1 ECOSOC

Patents ECOSOC Background Guide

2 ECOSOC Contents Letter from the Secretary General: ...... 3 Letter from the Committee Director: ...... 4 Definition ...... 5 History of the Topic ...... 5 Italy - 1400s ...... 5 The United Kingdom - 1500s & 1600s ...... 6 Paris Convention for the Protection of Industrial Property ...... 6 Types of ...... 7 Design ...... 7 Patent ...... 8 Plant Patent ...... 8 National Patents vs. Regional Patents ...... 8 International patents ...... 9 The cost of a patent ...... 9 The case FOR Patents ...... 10 Serve as Protection for Small and New Firms ...... 10 Inventions are made Public ...... 10 Incentive to Innovate...... 11 High Costs + R&D ...... 11 The case AGAINST Patents (or reduced ones) ...... 12 Pharma Industry: lack of access ...... 12 India as a Case Study ...... 13 Evergreening: Small Tweaks = More Patents ...... 14 Patent “Trolls” ...... 14 NO Patents At All ...... 15 Catching up with Technological Development ...... 15 United States of America ...... 16 European Union ...... 16 International Bodies ...... 17 ...... 17 Bloc Positions ...... 17 QARMAs: ...... 18 Position papers: ...... 18 Bibliography: ...... 18

3 ECOSOC Santiago Bustamante Letter from the Secretary General Secretary General

Santiago Ortiz Dear Delegates and Faculty Advisors, Under Secretary General and Welcome to NewMUN 2019! Before anything, I would like to ECOSOC Committee wish you the best of luck in this two-day conference which is Director going to bring together the best MUN delegates from Lima. I am Carlos Urrunaga sure that I will witness the highest level of debate at this DISEC Committee conference. Director More than as a MUNer, but as a responsible citizen, I understand Ainhoa Ceballos that the global issues in our world must be solved by the SOCHUM Committee international community. I also understand that MUN delegates Director don't have the capabilities to take the decisions to change the

world, but at least we have the capacity to outrage ourselves when Juan Pablo Muñoz FABC Committee seeing that something is not working for our wellbeing. That Director capacity to go out and speak for your beliefs, to stand up and raise the flag of your country demanding for consensus, demanding for Juan Diego Rodriguez peace, demanding for the wellbeing of everyone. That capacity is HGA Committee the only way in which countries can move forward, and it is the Director only way in which we will contribute to building a better world. Maybe a little visionary but is the truth. Marina Velasco and Sebastian Alvino This year, the Newton team has decided to increase the number of

JCC Directors committees in order to have a MUN conference of the best quality. The topics that we have chosen tackle issues from the past, Francisco Lyon present, and future, therefore presenting a challenge for delegates to combine their knowledge and application to reach solutions. In Fantastic Crisis many of the committees, Directors have been prepared to take the Committee Director flow of the committee to a maximum moment of crisis in order to assess the networking and negotiating skill from delegates. Jorge Fiestas Press Director I will just like to leave you the message, that the only way to be

------successful is to give your best. As Eric Thomas once said: "You will be successful when you want something as hard as you want Santiago Ortiz to breath". ECOSOC Committee I wish you the best of luck in your committees and hope you have Director an amazing time in NewMUN 2019!

Haoyun Hu Assistant Director Sincerely, Santiago Bustamante Matias Blanes Secretary-General Assistant Director

4 ECOSOC Santiago Bustamante Letter from the Committee Director Secretary General

Santiago Ortiz Dear Delegates, Under Secretary General and ECOSOC Committee Welcome to NewMUN 2019’s Economic and Social Committee, Director I wish you to enjoy this committee and bring on high level

academic debate and solutions but at the same time have fun. Carlos Urrunaga DISEC Committee Director As a short introduction, my name is Santiago Ortiz and I am

Ainhoa Ceballos currently a Form VI student in Newton College. In college, I plan SOCHUM Committee on studying Economics, possibly with a minor in Maths. My MUN Director career began when I was finishing Form II, and over these last few

Juan Pablo Muñoz years of going to conference after conference, it has become one FABC Committee of my favourite activities. Attending each conference, leaves me Director amazed at how the level of debate keeps improving each year.

