At the Shelbourne Hotel, On 5 May 2004

Distinguished guests, ladies and gentlemen I am delighted to be invited here today to launch this user-friendly Intellectual Property Management Guide for Exporters.

I am reminded of the cliché “brain over brawn” which I think is particularly apt in the context of the task in hand this morning. It may seem obvious, but it is indeed the case that we have reached a stage of industrial sophistication where the product of the intellect is often worth much more than physical property with the real strength of many corporations lying in the expertise of their staff, their intellectual assets or intellectual capital as it has come to be known. In this context, a key issue for companies is the management and exploitation of their intellectual property.

This Government has signaled its firm commitment to the knowledge economy. The Irish National Development Plan for the period 2000 –2006 put in place the necessary foundations for this environment. Over the life of the programme, a total of €2.54 billion is being invested in research, technological development and innovation. Reaping the rewards in terms of intellectual and human capital and maximizing exploitation of the results from that investment will be crucial to Ireland’s future economic and social development.

IDA and Enterprise Ireland are actively promoting research and development in both overseas and indigenous companies. The increase in the Enterprise Ireland Science and Technology budget to €82.9 million for 2004 reflects the ongoing change in the direction of industrial policy to support innovation, research, development and to increase the flow of applied research from third level institutions. The increase in the R&D programmes being delivered by Enterprise Ireland reflects the increased government commitment to increasing competitiveness and innovation within Irish industry.

Science Foundation Ireland will invest close to €110 million in 2004 in building, in Ireland, research of globally recognised excellence and of national economic significance in the areas of greatest strategic value to Ireland’s long term competitiveness and development.

The 2003 budget announced the introduction in 2004 of a 20% tax credit against corporation tax for incremental R&D expenditure. This measure will help to enhance our competitiveness as a location for new internationally mobile research-related investment, and also encourage existing overseas and indigenous firms to add research functions to their operations in Ireland or to increase their level of research activity. The tax credit will apply, not only to basic and applied research but also to experimental development, an activity of significant importance to Irish companies.

Additionally, the 2003 budget announced the removal of stamp duty on transfers or assignments of Intellectual Property Rights. This provision has just recently taken effect and is yet another indication of the seriousness which this Government places on creating a supportive environment for business in Ireland to enable it to ensure and protect its competitive advantage. The combination of the initiatives which I have mentioned will provide the basis for unprecedented creation of knowledge and applications by Irish companies over coming years.

In these fast moving days of increasing competition matched with ever-shorter product life cycles, many of us could be forgiven for believing that the need to understand the area of Intellectual Property Rights is a relatively recent phenomenon. In fact, the first patent law was enacted in 1623, and the precursor of modern copyright – the statute of Anne - came into effect in 1710. These early laws were limited in scope and restricted to only a few types of information. By its very nature, intellectual property now provides protection for a wide variety of works and the various types of protection now available comprise quite a complex matrix which is quite difficult to navigate without the aid of some useful guidance which is the beauty of the guide which I have the pleasure to launch today.

In its simplest terms, the legal system provides certain exclusive rights which owners of intellectual property can use and exploit to recoup economic benefit for the investment made in the product. These are based on patent, trademark, industrial design and copyright laws. To be competitive, businesses need product innovation and short times from product development to market. Protecting their innovation under intellectual property law gives them exclusive rights to exploit their product which has considerable deterrent value to the would-be copier and infringer.

Our laws, and international intellectual property laws, are designed to promote the proliferation and development of creative industries and to strongly discourage infringing activity. That is why intellectual property laws are now so critical to business and why those who seek to illegally access such information or to illegally breach the technological security measures applied by legitimate operators need to be dealt with strongly before the law. Consequently, businesses must ensure that they have protected their investment with intellectual property.

We are now in the era of the Expanding European Market having just welcomed ten new countries into the EU on May 1, which now represents a market of some 400 million people. There are means by which intellectual property protection can be secured in this wide market place. In the patent area, for example, Ireland has ratified a number of international conventions, such as the European Patent Convention and the Patent Co-operation Treaty. This means for instance in the case of the European Patent Convention that an applicant can seek patent protection in a number of European countries on the basis of a single application to the European Patent Office in Munich. In the area of trademarks and industrial designs, unitary and consistent protection throughout the EU can be obtained on the basis of a single filing to the European Trade Marks Office in Alicante, Spain. Given the recent increase in the size of the EU trading block, this is no mean feat and provides a ready-made market for Irish business on its doorstep.

The Irish Exporters Association’s timely publication of this Intellectual Property Management Guide for Exporters, will, I am confident, lead to better understanding and awareness of the business benefits to be derived from developing and exploiting what can undoubtedly be a company’s most valuable asset and assist in growing export sales.

The reality of Intellectual Property is that it is a complex issue. It is therefore vital that Irish companies understand the key principles and gain confidence in using patents, trademarks, industrial designs and copyrights and know-how to grow export sales from Ireland.

I am particularly pleased to see the partnership approach adopted in this venture between the Exporters Association, the Patent and Trade Mark specialist, Tomkins & Co with support from Enterprise Ireland. I would also like to take this opportunity to congratulate the Irish Exporters Association for undertaking this important initiative which I understand extends also to the organisation of a series of workshops later this year geared towards exporting companies which will draw on the specialist patent and trademark expertise of Tomkins & Co with active support from Enterprise Ireland. This type of collaborative venture between the private sector and public sector agencies is gratifying to see in action and points the way forward in a number of areas.

ENDS/TC 95