THE MONOPOLY PRACTICE AND UNFAIR BUSINESS COMPETITION IN THE TECHNOLOGY TRANSFER ACTIVITY THROUGH THE FOREIGN PATENT IN INDONESIA

It is a common knowledge that technology development shall be in line with the development of a nation. This fact is raising the need of developing countries as Indonesia to maximize potential in the field of technology. However, it is not easy as it sounds, there are many obstacles for a country to develop its potential in technology, notably for the expert in the relevant country to master the necessary skills. Due to this limitation, many countries are beginning to fill-in the gap by registering license of foreign patent. It is expected that the use of foreign patent will replace the higher cost and longer time needed in developing local technology in the developing countries. Unfortunately, the use of foreign patent license does not itself automatically enhance one’s ability to master the necessary skills. Many cases where developing countries were deceived by the ‘grant-back’ clause attached to the foreign patent license. The licensee’s position is consequently considered has lower than of the licensor, which in its turn may rise monopoly practice and unfair business competition. This study is conducted with the purpose to formulate an effective technology transfer through the licensing of foreign patent that can refrain from the repetition of monopoly practice and unfair business competition, according to the TRIPs signed by WTO and the positive law in Indonesia. This study is using juridical-normative approach as the methodology of research, it also use analytical approach through the Law Number 13 of 2016 concerning Patent; Law Number 5 of 1999 concerning Prohibition of the Monopoly Practice and Unfair Business Competition as well as the Agreement on Trade-Related Aspects of Intellectual Property Rights signed by the World Trade Organization, with respect to the license agreement of the foreign patent. Based on the issue as established previously in this journal, the expected outcome of increased information dissemination towards countries using patent licensing agreement in technology and information development related to any matter in intellectual property specifically in licensing agreement, which has higher possibility for Monopolistic Practices and Unfair Business Competition. Therefore, shows that in principle in order to prevent the licensing of foreign patent to lead onto the monopoly practice and unfair business competition, a country must establish a controlling entity to supervise the execution of the foreign patent and at the same time, enacting harmonious rules and regulations with such supervision.

IMPLIKASI KEWAJIBAN PELAKSANAAN PATEN TERHADAP PENYELENGGARAAN ALIH TEKNOLOGI

Technology has a central role in accelerating the development of a country. The need for technology is pursued through a technology transfer process. The purpose of this study was to analyze the implications of patent obligations on the implementation of technology transfer in relation to the principle of property law, namely the droit de suite. This research uses legal research methods using primary and secondary legal materials. The approach used is a statutory approach) and a conceptual approach to be analyzed in depth with a prescriptive method. The results of the research show that the provisions referred to in Article 20 of the Patent Law require special exemptions for patent holders in the form of Institute of Science and Technology in order to carry out obligations related to making products or using processes in Indonesia to support technology transfer. The recommendation from this research is that there is a need for an exception to Article 20 of the Patent Law, by providing room for foreign patent holders not to immediately fulfill the obligations in Article 20 of the Patent Law or to make amendments (amendments) to these provition. Keywords : Implications, Patents, Technology Transfer.

Obtaining a Sustainable Competitive Advantage from Patent Information: A Patent Analysis of the Graphene Industry

