Competitiveness and Innovation Archives

Closing Remarks by USCIB Peter Robinson to OECD Ministerial on the Future of the Internet

Published on June 18, 2008

Peter Robinson

President and CEO, United States Council for International Business

Closing Remarks for OECD Ministerial on the Future of the Internet

Seoul, June 18, 2008

 

Congratulations to Korea and the OECD on organizing such an impressive ministerial meeting!

The discussions over the last 3 days have been interesting and insightful in looking to the future and the role of all stakeholders along this path.

On behalf of the business community, let me applaud Ministers for signing a Declaration that lays out a clear path to the future Internet economy. We are especially pleased to see that our vision shares many of the same hopes and expectations as those that are outlined in the Declaration.

This Ministerial has successfully built on the previous Ministerial, which focused on e-commerce. The last 10 years have shown us that the Internet is much more than a new platform on which to conduct business.  It has become intertwined with every aspect of our lives and economies. The next 10 years will allow us to further realize the potential of the Internet to better our societies, both developed and developing, and to bring more of the world’s people online to create, communicate and collaborate as part of their business and personal lives.

Our vision of the future Internet is characterized by a virtuous circle of investment and innovation, fueled by creativity and empowering users. The future Internet will also be characterized by increased user participation and choice of applications, products and services provided through a wide variety of high capacity platforms that are more available, affordable and user-friendly. The Internet will facilitate greater productivity and expanded access, to, and quality of, education, skills development and healthcare. Innovative ICT solutions will help us address challenges such as the environment.

 

Role of business

The Ottawa ministerial established a precedent for a regulatory framework that recognized the need for private sector leadership and flexibility to enable innovation. Since, the convergence of voice, data, video and audio on the Internet, driven by the extensive deployment of competing IP-based networks, has enabled innovation to thrive , empowering consumers and enhancing opportunities for further growth and innovation.

Going forward, we need to understand how the next level of convergence will impact business. Further investment will be needed to provide adequate capacity, security and capabilities for future Internet-supported development and connectivity.  Business will also work with other stakeholders to develop market-driven technical standards that will enable the Internet’s ongoing expansion.

 

Creativity

The Internet is also facilitating an unprecedented level of collaboration and interaction in commercial as well as social settings. The application of ICTs to learning, health, the environment and professional and social networking enables the robust exchange of information and knowledge. A confluence of factors—has created a fertile environment for users to become creators and publishers in their own right.  Pervasive, speedy, intelligent and affordable broadband access, provided through capable high capacity networks is vital to the future growth of these and other innovative offerings. Preserving and fostering the incentive to create is also vital to the continued migration of content to the online world. The protection and enforcement of intellectual property rights, which supports and encourages users to make legitimate use of content, play an important role in this regard.

 

Confidence

Security and privacy will be increasingly important- not just because of increased threats, but also because emerging technologies may provide more seamless ways of collecting and using information. User trust and confidence in these new technologies will enable faster adoption and greater access to the benefits they can provide.

Today, businesses deploy a variety of technologies to meet customer needs and to build confidence in the online environment, and also actively leads educational initiatives in Internet privacy and safety.  While there is no silver bullet to stop cyber-crime, business is committed to working with governments and other stakeholders to effectively address this problem.

But in the end, improved education, innovative technology widespread dissemination and adoption of industry best practices; and effective law enforcement will be most effective in addressing these threats to Internet users’ privacy and safety and ensuring the continued integrity of the Internet.

 

Role of governments

We commend Ministers for their commitment to establish and maintain policy frameworks that will promote a trusted Internet-based environment, continued investment and increasing competition that will lead to expanded Internet access worldwide, increased innovation and user choice.  Indeed, such frameworks are essential for the future Internet economy.

Ministers have taken the important step to reaffirm the principles that enabled a new platform for commerce to evolve into a new platform for all aspects of life and declaring to contribute towards further development of the global Internet economy. While a framework that promotes continued technology innovation is crucial, we must keep in mind that ICTs are a means to achieve growth and societal benefit rather than an end in themselves.

