source: https://doi.org/10.7892/boris.69878 | downloaded: 1.2.2022
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K r r r s E . M a s x u s ( e d . ) : T h e W T O , I n - tellectual Property Rights and the Knowledge Economy. Cheltenham, Ed- w a r d E l g a r P u b l i s h i n g , 2 0 0 5 . P p . 6 4 8 . I S B N 1 - 8 4 3 7 6 - 2 3 7 - 4 . { , r 5 0 .
"The\7TO,
Intellectual Property Rights and the Knowledge Economy," is the first volume in a new series entitled
"Critical Perspectives on the Global Trading System and the WTO" organ- ized by economists affiliated rvith the World Bank. This voiume, edited by K e i t h E . M a s k u s , P r o f e s s o r o f E c o n o m - ics at the University of Colorado at Boulder, features a collection of twenty- o n e s e l f - c o n t a i n e d a r t i c l e s a n d b o o k c h a p t e r s w r i t t e n m o s t l y b y e c o n o m i s t s . T h e c o n t r i b u t i o n s g e n e r a l l y r e l a t e to t h e e c o n o m i c a n a l y s i s o f i n t e l l e c t u a l p r o p - erty regimes before and after TRIPS, w i t h a s p e c i a l e m p h a s i s o n t h e e c o n o m i c e f f e c t s o f i n c r e a s e d p . l t e n t p r o t e c t i o n in d e v e l o p i n g c o u n t r i e s . T h e p a p e r s s e - l e c t e d fo r i n c l u s i o n in t h e v o l u m e w e r e a l l p u b l i s h e d b e t w e e n 1 9 9 1 a n d 2 0 0 3 and were reprodr.rced in the book in full length and in their original formats, in- cluding footnotes and pagination. The decision not to edit the papers obviates
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the need to go back to the originals and facilitates the use of the book in scholar- s h i p , b u t i t l e a d s to a c e r t a i n d e g r e e o f substantive redundancy and a few cross- references to pieces not included in the book. However, these imperfections are m i n i m a l a n d d o n o t d i m i n i s h t h e s c h o l - a r l y v a l u e o f t h e v o l u m e .
The book is divided into five parts, and a l s o c o n t a i n s a n a m e i n d e x a n d a b r i e f i n r r o d u c t i o n s u m m a r i z i n g a n d c o n t e x - t u a l i z i n g e a c h p a p e r . P a r t I f a m i l i a r i z e s t h e r e a d e r w i t h t h e s u b j e c t m a t t e r o f t h e T R I P S A g r e e m e n t ( P r i m o B r a g a ) a n d provides different views on whether the i n c l u s i o n o f i n t e l l e c t u a l p r o p e r t y i n t h e WTO rvas jLrstified from the perspective o f i n t e r n a t i o n a l t r a d e ( M a s k u s ; P a n a g a r - iya) before showing that the enforcement o f T R I P S i s l a r g e l y in t h e h a n d s o f p r i - v a t e m u l t i n a t i o n a l c o m p a n i e s , i n w h o s e i n t e r e s t T R I P S w a s a d o p t e d (S e l l ) . P a r t II h a s l i t t l e t o d o w i t h i n t e r n a t i o n a l t r a d e and TRIPS, but instead gives an over- v i e w o f t h e e c o n o m i c a n a l y s i s o f i n t e l l e c - tual property law through the lens of a classic pilper on the subject (Besen Ec R a s k i n d ) a s w e l l a s a s t u d y o f t h e t h e - ories thirt are typicerlly used to assess the Book Reuier.us
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ecor.ron.ric effects of patent protection ( M a z z o l e n i & N e l s o n ) . T h e s e n v o p i e c e s are follon'ed by nvo nrore articles, one f o c u s i n g o n t h e d i f f i c u l t i e s o f l e g a l s y s - t e m s in a c l a p t i n g t o t e c h n o l o g i c i r l c h a n g e ( B a r t o n ) , a n d t h e o t l . r e r d i s c u s s i r . r g t h e i n t e r s e c t i o n o f p a t e n t a n d a n t i t r u s t la r l ' ( G a l l i n i & T r e b i l c o c k ) . P a r t I I I returns to the n.rain tl.reme of rhe book by high- l i g h r i n g s t , r r r e o f t h e r l o s r iu r p o r t n n t c o l l - t r o v e r s i e s u n d e r l y i n g t h e p r o r e c t i o n o f i n t e l l e c t u l l p r o p e r t y ri g h t s in d e v e l o p i n g c o u n t r i e s , n a m e l y t h e i m p o r t a n c e o f i n - t e l l e c t u a l p r o p e r t y f o r e c o r . r o m i c d e v e l - o p m e n t ( P r i m o B r a g a e t a l . ) , r h e r e l a - t i o n s h i p b e n v e e n g l o b a l p a r e n r p r o r e c - t i o n a r . r d b i o d i v e r s i t y ( D u t f i e l d ) , a n d t h e s i g n i f i c a n c e o f p a r e n r p r o r e c r i o n f o r p h a r m a c e u t i c a l s r v i t h r e s p e c r t o t h e a c - c e s s t o e s s e n t i a l n . r e d i c i n e s ( N o g u 6 s ; S c h e r e r & W a t a l ) .
