Turkey maintains its place on the ’watch list’
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by Fulya Özerkan
Oluşturulma Tarihi: Mayıs 07, 2009 00:00
ANKARA - A report of the US Trade Representative underscores problems in Turkey with respect to intellectual property rights and market access for innovators. The issue affects high technology, pharmaceuticals, consumer goods and media
Turkey remains on the "Watch List" in the U.S. Trade Representative's Special 301 Report this year on intellectual and industrial property rights, where it was placed during former President George W. Bush's term.
"Enforcement efforts including notable seizures of pirated materials have increased; however, there have been significant setbacks," read the recently released 44-page report, citing major problems in legislation and enforcement of intellectual property rights affecting the high-tech, pharmaceutical, publishing, fast-moving goods and other sectors.
"The irony is that while Turkish policymakers have highlighted these areas as strategic sectors of the economy, and the government is trying to encourage more international investment, technology transfers and job creation, there doesn't appear to be sufficient political will to support these aspirations with effective policies and actions that would improve the business climate for innovative industries," Jeff Kemprecos, chairman of the Intellectual Property Rights Working Group of the International Investors' Association, told the Hürriyet Daily News & Economic Review in an interview.
The Special 301 Report is an annual review of the global state of intellectual property rights protection and enforcement conducted by the Office of the U.S. Trade Representative and examines 77 countries. Beyond the U.S. government, the Special 301 Report is well known in the business and investment community, as it reflects the concerns of companies and others doing business and investing in that country.
"As investors, we note the issues highlighted in the new report, and will continue to work with policymakers to address these problems. Turkey offers many advantages to investors, but persistent problems in intellectual property protection act as a drag on Turkey's global competitiveness in high value-added sectors," said Kemprecos. "Our conclusion is that we need a fresh injection of political support if we are to improve Turkey's investment climate."
According to the U.S. report, applications for marketing approvals of generic pharmaceuticals have been pending before Turkish authorities for more than two years, creating uncertainty as to the status of protection of the undisclosed test or other data generated to obtain marketing approval for the pharmaceutical products involved.
It pointed out that following a July 2008 Constitutional Court ruling that effectively eliminated the criminal sanctions provisions of the Turkish trademark law, the government passed new legislation reinstating the penalties, but failed to meet the court's six-month deadline for doing so, thus nullifying sentences handed out in over 9,000 criminal trademark cases.
"The government has vowed to retry the 9,000 cases under a different law, though this would involve lesser penalties," it noted. The report also highlighted that book piracy continues to be a major problem in Turkey as it is "well-organized and prevalent," particularly acute on university campuses.
"Piracy of business and entertainment software continues to be significant. Turkey ... remains a significant source of counterfeit goods seized at the borders of nearby countries," it said.
"With the elections behind us and the appointment of a new chief negotiator to lead EU talks, there is a sense of renewed optimism that Turkey can regain some momentum in its efforts to harmonize with the EU," said Kemprecos. "Few things could be more reassuring to global investors than solid progress in the area of intellectual property rights enforcement and legislation. Investors will be paying particular attention to the details of the new patent law, continued law enforcement efforts, and better protection of copyrights."
"Enforcement efforts including notable seizures of pirated materials have increased; however, there have been significant setbacks," read the recently released 44-page report, citing major problems in legislation and enforcement of intellectual property rights affecting the high-tech, pharmaceutical, publishing, fast-moving goods and other sectors.
"The irony is that while Turkish policymakers have highlighted these areas as strategic sectors of the economy, and the government is trying to encourage more international investment, technology transfers and job creation, there doesn't appear to be sufficient political will to support these aspirations with effective policies and actions that would improve the business climate for innovative industries," Jeff Kemprecos, chairman of the Intellectual Property Rights Working Group of the International Investors' Association, told the Hürriyet Daily News & Economic Review in an interview.
The Special 301 Report is an annual review of the global state of intellectual property rights protection and enforcement conducted by the Office of the U.S. Trade Representative and examines 77 countries. Beyond the U.S. government, the Special 301 Report is well known in the business and investment community, as it reflects the concerns of companies and others doing business and investing in that country.
"As investors, we note the issues highlighted in the new report, and will continue to work with policymakers to address these problems. Turkey offers many advantages to investors, but persistent problems in intellectual property protection act as a drag on Turkey's global competitiveness in high value-added sectors," said Kemprecos. "Our conclusion is that we need a fresh injection of political support if we are to improve Turkey's investment climate."
According to the U.S. report, applications for marketing approvals of generic pharmaceuticals have been pending before Turkish authorities for more than two years, creating uncertainty as to the status of protection of the undisclosed test or other data generated to obtain marketing approval for the pharmaceutical products involved.
It pointed out that following a July 2008 Constitutional Court ruling that effectively eliminated the criminal sanctions provisions of the Turkish trademark law, the government passed new legislation reinstating the penalties, but failed to meet the court's six-month deadline for doing so, thus nullifying sentences handed out in over 9,000 criminal trademark cases.
"The government has vowed to retry the 9,000 cases under a different law, though this would involve lesser penalties," it noted. The report also highlighted that book piracy continues to be a major problem in Turkey as it is "well-organized and prevalent," particularly acute on university campuses.
"Piracy of business and entertainment software continues to be significant. Turkey ... remains a significant source of counterfeit goods seized at the borders of nearby countries," it said.
"With the elections behind us and the appointment of a new chief negotiator to lead EU talks, there is a sense of renewed optimism that Turkey can regain some momentum in its efforts to harmonize with the EU," said Kemprecos. "Few things could be more reassuring to global investors than solid progress in the area of intellectual property rights enforcement and legislation. Investors will be paying particular attention to the details of the new patent law, continued law enforcement efforts, and better protection of copyrights."