Volume 11 Issue Article 41

Canada-United States Law Journal

1986

Volume 11

Canada-United States Law Journal

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Recommended Citation Canada-United States Law Journal, Volume 11, 11 Can.-U.S. L.J. Iss. (1986) Available at: https://scholarlycommons.law.case.edu/cuslj/vol11/iss/41

This Front Matter is brought to you for free and open access by the Student Journals at Case Western Reserve University School of Law Scholarly Commons. It has been accepted for inclusion in Canada-United States Law Journal by an authorized administrator of Case Western Reserve University School of Law Scholarly Commons. VOLUME 11 1986

CONFERENCE PROCEEDINGS

CANADA-UNITED STATES ECONOMIC TIES: THE TECHNOLOGY CONTEXT

Conducted Under the Auspices of

THE CANADA-UNITED STATES LAW INSTITUTE and CASE WESTERN RESERVE UNIVERSITY SCHOOL OF LAW

Cleveland, Ohio April 18-20, 1986

Conference Chairman Henry T. King, Jr. Canada '--" United States ( Law Journal 1

Volume Eleven 1986

Case Western Reserve University School of Law

49 75CS2 104 XL. ee o s 21:\-:>7vv Cite as: CAN.-U.S. L. J.

The Canada- United States Law Journal is published by the Case Western Reserve Journal of International Law on behalf of the Canada United States Law Institute. The Journal is currently an annual publica ..... tion and subscription rates are $5.00 per volume (domestic and foreign) . Subscriptions are accepted for an entire year and are payable in advance. Back volumes may be purchased by contacting William S. Hein & Co., Inc., 1285 Main Street, Buffalo, New York 14290. The Journal welcomes submission of comments and correspondence from readers and authors. All notifications of change of address should include both old and new addresses with ZIP codes. Address all correspondence to: Edi tor, Canada-United States Law Journal, 11075 East Blvd., Cleveland, Ohio 44106, U.S.A. The Journal also welcomes submission of articles on topics in inter national and comparative law. Manuscripts should be submitted in du plicate, typed triple-spaced, and should conform to the United States Government Printing Office Style Manual. Footnotes should be double spaced and should conform to A Uniform System of Citation (14th ed.}. Unpublished mansucripts will not be returned to the author unless requested. The Journal's policy requires that unless a claim for nonreceipt of a journal is received within 3 months after the mailing date, the Journal cannot be held responsible for supplying that issue without charge. The opinions expressed herein are those of the respective authors and not of the Canada-United States Law Journal. The Journal is printed by the Joe Christensen, Inc., 1540 Adams, Lincoln, Nebraska 68521. Notice: Subscriptions are renewed automatically unless timely notice of cancellation is received. THE CANADA-UNITED STATES LAW INSTITUTE

Gratefully Acknowledges A Grant From

THE WILLIAM H. DONNER FOUNDATION

For the Underwriting of the

CONFERENCE ON CANADA-UNITED STATES EcONOMIC TIES: THE TECHNOLOGY CONTEXT

Cleveland, Ohio April 18-20, 1986 CANADA-UNITED STATES LAW INSTITUTE

Canadian Director United States Director J. H. McLeod Henry T. King, Jr. Faculty of Law School of Law University of Western Ontario Case Western Reserve University London, Ontario N6A 3K7 11075 East Boulevard Canada Cleveland, Ohio 44106

ADVISORY BOARD Chairman Sidney Picker, Jr.

Board Members David Brink Henry T. King, Jr. Hon. W. Z. Estey Monroe Leigh Paul Fraser Rosemary McCamey W. C. Graham Myres S. McDougal R. M. lvey J. H. Moore John Krajewski Louis B. Sohn D. Carlton Williams

On behalf of the Canada-United States Law Institute, the Journal gratefully acknowledges foundiug grants from the governments of Can ada and the United States as well as the following foundations: The William H. Donner Foundation (U.S.); The Richard lvey Foundation (Canada); The Cleveland Foundation (U.S.); The Ontario Bar Founda tion (Canada); and The George Gund Foundation (U.S.). Canada-United States Law Journal