W h i l e t h e f i r s t r h r e e s e c r i o n s o f t h e b o o k l r e e a s i l y ' a c c e s s i b l e r o n o n - e c o n o m i s r s , t h e l a s t t w o s e c t i o n s a r e m u c h m o r e t e c h n i c a l in n a t u r e a n d r e q u i r e a t l e a s t s o m e fa m i l i a r i t y rv i t h e c o n o m i c s . P a r t I V c o n t a i n s a r t i c l e s t h a t d e v e l o o f o r m a l m o d e l s to e x p l a i n a n d e v a l u a r e h o w i n - tellectual property affects global eco- nomic activity. The outcomes differ from study to study, and so do the policy rec- ommendations for developing countries derived from the proposed theoretical m o d e l s . M o s t l y d e p e n d i n g u p o n r h e a s - sur-nptions of the particular model in qLlestion, the suggestions range from in- c r e a s l n g p a r e n t p r o r e c r i o n ( D i w a n &
R o d r j k ) , t o a d j u s t i n g r a r i f f s ( Z i g i c ; L a i
& Q i u ) , t o r e d u c i n g p a r e n r p r o r e c r i o n ( G l a s s & S a g g i ) . P a r t V s u p p l e r . n e n r s t h e s e th e o r e t i c a l m o d e l s w i t h a n u m b e r of empirical studies. The firsr two s t u d i e s s h o w t h a t t h e p o s i t i v e im p a c t o f increased patent protection on bilateral manufacturing in-rports into developing c o u n t r i e s i s a m b i g u o u s , a l t h o u g h s t r o n g - er patent laws seem to attract larger i m p o r t s f r o m d e v e l o p e d c o u n t r i e s ( M a s - k u s & P e n u b a r t i ) a n d i n c r e a s e U . S . s a l e s a n d l i c e n s e s i n d e v e l o p i n g c o u n t r i e s w i t h s t r o n g im i t a t i v e a b i l i r i e s ( S m i t h ) . T h e r e -
IIC Vol. .36
m a i n i n g t l . r r e e p a p e r s i n d i c a t e r h i r t s t r e u g t h e n i n g t h e p a t e n t r e g i u r e i n .fatrxn d i d n o t i n c r e a s e R & D s p e n d i n g o r i n n o - v a t i v e o u t p u t ( S a k a k i l r a r a & B r a n s t e t - t e r ) , t h r r t i n t e r n a t i o n a l p a t e n t h : r r m o n i - z a t i o n l e a d s to i r s i g n i f i c a n t tr a n s f e r o f i n c o l n e b e n v e e n c o u n t r i e s (M c C a l r r r r n ) , a n d t l r r r t t r a c l e l i l r e r r r l i z a t i o n i s r n o r e i n r - p o r t a n t t h a n i n t e l l e c t u a l p r o p e r r y i n s t i r n u l r r t i n g e c o r r o m i c g r o w r h ( G o u l d &
G r u b e n ) .