Graphene serves as the most disruptive material in the twenty-first century and plays an unsubstitutable role in solving the sustainable development problems of energy crises, water shortages, and environmental pollution. Recently, obtaining a sustainable competitive advantage (SCA) in the field of graphene has gained increasing attention from both researchers and practitioners. However, few attempts have been made to summarize the SCA of this field by applying patent information. Basing on a patent-based multi-level perspective (MLP), this study aims to develop an approach to identify SCA in the target technological area by conducting a patent review from the comprehensive perspectives of the macro landscape, meso socio-technical system, and micro niches, and then integrate patent analysis with technology life cycle (TLC) theory to examine patents involving global technological competition. The effectiveness of the approach is verified with a case study on graphene. The results show that the graphene field is an emerging and fast-growing technological field, with an increasing number of patents over the year. The TLC of graphene technology demonstrated an approximate S shape, with China, the U.S., Korea, and Japan filing the largest number of graphene patents. Evidenced by Derwent Manual Codes, we found an increase in consideration given to technological application and material preparation topics over time, and research hotspots and fronts that have SCA. In terms of a leading country or region with SCA, the U.S., with a high foreign patent filing rate, large number of high forward citation patents, strong assignees’ competitive position, and large number of high-strength patents, was still the most powerful leader, with a higher SCA in the graphene industry. Korea also obtained a relatively higher SCA and will be a promising competitor in this field. Although China was shown to be catching-up very rapidly in the total number of graphene patents, the apparent innovation gaps in the foreign patent filing rate, high value patents, and Industry-University-Research Collaboration will obviously hamper Chinese catch-up efforts for obtaining SCA. As for patentees, the most powerful leaders with a higher SCA represented by Samsung Electronics Co., Ltd, International Business Machines Corp, and Nanotek Instruments Inc were identified. In addition, most of the high strength patents were owned by the above patentees. Further, valuable contributions to the understanding of SCA in graphene technology were summarized. First, the proposed patent-based MLP provides a new and comprehensive analytical framework for review research, as well as SCA analysis, and extends its research perspectives. Second, it introduces patent indicators to the previous MLP model, and provides a new theoretical perspective for the study of technological innovation in the previous MLP model. Third, this paper employs the TLC theory to explore the dynamic SCA in the given technology field, which further develops the concept of the MLP model from the temporal dimension. Finally, future research directions were demonstrated. To the best of the authors’ knowledge, this is the first systematic review of this field using patent analysis, comprehensively acknowledging the current technological competition and development in the graphene field and that of the future, and can be applied to various other emerging technology fields.

How Patent Rights Affect Vietnam’s Importation

Stronger patent rights will help innovators to protect their inventions in domestic and export markets, however stronger patent right exporting decisions depend on market expansion and market power effects. Although it is quite late to promulgate patent law, Vietnam began to record patent applications and granted them for both domestic and foreign firms from 1981 (patent law was enacted in 2005). However the number of foreign patent applications is different among Vietnam trade partners. I use a number of patent applications of Japan, the United States, the United Kingdom, Germany, and France to analyze the relationship between trade inflow from those countries and patent rights, I find that Japan applied for the greatest number of patents, which have increased over time. Japanese exports to Vietnam are dominated by market power effects, while other countries’ patent application numbers tend to fluctuate or increases insignificantly over time, with exports being dominated by market expansion effects. Keywords Patent right, market power effects, market expansion effects, Vietnamese importation References [1] Keller, W., “International technology diffusion,” Journal of Economic Literature, 42 (2004), 752-82.[2] Falvey, R., N. Foster and D. Greenaway, “Trade, imitative ability and intellectual property rights," Review of World Economics (Weltwirtschaftliches Archiv), 145 (2009), 373-404.[3] Van Pottelsberghe de la Potterie, B. and Lichtenberg, F., “Does foreign direct investment transfer technology across borders?”, Review of Economics and Statistics, 83 (2001), 490-97.[4] Maskus, K. E. and M. Penubarti, “How trade-related are intellectual property rights,” Journal of International Economics, 39 (1995), 227-48.[5] Smith, P. J., “Are weak patent rights a barrier to U.S. exports,” Journal of International Economics, 48 (1999), 151-77.[6] Plasmans, J. E. J., and Tan, J., “Intellectual property rights and international trade with China,” Working Paper, Department of Economics and CESIT, University of Antwerp, Belgium, 2004.[7] Liu, W. H., and Y. C. Lin, “Foreign patent rights and high-tech exports: evidence from Taiwan,” Applied Economics, 37 (2005), 1543-55.[8] Foster, N., “Intellectual Property rights and the margins of international trade”, Journal of International Trade & Economic Development, 23 (2014), 2014.[9] Boring, A., “The impact of patent protection on US pharmaceutical exports to developing countries”, Applied Economics, 47 (2015) 13, 1314-1330.[10] Fink, C., & Primo-Braga, C. A., “How stronger protection of intellectual property rights affects international trade flows”, 1999. [11] Annual Report of National Office of Intellectual Property of Vietnam (2007-2015).[12] Hu, A., and A. Jaffe, “Patent citations and International knowledge flow: The cases of Korea and Taiwan,” International Journal of Industrial Organization, 21 (2003), 849-80.[13] Park, Walter G., “International patent protection: 1960-2005,” Research Policy, 37 (2008), 761-766.[14] Smith, P. J., “How do foreign patent right affect U.S. exports, affiliate sales, and licenses,” Journal of International Economics, 55 (2001), 411-39.