Juan Diego Rodriguez Recently, I had the opportunity to attend Harvard MUN for the HGA Committee second time, where I enjoyed debating with people across the Director world, and even re-encountering friends I had met the prior year. Marina Velasco and Sebastian Alvino On my free time, I enjoy listening to Rock music, and am always

JCC Directors open to suggestions on new bands or songs to add to my ever- expanding playlist. I love debating, both formally and informally, Francisco Lyon whether it’s about pressing political issues, or meaningless

Fantastic Crisis debacles, and as you can see from my career choice, I am much Committee Director more inclined to numbers than letters.

Jorge Fiestas Press Director Regarding the topic at hand, patents are a complex issue that intertwine , consumers and the role of the ------government, making them difficult to regulate properly. I hope Santiago Ortiz that the Background Guide we have put up helps set a good ECOSOC Committee knowledge base that will aide you in your further research. If you

Director have any doubts at all, feel free to contact me or my Assistant Director at the emails at end of the Background Guide. Haoyun Hu Assistant Director Sincerely, Santiago Ortiz Matias Blanes Assistant Director Committee Director 5 ECOSOC

the country may produce it, but also no firm Definition would be allowed to import that same drug into the U.S. The owner of a patent does however A patent, as defined by the World Intellectual have the right to provide others with a licence Property Organization, is “an exclusive right to produce. granted for an invention”. The patent gives the creator of said invention, the ability to prevent What constitutes an invention, and therefore any other parties from either producing, using what is patentable, can have different meanings or selling their invention, depending on what is to different countries with different laws. Part detailed on the patent. In essence, it is of the discussion for this committee will be protection granted by government, that stops agreeing whether a global definition should others from copying one’s invention. The only exist, as well as what can actually be patentable. requirement placed upon the patentee, is that In the United States for example, under the U.S. the invention be fully disclosed to the public. If Patent Law, 35 U.S.C., an invention is defined thus not wish to reveal the details of as “any new and useful process, machine, their inventions, they can instead opt for other manufacture, or composition of matter, or any methods of protecting their secrets. These new and useful improvement thereof”. This however are much riskier, as they involve definition thus includes newly invented objects, trusting that no one within the will as well as new methods or manners of utilizing leak information, or that no other firm will said objects. It however does not mention come up with the same idea. anything on less tangible things, such as software. Based on their countries needs, a Patent rights are territorial, meaning that they delegate might wish for the definition of are only granted within a given country, or patentable inventions to change, and might region. If one for example holds a patent on a push other nations to adapt theirs specific drug in the U.S, no other firm within

granted a patent for the invention of a river History of the Topic transport vessel that could transport cargo more easily through the use of a hoist. He thus now had gained the exclusive right to utilize his Italy - 1400s invention for three years, and could freely

reveal it to the public without fear of it being Italy, being the birthplace of the innovative copied. The invention failed, but it established period that was the Renaissance, is where the a precedent which would be followed by the modern patent can be said to have originated. In Florence 1421, Filippo Brunelleschi was 6 ECOSOC

Venetian Republic, who in 1474 a established benefit from being the only exporting. This tax the first patent system. raising “trick” was employed by Queen Elizabeth I and James I on many products and The implementation of this patent system then industries, including salt, and soap. The high spread across Europe, as more and more nations prices that the existence of these monopolies attempted to draw inventors to their land. There caused, specially on those last two products, led was however another motive for granting to public discontent, which resulted in the patents, which perhaps led to the system being passing of the Statute of Monopolies in 1623. abused and later reformed. Under this statute, all previous monopolies were invalidated and now patents could only be granted on new inventions, and the power to grant them was now held by the parliament.

Paris Convention for the Protection of Industrial Property

In the 1883, 177 countries signed the Paris Convention for the Protection of Industrial Property, which was the first international The United Kingdom - 1500s & 1600s agreement involving patents. Under this During the 1500s and 1600s, the british crown convention, nations agreed to some need a more efficient way to raise taxes, given standardized rules on patents. To begin, each that it did not possess the infrastructure to country state must provide the same protection collect taxes from all firms and individuals. to nationals of Contracting states that they Patents were found to be an efficient solution. would provide to their own citizens. They must The Merchants of the Staple, would be granted also provide the same protection to nationals of a monopoly on the export of wool for example, non-Contracting states that are living within a and so they would be the only ones selling it to Contracting state, or own a firm within it. other countries, albeit paying a massive tax to the Crown. If they found any other firms trading Furthermore, the convention grants a right of wool, they could thus fine them, or report them priority for patents, marks, and industrial to the King/Queen. This way, the Crown could designs. This means, that after a party applies much more efficiently collect the tax revenue, for a patent in one contracting nation, they are because it only came from one place, and on the granted either 6 or 12 months in which they are other hand, The Merchants of the Staple would allowed to file for a patent in any of the other 7 ECOSOC

