Rethinking trade and IP: prospects and challenges for development in the knowledge economy (WTO)

5 Dec 2023 14:00h - 15:00h UTC

official event page

Table of contents

Disclaimer: This is not an official record of the UNCTAD eWeek session. The DiploAI system automatically generates these resources from the audiovisual recording. Resources are presented in their original format, as provided by the AI (e.g. including any spelling mistakes). The accuracy of these resources cannot be guaranteed. The official record of the session can be found on the UNCTAD website.

Full session report

Keith Nurse

The analysis provides an in-depth examination of various aspects related to copyright industries and the creative economy in the context of global development. The copyright sector is found to be a significant contributor to the global economy, with the United States’ copyright sector even surpassing the manufacturing sector in terms of earnings and employment. This highlights the increasing importance of copyright industries in driving economic growth and creating employment opportunities.

Similarly, the creative economy is acknowledged as a substantial component of global GDP, estimated to be worth around 8% to almost 12%. It is emphasised that platforms heavily rely on creative content, highlighting the pivotal role of the creative industry in sustaining and driving the digital economy.

On the other hand, the analysis sheds light on the challenges faced by low-income countries in their economic development. It is highlighted that these countries heavily rely on exporting to middle-income countries. Approximately 84% of exports from low-income countries are directed towards middle-income countries. This dependency on neighbouring economies for trade creates a potential vulnerability, as the performance of their own domestic markets might not be sufficient to generate purchasing power, and overseas markets might not be well-aligned with the genres or products they bring forth.

Moreover, the analysis brings attention to the existence of a significant value gap in the creative industry, primarily resulting from the genre gap. Only 8% of earnings in the platform economy are received by creators, which poses a challenge, particularly for developing countries. It is indicated that their domestic markets might lack the strength to generate purchasing power, while overseas markets might not appreciate or align with their unique genres. This disparity leaves many creators from developing countries at a disadvantage, preventing them from benefiting fully from their creative works.

Another significant aspect highlighted in the analysis is the underfunding faced by creative industries in developing countries. It is noted that government institutions tend to allocate more resources towards low-return physical infrastructures, such as ports, rather than investing in the growth and development of creative sectors. This underinvestment hampers the potential of creative industries to contribute to economic growth and employment generation, further limiting their impact and potential.

The analysis also emphasises the urgent need for artists and creative entrepreneurs in developing countries to understand and leverage modern technologies, such as blockchain, artificial intelligence (AI), and e-commerce. It is mentioned that many artists face a lack of understanding and exposure to emerging technologies, which can hinder their ability to adapt and thrive in the digital era. By embracing and utilising these technologies effectively, artists can access new opportunities, expand their reach, and create innovative business models.

Lastly, the analysis suggests that the registration of artists with local copyright societies can play a crucial role in redirecting income to the country of origin. Currently, many artists register with copyright societies in developed countries, resulting in a loss of income for their home countries. As an example, various globally recognised artists from countries like Jamaica are registered with copyright societies in the United States or Europe, leading to a loss of revenue that could benefit their home countries. By encouraging artists to register with local copyright societies, governments can ensure that income generated from their creative works returns to their country of origin, fostering economic growth and reducing inequality.

In conclusion, the analysis highlights the significant contribution of copyright industries and the creative economy to global development. It emphasises the need for policymakers and governments to better understand and invest in the creative industries, address the value gap and genre gap that hinder development in the creative industry, and empower artists with modern technologies. Furthermore, it underlines the importance of redirecting income to the country of origin through local copyright societies to support economic growth and reduce inequalities in low-income countries.

Antony Taubman

The session featured discussions on the role of intellectual property (IP) in promoting economic and sustainable development in the digital environment. The speakers highlighted the transformative impact of digital technologies on the trade-IP relationship. The World Trade Organization (WTO) is based on a set of multilateral trade agreements, including the TRIPS agreement, which focuses on IP. They emphasized the significant influence of digital transformation on this relationship.

However, the speakers also identified obstacles limiting development opportunities in the digital space. The digital divide and platform dominance were seen as significant challenges. These factors create disparities and hinder inclusive growth in the digital economy. Achieving reduced inequalities in the digital sphere was highlighted as a priority.

The creative industries were discussed in terms of their potential to reach global audiences through digital platforms. Digital technologies offer creators the ability to expand their markets and connect with global audiences.

The challenges of establishing a global marketplace for intangible products were also highlighted due to differing IP protection laws across countries and jurisdictions. Trade agreements were mentioned as a means to address these challenges and create a more interconnected global marketplace.