 

The role of governments is fundamental for four key objectives:

  1. Ensuring that any new measures or incentives have a positive impact on infrastructure investment, innovation and the growth of the Internet
  2. Enforcing existing laws, particularly criminal laws, which address harmful and/or illegal online activities and coordination across relevant agencies and jurisdictions
  3. Recognizing the continued importance of market-driven, consensus-based global standards and the leadership of the private sector in their development
  4. Developing policies that stimulate the availability of and demand for network development, deployment, and interconnectivity, and the availability of different devices and modes of connectivity to increase Internet penetration

 

Role of OECD:

Finally, after Seoul,  as governments work towards further implementation of the commitments made here, careful attention should be paid to the important, unique and beneficial role that the OECD plays. The OECD will continue to be instrumental in working with all stakeholders to further the achievements of the Ottawa and Seoul Ministerial Conferences, in particular by producing neutral, fact-based economic reports that examine current market conditions and the impact of new developments, emerging technologies and any potential policy questions. The OECD also facilitates co-ordination and consistency of broad policy frameworks across Member economies by providing a forum for dialogue, involving all stakeholders.

In closing, I’d like to emphasize that all stakeholders must continue to work together, each according to their role, to address the challenges faced by the global economy, to promote the continued growth of the Internet and bring its benefits to more of the world’s people. Today, the private sector continues to lead the way in the innovation and development of ever-more efficient and focused services, applications, content, devices and networks that allow more users to share in the benefits of the Internet. We look forward to working with governments, civil society, the technical community and the OECD to nurture the powerful potential of the Internet economy.

More on USCIB’s Information, Communications and Technology Committee

OECD website

WHO Briefing Focuses on Private-Sector Partnerships

Published on May 28, 2008
L-R: IOE President Abraham Katz, Ivan Ivanov (WHO), David Bell (Centers for Disease Control), Jeffrey Gilbert (Pfizer).
L-R: IOE President Abraham Katz, Ivan Ivanov (WHO), David Bell (Centers for Disease Control), Jeffrey Gilbert (Pfizer).

Last month, USCIB hosted a high-level meeting between business representatives, senior staff from the World Health Organization and officials from the International Organization of Employers to discuss workplace and employee health initiatives, and to identify opportunities for collaboration between WHO and business.

The meeting included briefings from companies on their worldwide operations, initiatives for employees and the community within which they operate, and company participation in public-private coalitions to effect broad-based change. The WHO representatives discussed current work on workplace and employee health, including opportunities for private-sector engagement.

Since the WHO work will also be implemented with national governments – focusing on developing countries – discussion included how business can coordinate country programs with WHO national initiatives.

One model partnership is the WHO’s efforts to reduce and eventually eliminate the use of leaded gasoline in developing countrie4s, especially Africa. Major petroleum and auto companies have worked with national governments, the United Nations Environment Program, the World Bank and other bodies to make lead-free gas – along with catalytic converters and more efficient automobiles – available in Africa. The resulting improvements in air quality have directly improved the lives of around a billion people.

Also participating in the meeting were senior representatives from the U.S. Centers for Disease Control, who updated participants on the WHO’s new International Health Regulations. Revised following the SARS epidemic, these regulations constitute the international legal framework for response during such epidemics by governments, the WHO and other stakeholders. Pandemic preparedness and coordination between business, supply chains, government and international organizations were also explored.

The meeting concluded with strong agreement that business is a key stakeholder for the WHO’s work in this field, and that there are many other opportunities where collaborations and partnership could be beneficial. There are concrete actions for follow-up, and a mutual desire to maintain an ongoing dialogue.

More on the International Organization of Employers

More on USCIB’s Health Care Task Force

Business Engages Top International Tax Officials at OECD Conference in Washington

Published on June 5, 2007
Assistant Treasury Secretary Eric Solomon spoke at the OECD tax conference.
Assistant Treasury Secretary Eric Solomon spoke at the OECD tax conference.

Washington, DC, June 5, 2007 – Nearly 300 U.S. and international executives, government officials and other tax experts convened at the Ronald Reagan Building and International Trade Center in Washington, D.C., for a major two-day conference, concluding today, which highlighted the work of the Organization for Economic Cooperation and Development (OECD) in the development of national tax policy and international tax arrangements governing cross-border trade and investment.

Organized by the OECD, the United States Council for International Business (USCIB), and the Business and Industry Advisory Committee (BIAC) to the OECD, the conference, titled “New OECD International Tax Initiatives: Looking Ahead,” sought to provide American business with the opportunity to interact directly with key representatives from the OECD and its Center for Tax Policy and Administration.  Also on the program were senior representatives of the U.S. Treasury/Internal Revenue Service and private industry.