Contracting states, and it will still count as if Design Patents, the second most common they had applied for the patent on the same patent that is applied worldwide, specializes in starting day. This thus helps prevent any event the protection and copyright of certain drawing or issue that occurs after the initial patent from drafts, or more known as “surface interfering in the subsequent ones, as applying ornamentation”, which is the for the initial patent involves disclosing your shape/configuration of the object being invention to the public. designed, let it be the draft of a chair, bottle, or even an electronic device. An example can be a Under the convention, the granting of patents in bottle that is used to store a drink. The design one Contracting state does not guarantee that a of the bottle is patented by the patentee, in order patent will be granted on all other nations. This to protect the same design from being created is not a global framework for international in the same nation. Nevertheless, because the patents. Contracting states are also not allowed patent is for each nation, the design can be to refuse to grant a patent on the basis that it created out of the country. Although created was not granted on another Contracting state. outside, it is prohibited to be exported into the nation in which the patentee has already patented his/her design. Types of Patents In early stages of development (In the year In general terms, there are 2 main types of 1937), the Coca-Cola company design patented patents, both known as design and utility their first draft of a bottle which would store patents. There is a third patent type known as their world famous drink nowadays: the plant patent. Patents are made to be utilised on new, discovered, or recently created objects/inventions. Each type of patent is made to be patented by a patentee, in order to protect the same design from being created in the same nation. Nevertheless, because a patent is for each nation, the design can be created out of the country. Although created outside, it is prohibited to be exported into the nation in which the patentee has already patented his/her design.

Design Patent

8 ECOSOC

Utility Patent copyright the growth of a newly discovered and(or) created plant. Plants as such may be Being the most common of all patents, the used towards medicine, being seen as herbs, or Utility Patent is based on having the publicly have other uses towards human benefit. announcing the specific use or utility of an Overall, this is all of the information towards object, meaning that it is not to be used in any plant patents. To gain a plant patent, the unique different way. In order for this kind of patent to be applied, your invention has to have a real- world objective to solve a problem, has to contribute and be relied on as beneficial to the community, and has to finally be operable, meaning that it can be utilised with ease. Many utility patents are turned down by governments, as many are believed to be hypothetical, along with the credibility of the object to be plant must not be found in an uncultivated state, impossible to utilise. Perpetual Motion must be able to reproduce asexually (asexually Machines (Involves body movement) were the means that it can be reproduced by either most turned down inventions towards obtaining cutting it or grafting it, not collecting the seed), a Utility Patent, as it was seen as an impossible and lastly, it has to not be a tuber propagated invention with null beneficiary results. plant, as such like a potato.

An example of an invention having a Utility Patent is Starbucks’ splash sticks, used to block Current Situation the spillage of coffee:

National Patents vs. Regional Patents

The European Commission, later this year, is said to put into force a “unitary patent”, which would be applicable to 26 countries of the European Union. The of inventions would thus now be the responsibility

of the new Unified Patent Court. This regional Plant Patent patent is said to bring out a series of benefits.

To begin, there are less administrative burdens Plant Patents are aimed towards the botany on each nation, as all processes are now handled section of all patents. These patents protect and by a single court. Furthermore, this allows 9 ECOSOC inventors to apply for a patent on the whole of treaty provides a means to file an application Europe without undertaking the cost of for a patent, which is admissible in over 150 applying for each patent. Previously, inventors countries. This therefore means that a firm no would only acquire patents on specific longer has to file an individual report for each countries within the EU, which led to great loss nation, but can instead create just two in economic potential, as it became relatively documents; one for the initial country in which easy for other firms to just distribute a similar the patent is applied for, and another for the products on the other EU members. international scene. The treaty then grants a further 18 months beyond those provided by the Spain however, is a country that has directly Paris Convention, thus allowing more time for opposed participating in the UPC, refusing to a firm to choose to which markets specifically allow it to be applicable in its territory. The will they be applying for a patent. spanish Minister for Energy, Tourism and Digital agenda, who is in charge of intellectual The cost of a patent property, has announced its volition to keep the patent system at a national level. The minister In most countries, patents are not free, and so it points out the fact that this unitary patent would is not easy for a firm to just apply for a patent detriment Spanish firms in that they would now for all nations. Getting a patent in around 200 be faced with having to challenge patents from countries could cost around $1,000,000 just for all of Europe, and no merely Spain. This would the issuance and filing, while costing an extra allegedly be specially harmful to small and million to uphold the patent until its expiration. medium enterprises (SMEs), who have less of a Most firms therefore have to analyze and chose budget to fight patents and hire lawyers to which countries they will be pursuing a patent combat infringement litigations. This is an it. example of the duality between regional and national patents, which should prompt For small startups and crowdsourced products, delegates to wonder whether an international it can be expensive to obtain even one patent patent would be a natural step your nation under their own country, and even only owning would endorse or not. that one still leaves them open to copycats.

