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| TRIPS: “Members shall provide for criminal procedures and penalties to be applied at least in cases of wilful trademark counterfeiting or copyright piracy on a commercial scale.” | = IPRED 2: = == Do we really want to see Bill Gates behind bars? == |
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| TRIPS already obliges members to provide criminal procedures (in cases of wilful trademark counterfeiting or copyright piracy). These obligations are seen as severe. There is no need for a directive. | The aim of IPRED 2 is to stop piracy. But not all commercial violations of "intellectual property" rights are piracy. If we want to stop piracy, the thing to do is to stop counterfeiting. Beyond counterfeiting, things are unclear and very complicated. |
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| We also have the Intellectual Property Rights Enforcement Directive 2004. Not enough? We can not know, it is being implemented now. | In copyright, parodies, independent recreations and citations are free. The question whether something is an "independent recreation" or a violation of copyright is a though question. Questions like these should be handled in civil courts, not criminal courts. For reasons of human rights, criminal laws require more precise definitions. And criminal law should be the ultimum remedium. |
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| Here we have a list of the IP rights concerned. There are many of them, all of them with their own characteristics. They may be unstable, there are issues with delimitations. Did the Commission investigate this? No. The Commission is blind for the differences and problems. The Commission generalises, while generalizations should not be made. | IPRED 2 covers 11 "intellectual property" rights. We see counterfeiting with copyright and trade marks. What are the other 9 "intellectual property" rights doing in IPRED 2? The aim of IPRED 2 is to stop piracy. But piracy is already forbidden in European countries. On a world-wide scale, the TRIPS treaty sees to that. The problem has already been solved. IPRED 2 goes further than solving the problem, and becomes a problem itself. The Commission made no assessment of the current situation. Are there any real problems today due to unintended legal limitations? How would the directive work out in various criminal law systems? In a case like trade names, prison sentences go up more than a 100 times. IPRED 2 is excessive and distorts carefully balanced national procedural law systems. In trade marks, currently typically only counterfeiting is a crime. Trademark infringement in general is very complicated and subtle. Not suited for criminal sanctions. Patent law has many issues. Definitions are unclear and drifting. There is a major quality problem. In some sectors, like the software industry, it is impossible not to violate patents. Microsoft has been violating many patents, and had to pay huge damages. But do we really want to see Bill Gates in prison? Do we really want to see our neighbor, that hardworking owner of a Small or Medium Sized Enterprise put away for 4 years? IPRED 2 sets the framework. It is the lowest form of lawmaking. Big companies want to lock in customers, lock out competitors, acquire as many rights as possible and make these rights as strong as possible. The lawmaker has to strike a fair balance. IPRED 2 is not balanced. For the sake of responsible lawmaking, protection of carefully balanced national procedural law systems, subsidiarity and legal security, we ask you to say No to these superfluous and detrimental proposals. On July 6th the European Parliament rejected the software patents directive. We heartily thank you for that. The IPRED 2 directive is even more absurd. It should be rejected in first reading. We wish the Parliament the wisdom it had on July 6th 2005. Thank you. |
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Thank EP framework art 4, see also the explanatory memorandum on this article More than 30.000 software patents have been granted, it is impossible to know them all. It is impossible to write software without violating patents. “Independent (re)discovery” occurs daily. A whole industry is criminalized. countless software developers, source code secret, no proir art database, not known what is new, not known what is inventive, impossible to write software without violating patents “independent (re)discovery” more than 30.000 software patents impossible to give indemnification IPRED 2 Proposal for a EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE on criminal measures aimed at ensuring the enforcement of intellectual property rights Proposal for a COUNCIL FRAMEWORK DECISION to strengthen the criminal law framework to combat intellectual property offences November 22th 2005 FFII IPRED 2 Violates legitimacy principle Violates subsidiarity principle Excessive Reintroduces rejected parts IPRED 1 Legitimacy Fact X is a crime Written down in a law in advance Criminal laws are strict Protection against arbitrary power Civil law less strict In a copyright case a Dutch court decided a smell can be “a work” in the sense of the copyright law Civil law less strict In a copyright case a Dutch court decided a smell can be “a work” in the sense of the copyright law The scope of the copyright law became broader In criminal law this would be a violation of the legitimacy principle Complication If you add or increase sanctions to a law that is enforced in a civil way, definitions have to be