The 30-nation OECD seeks to promote growth through coordination of economic and regulatory policies between its members, all of which are democratic market economies.  BIAC, composed of major business federations from all OECD countries, provides policy guidance to OECD members.  USCIB is BIAC’s representative in the United States and regularly fields American industry experts for BIAC and OECD activities.

Constance A. Morella, U.S. ambassador to the OECD, opened the influential annual conference, now in its fourth year.  “Thomas Friedman has said the world is flat, but it’s worth noting that there are still some bumps, including in tax policy,” she commented.  “The OECD tries, with strong business support, to flatten some of those bumps.”

Thelma Askey, deputy secretary general of the OECD, also addressed the gathering.  “The U.S. government plays a leading role at the OECD in getting agreement on international tax rules,” she said.  “Without clear, transparent rules that have the support of governments around the world, business often finds itself tied up in uncertainty, intractable disputes and double taxation.”

In a keynote address today, Eric Solomon, the Treasury Department’s assistant secretary for tax policy, presented an overview of the U.S. tax system and its effects on American competitiveness.  He noted that, since the last major overhaul of the U.S. tax code in 1986, other developed countries had lowered corporate tax rates to spur investment and boost employment.

“As the global economy continues to expand and markets become more open to investment, developed economies such as those within the OECD continue to adapt their corporate tax systems to compete in the global marketplace,” Mr. Solomon stated.  “However, since 1993, the federal statutory corporate tax rate has remained 35 percent.”

Also speaking at the conference were Jeffrey Owens, head of the OECD’s Center for Tax Policy & Administration; Patrick J. Ellingsworth, executive vice president, Royal Dutch Shell and chairman of BIAC’s Taxation Committee; Peter M. Robinson, president of USCIB; and numerous tax experts from the OECD secretariat, U.S. government and major multinational companies.

The event drew representatives from more than a hundred top companies, testifying to the broad importance of the OECD’s work and its influence on international taxation policies.  The full conference agenda is available at www.uscibtax.org.  Among the topics up for discussion were:

  • attribution of profits to permanent establishments
  • the application of the transfer pricing guidelines
  • issues arising from business restructurings
  • cooperation and information exchange in international tax administration
  • other tax treaty topics, such as the non-discrimination principle and collective investment vehicles
  • current OECD work on cross-border services, and the OECD’s dispute resolution report.

“As we move forward on these issues, it is essential that U.S. business provide ongoing input,” said the OECD’s Mr. Owens.  “Conferences like these, and input from USCIB, ensures that the solutions we adopt work for American firms operating in the global marketplace.”

Lynda K. Walker, USCIB’s vice president and international tax counsel, commented that the annual conferences have become a highlight of the U.S. tax calendar.  “By bringing together the main U.S.-based organizations that work on international tax policy, these events enable American business to more effectively follow and provide input to the OECD’s work.”

Supporting sponsors of the event included the International Fiscal Association-USA Branch, the International Tax Policy Forum, the National Foreign Trade Council, the Organization for International Investment, the Tax Council Policy Institute and the Tax Foundation.

USCIB promotes an open system of global commerce in which business can flourish and contribute to economic growth, human welfare and protection of the environment.  Its membership includes more than 300 leading U.S. companies, professional services firms and associations whose combined annual revenues exceed $3.5 trillion.  As the exclusive American affiliate of three key global business groups – the International Chamber of Commerce, the International Organization of Employers, and the Business and Industry Advisory Committee to the OECD –  USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade.  More information is available at www.uscib.org.

Contact:

Jonathan Huneke, VP communications, USCIB

+1 212.703.5043 (office), +1 917.420.0039 (mobile) or jhuneke@uscib.org

Conference agenda

Remarks by Assistant Treasury Secretary Solomon (Treasury Department website)

OECD website

BIAC website

More on USCIB’s Taxation Committee

U.S. Business Welcomes OECD Report on Countefeiting and Piracy

Published on June 4, 2007

New York, N.Y, June 4, 2007 – Representatives of America’s top global companies applauded today’s release of a landmark report from the 30-nation Organization for Economic Cooperation and Development (OECD) on the economic costs of counterfeiting and piracy.  Release of the report’s summary was timed to coincide with this week’s G8 summit in Germany, where the issue is on the agenda for leaders of the world’s leading economies.  The full report will be released this summer.

The United States Council for International Business welcomed the OECD report, “The Economic Impact of Counterfeiting and Piracy.”  The report includes new figures on the scope of international trade in fake goods, and concludes that the magnitude and effects of the problem are “of such significance that they compel strong and sustained action” from governments, business and consumers.  The report recommends increased enforcement of existing laws and tighter cooperation between governments and industry to make current policies more effective.