Take for example the case of the KickStarter for International patents the Fidget Cube. Like all crowdfunding projects, it began with a small firm called Antsy International patents on the other hand, do not Lab that, on August 2016, presented a curious exist. There is however, a form of international new product asking for support, but ended up that can be made under the reaching $6.5 million in funding. As stated by Patent Convention Treaty. Signed in 1970, this the company, the manufacturing, done in 10 ECOSOC

China, had been met with a few quality issues, There is no doubt that offering the chance to and so by January 2017, still no units had been have a monopoly over any product will shipped. A number of Chinese Copycats naturally incentivize people to innovate in order however began emerging, selling at $2 in to be granted a monopoly which comes with the China, and at around $8 on Amazon, a massive obvious benefit of abnormal profits and the price drop from the $22 that the original cost. ability to set higher prices since you are now the Not having acquired a patent while also taking sole provider of such product. too long to deliver their product, Antsy Lab lost out on thousands if not millions of dollars. Serve as Protection for Small and New

Firms Due to the model of crowdsourcing,

Antsy Labs had to display its product without Today more than ever, we have seen the rise of filing for a patent, while the nature of their startups, which are small with a few invention meant it could be relatively easy to entrepreneurs more than willing and ready to reverse engineer. Startups and crowdsourcing launch a product that is set to grow very are becoming an increasingly large sector of the quickly. As a small startup, having an idea with economy of different nations, and yet the the potential to become groundbreaking faces current patent system is not necessarily multiple threats. One of them is the lawsuits or working in their favour. Delegates might find it threat of lawsuits that might come towards you meaningful to discuss if a different patent from bigger and more established firms for your mechanism should apply to either idea or technology. Small firms must patent crowdfunding or startup projects. their work to prove it is theirs and thus, be able to fend off these larger firms.

For example, the European Patents Office released a document full of recent case studies of SMEs (Small and Medium-Sized Enterprises) who benefitted from having strong patents and good patent lawyers.

The Original Fidget Cube (Left), & a copy (right) Inventions are made Public

There is a case to be made by saying that patents The case FOR Patents offer an reassurance that his or her product will remain his or hers and their intellect will be recognized. Nobody else is 11 ECOSOC legally allowed to copy it so they will happily than the equilibrium one and therefore, earn provide the information to the public. abnormal profits. This was the principle under which patents were created. This theory was If patents did not exist as means to provide legal suggested by the political economist Joseph protection to individuals or firms that wish to Schumpeter who argued that despite the maintain their temporary ownership rights then counterintuitiveness of the idea: a reduction in these people would need to invest lots of might actually lead to more in maintaining secrecy in both direct and innovation. indirect ways. A direct cost of this may be the need to spend money on technological This is especially the case in high-tech protections or product features that would industries where changes happen constantly increase the cost of reverse engineering. An with the advancement of technology and example of an indirect cost may be the science. Firms have a clear incentive to difference between buy and build since a firm innovate, bring better products and make our might choose to build as a way to prevent lives better because they have a big reward if potential disclosure of any information. they are successful.

Another benefit that stems from having these Additionally, many people file patents before inventions made public is that there might be they actually understand the full extent of the better developments made. If one assumes that discovery / development they are making. By the firm or group of people cannot maximise or patenting it from the start the firm has more make the most out of this new technology / incentive to continue researching since they information then it is logical to assume that have reassurance that it would belong to them. having this information out there would lead to more innovations since another person with a High Costs + R&D different perspective might come up with a new The most common and strongest argument in idea based on that. Without patents, that favour of patents stem from the fact that the technology most probably would have products that are usually patented require remained a secret. millions of dollars if not billions in research not

to mention all the years the process takes. Incentive to Innovate Patents serve as a way to ensure the firm can get The idea of being allowed to hold a monopoly back their costs and in addition to that, make over a product for roughly 20 years will sound some . If another party were to copy the very appealing to most firms. Why? Because a product or reverse engineer it the patent holder monopoly means that you are the ONLY one (original producer) can prevent them from supplying this, thus, you can set a price higher selling their product and entering the market. 12 ECOSOC

Nobody wants free riders on their money and dollars certain firms hold that are available to time to be able to get the same result without develop these products. having put nowhere the same effort.