interpreted in a more strict way Complication If you add or increase sanctions to a law that is enforced in a civil way, definitions have to be interpreted in a more strict way The scope of the law will become more narrow Copyright law issues What is a “work”? What is an “independent” recreation? What is “parody”? Trade marks Trade marks have to be defended rigorously, otherwise they are lost Unstable Fact X can turn out not to be a crime! Legitimacy is lost No protection against arbitrary power Patents “As such” exclusions unclear and drifting Major quality problem Impossible to know them all In the software industry, impossible not to violate patents 4 years in prison Patents “As such” exclusions unclear and drifting Major quality problem Impossible to know them all In the software industry, impossible not to violate patents 4 years in prison Trade names NL first offence: Civil servant can propose measures to take to stop the offence No punishment Minor offence 2250 euro Second offence: 2250 euro or two weeks Trade names NL first offence: Civil servant can propose measures to take to stop the offense No punishment Minor offence 2250 euro Second offence: 2250 euro or two weeks Excessive > 100 times as severe for a first offense as now in NL for a second offence In NL: no cases the last 50 years Total lack of necessity Disproportionate to the offense, article 49(3) Charter of Fundamental Rights IP-rights IP-rights Many Very different Commission did not investigate the issues Solve the legitimacy problem Exclude unstable rights Clear up grey area's Rewrite all IP-laws Scope of protection drastically narrowed Privatize the police Right-holders may assist the police with the investigation, help to draw conclusions. Neutrality of police investigation? Privatization of the police, how far should it go? Subsidiarity IPRED 2 not needed: piracy already forbidden We already have TRIPS We already have IPRED 1 IPRED 2: Conclusions Legitimacy is lost Excessive Distorts carefully balanced national procedural law systems IPRED 2: Conclusions Legitimacy is lost Excessive Distorts carefully balanced national procedural law systems Tweede pagina: Invalidated in court Fundamentally unstable No legitimacy at all No protection against arbitrary power Patents are totally unfit for criminal sanctions IPRED 2 first offence: 100.000 / 300.000 euro Criminal offence 4 years copyright, rights related to copyright, sui generis right of a database maker, rights of the creator of the topographies of a semiconductor product, trademark rights, design rights patent rights, including rights derived from supplementary protection certificates, geographical indications, utility model rights, plant variety rights, trade names, in so far as these are protected as exclusive property rights in the national law concerned Commission blind for all the issues Justification: one A4 page long, 463 words Grave violation of the subsidiarity principle Right-holders may assist the police with the investigation, help to draw conclusions. What will be the impact on neutrality of police investigation? Privatization of the police, how far should it go? These are really fundamental questions. The Commission says nothing about it. Let's take a look at patents. In civil court cases, there is almost always a counterclaim for invalidity. It may take weeks to establish whether the patent should have been granted or not. Counterclaims are often granted. A patent is an unstable right. from patentability as such subject to debate for 30 years There are many IP-rights, we have here the whole list of all concerned. All of them with their own characteristics, their own problems. . The proposal violates the legitimacy and subsidiarity principles, is excessive, and distorts carefully balanced procedural law systems. What happens if we make violating a patent a crime? The patent may be nullified by the court. That will, of course, not be known before person A acts. It is impossible to base criminal sanctions on unstable rights. It would be a violation of the legitimacy principle. Let's zoom in to software patents for a moment. There are countless software developers around the world, often they keep their source code secret. There is no prior art database, it is not known what is new. If you do not even no what is new, it is impossible to know what is really inventive. depending on the circumstances Two companies with the same name. What happens? In Netherlands, violating a trade name is a minor offense Civil servant can propose measures to take to stop the offense No punishment 2250 euro fine A second offense: Same fine, or 2 weeks prison 100.000 euro 300.000 euro 4 years prison On first offense! 100 times as severe for a first offense as now in NL for a second offense In NL: no cases the last 50 years Total lack of necessity Disproportionate to the offense Hearing: IPRED2 on November 22th 2005 Proposal for a EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE on criminal measures aimed at ensuring the enforcement of intellectual property rights Proposal for a COUNCIL FRAMEWORK DECISION to strengthen the criminal law framework to combat intellectual property offences FFII IPRED 2 Legitimacy Subsidiarity Proposal excessive Rude disturbance of carefully balanced procedural law systems There are serious issues with legitimacy, subsidiarity, the proposal is excessive, and distorts carefully balanced procedural law systems. Legitimacy Person A commits fact X proven beyond reasonable doubt Fact X is a crime written down in a law before person A acts Legitimacy