REVIEW OF PATENT LITERATURE ON ELONGATED IGNITION SYSTEMS WITH COMBUSTIBLE TUBES FOR FIXED ARTILLERY AMMUNITION

The paper dwells on studies of foreign patent literature on design solutions for elongated systems of central ignition with combustible tubes containing the igniting stuff which stick out above the base of case and are used in fixed artillery rounds especially for tanks. The systems secure the ignition of propulsion charges within overall capacity of the case. Deployment of combustible tubes increases the level of safety as after firing with such ammunition the cartridge propulsion system leaves some incombustible parts of an elongated ignition system embedded into a case base which are removed from the cartridge chamber into a special container inside the combat vehicle. The lack of any hot protruding parts of the ignition system significantly reduces the risk of scorch injuries for the combat vehicle crew. Moreover the case bases without protruding parts need less room in the combat vehicle than the identical case bases with the protruding, usually steel, components of the elongated ignition system left after the firing.

PATENTS ON WARHEADS OF UNMANNED AERIAL VEHICLES

The paper presents results of scrutinising through foreign patent publications on warheads integrated in wing unmanned aerial vehicles (UAV) concerning especially the types and designs of warheads and their location against the onboard systems of recognition and target guidance and also against the systems controlling the status and operation of warheads. The review and analysis of patent publications was completed by a selection of patent descriptions [2-11] of 10 inventions on the subject matter committed in Israel, Germany, USA and UK between 1979 and 2011.

Valuable Patents

While the theory of the patent system is premised on the idea that patentswill be used to exclude competitors, only a tiny fraction of patents areever enforced. Legal and economic scholars have theorized as to how toidentify valuable patents based on their individual characteristics. Inthis paper, we present the results of the largest empirical study everconducted of the patent system. We compare the characteristics of litigatedpatents to those of issued patents generally, and we find importantdifferences in a range of dimensions. These data confirm some predictionsin the literature regarding patent value and refute others. New patents aremore likely to be litigated than old patents. Foreign patent owners areless likely to litigate than domestic patent owners. Patents that issue toindividuals or small companies are much more likely to be litigated thanthose that issue to big companies, though many of those patents havechanged hands by the time they are brought to court. Patents that cite moreprior art are more likely to be litigated, and those that are litigatedtend to be cited more elsewhere. Most significantly, there are substantialdifferences between industries in the likelihood of patent litigation.Patents in the mechanical, computer, and medical device industries aresignificantly more likely to be litigated, for example, than patents in thechemical and semiconductor industries.In the paper, we explore the implications of these findings in detail.Taken together, the data give a profile of a few valuable patents thatstand out from a field of ordinary ones. They are the patents that theirowners spend the most time and money in prosecuting. They are the ones thatcompetitors recognize as most important. They are concentrated in a fewindustries in which patents play a more significant role in encouraginginnovation. And they are patents that issue to individuals or smallcompanies with asymmetric stakes in patent litigation, not to largecompanies. These conclusions in turn have significant implications for thedesign of the patent system, patent reform efforts and patent valuationtheories - implications we consider at the end of the paper.