Now, while some people might say that these The case AGAINST Patents (or products will appear as a product of human reduced ones) curiosity and innovation, the truth is that the kind of required to make this kind of Pharma Industry: lack of access projects happen are not available to any kind of firm. The is a very particular case where patents have arguably the biggest This is especially the case in the pharmaceutical effect on human life given the nature and industry, which are known for using patents. products offered in the industry. As discussed The Tufts Center for the Study of Drug previously, patents are especially prevalent in Development estimates that it costs roughly the pharmaceutical industry where the $2.7 billion to put a drug in pharmacies’ investment in developing a drug can only be shelves. This is mainly because of the fact that recovered from holding a temporary monopoly. 90% of the process consists of different However, the controversy that come with patent versions that did not make it past the safety is the highly price-restricted access to these tests, animal and human testing. If a company drugs which in many cases, are life-saving or decided to make generics (copies) they would needed to treat a certain condition. incur only the production costs which are ridiculously low when compared to the money This is particularly even worse in developing spent in developing the drug. countries who need these drugs to treat diseases such as TB (Tuberculosis) and HIV (Human Immunodeficiency Virus). However, many people have become immune to certain treatments such as the first-lines ARVs (antiretrovirals, medicine used to treat HIV), so therefore they require second or third line ARVs. But the problem is that these medicines are usually much newer meaning that their patent still hasn’t expired and thus, is much In the technological world, small startups can harder to acquire. only raise money through stocks-selling which is in no way comparable to the billions of 13 ECOSOC

India as a Case Study India is able to carry this out not only because of foreign investment but because they receive A country of particular interest in this case is government support as well. The Indian India, who is a strong supporter of generics. government has put forth “Pharma Vision This country actually accounts for 20% of the 2020” in an attempt to restructure to an extent world’s generic drugs which is often distributed the Indian pharmaceutical industry. They have to NGOs come to realize that short-sightedness has led to such as MSF (Médecins Sans Frontières) and them falling behind in research and UNICEF. It also supplies 50% of the global development and this is a mistake they are demand for various vaccines, 40% of the looking to amend. demand for generics in the US and 25% of all drugs in the UK. By 2017 its India’s However, do not think that only developing pharmaceutical market was worth $33 billion, countries care for generics. The following is a with much being from anti-infective, cardiac list of the 10 largest generic firms in the world and gastrointestinal drugs; by 2020 it is from which you will notice a lot of variety: expected to reach $55 billion. Their exports mainly go to the US (38%) followed by the 1. Teva Pharmaceuticals - Israel Sub-Saharan region (20%). 2. Mylan Inc. - USA 3. Sandoz (generic division of Novartis) - India’s pharmaceutical is characterized by a Germany strong presence of generics (70% to 80% of the 4. Pfizer - USA retail market), a strong local industry that 5. Sun Pharmaceuticals - India undergoes intense competition which means 6. Fresenius Kabi - lower prices for the consumers. It 7. Endo International - Ireland pharmaceutical industry ranks 10th in terms of 8. Lupin - USA but 3rd in terms of volume. 9. Sanofi - France 10. Aspen Pharmacare - South Africa The rationale behind this quite simple: they have lower R&D costs because they are During the early months of 2018, Bristol- copying already existing drugs so therefore Myers Squibb and Gilead Sciences lost their they don’t sell them at exorbitant prices. This patents to their HIV drugs and it was estimated has made India a popular destination for that Laurus Labs of India was to produce the medical tourism which is basically when people same drugs but sell them at a lower 90% price travel to another country to get more affordable of their patented US prices. To put events into medical treatment. perspective, a combination of the three drugs needed to treat HIV may cost up to $37,000 annually according to the US Department of 14 ECOSOC

