December 18th, 2017
The Honorable Robert E. Lighthizer
Office of the U.S. Trade Representative
Executive Office of the President
600 17th Street, N.W.
Washington, D.C. 20006
Dear Ambassador Lighthizer,
“Intellectual property is a driving force in today’s global economy of constant innovation. It is the wellspring of American economic growth and job creation. With the rise of the digital economy, it has become even more critical that we protect intellectual property rights and preserve freedom of contract rather than create regulatory barriers to creativity, growth, and innovation. …We call for strong action by Congress and a new Republican president to enforce intellectual property laws against all infringers, whether foreign or domestic.” Continue reading
Washington D.C. – Yesterday, a broad coalition of free-market and center-right organizations released a statement regarding a pending decision of Korea’s Seoul High Court, Korea’s court of last resort. The decision will be whether to stay the Korea Fair Trade Commission’s (KFTC’s) overbroad ruling against Qualcomm, Inc., the aggrieved party in the proceeding.
Below is the statement released by the coalition:
“We are troubled by the prospect that the Seoul High Court might fail to stay the KFTC’s grossly overbroad extraterritorial remedies against Qualcomm. Such a ruling by the Court would explicitly condone the KFTC’s intrusion upon U.S. sovereignty, resulting in far-reaching implications harmful to free trade, the United States economy, and intellectual property as a whole.
Earlier this year, the KFTC took the extraordinary step of seeking to impose a one-size-fits-all approach to how patents around the world are licensed. This unprecedented remedy is a bald-faced attempt to slash the value of a U.S. company’s global patent portfolio and shield Korean domestic companies from American competition.
“The KFTC’s extraterritorial remedies go well beyond protecting Korean consumers and purport to dictate the terms upon which a U.S. company can license its intellectual property—even well outside Korea’s borders. Such remedies result in a major transfer of patented technology from U.S. to Korean companies, severely undermining U.S. leadership in innovation and economic growth. This will adversely impact every company in the United States that holds a patent of any kind.
“As the U.S. embarks upon a review of its trade and investment relationship with Korea, we urge the Trump Administration to demand assurances from the highest levels of the Korean government that all U.S. companies will be protected from the KFTC’s extraterritorial overreach. Anything less is a direct attack on our economy, our intellectual property, and our sovereignty.” Continue reading
A Chinese company, Ant Financial, largely owned by the government of China, is intent on taking over MoneyGram, a leading US-based financial payments company. This planned acquisition raises serious questions as to whether ownership of MoneyGram would be part of China’s strategic plan to obtain sensitive personal and financial information of Americans and westerners worldwide as well as to undermine American economic strength. This acquisition should be stopped for that reason.
The Committee on Foreign Investment in the United States (CFIUS) exists to review the national security implications of foreign investments in US companies. CFIUS is comprised of representatives from a number of US agencies or departments — including the Departments of Defense, Homeland Security, State and Commerce. CFIUS can block foreign sales and investments that would result in a foreign power acquiring assets and intellectual property that would harm America’s national security.
There are a number of important national security and strategic reasons that CFIUS should reject Ant Financial’s proposed takeover of MoneyGram. Continue reading
Frontiers of Freedom President, George Landrith, released the following statement on the Register of Copyrights Selection and Accountability Act:
“Frontiers of Freedom applauds the introduction of the Register of Copyrights Selection and Accountability Act. This legislation — which has strong bipartisan support in both the House and Senate — is an important, positive and necessary first step towards a more effective and modernized US Copyright Office.”
“As it is currently organized, the Copyright Office structure is more than 120 years old and designed for a time when intellectual property rights were just beginning to be widely recognized as an important economic driver. Now, copyright dependent industries account for 5.5 million jobs and contribute more than $1.2 trillion to GDP. The time for modernization is now. This legislation begins that important process.”
“This legislation provides that the head of the US Copyright Office, known as the Register of Copyrights would not merely be a staff position at the Library of Congress, but rather would be nominated by the President of the United States and confirmed by the US Senate, thereby elevating the Register to better reflect important economic sector the Office administers
“This is an important and needed first step to make the US Copyright Office work more effectively. America has led the world in creativity and innovation. That has fueled our economic health and strength. Moving forward, intellectual property will play an even bigger role in our economy and it makes sense that the Copyright Office should be prepared to facilitate that growth. A predicate to the continued success of the creative economy is an independent Register who understands and appreciates the importance of intellectual property in a vibrant, modern economy. It also ensures that the Register is accountable to the People through their elected representatives.”
“This legislation begins this important modernization process and is supported by leaders in both political parties and in both houses precisely because it is clearly what is needed to strengthen our creative and innovative economy.”
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by Randolph J. May and Seth L. Cooper • Free State Foundation
Securing protection of American intellectual property (IP) rights internationally is an economic imperative. It is also a constitutional duty. In today’s information economy, copyrights and patent rights provide critical financial investment incentives for research and development of new products and services. And IP constitutes a potent source of economic value and prosperity. According to an official U.S. Department of Commerce report, IP-intensive industries in America generated an estimated $5 trillion in revenues in 2010 alone, providing over 27 million jobs. Since then, those figures almost certainly have grown. Another report estimated that the copyright industries alone contributed $1.1 trillion in value added to the U.S. economy and employed nearly 5.5 million workers in the U.S. in 2014.