Editors Renee F. Chudakoff David G. Meany

Associate Editor Edmund T. MacMurray

Associate Paul Vandevert

Secretaries Linda Morris Cheryl Spence-Palfalvi 1 r·~, ~------

Case Western Reserve Journal of International Law 1986-87 Editorial Board Editor-in-Chief Christopher P. Bauman Executive Editor David Funke Associate Executive Editor Tony Gemmato Senior Research Editor Senior Anicles Editor Erick C. Smith Lia Pascale Associate Research Editors Associate Articles Editors Stephen A. Douglas Elizabeth Frank Hilary Quay Sparks Donna L. Mitchell Notes Editor Solicitation and Topics Steve Rinaldi Development Editor Associate Notes Editor Julie Luft Nicholas z. Hegedus Canada-United States Law Journal Editor Rente F. Chudakotf Associate Canada-United States Law Journal Editor Edmund T. MacMurray Senior Associate Editors William Herrmann Jonathan Sands Editors Lori A. Acosta Laura Carlson Chen Yonhi Park Jeffrey A. Bloom Mary Davis Dennis P. Sawan Alan R. Caramella Ralf Greenwood Mark A. Sindler Rick McKenna Associates Pippa Henderson Chip Rader Santo Incorvaia Richard Wolfson Candidates Drew Alatis John Forg Danielle Pemberton Janet Albers Gale Freeman Mark Pusey Don Arndt Carla Freudenberg Carol Young Quayle Brett Barenholtz Hans Geho Nancy Rich Clarissa Barnett Jodi Green Lisa Robinson Onee Bergfeld Dawn Haghigi Brian Ross Donna Bertko Bill Hayes Beth Salisbury Joanne Barsh Andrea Hazell L. Scarcella Timothy Brick Harold Hom Ray Schmidlin Gloria Capt Chris Hunter Mark Silecky Mary Cermelj Mitchell Johnson Hewitt Smith Joe Cohen Jeff Kirchmeier Mike Smith Michele Cold Kathi Koehler Julianne Sonderlund Bill Costello Roy Krall Loren Sonkin Mike Denea Jeff Lehman Brian Stapleton Jeff Denning Mark Lindsay Lisa Stevens Rebecca De Simone David Lutz Tenni Tarchinski Rick DiLisi Juliano Marinkovich Doug Tulin Denise DiPasquale Katila Markulin Rosemary Turk Tim Downing Jacqueline Musacchia Jeff Van Fossen Dan Emma Bob Neault David Webster Rita Fagan Dean Nielson Jeffrey Weidenthal Mario Fazio Nancy Oretskin Cheri Westerburg Francesca Fiecconi Andrew Paisley Marie Wheeler Shari Feldman John Paxman Jeff Wolf Tom Pellis Advisory Board Francis A. Boyle Henry T. King, Jr. Robert A. Friedlander Barry M. Fischer Christopher C. Joyner Faculty Advisor Secretary Sidney Picker, Jr. Linda Morris EDITOR'S NOTES

The following are the proceedings of a Conference held under the auspices of the Canada-United States Law Institute and Case Western Reserve University School of Law. The conference was held in Cleve land, Ohio on Aprill8-20, 1986. The theme of the Conference was Can ada-United States Economic Ties: The Technology Context.

The articles and discussions printed here have been compiled from transcripts of the Conference and papers provided by the speakers. Foot notes are provided only to the extent they were included in these papers. Questions regarding unfootnoted factual assertions should be addressed to the authors.

The views expressed within are those of the authors or Conference participants and do not necessarily reflect the opinions or policies of any organization, governmental agency, corporation, etc. of which they may be affiliated. Canada ~ United States c= Law Journal J

VOLUME II 1986

PROCEEDINGS OF THE CANADA-UNITED STATES LAW INSTITUTE CONFERENCE CANADA-UNITED STATES ECONOMIC TIES: THE TECHNOLOGY CONTEXT Cleveland, Ohio April 18-20, 1986

Introduction and Conference Opening Professor Henry T. King, Jr...... , ...... The Importance of Intellectual Property in Trade Between Canada and the United States The Honourable Michel Cote ...... 7 U.S.-Canada High Technology Trade Issues (remarks) Harvey E. Bale, Jr...... 13 Discussion Following the Remarks of The Honourable Michel Cote and Dr. Bale, Jr...... 19 Intellectual Property Protection in Canada: The Technology Challenge James Keon...... 27 Overview of the United States Intellectual Property System: Current Issues Michael S. Keplinger ...... 51 Discussion Following the Remarks of Mr. Keon and Mr. Keplinger...... 65 The Relation of Intellectual Property Rights to Cross-Border Trade in the EEC Hans Smit...... 69 I/ II I I I, ~