Health and Human Services whereas in the When venlafaxine is consumed by our bodies, developing world it can be as little as $100. it is broken down into desvenlafaxine which is This is due mostly due to the competition a “cousin” of the aforementioned drug. The between generics that have led to price firm managed to get a new patent on slashing. This cannot happen when patents exist desvenlafaxine (Pristiq) which slowed down since there is only one firm who produces that the process by which generics are obtained. drug. There are many other ways through which Nevertheless, many countries do need change patents are extended (see here). in domestic pharmaceutical policy when it comes to the government’s drug purchases Patent “Trolls” because many representatives are lobbied by These people or firms use patents as weapons large pharmaceuticals who do not have the or threats rather than as a way to protect people’s best interest at heart. innovative ideas and creations. They buy up the

patents of firms who are about to close but these Evergreening: Small Tweaks = More patents cover a range of products. Once Patents acquired, these patent trolls go on to sue anyone A popular method through which who they think is infringing upon their rights pharmaceutical companies extended or add and threaten to sue them unless they pay a patents in order to increase profit is called certain amount of money. This is the case of “evergreening” or “lifecycle management”. “Lodysys”, a company that doesn’t do anything Basically, instead of letting the patent expire besides threaten small app developers. In 2011 and allowing the production of generics, these it went after Apple’s developers claiming that firms make marginal tweaks that allow the the technology for in-app purchases were an patent to be extended. These changes can be infringement upon their patents right; however changes in dosages, new release forms or new Apple stood up for them later on. combinations. Even if the patent is challenged at court the legal fees are miniscule to the Patent trolls and patent / money the company would be making from lawyer are the two main beneficiaries of this, extending the patent. These “innovations” meanwhile the small firms that have to either barely meet the threshold for but they pay the “fine” set by the patent troll or go to a do. lawsuit that will cost the millions and that they might not win. A study found that when the Just to point out how ridiculous it sometimes lawsuits were not dismissed firms reduced get, Efexor (venlafaxine), a drug that treats R&D spending by $211million and continued depression was evergreened by the firm Pfizer. this reduction along the years. 15 ECOSOC

new startups will have to divert costs to legal battles and in the end, many of them end up selling their product or making a deal; either way, the old and bigger firm has managed to remove a competitor.

The bar chart above shows the effect of patent Catching up with Technological troll lawsuits on a firm’s spending on Development innovation. To put matters into perspective, Technology has been developing at patent trolls cost $29 billion for defendant firms unprecedented rates but the definition for what but the biggest effect is on the small startups. can be patented has not necessarily catched up. Patent trolls tend to target them as they are more Many of the new developments and ideas vulnerable and have less of a solid base in happen to be intangible things so countries have comparison to the larger already established been struggling to decide what can be patented firms. A survey given to software startups and not. Under U.S. patent law you can patent showed that patent troll lawsuits caused a a “new and useful process, machine, change in business strategy. manufacture or composition or matter, or any

new and useful improvement thereof”. As NO Patents At All explained in one of the first sections, there are But then, we have radical views who believe certain characteristics a product must meet in that the patent system in and of itself is highly order to be patented. flawed and we would all be better of if it didn’t exist in the first place. In short, these people Hardware has always been patent-able as they believe that the magnitude of protection offered have been at the core of previous technological under the current system is not justified by the developments. As you can see here, Apple has slight increase in innovation and investment in filed for multiple patents that go on for pages R&D. In an ideal world there would be some for all sort of different technological minimal protection that would lead to an equal developments they have made on their devices. amount of innovation however the truth is that They can include very small inputs such as things don’t work that way. The patent system “illuminated switches and buttons” or is growing in strength and this is accompanied “miniature camera zoom actuator”. However, by intellectual property lawyers who are software, something completely intangible, has constantly challenging the new competitors in become of paramount importance for our court and thus, hindering innovation. Small and 16 ECOSOC technological devices and complex systems to improvement for the computer itself. However, work. Much of the hardware that we have run other rulings such as Berkheimer v. HP and on software that integrates all those pieces Aatrix Software v. Green Shades Software are beautifully for them to function as needed. making it harder to avoid software patents and argue against them. Both Congress and Senate Countries around the world have been faced are under pressure from lobbyists from the with the question of whether or not software, a organization “Intellectual Property Owners piece of code can be patented. Association” to allow software to be patented.