“Policy makers need to pay close attention to what the OECD is saying,” according to USCIB President Peter M. Robinson.  “Counterfeiting and piracy take a heavy toll on governments, businesses of all sizes and of course consumers.   It’s wholesale theft, by well organized criminal networks, that endangers consumer health and safety, harms the reputation of companies, cuts into tax revenues and discourages much-needed foreign investment.”

The OECD report says the flow of illicit cross-border trade in so-called “hard goods,” i.e., tangible counterfeit and pirated products, could be up to  $200 billion, a figure greater than the national GDP of some 150 countries.  But it concedes that this represents just the tip of the iceberg, since the OECD did not tally the cost of domestically produced and consumed counterfeit and pirated products, or the economic costs of online piracy.  The report concludes that, if these factors were included, “the magnitude could be several hundred billion dollars more.”

The report provides clear indications that product counterfeiting and piracy are growing – and affect virtually every country, industry and product category.  The OECD notes that, while governments are increasingly acknowledging the problem and putting laws and regulations in place, more effective enforcement is critical.

For the past several years, business representatives and others have been pushing the G8 to more forcefully address the growing tide of counterfeiting and piracy. Last week, a group of top executives from around the world wrote to G8 leaders under the umbrella of Business Action to Stop Counterfeiting and Piracy (BASCAP), an initiative of the International Chamber of Commerce, urging them to take bigger, bolder steps to beat back counterfeiting and piracy.

The private sector contributed data and analysis to the authors of the report, working through the Business and Industry Advisory Committee (BIAC) to the OECD, and it wants to see the OECD do more to assess the scope of the problem and explore solutions.

“The OECD report points out that these illegal activities have significant effects on governments, industry, consumers and society at large from lost innovation, creativity, investment, jobs and overall economic growth and development, especially in developing markets,” said Richard Johnson of the law firm Arnold & Porter, who chairs the BIAC counterfeiting task force.  “We support the OECD’s conclusion that more work is needed in this area, and we stand ready to help find ways to do this.  We hope the upcoming G8 summit will endorse the findings of the OECD report and its recommendations for future government actions.”

USCIB promotes an open system of global commerce in which business can flourish and contribute to economic growth, human welfare and protection of the environment.  Its membership includes more than 300 leading U.S. companies, professional services firms and associations whose combined annual revenues exceed $3.5 trillion.  As the exclusive American affiliate of three key global business groups – the International Chamber of Commerce, the International Organization of Employers, and the Business and Industry Advisory Committee to the OECD – USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade.  More information is available at www.uscib.org.

Contact:

Jonathan Huneke, VP communications, USCIB

+1 212.703.5043 (office), +1 917.420.0039 (mobile) or jhuneke@uscib.org

OECD Report on Counterfeiting and Piracy

BIAC website

BASCAP website

More on USCIB’s Intellectual Property Committee

US Executives to Engage Top International Tax Officials at OECD Conference in Washington

Published on May 10, 2007

3695_image002Washington, D.C., May 10, 2007 – U.S. executives and tax counsel will have unparalleled access to key tax officials from the Organization for Economic Cooperation and Development, as well as United States and other OECD member nations, at a major conference, “New OECD International Tax Initiatives: Looking Ahead,” June 4 and 5 at the Ronald Reagan Building and International Trade Center in Washington, D.C.

The conference, organized by the OECD, the United States Council for International Business (USCIB), and the Business and Industry Advisory Committee (BIAC) to the OECD, is the third in a series of annual events spotlighting the increasingly important work of the OECD in the area of international taxation.  It is produced in association with the International Fiscal Association-USA Branch, the International Tax Policy Forum, the National Foreign Trade Council, the Organization for International Investment, the Tax Council Policy Institute and the Tax Foundation.

“This conference provides an excellent opportunity to learn more about the important tax policy work being done through the OECD, and for U.S. business to further engage in this process,” said Lynda K. Walker, USCIB’s vice president and international tax counsel.  “It is evidence of the significance of the projects being undertaken by the OECD that such high-level officials are planning to join us for this important event.”

The United States, as a founding member of the OECD, has played an active role in developing the organization’s tax program.  The OECD presently consists of 30 advanced industrialized nations, although in the tax area Argentina, Chile, China, India, Russia and South Africa play an active role in the development of the organization’s work.  It facilitates cooperation through the development of standards for international tax policies affecting multinational business and other taxpayers.