Discussion Following the Remarks of Professor Smit ...... 81 Patent Laws of the United States and Canada: Similarities and Differences Roy V. Jackson ...... 83 Differences Between United States and Canadian Intellectual Property Laws-Real and Apparent William L. Hayhurst...... 91 Discussion Following the Remarks of Mr. Jackson and Mr. Hayhurst ...... 141 An Introduction to "From Investment Screening to Investment Development: The Impact of Canada's Foreign Investment Review Agency (FIRA) and Investment Canada in Canada's Technological Development" Sydney G. Harris ...... 147 From Investment Screening to Investment Development: The Impact of Canada's Foreign Investment Review Agency (FIRA) and Investment Canada in Canada's Technological Development Gordon Dewhirst & Michael Rudiak ...... 149 Current Approaches to Foreign Investment Review in Canada James Spence...... 161 Discussion Following the Remarks of Mr. Dewhirst and Mr. Spence ...... 179 The Impact of U.S. Export Controls on Trade Between Canada and the United States Jonathan T. Fried...... 185 The Impact of U.S. Export Controls on Trade Between Canada and the United States (remarks) Arthur Downey...... 195 Hypotheticals and Discussion Following the Remarks of Mr. Fried and Mr. Downey ...... 199 U.S. Tax Aspects of Technology Transfers Between the United States and Canada George Goodrich ...... 213 Tax Aspects of Technology Transfers Between the United States and Canada: A Canadian Viewpoint Robert D. Brown ...... 227 Discussion Following the Remarks of Mr. Goodrich and Mr. Brown...... 247 The United States' Potential Contribution to Canada's Technological Policy Goals Carl E. Beigie ...... 251 Discussion Following the Remarks of Mr. Beigie ...... 257 Challenges to Trademark and Patent Validity Paul Plaia, Jr...... 261 Challenges to Patent and Trade Mark Validity in Canada Roger T. Hughes...... 275 Discussion Following the Remarks of Mr. Plaia and Mr. Hughes...... 285 Transborder Flows: Its Implications in Canada-United States Relations (remarks) Hugh P. Donaghue...... 289 Legal Issues Raised by Transborder Data Flow Peter Robinson ...... ; . . . . . 295 Discussion Following the Remarks of Mr. Donaghue and Mr. Robinson ...... 317 Should There Be More Canadian Government Intervention in Technology Transfer Arrangements Between Canadian and Foreign Firms? (remarks) Stuart Smith...... 321 Government Intervention in International Technology Transfer: More or Less? Donald G. McFetridge...... 331 Discussion Following the Remarks of Dr. Smith and Mr. McFetridge ...... 345 Managing With Technology: The Future of North American Business John A. Roth ...... 355 Discussion Following the Remarks of Mr. Roth ...... 363 Closing Remarks and Discussion Professor Henry T. King, Jr...... 373

