RC of the Day 22/03/2013 
*As Asia faces the global economy of the future, it is necessary to take stock of the once arcane issue of
intellectual property. The ability to manufacture cheaply computer software, music, movies, and textbooks
that are of the same quality as the original has resulted in a threat posed by intellectual property consumers
to intellectual property owners. While the philosophically oriented may see the digital age as an opportunity
to rethink authorship, creativity, and private property, others view it as an era of massive theft. When the
ease of reproduction is combined with the networked world of the Internet, the laws of copyright created in
the eighteenth century seem ready to topple. In response, expansive new laws are passed in an effort to
maintain control of information even as that control becomes impossible.
*Industries that rely upon intellectual property laws perceive piracy as a threat and the Internet as a tool for
wrongdoing rather than as a more efficient mode of communication. Copyright violations around the globe
have led to a huge multi-pronged anti-piracy effort with intellectual property interests successfully lobbying
governments to change laws to enhance protection, and to shut down troublesome Internet sites. These
industries have developed educational campaigns to define piracy as a moral issue.
*The development of the Internet, along with other information and communication technologies in Asia had
tremendous significance for several reasons. First, as “information” has become the key ingredient to
participation in the information society, governments have invested heavily in these technologies in order to
bring about economic development and participate more fully in the new global economy. Second, the
availability of information on the Internet means that unlike traditional property, information is not exclusive
and can exist in multiple forms and locations, without diminishing the ability of the original owner to use it.
Finally, the Internet enables rapid and inexpensive duplication of information, allowing an enlarged sphere
of participation in economic political and cultural life.
*The idea of copyright originates in English law during the eighteenth century and finds its modern day
advocate in the United States. At the international level, the US has been the primary actor in lobbying for
intellectual property protection through the trade negotiations leading up to the creation of the WTO and
the Trade Related Aspects of Intellectual Property Rights Agreement (TRIPs) As negotiations surrounding
the passage of TRIPs indicate, the debate breaks down into a contest between developed, intellectual
property producing nations and newly industrializing countries (NICs). It is of course also important to
recognize that piracy remains rampant in the US and many developing nations have growing intellectual
property-related industries seeking stronger protection. These complexities make the “problem” of piracy
even more difficult to address because the issue seems to be a political one. By political, I am suggesting
that property rights and piracy are political boundaries placed upon the debate over property protection. By
evaluating the context within which claims of piracy are made, we are better able to understand how to
address the issue.
*One important transition point lies in the fact that when the United States economy shifted to one reliant on
knowledge based innovation, rather the manufacturing and industrial strength, piracy became a major
concern. The shift to an intellectual property-based economy occurred at the same time as the US was
experiencing record trade deficits, a condition that remains in place today. These changes in the global
economy threatened US economic stability.
*Since 1945, intellectual property-related US exports more than doubled, with current profits from licensing
reaching over US$8 billion. Within the rapidly developing new information based economy, openness of
ideas was replaced with private property rights. All aspects of the system, from code to content, were
subject to privatization and control. Thus, strong international intellectual property protection became
necessary to stave off the threat posed by the developing economies, most of which had no intellectual
property protection on the books.
*As the global economy developed and focus shifted to the East, technology based firms, software, record,
and movie companies began to publicize more vocally the “problem” of piracy in Asia. Despite rampant
piracy throughout the United States and Europe, it was Asia that became the focus of anti-piracy campaigns.
China, for example, became the target of early anti-piracy activism. The reasons countries in Asia have
been targeted as pirate nations are complex, but they seem to be based upon the combination of an early
lack of intellectual property laws and enforcement, combined with rapid economic development that
threatened countries producing and exporting intellectual property goods.
*With the passage of the Trade Related Aspects of Intellectual Property Agreement (TRIPs), the rather
esoteric topic of intellectual property became a crucial part of the World Trade Organization (WTO). Prior
to TRIPs, the primary international body dealing with intellectual property was the World Intellectual Property
Organization (WIPO). However, as early as the late 1970s, many businesspeople felt that WIPO was too
weak to protect their intellectual property in the developing world, especially as countries were members of
WIPO, the US could not use the organization to protect its interests without being vetoed by developing
countries. Thus, the United States turned to unilateral trade sanctions and the General Agreement on
Tariffs and Trade (GATT) to protect intellectual property.
24. What is the reason for the two views as mentioned by the author in the first paragraph?
a. The ability to manufacture software, music, etc. which is the same quality as original to some
signifies freedom; to others it means loss of revenues.
b. The two views are of the haves and the have-nots, the have-nots justify this “theft” on account of
freedom.
c. The forces of globalisation are leading to creation of such dilemmas in many South East Asian
countries.
d. The revival in the belief for Intellectual Property Rights since the 18the century has fuelled this
debate.
25. Which one of these is not mentioned as an anti-piracy effort?
a. Shutting down of troublesome Internet sites.
b. Changing laws to enhance protection against those who indulge in piracy.
c. Development of educational campaigns.
d. Funding of primary school education where anti-piracy is highlighted.
26. Why is the Internet able to facilitate an enlarged sphere of participation in various areas?
a. It is inexpensive and is not limited by geographical boundaries.
b. It allows rapid and inexpensive duplication of information.
c. It allows rapid creation of financial benefits for the participants.
d. It is quickly spread and adopted by people.
27. What is a significant impact of the growing intellectual property-related industries in many countries?
a. There are economic boundaries involved in the debate.
b. There are political boundaries involved in the debate.
c. The political actors have a huge stake in the resolution of this debate.
d. None of the above
28. What does the term NICs stand for?
a. Non Industrial Countries
b. Newly Industrializing Countries
c. New Intellectual Code
d. Non Interest Concern
29. What are the reasons for the American insistence on strong intellectual property protection?
a. A major reason for the decline of its competitiveness was the loss from overseas piracy.
b. It shifted to an economy based on intellectual property and this was proving profitable.
c. Both (a) and (b)
d. It would stand to gain the most and would be able to dominate the Southern hemisphere.
30. What does the author find interesting about the focus shifting to the East of the global economy?
a. Piracy in Asia was vocalized for complex reasons, although piracy was as rampant in US.
b. Piracy in Asia was vocalized because the countries were in debt to the US and would toe the line
easily.
c. The Asian countries were not under a regime that would force them to listen to the US.
d. The US was using economic sanctions as a threat to get these countries to have stringent anti
piracy laws.
31. What was the reason for the shift of Intellectual Property Rights from WIPO to WTO?
a. The WIPO regime's efficiency was dwindling because many of its members were themselves
indulging in piracy.
b. WIPO was too weak because its financial situation was not healthy and this did not give it any
leverage in negotiations.
c. The former had many developing countries as its members who would veto any proposal that
protected the US interests.
d. Businessmen who were covertly funding the WTO could exercise pressure but they could not do
the same in case of WIPO.
Happy CATing 
P.S- ( * ) indicates a New para 