indications Goods State (AMPQCA / TMA) Naju Noan Dolminari 322 Agricultural Jeollanam-do T (water parsley) 323 Gokseong Melon Agricultural Jeollanam-do T 324 Paju Jangdan kong (bean) Agricultural Gyeonggi-do T 325 Samcheonpo Bajirak (seashell) Fishery Gyeongsangnam-do T 326 Yeongsanpo Hongeo Manufactural Jeollanam-do T 327 Buan Odi (mulberry) Agricultural Jeollabuk-do T 328 Gomso Jeotgal (sated seafood) Manufactural Jeollabuk-do T 329 Bonghwa Geobera Agricultural Gyeongsangbuk-do T Bonghwa Gochutgaru 330 Manufactural Gyeongsangbuk-do T (dried red pepper powder) 331 Andong kong Du Agricultural Gyeongsangbuk-do T 332 Yangpyeong Mulberry leaf tea Manufactural Gyeonggi-do T 333 Gurye Gorosoe (acer mono sap) Forest Jeollanam-do T 334 Bonghwa Gochu (red pepper) Agricultural Gyeongsangbuk-do T 335 PUNGGI KOREAN GINSENG Agricultural Gyeongsangbuk-do T 336 Jeju Hanrabong Agricultural Jeju-do T 337 Yangpyeong Mulberry leaves Agricultural Gyeonggi-do T 338 SUNCHEON HAMCHO (salt) Manufactural Jeollanam-do T 339 Mudeungsan Watermelon Agricultural Jeollanam-do T Nonsan Yangchon Gotgam 340 Manufactural Chungcheongnam-do T (dried persimmon) Inje Goroshoe Suaec 341 Manufactural Gangwon-do T (Acer mono sap) Yeongwol Gondre 342 Agricultural Jeollanam-do T (cirsium setidens)

Chapter 2 _ Proposal on the Management of the Bangladesh GI System • 135

2014/15 Knowledge Sharing Program with Bangladesh

.go.kr www. ksp ity 30149, Korea Center for International Development, KDI cid.kdi.re.kr Knowledge Sharing Program www.ksp.go.kr (set) www.kdi.re.kr www.kiip.re.kr www.mosf.go.kr 3 7 SBN 978-89-8063-966- SBN 978-89-8063-827- I I Korea Institute of Intellectual Property KIPS Center 9th FL., 131, Teheran-Ro, Gangnam-Gu, Seoul 06133, Korea Tel. 82-2-2189-2600 Korea Development Institute 263 Namsejong-ro, Sejong Special Self-Governing c Tel. 82-44-550-4114 Ministry of Strategy and Finance Sejong Special Self-Governing City 30109, Korea Government Complex-Sejong, 477, Galmae-ro, Tel. 82-44-215-7762