The June conference will feature an impressive line-up of tax policy experts from the U.S. Treasury/Internal Revenue Service, the OECD’s Center for Tax Policy and Administration, and private industry.   Eric Solomon, assistant secretary of the Treasury for tax policy, will be a keynote speaker.  Ambassador Constance A. Morella, the U.S. representative to the OECD, will open the conference, along with OECD Deputy Secretary General Thelma Askey.

The OECD seeks to promote growth through the coordination of economic and regulatory policies between its member nations, which are all democratic market economies.  BIAC is composed of major business federations from the 30 OECD countries, and provides policy guidance to OECD members and its Paris-based secretariat.  USCIB is BIAC’s representative in the United States and regularly fields American industry experts for BIAC and OECD activities.

Ms. Walker noted that the top OECD tax officials have been involved in the planning of the program.  Among those participating from the OECD are Jeffrey Owens, the director of the Center for Tax Policy and Administration, Mary Bennett, head of its division on tax treaties, transfer pricing and financial transactions, Caroline Silberztein, head of its transfer pricing unit, and Jacques Sasseville, head of its tax treaty unit.

Panels at the conference will address:

  • Attribution of Profits to Permanent Establishments
  • Achieving Greater Consensus on the Application of Transfer Pricing Guidelines
  • Issues Arising from Business Restructurings
  • International Tax Administration:  Co-operation and Information Exchange
  • Other Tax Treaty Issues, including: A Re-examination of the Nondiscrimination Principle and Tax Treaty Application to Collective Investment Vehicles
  • Current OECD Work on Cross-Border Services
  • OECD’s Dispute Resolution Report

USCIB promotes an open system of global commerce in which business can flourish and contribute to economic growth, human welfare and protection of the environment.  Its membership includes some 300 U.S. companies, professional service firms and associations, whose combined annual revenues exceed $3 trillion.  As American affiliate of the leading international business and employers organizations, including BIAC, USCIB provides business views to policy makers and regulatory authorities worldwide and works to facilitate international trade.

Contact:

Jonathan Huneke, VP communications, USCIB

(212) 703-5043 or jhuneke@uscib.org.

Conference agenda, registration form and other information

More on USCIB’s Taxation Committee

OECD website

At G8 Business Summit, USCIB Chairman Urges Governments to Avoid Investment Protectionism

Published on April 24, 2007

Joint statement by business federation heads also presses for Doha Round’s completion

USCIB Chairman William G. Parrett (second from left) joined other top business chiefs at the first-ever G-8 Business Summit in Berlin (Photo: BDI).
USCIB Chairman William G. Parrett (second from left) joined other top business chiefs at the first-ever G-8 Business Summit in Berlin (Photo: BDI).

Berlin, April 25, 2007 – At today’s first-ever G-8 Business Summit, the chairman of the United States Council for International Business (USCIB), William G. Parrett, also CEO of Deloitte, urged the leaders of the Group of Eight nations to maintain their commitment to the open flow of international investment across borders, realizing countries still need to address local issues such as national security.

“Governments need to take action at the highest level to avoid investment protectionism if we want to encourage the free flow and benefits of international investment,” said Mr. Parrett, who represented the United States in the G-8 business preparatory meeting, which was organized by the Federation of German Industries (BDI).  “They need to affirm, in word and practice, their commitment to open, cross-border investment.”

The Berlin summit brought together the heads of top business federations from Germany, which hosts this year’s G-8 leaders summit in Heiligendamm this June, and the other G-8 nations along with the trans-European business federation Business Europe.  The business leaders signed a joint G-8 Business Declaration that will be presented to the G-8 government leaders, urging completion of the WTO’s Doha Round “as a matter of urgency and top priority,” and proposing ways to address related trade and investment issues, innovation challenges such as intellectual property rights, and climate protection.  They were scheduled to meet with German Chancellor Angela Merkel later today.

Investment protectionism has been on the rise both in the G-8 nations and elsewhere, and curtailing such measures was among the top priorities spelled out by the business leaders in a joint statement.  Mr. Parrett pointed to a number of recent measures that he said needlessly interfered with foreign mergers, acquisitions and greenfield investment under the guise of security concerns.