As IP becomes increasingly vital to our nation’s wealth and prosperity, the need to ensure its protection on a global basis increases correspondingly. The American economy suffers staggering losses each year to international IP theft. According to the IP Theft Commission (2013), these losses likely exceed $300 billion annually. IP theft is an injustice to the IP owners, diminishes economic prosperity, and undermines job opportunities. Indeed, this is a reason why it is so important to conclude international trade agreements, such as the recently-negotiated Trans-Pacific Partnership, that contain meaningful intellectual property protections. Continue reading
Frontiers of Freedom has long been a leader in protecting property rights. Our Constitution provided for property rights for physical property and for intellectual property. And with good reason. America became the world’s most innovative and economically powerful nation because our Founders grasped the importance of property rights and created a system that incentivized creativity, innovation and the productive use of such property.
Sadly, some foolishly think that property rights are old fashioned or that everything should be free. But these folks miss the point that if new innovations were free, we would see far fewer innovations. That would mean fewer new life sustaining medications, fewer new movies, less new music, and fewer new electronic devices and gadgets. Imagine if someone argued that food is so important that everyone should be able to get it free and simply walk into grocery stores and restaurants and grab whatever food they want. How long would food be available? How long before grocers and restaurants close down? That’s the point. We need to incentivize the production of the things we want and need and we need to encourage innovation.
For this reason, Frontiers of Freedom was part of a group that sent the following letter to Capitol Hill hoping to highlight the importance of intellectual property rights. Continue reading
Frontiers of Freedom is a strong supporter of property rights (including intellectual property rights). Property rights encourage individuals and businesses to innovate and invest in new ideas and technologies. We all win when property rights are respected. So where can you find your favorite movies and shows online and be sure that they are not illegal pirated copies?
The Motion Picture Association of America has launched a new search engine called “Where To Watch” (WhereToWatch.com). This new tool gives consumers a free, simple, and comprehensive way to search every known legitimate platform for movies and TV shows. No more searching 35 different places to find what you’re looking for. It is all at one simple-to-use website. And its free. We encourage everyone to use this tool. Not only will you protect yourself from unsavory and illegal websites that plant viruses on your computer and invade your privacy, but you’ll be supporting and encouraging your favorite artists, actors and film studios to continue making the entertainment that you love. Continue reading
A recent study conducted by NetNames found that in one month alone more than 430 million unique Internet users sought or downloaded copyright infringing music, movies, book, and other materials. This industrial scale theft chills creativity, innovation and investment by depriving creators of a market based return on their investments.. So how do these cyber-thieves steal music, movies, books, and other materials? One tool that is growing in popularity is the shadowy cyberlocker which is designed to sell, not store stolen content.
With so much attention to the “cloud” in today’s online world, it is important that we distinguish between the legitimate cloud storage services like DropBox, Google Drive and Apple’s iCloud, to name only a few. These services allow consumers to store, share, backup, and access data. The so-called cyberlocker business model is very different. Cyberlockers incent users to upload stolen files that are copyrighted and which they have no right to distribute, and then profit by selling subscriptions and advertising. The fact that they pay nothing for the product they sell allows them to enjoy profit margins approaching 90%.
The cyberlocker model is predicated on theft and distribution of stolen property. Continue reading
by Mark Schultz & Adam Mossoff • TechPolicyDaily.com
A handful of increasingly noisy critics of intellectual property (IP) have emerged within free market organizations. Both the emergence and vehemence of this group has surprised most observers, since free market advocates generally support property rights. It’s true that there has long been a strain of IP skepticism among some libertarian intellectuals. However, the surprised observer would be correct to think that the latest critique is something new. In our experience, most free market advocates see the benefit and importance of protecting the property rights of all who perform productive labor – whether the results are tangible or intangible.
How do the claims of this emerging critique stand up? We have had occasion to examine the arguments of free market IP skeptics before. (For example, see here, here, here.) So far, we have largely found their claims wanting. Continue reading
“Copyright law has historically protected the right of the creator to exclusively distribute their work. This is important because it gives creators the ability to profit from their creation which incentivizes creativity and promotes “the Progress of Science and useful Arts” as contemplated by the Founders in the Constitution.
“In 1908, a limited exception – known as the “first sale doctrine” – was established to a copyright owner’s exclusive right to distribute his work. This exception allowed consumers to sell physical objects that contained copyrighted material. This is why it is legal to resell books, DVDs and CDs. Continue reading
And why individual creators of content are now having such a difficult time protecting their work-product.
This video of recording artist Maria Schneider testifying before Congress explaining how difficult it is to protect her work and the real costs of piracy is compelling.
One of the most important parts of the Constitution is one of the least recognized. While American’s appreciate the importance of free speech and free elections, few realize that America may well have become the world’s unmatched economic superpower because the Founders wisely authorized Congress to protect intellectual property rights. This, in turn, provided the incentive to innovate and create. Continue reading
Internet piracy has become a big business. It has also become more sophisticated in the way it steals. Rather than selling the music and movies of others, often they provide it for free and use the increased internet traffic to obtain surprising advertising revenues. This allows the pirate to claim he isn’t selling anything. But he makes a handsome profit stealing the property of others — movies, music, books, etc. According to a recent study by the Digital Citizens Alliance (DCA), in 2013, these piracy sites reaped an estimated quarter billion — with a B — dollars in advertising revenue. Even small piracy sites can pull in over $100,000 a year in advertising revenue and it is almost all profit.
Some might think that this is great news — free music and movies for everyone! But the truth is this theft harms everyone. Everyone you ask? Yes! Everyone, except maybe the pirate. Here’s why. You and I go to work because we hope to receive a paycheck. If we learned that there would be no paycheck, we would not show up. If we learned that we would only be paid for every other hour we worked, we would likely only be willing to work every other hour. Continue reading