The impact of digital platforms on the music industry was explored, focusing on aspects such as copyright registration and the development of the domestic market. Successful IP efforts were seen as key in repatriating African music and addressing royalty collection challenges.

The importance of technical assistance in shaping future practices and directions in the digital economy was emphasized. Technical assistance can help businesses understand the importance of IP protection as they engage in the digital economy.

Overall, the session was regarded as highly beneficial, generating ideas for future developments. Gratitude was expressed towards the speakers and the organizing team.

In summary, the session addressed the role of IP in promoting economic and sustainable development in the digital environment. Key topics included the transformative impact of digital technologies, challenges in the digital space, the potential of the creative industries, establishing a global marketplace, the impact of digital platforms on the music industry, and the importance of technical assistance.

Marcela Nectoux

Greenplatt is an innovative startup that specializes in waste management. With a positive sentiment, Greenplatt aims to bring transparency to the waste management sector. Their software plays a crucial role in achieving this goal by consolidating all environmental information related to waste management. This allows for efficient tracking and monitoring of waste collections. Moreover, Greenplatt ensures the security of transactions and data on their platform, providing a minimum level of guarantees to clients.

One notable client of Greenplatt is Arcos Dorados, the McDonald’s franchise in Latin America. This partnership highlights the trust placed in Greenplatt’s services and the effectiveness of their waste management solutions. With more than 8,000 collections being controlled through their platform in Brazil alone each month, Greenplatt’s impact on responsible consumption and production, as outlined in SDG 12, is substantial.

However, Greenplatt faces challenges when expanding into international markets due to variations in jurisdiction and environmental laws. Each state in Brazil, for example, has its own set of regulations. Despite these challenges, Greenplatt is determined to broaden its reach and is expanding its operations to Mexico, Colombia, Argentina, and Chile. This indicates their commitment to addressing waste management issues beyond regional boundaries.

Furthermore, intellectual property is a major concern for Greenplatt. To safeguard their software and clients’ data, all clients are required to sign a licensing agreement. This ensures the protection of Greenplatt’s innovative technology in the waste management sector.

Additionally, a panel discussion proved to be a valuable learning experience for Marcela Nectoux, who gained insights into various aspects including environmental considerations, data protection, and intellectual property legislation. Marcela Nectoux expressed a positive sentiment about the discussion, suggesting that it was both informative and engaging.

In conclusion, Greenplatt’s mission to promote responsible consumption and production aligns with SDG 12. Their efforts to bring transparency to the waste management sector through innovative software benefit clients like Arcos Dorados. While they face challenges expanding into international markets, Greenplatt’s determination and expansion plans demonstrate their commitment to addressing waste management issues globally. With a strong focus on protecting intellectual property, Greenplatt ensures the security and integrity of its software and clients’ data. Overall, Greenplatt’s positive sentiment, commitment to transparency and responsible waste management, and contribution to SDG 12 make them a notable player in the industry.

Joyce Lim

Singapore is actively engaging in negotiations for digital economy agreements with several countries, including Australia, New Zealand, Chile, Korea, the United Kingdom, the European Free Trade Association (EFTA) states, and the European Union (EU). These agreements aim to enhance digital trade, enable the free flow of data across borders, and foster trust in the digital economy. Currently, Singapore has four digital economy agreements with five countries, and they are in the process of negotiating two additional agreements with the EFTA states and the EU.

However, a challenge in the digital economy is the lack of coordination between governments in creating regulations. As the digital economy evolves, governments are starting to implement regulations that can affect cross-country trade. The absence of coordinated efforts in developing these regulations may give rise to trade barriers hindering the growth and development of the digital economy.

To address this issue, digital trade agreements play a pivotal role in harmonising regulatory frameworks. These agreements aim to enable the digitalisation of paper-based manual processes, ensure the free flow of data across borders, and protect consumer and business rights. By establishing consistent rules and standards, digital trade agreements reduce barriers for businesses operating across borders and foster trust in the digital economy by providing secure and reliable frameworks for data exchange.

Protecting intellectual property (IP) is another crucial aspect of digital trade. It is essential to safeguard the rights of creators during the cross-border flow of digital goods and services. Elements such as the protection of source code and the use of cipher keys are vital for preserving the integrity of trade secrets. Demands from governments for the release of these trade secrets pose a potential threat to IP protection, and measures must be taken to prevent such demands.