Clive Allen Northern Telecom Mississaugua. Ontario Casey August IBM-Canada, Ltd. Markham, Ontario Richard Austin Stikeman Elliott Toronto, Ontario Harvey Bale Office of U.S. Trade Representative Washington, D.C. Carl Ileigie Dominion Securities Pitfield, Ltd. Toronto, Ontario Richard Blackwell Financial Post Toronto, Ontario Victor G. Bradley Dept. External All"ain Ottawa, Ontario Robert Brown Price Waterhouse Toronto, Ontario John Butler Dept. External Aft'airs Ottawa, Ontario Ellen Carson Dept. of Consumer and Corporate All"ain Ottawa, Ontario Renee Chudakoff' Case Western Reserve Univ. School of Law Oeveland, Ohio Daniel T. Clancy Case Western Reserve Univ. School of Law Cleveland, Ohio Daniel G. Cooper McCarthy & MeCarthy Toronto, Ontario Michel COte Minister of Consumer and Corporate Affairs Ottawa, Ontario Dorinda Dallmeyer Univ. of Georgia School of Law Athens, Georgia Gordon Dewhirst Investment Canada Ottawa, Ontario Lew H. Diggs Royal Bank of Canada Montreal, Quebec Hugh P. Donaghue Control Data Washington, D.C. Arthur Downey Sutherland, Asbill & Brennan Washington, D.C. Dunald K. Duvall Kenyon & Kenyon Washington, D.C. Raymond A. Eckcnley Cunadian General Electric Co., Ltd. Toronto, Ontario Ned Ellis Dept. of Consumer and Corporate Affairs Ottawa, Ontario Philip T. Erickson Northern Telecom, Ltd. Mississaugua, Ontario Jonathan Fried Dept. External Affairs Ottawa, Ontario Maurice A. Forget Martineau Walker Montreal, Quebec Nicholas H. Fyfe Smart & Biggar Ottawa, Ontario Graham C. Gibb Canadian Chemical Producers' Assoc. Ottawa, Oncario Michael L. Gill Nordson Corp. Amherst, Ohio Marcus Gleisser Plain Dealer Cleveland, Ohio Allan J. Goodfellow American Greetings Cleveland, Ohio George Goodrich Arthur Andersen Cleveland, Ohio Charles G. Grace Eaton Corp. Cleveland, Ohio William C. Graham Univ. of Toronto School of Law Toronto, Ontario Dan Hall Firestone Tire & Rubber Akron, Ohio Sydney Harris Canadian Consulate General Cleveland, Ohio A. Mosby Harvey, Jr. Firestone Tire & Rubber Akron, Ohio 1.1' II I '-~~~~--~~~~~~~......

William Hayhurst Ridout & Maybee Toronto, Ontario Lawrence L. Hennan Cassels, Brock & Herman Toronto, Ontario Guy Houle Swabey, Mitchell, Houle Marcoux & Sher Montreal, Quebec Roger T. Hughes Sim, Hughes Toronto, Ontario Roy Jackson Hercules, Inc. Wilmington, Delaware Richard P. Kendon Novacor Chemicals, Ltd. Calgary, Alberta James Keon Dept. of Consumer and Corporate Affairs Ottawa, Ontario Michael Keplinger U.S. Patent & Trademark Office Washington, D.C. Henry T. King, Jr. Case Wastem Reserve Univ. School of Law Cleveland, Ohio James D. Kokonis Smart & Biggar Ottawa, Ontario John Lehnert Bell Canada Montreal, Quebec Rosemary McCamey K.anchar International Toronto, Ontario Donald McFetridge Carleton University Ottawa, Ontario David G. Meany Case Western Reserve Univ. School of Law Cleveland, Ohio W.P. Molson Canadian Consulate General Oeveland, Ohio Bruce E. Morgan Gowling & Henderson Ottawa, Ontario David T. Morrison State Dept. Office of Business Practices Washington, D.C. William R. Norris Dow Chemical Midland, Michigan Thomas H. O'Flaherty Proctor & Gamble Cincinnati, Ohio Elizabeth Payne Dept. of Regional Industrial Expansion Ottawa, Ontario Keith W. Perrett Imperial Oil Ltd. Toronto, Ontario Sidney Picker Case Western Reserve Univ. School of Law Cleveland, Ohio Paul Plaia Plaia & Schaumberg Washington, D.C. Richard B. Potter Fasken & Calvin Toronto, Ontario James Rich Alcan Aluminum Cleveland, Ohio Jack Roberts Univ. of Western Ontario School of Law London, Ontario Peter Robinson Dept. of Communications Ottawa, Ontario Daniel Roseman Canadian Chamber of Commerce Ottawa, Ontario John Roth Bell Northern Research Ottawa, Ontario Donald E. Schuele Case Western Reserve Inst. of Technology Cleveland, Ohio Cathy Sigmar Univ. of Western Ontario School of Law London, Ontario Hans Smit Columbia University School of Law New York, New York Stuart Smith Science Council of Canada Ottawa, Ontario James Spence Tory, Tory, DesLauriers & Binnington Toronto, Ontario Peter J. Sprung Univ. of Waterloo Waterloo, Ontario Carl Thomas Eastman Kodak Rochester, New York Austin C. Tingley Canada Wire & Cable, Ltd. Toronto, Ontario Odyl Wittman Canadian Consulate General Cleveland, Ohio Donald J. Wright Lang, Michener, Cranston Farquharson & Wright Toronto, Ontario