Mr. Parrett said business recognized that the world had changed dramatically since 9/11, and that governments must pay more attention to national security issues.  “But a legitimate concern for national security needs to be balanced against the benefits of allowing foreign investment,” he said.  “Blocking a foreign takeover for reasons of national security should be an extremely rare occurrence, and should be taken as a measure of last resort, only when all other rules or tools that are designed to protect national security are not adequate or effective.  Further, blocking international investment should not be used as a means to give unreasonable commercial advantage for domestic businesses.”

Mr. Parrett called upon the G-8 governments to support annual updates by the OECD of measures to restrict investment on grounds of national security, and the extension of this study to the issue of informal barriers to investment.  He urged that the business community be fully engaged in helping identify such informal barriers.

The business leaders focused on a number of other issues they said required attention by their governments at the Heiligendamm summit.  These included completion of the WTO’s Doha Round, fostering intellectual property rights, enhancing efficient capital markets, strengthening environmentally friendly technologies and facilitating private-sector participation in African development.

Peter M. Robinson, president of USCIB, who was also in Berlin, drew attention to the need for immediate action by the G-8 governments to protect intellectual property rights and stamp out product piracy.  “The issue has moved far beyond movies and music,” he said.  “Nowadays no industry, and no country, is immune from counterfeiting and piracy.  Government action is urgently needed at the highest levels to stamp out this scourge.”

The United States Council for International Business promotes an open system of global commerce in which business can flourish and contribute to economic growth, human welfare and protection of the environment.  Its membership includes more than 300 leading U.S. companies, professional services firms and associations whose combined annual revenues exceed $3.5 trillion.  As the American affiliate of several leading global business groups, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade.  More information is available at www.uscib.org.

Contacts:
Jonathan Huneke, VP Communications, USCIB
Tel: +1 212 703 5043 or +1 917 420 0039 (mobile)
E-mail: jhuneke@uscib.org

Madonna Jarrett, Director, DTT Public Relations and CEO Communications
Tel: +1 212 492 3738 or +1 646 388 2335 (mobile)
Email: mjarrett@deloitte.com

G-8 Business Declaration: Joint Statement of the G-8 Business Organizations (PDF file, 1.8 MB)

More on USCIB’s Trade and Investment Committee

More on USCIB’s Intellectual Property Committee

G-8 2007 Summit website

Federation of German Industries (BDI) website

Deloitte website

 

Global Survey More Enforcement Needed to Curb Counterfeiting

Published on January 29, 2007

New BASCAP study ranks top – and bottom – ten countries for I.P. rights protection

The first annual BASCAP Global Survey on Counterfeiting and Piracy provides a snapshot of country and business efforts to stop the theft of intellectual property.
The first annual BASCAP Global Survey on Counterfeiting and Piracy provides a snapshot of country and business efforts to stop the theft of intellectual property.

Geneva and New York, January 29, 2007 – Global companies say more government enforcement is what is needed most to win the fight against counterfeiting and piracy, according to a new survey unveiled today by the International Chamber of Commerce (ICC).

The first annual BASCAP Global Survey on Counterfeiting and Piracy was conducted by ICC’s Business Action to Stop Counterfeiting and Piracy (BASCAP) initiative, in cooperation with the Cass Business School, part of City University, London.  The survey polled 48 companies, many of which operate globally, spanning 27 product categories.

The findings provide a snapshot of country and business efforts to stop the theft of intellectual property, which has become a substantial drain on business, and has led to the widespread loss of jobs and a massive reduction in tax revenues.

“Not only does unfair competition from counterfeiting and piracy worldwide drain billions annually from the ‘virtuous circle’ of economic growth that intellectual properly generates, but we are particularly concerned about the risks for consumers from unsafe counterfeit products,” said Peter Brabeck-Letmathe, chairman & CEO of Nestlé.  “We urge the assistance of governments to curb the proliferation of counterfeit products.”

ICC is the world business organization, the only representative body bringing the views of companies from every region and every sector to bear upon global policy matters.  The United States Council for International Business (USCIB), based in New York, serves as ICC’s American national committee.

Meeting today in Geneva under the umbrella of BASCAP, CEOs and senior corporate officials from four continents, including those from some of the world’s largest companies, discussed the survey results and announced a new plan to step up the fight against counterfeiting and piracy.

When asked which area would yield the best results in curbing counterfeiting and piracy – legislation, public education or increased enforcement – survey respondents rated enforcement much higher than the other options.