United States of America European Union However, another big player, the European In the US, laws are still highly ambiguous and Union, has been more skeptic about allowing pretty much depend on the case and what is software to be patented. As of now, the being patented. From a technical standpoint and European Patent Convention does not allow for in more conventional language there are two software to be patented after the European main requirements the software needs to fulfill Parliament voted against it. The two main in order to be patentable: “(1) if it improves groups are those who believe in “free software computer functionality in some way (ie. it for all” and those who prefer an ‘American enables certain computations that were style’ patenting system. So far, software cannot previously unavailable, speeds up processes, or be patented by the EU as outlined in the requires fewer resources), or (2) if it solves a European Patent Convention, also known as the computing challenge in an unconventional Munich Convention which was ratified by way.” Legally speaking, the US outlines the roughly 20 European nations. However, with following as: (1) the invention must be much the rise of software there have been multiple more than an “abstract idea” and (2) if the interpretations of the text and some 30,000 invention is directed to an “abstract idea,” then patents have been offered for software under it must include / claim additional elements that different justifications. The current problem is “transform” the abstract idea into a patent that software is protected by copyright; just like eligible application”. However, the words and our books. The firm or person does not need to jargon are not particularly explicit so there is file for an application, the single fact that it still much room for improvement. exists means that it can benefit from copyright protection. It benefits from copyright The Supreme court Alice v. CLS Bank threw protections given that it is the expression of an out 168 patents because it came to the author’s creativity. So far, only software that conclusion that an abstract idea cannot be has “industrial applications” can be patented. patented unless it provides some sort of 17 ECOSOC

A fear Small and Medium Enterprises (SMEs) trade is done across the world, and is comprised have is that if software were to be able to be patented they would not be allowed to innovate because lots of the technology they use are software that are not necessarily theirs but rather, belong to some other firm or person. Another fear that spurs for those who believe in “free software for all” is that only the large multinationals (MNCs) will be able to uphold the costs of patenting software, thus hoarding this knowledge / technology. of 164 member states. In 1995, an agreement As you might have noticed, patent laws for from WTO called the Trade Related Aspects of software are very fuzzy, hazy and open up to Intellectual Property Rights came into force. In interpretation. Some countrie / organizations it, a few basic guidelines for the bare minimum have clearer rules with more specificity while intellectual property protection that all nations others do not and their ambiguousness allows had to had were detailed. To begin, all member for exploitation or loopholes to be found. nations were required to grant a minimum of 20 Delegates are not expected to know the years of protection when giving out patents. intricacies and correct jargon (who does Furthermore, they had to grant patents on anyways) but we do expect them to come up processes as well as products. In some with a basic plan where lines can be drawn to countries, patents were only handed out for define if software can be patentable and if not, processes, and this meant that if they reverse how would they counter the current situation. engineered a product and figured out another Software has become the core of our way of producing it, they would still be allowed technological developments and the laws that to sell it. govern our world must catch up with it to prevent any further conflicts. Bloc Positions

International Bodies Bloc positions will most likely center around a few key issues. The extent to which patents should be applied is perhap the biggest one. World Trade Organization Countries leading in innovation will most likely The World Trade Organization is an prefer that patents be applicable for most types international organization that manages how of innovation, while less innovative countries 18 ECOSOC might be happy to endorse the de escalation of corporations when it comes to the patents in favour of a less monopolized market. granting of patents? Some nations might even find it a logical step 6. What other means could be used to to have patent laws incur a more international guarantee the protection of intellectual approach, such as that of copyright laws. Others property, while still ensuring the might instead favour the sovereign election of availability of products at reasonable what can be patented, preferring to let other prices? nations innovate as they reap the benefits of producing without the cost of R&D. Position papers: Developed nations might find greater interest in Position papers should be 2 pages long, on a steering the debate towards a discussion on technological patents, as those are most likely Times New Roman 11pt font and emailed as a of a higher concern to them. Developing PDF. The most common way to structure a nations on the other hand, might perhaps show position paper involves 3 paragraphs. First, you interest in the discussion of medical patents, should talk about the problem and how it relates which though might lead to more research, also to your specific country. On the second ensure that the cost of medicine remains too paragraph, you should detail past actions made by your country and the United Nations, and high for their civilians to purchase. what your country currently thinks of those

actions. Finally, the third paragraph should detail the solutions you as a delegate are QARMAs: proposing for this committee. 1. Should an international definition on what can be patented exist? The deadline for submission will be no later 2. Should patents be granted than Sunday the 7th of April, and they should internationally, and if not, should either be sent to either the following mails: regional or national patent systems be favoured? Chair - Santiago Ortiz: [email protected] 3. Should the patent system be any Co-chair - Haoyun Hu: [email protected] different in the case of medicine? (Consider both the impact on R&D, as well as the cost of the drug) Bibliography: 4. To what extent are more intangible ● https://www.theatlantic.com/business/ concepts such as software patentable? archive/2012/09/the-case-for- 5. Should startup businesses receive abolishing-patents-yes-all-of- different treatment to large them/262913/ 19 ECOSOC