Patents Civil court cases Almost always counterclaim for invalidity Counterclaims often granted Patent unstable right Patents. In civil court cases, there is almost always a counterclaim for invalidity. It may take weeks to establish whether the patent should have been granted or not. Counterclaims often granted. A patent is an unstable right. Legitimacy What happens if we make violating a patent a crime. Violating patent X is a crime written down in a law before person A acts Violating patent X is a crime (red cross through patent) The patent may be nullified by the court. That will, of course, not be known before person A acts. It is impossible to base criminal sanctions on unstable rights. That would be a total violation of the legitimacy principle. Not known before person A acts Impossible to base criminal sanctions on unstable rights Violation of legitimacy principle Throwing this away is throwing civilisation away. Legitimacy Patents are unstable rights Patents have to be excluded from criminal sanctions Or, patents have to be abolished These are the only 2 options we have, if we do not want to throw away our civilisation. Legitimacy IP-rights copyright, rights related to copyright, sui generis right of a database maker, rights of the creator of the topographies of a semiconductor product, trademark rights, design rights patent rights, including rights derived from supplementary protection certificates, geographical indications, utility model rights, plant variety rights, trade names, in so far as these are protected as exclusive property rights in the national law concerned Legitimacy Trade names may be globally, nationally or locally Same area? More companies can have the same name, if they are not in the same area. When is the distance big enough? Legitimacy Trade marks have to be defended rigorously Lost Legitimacy Copyright straightforward? Wat is a "work"? What is an “independent” recreation? What is “parody”? Copyright may seem more straightforward, but here we have questions like... Legitimacy Solve the legitimacy problem Exclude unstable rights Exclude grey area's Rewrite all IP-laws Scope of protection drastically narrowed To in so far IP-rights are stable and totally clear Abolish some of them, if not all Legitimacy Conclusion The directive and framework violate the legitimacy principle The most precious principle in criminal law Subsidiarity Not needed: piracy already forbidden Are there any countries where this is not the case? The Commission did not investigate this. Justification one A4 page long Subsidiarity Intellectual Property Rights Enforcement Directive 2004 Subsidiarity Many issues with criminal sanctions on IP-rights Unstable rights, grey area's Requires subtle approaches that fit into national law systems Commission totally blind for these issues As long as the Commission is blind, these issues can only be solved at a national level Subsidiarity Subsidiarity Right-holders may assist the police with the investigation, help to draw conclusions. neutrality of police investigation? saveguards against abuse by right-holders? public interest, private interest? privatisation of the police, how far should it go? The purpose of this article is to ensure that investigations into, or prosecution of, counterfeiting and piracy offences are not dependent on a report or accusation made by a person subjected to the offence, at least if the acts were committed in the territory of the Member State Excessive In Netherlands, violating a trade name is a minor offence. Civil servant can propose measures to take to stop the offence No punishment 2250 euro fine A second offence Same fine, or 2 weeks prison Commission: 4 years, first offence The Commission wants More than 100 times for a first offence, while a first offence Subsidiarity “... the Commission shall consult widely.” “Any draft European legislative act should contain a detailed statement making it possible to appraise compliance with the principles of subsidiarity and proportionality.” “... substantiated by qualitative and, wherever possible, quantitative indicators. “ Subsidiarity No consultation mentioned in the proposal No detailed statement on subsidiarity No qualitative and quantitative indicators 2. PROTOCOL ON THE APPLICATION OF THE PRINCIPLES OF SUBSIDIARITY AND PROPORTIONALITY http://europa.eu.int/eur-lex/lex/LexUriServ/site/en/oj/2004/c_310/c_31020041216en02070209.pdf “Article 2 Before proposing European legislative acts, the Commission shall consult widely. Such consultations shall, where appropriate, take into account the regional and local dimension of the action envisaged. In cases of exceptional urgency, the Commission shall not conduct such consultations. It shall give reasons for its decision in its proposal.” “Article 5 Draft European legislative acts shall be justified with regard to the principles of subsidiarity and proportionality. Any draft European legislative act should contain a detailed statement making it possible to appraise compliance with the principles of subsidiarity and proportionality. This statement should contain some assessment of the proposal's financial impact and, in the case of a European framework law, of its implications for the rules to be put in place by Member States, including, where necessary, the regional legislation. The reasons for concluding that a Union objective can be better achieved at Union level shall be substantiated by qualitative and, wherever possible, quantitative indicators. Draft European legislative acts shall take account of the need for any