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| March 4th, 2008 |
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Media Contact(s): Mark Eddington or Jared Whitley (202) 224-5251 |
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Printable Version |
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COUNTERFEITING AND PIRACY AREN’T JUST ABOUT DOWNLOADED MUSIC, PIRATED SOFTWARE, OR FAKE DESIGNER HAND BAGS
Hatch Tells ECAT How IP Theft is Damaging the United States' Health and Safety |
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Washington - Today Sen. Orrin Hatch (R-Utah) delivered the following speech on U.S. trade and intellectual property protections at the Emergency Committee for American Trade 2008 meeting.
As many of you know, I have a long tradition of support for international commerce. I strongly believe that if done correctly, global trade will benefit the American consumer and the United States Economy. I am pleased to be here in a room full of dedicated professionals who share that philosophy. Now if only I could make a unanimous consent request here – tonight – to call up and pass the Colombian Free Trade Agreement.
Well, let me begin by thanking the Emergency Committee for International Trade for your kind recognition of both Senator Cantwell and myself this evening. I have long admired this organization as one that sees the value in countries interacting economically. The leadership of your organization as well as the leadership of all of your individual members is noticed up on Capitol Hill and I, for one, am grateful to have your support.
As each of you know, ever since the 2006 election, international trade has become somewhat of a lightening rod that has collected unnecessary and unfair criticism for broader systemic and market-wide corrections that will naturally take place when artificial barriers to trade are eroded. To that end, I would like to commend Ambassador Schwab for her work in the Doha round and wish her success in these negotiations. While it may appear as though things in the trade world have stalled – we have had a few recent victories that are of particular note.
We were able to pass the Peruvian Free Trade Agreement and agree upon a temporary extension to ATPA. And while there is still much to do – such as passing the Panamanian, Korean and Colombian Trade Agreements as well as an extension of both Trade Promotion Authority and Trade Adjustment Assistance – these two accomplishments prove that if there is a will on both sides of the isle – we can come together to get important items accomplished. One thing that I know that the majority of my colleagues agree with me on is the need for strong Intellectual Property Rights protections in our international agreements.
The protection of intellectual property has always been one of my top legislative priorities in the Senate for over 30 years. Now more than ever, America’s ingenuity continues to fuel our economy, and it is imperative that we protect new ideas and investments in innovation and creativity. Make no mistake about it: piracy and counterfeiting are the new face of economic crime around the world, far exceeding traditional property crimes.
It is estimated that U.S. intellectual property alone is worth $5 to $5.5 trillion, that is equivalent to about 45 percent of our GDP.
In other words, this is greater than the entire GDP of any other nation in the world. Additionally, millions and millions of jobs are created every year by U.S. IP industries. And, I might add, these jobs earn an average of 40% more than the average pay of other U.S. jobs. Without a doubt, America’s intellectual property drives our economy and is the envy of the world. Clearly, we must do everything to protect our prime status as a world leader on this front.
Fostering strong intellectual property protection builds the economies of not only developed nations, like ours, but for any nation striving to achieve a vibrant and growing economy. Conversely, counterfeiting and piracy cripple growth and stifle innovation.
Counterfeiting and piracy aren’t just about downloaded music, pirated software, or fake designer hand bags. It’s about the health and safety of the American people.
Indeed, counterfeiting and piracy affect all sectors of our economy, including pharmaceuticals, auto parts, and the quality and safety of our food.
Consider the following:
• General Motors and its suppliers lose billions of dollars annually from lost sales due to counterfeit parts.
• In fact, General Motors says it has come across brake linings made of wood chips and cardboard that could burst into flames with heavy use and coolant that can eat through a car’s radiator in 48 hours.
• The Federal Aviation Administration estimates that 520,000 parts installed on airplanes each year are counterfeit.
• The operational life of counterfeit bearing seal-spacers removed from a United Airlines plane were found to last only 600 hours while genuine parts had a life of 20,000 hours.
• The World Health Organization estimates that counterfeit drugs account for 10% of all pharmaceuticals. That number rises to as high as 60% in some developing countries.
Unfortunately, the list goes on and on.
But, you get the point.
This is a bigger problem than knowingly spending $20 for a poorly produced fake Rolex watch when the name on the face says “Rolez” – this problem is pervasive and touches almost every aspect of the American household.
Aside from posing serious health and safety concerns, counterfeiting and piracy sap our country’s economic strength. Plain and simple, when a company loses revenues to piracy or counterfeited goods, it doesn’t have that money to reinvest into making more of its products.
That means the company can’t hire more people, invest in research and development, and provide consumers with new and better products. This domino effect ensnares all within its reach.
It affects the individual company in the ways I just mentioned.
It also adversely affects the companies that would have contributed to or benefitted from the unmade products. Suppliers of raw materials and components as well as shippers, distributors, and retailers, all take the hit.
Nationally, my colleagues and I in the Senate are committed to curtailing piracy and counterfeiting. Our challenge is to come up with viable solutions that will not only protect existing intellectual property rights, but encourage the free-flow of information and ideas necessary for creativity and innovation to thrive.
Everyone here is already aware that this is a global problem and the solution will require a commitment – not only to beef up domestic enforcement, – but also to require a concentrated government-wide effort to prevent the creation of pirated and counterfeited materials.
Furthermore, I believe any solution will take an integrated approach with both domestic and international prongs which incorporate educational, judicial, and enforcement components to halt this insidious attack on our intellectual property. In order to accomplish this task, all stakeholders must cooperate and work in an integrated fashion with state and federal governments and foreign governments.
In the Senate, we face the challenge of working with multiple Committees that have jurisdiction over various aspects of the integrated approach I just outlined. Coordinating efforts may take extra time. But, doing nothing is not an option. As technology advances and becomes more sophisticated, so does the enemy.
As many of you already know, I am working on legislation that will provide our government with the tools necessary to combat this very real and growing threat to our economy. Although I will not discuss the particulars of my legislative approach today, I hope, upon introduction, that each of you will give my proposal serious consideration.
You in this room are the dedicated professionals who will help make our shared priorities ones that are shared by governments around the world. Focusing attention to this important issue is the first step toward meaningful solutions. Many of you know that I have an open-door policy and welcome your ideas and thoughts on how we might combat international piracy and counterfeiting.
I am optimistic that we can achieve our goals.
We have the will.
Now we must work together to find ways to eradicate counterfeiting and piracy. You can count on me to be part of this effort.
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