● https://s3.amazonaws.com/real.stlouisf ● http://online.wsj.com/public/resources ed.org/wp/2012/2012-035.pdf /documents/McKinseyPharma2020Ex ● https://www.eff.org/issues/resources- ecutiveSummary.pdf patent-troll-victims ● https://economictimes.indiatimes.com/ ● https://www.eff.org/deeplinks/2011/05 opinion/et-commentary/will-india- /apple-should-stand-up achieve-pharma-vision- ● http://documents.epo.org/projects/bab 2020/articleshow/28159936.cms ylon/eponet.nsf/0/FF76F6F0783153B ● http://www.georgemasonlawreview.or 7C12581A2004DA0D2/$File/epo_sm g/wp- e_case_studies_2017_en.pdf content/uploads/2015/06/KesanEcono ● https://www.theatlantic.com/business/ micRationales.pdf archive/2012/07/why-there-are-too- ● https://hbr.org/2014/07/the-evidence- many-patents-in-america/259725/ is-in-patent-trolls-do-hurt-innovation ● https://www.forbes.com/sites/matthew ● https://www.morningtrans.com/what- herper/2017/10/16/the-cost-of- is-patent-litigation/ developing-drugs-is-insane-a-paper- ● https://www.wipo.int/sme/en/documen that-argued-otherwise-was-insanely- ts/software_patents_fulltext.html bad/ ● https://www.shahiplaw.com/software- ● https://theconversation.com/explainer- patents/ the-problem-drug-patents-pose-for- ● http://www.europarl.europa.eu/sides/g developing-countries-45667 etDoc.do?pubRef=- ● http://apps.who.int/medicinedocs/en/m //EP//NONSGML+IM- /abstract/Js22286en/ PRESS+20050819FCS01001+0+DOC ● https://theconversation.com/explainer- +PDF+V0//EN&language=EN evergreening-and-how-big-pharma- ● https://wipolex.wipo.int/en/text/37171 keeps-drug-prices-high-33623 2 ● https://theconversation.com/explainer- ● https://www.uspto.gov/patents- the-problem-drug-patents-pose-for- getting-started/general-information- developing-countries-45667 concerning-patents#heading-4 ● https://www.thebalance.com/top- ● https://knowfuture.wordpress.com/201 generic-drug-companies-2663110 1/03/09/il-badalone-brunnelleschi- ● https://eml.berkeley.edu/~bhhall/paper and-the-first-patent/ s/BHH06_Patents_Palgrave.pdf ● Monarchy and Monopoly: Patents of ● http://canrev.ieee.ca/canrev32/choksi. Monopoly, their institutional pdf significance and Impact 1550 – 1650 ● https://www.yildizoglu.fr/moddyn2/art ● https://iprhelpdesk.eu/node/2024 icles/mazzol_nelson_patent.pdf 20 ECOSOC

● https://www.epo.org/news- issues/issues/software.html ● https://www.eff.org/deeplinks/2018/06 /happy-birthday-alice-four-years- busting-software-patents ● http://www.crf-usa.org/bill-of-rights- in-action/bria-23-4-a-the-origins-of- patent-and-copyright-law ● https://www.wipo.int/treaties/en/ip/par is/summary_paris.html ● https://www.britannica.com/topic/pate nt#ref791882 ● https://www.wired.com/2012/03/marc h-19-1474-venice-enacts-a-patently- original-idea/ ● https://www.amazon.com/s/ref=nb_sb _noss_2?url=search- alias%3Daps&field- keywords=fidget+cube&rh=i%3Aaps %2Ck%3Afidget+cube ● https://medium.com/@jobosapien/real -vs-fake-the-infamous-case-of-the- quickly-copied-fidget-cube- 9b26a6161b36 ● https://www.upcounsel.com/cost-of-a- worldwide-patent ● https://www.bristowsupc.com/latest- news/spanish-government-provides- further-reasons-for-not-joining- unitary-patent-and-upc-system/ ● https://ec.europa.eu/growth/industry/in tellectual-property/patents/unitary- patent_en