burden, whether financial or administrative, falling upon the Union, national governments, regional or local authorities, economic operators and citizens, to be minimised and commensurate with the objective to be achieved.” No consultation mentioned in the proposal. No detailed statement on subsidiarity. No qualitative and quantitative indicators. I wouldn't attack IPRED 1 as such, but rather, like Reinier, point out that criminal sanctions demand more strict definitions, a more narrow scope of protection. The implications of criminal sanctions are the attack on IPRED 1. overtreding as such geen vervolging inbreuk octrooien minefield over een kam strafmaat conclusies trekken onbevooroordeeldheid Het voorstel verstoort grondrechten en nationale strafrechtstelsels. rude disturbance of carefully balanced procedural law systems. more restrictive in defining the scope of copyright comparison national law systems comparison ip-rights four years' imprisonment The Member States shall take the measures needed to allow the total or partial confiscation of goods belonging to convicted natural or legal persons in accordance with Article 3 of Framework Decision 2005/212/JHA of 24 February 2005 on Confiscation of Crime-Related Proceeds, Instrumentalities and Property19, at least where the offences are committed under the aegis of a criminal organisation, within the meaning of Framework Decision …. on the fight against organised crime, or where they carry a health or safety risk. The Member States must ensure that the holders of intellectual property rights concerned, or their representatives, and experts, are allowed to assist the investigations carried out by joint investigation teams into the offences referred to in Article 3 of Directive ..../…/EC. It is very difficult to carry out investigations in this area and it is often essential to have the active participation of the victims, of representatives of the holder of the intellectual property rights or of experts in order to reach conclusions, and in particular to establish that products have been counterfeited. Member States have a good deal of latitude in this regard. http://europa.eu.int/eur-lex/pri/en/oj/dat/2002/l_162/l_16220020620en00010003.pdf Article 49(3) of the Charter to the effect that sentences should not be disproportionate to the offence. copyright rights related to copyright sui generis right of a database maker rights of the creator of the topographies of a semiconductor product trademark rights design rights patent rights, including rights derived from supplementary protection certificates geographical indications utility model rights plant variety rights trade names, in so far as these are protected as exclusive property rights in the national law concerned |
IPRED 2:
Do we really want to see Bill Gates behind bars?
The aim of IPRED 2 is to stop piracy. But not all commercial violations of "intellectual property" rights are piracy. If we want to stop piracy, the thing to do is to stop counterfeiting. Beyond counterfeiting, things are unclear and very complicated.
In copyright, parodies, independent recreations and citations are free. The question whether something is an "independent recreation" or a violation of copyright is a though question. Questions like these should be handled in civil courts, not criminal courts. For reasons of human rights, criminal laws require more precise definitions. And criminal law should be the ultimum remedium.
IPRED 2 covers 11 "intellectual property" rights. We see counterfeiting with copyright and trade marks. What are the other 9 "intellectual property" rights doing in IPRED 2?
The aim of IPRED 2 is to stop piracy. But piracy is already forbidden in European countries. On a world-wide scale, the TRIPS treaty sees to that. The problem has already been solved. IPRED 2 goes further than solving the problem, and becomes a problem itself.
The Commission made no assessment of the current situation. Are there any real problems today due to unintended legal limitations? How would the directive work out in various criminal law systems?
In a case like trade names, prison sentences go up more than a 100 times. IPRED 2 is excessive and distorts carefully balanced national procedural law systems.
In trade marks, currently typically only counterfeiting is a crime. Trademark infringement in general is very complicated and subtle. Not suited for criminal sanctions.
Patent law has many issues. Definitions are unclear and drifting. There is a major quality problem. In some sectors, like the software industry, it is impossible not to violate patents. Microsoft has been violating many patents, and had to pay huge damages. But do we really want to see Bill Gates in prison? Do we really want to see our neighbor, that hardworking owner of a Small or Medium Sized Enterprise put away for 4 years? IPRED 2 sets the framework. It is the lowest form of lawmaking.
Big companies want to lock in customers, lock out competitors, acquire as many rights as possible and make these rights as strong as possible. The lawmaker has to strike a fair balance. IPRED 2 is not balanced.
For the sake of responsible lawmaking, protection of carefully balanced national procedural law systems, subsidiarity and legal security, we ask you to say No to these superfluous and detrimental proposals.
On July 6th the European Parliament rejected the software patents directive. We heartily thank you for that. The IPRED 2 directive is even more absurd. It should be rejected in first reading. We wish the Parliament the wisdom it had on July 6th 2005.
Thank you.