To tl-re extent that tl.re editor's goal is to p r o v i d e a s e n s e o f " t h e c o n . r p l e x i t y o f r h e u n d e r l y i n g q u e s t i o n s " (p . x i i ) , t h e b o o k certair-rly fulfills its missior-r. Readers are left with tl-re impressior.r tl'rat the eco- n o m i c a s s e s s m e n t o f t h e i m p a c t o f i n t e l - I e c r u a l p r o p e r r y p r o t e c r i o n o n i n n o v a - t i o n a r . r d i n t e r n a r i o n a l t r a d e f l o w s i s a n e x c e e d i n g l y c o m p l e x m a t t e r t h a r c a n n o t r e a d i l y b e r e d u c e d to c o n c r e r e a n d r e l i - a b l e p o l i c y r e c o m m e n d a t i o n s . A g a i n s t this background, many of the simple for- m u l a e t h a t a r e o f t e n f o u n d i n j u d i c i a l opinions and legislative docun-rents in s u p p o r t o f s p e c i f i c le g a l r u l e s , s u c h a s t h e i d e a t h a t n r o r e p a r e n t p r o r e c r i o n is always socially desirable because it in- c r e a s e s i n c e n t i v e s t o i n n o v a t e , m u s t b e revised or at least refined. This insight is particularly important in view of the fact that politicians and other policymakers seern all too easily impressed by nonla- t i v e p r o p o s a l s t h a t h a v e t h e i m p r i m a t u r of economics. Another important point that emerges from this book is thar intel- lectual property law is only one of the many factors affecting economic activity a n d t h a t t h e r o l e o f l e g a l r u l e s in s p u r - r i n g i n n o v a t i o n , i n t e r n a t i o n a l t r a d e , a n d economic growth, tends to be overesti- m a t e d .
While this book is a good example of h o w m u c h e c o n o m i c s c h o l a r s h i p h a s t o offer, it also suggests that economists could benefit from legal scholarship, as s o m e o f t h e p a p e r s e x h i b i t a n u n d e r - s t a n d i n g o f l a w a n d n o r m a r i v i r y t h a t v e r y f e w l a w y e r s w o u l d s h a r e . O n e e x - a m p l e is t l r e s o m e w h a t o v e r d r a w n b e l i e f Book Reuiews
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i n t h e p o w e r o f l e g a l n o r m s t o s h a p e behavior and to successfully steer eco- nomic activity, which largely ignores en- forcement problems, the issues of sym- bolic legislation and unintended effects, and the fundamental distinction betweer.r t h e l a w o n t h e b o o k s a n d t h e l a w i n actiorr. Sr"rccumbing to the temptation of reducing law to statutory texts that are s i m p l y a s s u m e d to b e c o n s i s t e n t l y e n - forced across the board is particularly treacherous when the purpose of a study i s t o m e a s u r e th e e c o n o m i c im p a c t o f specific legal norms, as the actual valid- ity of these norms in practice would seem to be critical for the study's accu- racy. Another striking example found in some articles is the utopian vision of dis- interested world planners who strictiy follow the dictate of welfare maximiza- tion and the equally idealist assumption that the lawmaking process is completely rational. The legislative process emerges from an amalgam of competing and con- flicting interests and generates bodies of law that can rarely be understood as the application of a single coherent princi- ple, economic or otherwise. Finally, a few papers do not clearly distinguish be- tween facts and norms and simply as- sume that certain policy recommenda- tions follow automatically from certain factr.ral analyses, when the step from fac- t u a l r o n o r m a t i v e c l a i m s r e q u i r e s a s e D a -
r a t e e x p l a n : r t i o n th a t i s n o t n e c e s s a r i l y i m p l i c i t in e c o n o m i c f i n d i n g s .
I n t h i s c o n t e x t , it s h o u l d a l s o b e p o i n t e d o u t t h a t t h e b o o k h a s n o t h i n g to d o w i t h c r i t i c a l le g a l s t u d i e s o r c r i t i c a l s o c i a l t h e - o r y , a s r e a d e r s fa m i l i a r w i t h A m e r i c a n legrrI thought might expecr when picking u p , r h o o k t l t r r t in r r u g r r r a t e s a n e w s e r i e s o n " c r i t i c a l perspectives" o n t h e g l o b a l trading systerr and rhe \7TO. The book i s f i r m l y r o o t e d i n e c o n o m i c a n a l y s i s a n d i s c r i t i c i r l o n l y i n t h e s e n s e t h a t i t i n c l u d e s a r t i c l e s t h a r a r e c r i t i c a l o f T R I P S , b u t a l w a y s f r o m a n e c o n o m i c p e r s p e c t i v e .
In conclusion, the book provides a handy collection of interesting contributions to the economic analysis of global intellec- tual property regimes and provides a good sense of the research done in the field, although it may be a bit overpriced for scholars rvho already have access to the papers contained in the volume either through their universirv libraries or t h r o u g h e l e c t r o n i c d a t a b a s e s .
C t r i l l P . R i p a r n o n t i *
" S.J.D. Candidate, Harvard Larv School;
Dr. iur., Universiq' of Zurich; LL.M., Georgetorvn Universitl Lalv Center; ad- mitted to practice in Zurich and New York.