“The survey shows a lot more work needs to be done on enforcement, said ICC Secretary General Guy Sebban.  “We need to educate policymakers that greater investments in IP enforcement will translate into more jobs and tax revenues, and also help them in the fight against organized crime.”

The survey ranked the best- and worst-performing countries in addressing counterfeiting and piracy. Companies rated the U.S., U.K., Germany and France, respectively, as exemplary.  Also among the best performers, in descending order, were Japan, Switzerland, the Netherlands, Singapore and Australia.

On the other end of the spectrum, respondents named China and Russia, respectively, as the two worst-performing countries, followed by India, Brazil, Indonesia, Vietnam, Taiwan, Pakistan, Turkey and Ukraine.

“The mention of these bottom-performing countries shows the problem is indeed worldwide and requires a global solution, said Mr. Sebban.  “Focusing on one or two problem areas is simply not enough.”

American executives at the BASCAP meeting echoed this sentiment.  “This issue needs to be moved up on the agenda of every business leader, every trade organization and every policymaker,” according to Bob Wright, CEO of NBC Universal.  “At risk is every sector of our economy where creativity, innovation and invention drive the creation of economic value and of high-wage jobs.”

Regarding business strategies to rein in fake products, respondents said they spent over half their investment on anti-piracy technologies and product differentiation. “The investment of around 50 percent of R&D in technologies to thwart copying indicates that companies are working hard to stay a step ahead of the pirates,” Mr. Sebban said.

Future surveys will examine the I.P. regimes of top-performing countries to identify best practices, flag problem areas and track progress.  An index will rank country performance.

About BASCAP

Business Action to Stop Counterfeiting and Piracy (BASCAP) was established by ICC in 2005 to connect all business sectors and cut across all national borders in the fight against counterfeiting and piracy.  This global approach is designed to leverage individual company and organizational efforts and amplify business messages with national governments and intergovernmental organizations.  Through BASCAP, more than 150 companies and associations are now actively engaged in a set of projects designed to defeat the pirates and increase public and political awareness of the economic and social harm caused by this illegal activity.  More information is available at http://www.iccwbo.org/bascap/id1127/index.html.

About USCIB

USCIB promotes an open system of global commerce in which business can flourish and contribute to economic growth, human welfare and protection of the environment.  Its membership includes some 300 U.S. companies, professional service firms and associations whose combined annual revenues exceed $3 trillion.  As American affiliate of the leading international business and employers organizations, including ICC, USCIB provides business views to policy makers and regulatory authorities worldwide and works to facilitate international trade.

Contacts:

Dawn Chardonnal, communications manager, ICC

+33 1 49 53 29 07, dcl@iccwbo.org

Amy Lehr, media relations coordinator, USCIB

+1 212 703 5063, alehr@uscib.org

 

BASCAP Global Survey on Counterfeiting and Piracy

BASCAP website

More on USCIB’s Intellectual Property Committee

Business Input to AsiaPacific Coordination on ECommerce

Published on October 9, 2006

APECLast month, Heather Shaw, USCIB’s director of information policy and telecommunications, led an International Chamber of Commerce
delegation to Danang, Vietnam for the 14th meeting of the APEC (Asia-Pacific Economic Cooperation) steering group on electronic commerce. Vietnam Is serving as this year’s president of the APEC forum and will host the annual summit of Asia-Pacific leaders next month in Hanoi.

The session was one of several that took place during a meeting of senior officials from member economies, which also featured a session on trans-border privacy issues. Two years ago, APEC leaders adopted a privacy framework, and participants explored ways to move discussions from theory to operation. Business is especially interested in promoting the development of company privacy rules and the mutual recognition of these by governments in the APEC countries.

Ms. Shaw presented a preliminary ICC framework on cross-border privacy rules that illustrates how industry best practices in cross-border transfers of personal information are consistent with relevant APEC principles. This document will be further discussed and considered as the first component of a possible APEC implementation mechanism. Other presentations reviewed the role of “trustmarks” and privacy seals in assuring accountability, dispute resolution mechanisms and other elements of implementation.

Next year, when Australia takes over as APEC president, the privacy subgroup plans to hold three workshops, provide updates on domestic privacy approaches and technical guidance to economies developing privacy systems, and move toward a pilot project on implementation of cross-border rules.

