Protecting Ideas, Promoting Growth

by Caroline Joiner

A week ago the Senate Judiciary Committee held a hearing about protecting consumers by protecting intellectual property.  Ensuring public safety is one of many goals that depend on protecting our ideas and supply chains; in fact, our entire economy is reliant on the strong innovation protection. This was made quite clear in the testimony last week:

"Today the Committee addresses a significant economic issue confronting our Nation. It should have no partisan flavor whatsoever. Intellectual property, and the creativity and innovation it represents, are the fuel in the engine of our economy. For the United States to maintain its position as the world's economic leader, we must focus on protecting its industries' intellectual property." (Opening Statement of Senator Patrick Leahy,)
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"We should be mindful that abuse of IP rights is not just about downloaded music, pirated software, or fake designer handbags. All sectors of our economy are affected, including pharmaceuticals, auto parts, and the quality and safety of our food. Indeed, robust IP protection promotes the health and safety of the American people…doing nothing is not an option. As technology advances and becomes more sophisticated, so does the enemy."  (Statement of Senator Orrin Hatch)
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"Our aim is to continually develop the most innovative technology in our market sectors, patent the products that our technology creates, then lead the market in those sectors. This approach allows us to create high-wage, high-skill jobs in America.  For example, at Gates, we are developing a range of energy efficiency solutions that reduce the cost of operating motor vehicles, reduce the impact on our environment, and reduce dependency on foreign oil. However, every time our technology and the integrity of our brand and technology is violated by intellectual property pirates our business model and industry leadership are further compromised."  (Testimony of Jeff Thurnau, Gates Corporation)
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"Along with the costs to the U.S. economy, the illegal importation and distribution of counterfeit and pirated goods poses a threat to the health and safety of U.S. citizens. … The current U.S. government coordinating structure that has evolved for protecting and enforcing U.S. intellectual property rights lacks leadership and permanence, presenting challenges for effective and viable coordination for the long term.(Statement of Loren Yager, U.S. Government Accountability Office)
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"There can be no doubt about the correlation between counterfeiting and product safety. In 2007 alone, UL issued warnings about fire extinguishers, smoke alarms, electrical cords, decorative light strands, lighting fixtures, grounding rods, power adapters, and surge protectors bearing counterfeit UL Certification Marks. Many of these are life safety products purchased specifically for the protection of life and property. With Certification Mark counterfeiting reaching into the fire protection and electrical sector, particularly in low-cost, high-volume goods, the risk of fire, shock, and other hazards become a serious life and safety threat to American consumers.   

"The Electrical Safety Foundation estimates that 64.2% of counterfeit electrical goods were purchased at legitimate shops and retailers – higher than any other product type. This is troubling evidence that counterfeiters continue to penetrate the distribution chain with poor quality, noncompliant and hazardous products that endanger life and property.  (Statement of Brian Monks, Underwriters Laboratories) 
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"Counterfeiters show total disregard for the safety of consumers, patients, doctors and nurses who unwittingly encounter the counterfeit product.  Counterfeiters don't care about product quality, safety, of efficacy.  People who use a counterfeit healthcare product run the risk of a wide variety of medical problems ranging from experiencing no therapeutic benefit …to new illnesses … and even death.

We cannot overemphasize that the integrity of the pharmaceutical and medical device supply chain is essential to the well being of all of our citizens.  Patients and consumers rely on our medicines, medical devices and personal products everyday to improve the quality of their lives and, in many cases, to save their lives.  Healthcare manufacturers depend upon the integrity of our supply chain to ensure that patients and consumers receive genuine products from approved sources."  (Testimony by Mike Rose, Johnson & Johnson)
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"The lack of coordination among the Federal agencies responsible for IP enforcement seems to be one of the biggest hurdles we face… These rights in intellectual property have been fundamental to Americans since our founding and have never been more important than they are today. Enforcement and protection of these rights is too important to be addressed piecemeal. In order to effect the greatest change, we must examine enforcement efforts from the top down and from the bottom up."  (Opening Statement of Senator Patrick Leahy)
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"The challenges of IP piracy are enormous and will require the sustained and coordinated efforts of U.S. agencies, their foreign counterparts, and industry representatives to be successful. As the title of the hearing suggests, the issue of IP protection is not only important for U.S. producers, but also for the health and safety of U.S. consumers." (Statement of Loren Yager, U.S. Government Accountability Office)
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"Protecting intellectual property protects lives. … Through intergovernmental cooperation and improved enforcement resources and channels, we can secure not only our nation's economic interest and innovation, but can more importantly protect people and property in the very place they are meant to feel safe – their own homes."  (Statement of Brian Monks, Underwriters Laboratories) 

All quotes are from the Senate Judiciary Committee Hearing on "Protecting Consumers by Protecting Intellectual Property," 6/17/08