IP protection is particularly important for micro, small, and medium enterprises (MSMEs) engaging in cross-border business activities. Reducing barriers for these enterprises is a key objective of digital trade, and ensuring the protection of their intellectual property is critical for their growth and competitiveness.

Educating companies about IP protection in the digital economy is crucial. This area is of interest to both IP and trade policymakers. By raising awareness and providing guidance on IP protection, companies can navigate the digital economy with greater confidence, ensuring the security and value of their intellectual property assets.

Joyce Lim, who supports the negotiation of digital trade agreements, appreciates the insights gained from a panel discussion on the business aspect of IP and its interaction with international trade. Her support stems from the recognition that digital trade agreements are essential in enhancing digital trade, liberating the flow of data, and building trust in the digital economy.

Overall, the negotiation of digital economy agreements plays a vital role in advancing the digital economy. By harmonising regulatory frameworks, protecting intellectual property, and educating businesses, these agreements create an environment conducive to digital trade and innovation. Through these efforts, Singapore and other countries seek to foster economic growth and strengthen partnerships in the digital era.

Martin Møller Nielsen

Budunda is a music service that was founded in Kenya approximately 12 years ago. Its main focus is to promote accessible music and improve the rewards for African musicians. While the service initially started in Kenya, it has now expanded its presence and its biggest markets are Nigeria and Tanzania. Budunda works closely with around 150,000 African artists, offering them a self-serve platform that allows them to directly upload and manage their music content.

Piracy remains a significant issue in the African music market. Nevertheless, more than 50% of music consumed in Africa is local, and within all markets served by Budunda, 80% of the music listened to is from Africa. This highlights the vibrant and diverse musical landscape of the region.

One interesting aspect of the African music industry is that music rights are primarily owned by the artists themselves. This diverges from the global trend where major record labels generally hold the majority of music rights. The ownership of music rights by artists in Africa presents both opportunities and challenges, as it empowers artists but also requires infrastructure to ensure fair compensation for their work.

Although Budunda’s current business model is not yet financially sustainable, the company has set ambitious goals to achieve financial sustainability by 2025. They plan to capitalize on the ongoing popularity of African music, particularly Afrobeats, in order to attract a larger user base and generate more revenue. As a publicly listed company in Denmark, Budunda’s financial numbers are transparent and available for public scrutiny.

In the music streaming industry, innovation often starts with unlicensed services that gain popularity before rights holders become involved. Spotify, YouTube, and TikTok are examples of services that initially operated without licenses before establishing partnerships with rights holders. This pattern underscores the importance of striking a balance between market appeal and responsible copyright practices.

Enforcing copyright laws in emerging markets presents a significant challenge, and there is a lack of effective alternative solutions to combat piracy. While copyright laws exist, enforcement can be difficult in many emerging markets, posing a significant obstacle to protecting the rights and interests of artists and the music industry as a whole.

Artists face a dilemma when choosing between joining global associations or local associations. While global associations may be more effective at collecting rights, opting for local associations can contribute to the growth of the local music ecosystem. However, this choice is complex due to the industry’s instability and artists’ personal survival considerations.

The lack of expertise and funding severely affects musicians in Africa. Local associations often lack the maturity and resources of their counterparts in developed countries, which limits their ability to effectively support rights owners. To better serve artists and rights owners in Africa, it is crucial for local associations to build expertise and achieve economies of scale.

In conclusion, Budunda’s mission to promote accessible music and improve rewards for African musicians aligns with the vibrant musical landscape of the continent. Despite the challenges posed by piracy, the high consumption of local music emphasizes the strong demand for African artists. The ownership of music rights by artists presents both opportunities and challenges. Budunda’s self-serve platform empowers artists and aims to achieve financial sustainability by leveraging the popularity of African music. However, the music industry faces difficulties in enforcing copyright laws and providing effective solutions to combat piracy. The dilemma of choosing between global and local associations further complicates the growth of the local music ecosystem. The lack of expertise and funding are significant constraints for musicians in Africa, and it is crucial for local associations to develop scale and expertise to better support rights owners.

AT

Antony Taubman

Speech speed

141 words per minute

Speech length

2825 words

Speech time

1203 secs

JL

Joyce Lim

Speech speed

137 words per minute

Speech length

724 words

Speech time

318 secs

KN

Keith Nurse

Speech speed

149 words per minute

Speech length

1624 words

Speech time

654 secs

MN

Marcela Nectoux

Speech speed

151 words per minute

Speech length

1086 words

Speech time

432 secs

MM

Martin Møller Nielsen

Speech speed

180 words per minute

Speech length

2404 words

Speech time

801 secs