APEC website

OECD Forecasts ICT Industry Growth in 2006 – The information and communication technology industry is expected to grow by 6 percent in 2006, according to the latest edition of the OECD’s Information Technology Outlook 2006. The highest growth will be driven by Internet-related investments, Linux servers, digital storage, personal digital assistants and new portable consumer products. But a return to the heady days of 20-30 percent growth in many products and market segments, as happened in the 1990s, is unlikely, the report states.

Meetings in New York Spotlight International Competition Network

Published on October 6, 2006
L-R: Paul Lugard (Philips), vice chair of the ICC Competition Commission; Daphne Yong-d'Hervé (ICC); Charlene Flick (USCIB); David Lewis, chair of South Africa’s competition tribunal; Michael Blechman (Kaye Scholer), chair of USCIB’s Competition Committee; and Ferdinand Hermanns (Hermanns & Brück), chair of the ICC Competition Commission.
L-R: Paul Lugard (Philips), vice chair of the ICC Competition Commission; Daphne Yong-d’Hervé (ICC); Charlene Flick (USCIB); David Lewis, chair of South Africa’s competition tribunal; Michael Blechman (Kaye Scholer), chair of USCIB’s Competition Committee; and Ferdinand Hermanns (Hermanns & Brück), chair of the ICC Competition Commission.

Last month in New York, the USCIB Competition Committee and the International Chamber of Commerce‘s Competition Commission held meetings that highlighted the emerging role played by the International Competition Network (ICN), which links antitrust enforcement authorities from both developed and developing countries.

David Lewis, chair of South Africa’s competition tribunal and vice chair of the ICN Steering Group, spoke at the ICC meeting, which was well attended by companies and law firms from around the world and across a variety of industries. His remarks underscored the global movement towards convergence in the area of competition law and how the work of the ICN has contributed to the harmonization of competition laws across borders.

Through ICN, government institutions come together to enhance convergence and cooperation so as to promote effective and efficient antitrust enforcement worldwide. The work of ICC’s Competition Commission, as well as USCIB’s Competition Committee, regularly informs the dialogue at the ICN. In the past, ICC has offered comments on the ICN Merger Remedies Review Project as well as input regarding global harmonization efforts in antitrust enforcement generally. ICC as well as individual member companies continue to work closely with ICN and the Competition Commission is currently considering proposals to further engage in upcoming ICN activities in the months to come.

Other agenda items discussed at the USCIB and ICC meetings included the U.S. Department of Justice/Federal Trade Commission ongoing hearings on single-firm conduct, a discussion of the European Commission’s application of Article 82 of the Treaty of Rome to exclusionary abuses, and a briefing concerning China’s pending antimonopoly law.

Staff contact: Justine Badimon

More on USCIB’s Competition Committee

World Bank Briefing for Manhattan Finance Community

Published on December 3, 2004
Daniel Zelikow, managing director of J.P. Morgan Chase’s government institutions group, welcomes the World Bank panel (R-L): Carol Brookins, Peter Woicke, Yukiko Omura, Katherine Sierra and Kenneth Lay
Daniel Zelikow, managing director of J.P. Morgan Chase’s government institutions group, welcomes the World Bank panel (R-L): Carol Brookins, Peter Woicke, Yukiko Omura, Katherine Sierra and Kenneth Lay

At the request of Carole Brookins, U.S. executive director of the World Bank Group, USCIB organized a timely meeting for the New York financial community in November with senior World Bank executives.

The high-level briefing was attended by some 50 senior executives from a variety of U.S. and foreign financial institutions.  Hosted by J.P. Morgan Chase, the meeting was designed to familiarize members and other executives with the financial products the World Bank will use to engage the private sector as it moves forward to address the $540 billion annual infrastructure financing needs in its client countries.

In addition to Ms. Brookins, panelists included Peter Woicke (executive director, International Finance Corporation and managing director, World Bank Group), Kenneth Lay (deputy treasurer, World Bank treasury department), Katherine Sierra (vice president for infrastructure, IFC) and Yukiko Omura (executive vice president, Multilateral Investment Guarantee Agency).

Among the topics discussed were the impact that the amounts of capital at stake will have on the public sector and the private markets.  The World Bank is developing a new range of financial products to engage various Bank agencies and the private sector to address the financing needs in developing countries.

The briefing was part of the World Bank’s effort to gain private-sector input to identify ways to catalyze private sector investment, including the incorporation of such tools as sub-sovereign lending, capital markets, structured finance, guarantees, syndications, local currency financing and credit derivatives.

Staff contact: Shaun Donnelly 

More on USCIB’s Financial Services Committee

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 World Bank website