ECONOMIC POLICY COUNCIL MEETING -- DECEMBER 19, 1985 -- 1:00 P.M. -- ROOSEVELT ROOM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP87T00759R000200230002-9
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 35
• Document Creation Date: December 22, 2016
• Document Release Date: April 29, 2010
• Sequence Number: 2
• Publication Date: December 18, 1985
• Content Type: MEMO

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EXECUTIVEICRETARIAT
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Ex utive Secretary
19 Dec 85
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THE WHITE HOUSE
WASHINGTON
CABINET AFFAIRS STAFFING MEMORA
Date: 12/1R/R Number: 317039CA Due By:
Subject: Economic Policy Council Meeting -- December 19, 1985
1:00 P.M.. -- Roosevelt Room
Action
FYI
ALL CABINET MEMBERS
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Vice President
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CEQ
State
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Treasury
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Defense
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Justice
Interior
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Agriculture
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Commerce
Labor
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HHS
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Chew (For WH Staffing)
HUD
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Transportation
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Kingon
Energy
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Chief of Staff
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Education
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Executive Secretary for:
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OPM
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VA
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REMARKS:
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The Economic Policy Council will meet on Thursday.,
December 19, 1985, at 1:00 P.M. in the Roosevelt Room.
The agenda and background papers are attached.
RETURN TO:
^ Alfred H. Kingon
Cabinet Secretary
456-2823
(Ground Floor, West Wing)
^ Don Claret'
^ Rick Davis
^ Ed Stucky
Associate Director
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WASHINGTON
December 18, 1985
MEMORANDUM FOR THE ECONOMIC POLICY COUNCIL
FROM: EUGENE J. McALLISTER I''
ON-FILE NSC RELEASE
INSTRUCTIONS APPLY
SUBJECT: Agenda and Papers for the December 19 Meeting
The agenda and papers for the December 19 meeting of the
Economic Policy Council are attached. The meeting is scheduled
for 1:00 p.m. in the Roosevelt Room.
The first agenda item will be a report of the Working Group
on Intellectual Property. The Working Group has developed two
recommendations: exploring the idea of establishing a
multi-national patent and trademark office and proposing an
omnibus intellectual property bill.
The second agenda item will be a report from the Strike
Force on Trade. The Strike Force will present its
recommendations on improving protection of U.S. intellectual
property rights abroad.
The thi-rd agenda item will be a report of the Working Group
on Research and Development. The Working Group has developed
four recommendations and an exploratory proposal to enhance the
effectiveness of investment in research and development by the
private and public sectors.
A paper on each of these items is attached.
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ECONOMIC POLICY COUNCIL
December 19, 1985
1:00 P.M.
Roosevelt Room
AGENDA
1. Report of the Working Group on Intellectual Property
2. Report of the Strike Force on Trade
3. Report of the Working Group on Research and Development
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December 17, 1985
MEMORANDUM FOR THE ECONOMIC POLICY COUNCIL
FROM: THE WORKING GROUP ON INTELLECTUAL PROPERTY
SUBJECT: Initiatives for 1986
Integral to improving the domestic and international
competitiveness of American firms is the Federal recognition and
enforcement of intellectual property rights, ensuring vigorous
investment in the innovation and marketing of ideas, products and
services. As a practical step towards achieving this end,
Secretary Baker, as chairman of the Economic Policy Council,
requested in November that the Working Group on Intellectual
Property.review laws and policies protecting intellectual
property. rights to determine how.those policies could be improved
with the broadest effect possible.
The Working Group has developed two proposals for the Council's
consideration:
(1) Exploring with our trading partners the idea of
establishing a joint nation patent office.
(2) Proposing an omnibus intellectual property bill.
JOINT NATION PATENT OFFICE
Today, some 30 countries in the Americas alone grant patents
protecting inventions for their territories. There is no
regional patent covering more than one country in the Western
Hemisphere, nor does any nation in the West cooperate with
nations outside the hemisphere in issuing patents. Anyone
wishing to protect an invention must file a separate application
in each country and pursue patent protection according to the
laws of each country. The coverage of the patents, their terms,
and how quickly each patent is issued, differ from country to
country.
The countries of Western Europe established in 1978 a European
Patent Office (EPO) after 30 years of discussing how to ease the
burden of multiple patent procedures within the same continent.
The primary advantages of the EPO include:
o A single application can be filed in the EPO and,
following search and examination, can result in a
"European patent" being issued. This patent is
actually a bundle of 'national patents valid in each of
the eleven member states-designated by the applicant.
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o The European Patent Convention (EPC), the treaty
establishing this system, provides for broad coverage,
a term of 20 years from filing, and prompt issuance of
high quality patents.
o Even though the European patent is issued through a
single process, the national law of each member state
applies in enforcing the patent. Also, member states
of the EPO continue to issue national patents.
With competition becoming increasingly global,-it is clear that
the trend toward nations cooperating to establish regional patent
offices will continue. The United States could lead a similar
effort affecting the Western Hemisphere by negotiating a treaty
with Canada, Latin American countries, or those in the Pacific
Rim to establish common (high) standards for the examination and
issuance of patents through an international patent office. The
characteristics of such an office would be:
o Similar to the European Patent Convention, such a
treaty would establish an office which issues
a patent . effective in each signing country on the basis
of a single application.
o For purposes of enforcement of such patent, the
national law of each country would apply.
o To protect sensitive technology, applications of U.S.
origin filed with'the joint nation patent office would
first have to undergo a review procedure similar to
that now conducted by the U.S. Patent and Trademark
Office for applications intended to be filed abroad.
o While an effective joint nation patent office would
require multi-lingual staff and publications, costs of
operation could be covered through user fees.
It should be noted that a joint nation patent office will likely
take a substantial amount of time to implement. A presidential
invitation to our trading partners to the North or South or in
the Pacific Rim to explore the idea with the U.S. would be a
ioneerin first step. Issues which would remain to be resolved
include:
o Subject matter which can be patented. An effective
joint patent office would offer the opportunity to
parallel other countries' patent law with that of tho
United States.
- Patent coverage in the U.S. and Canada generally
extends to the same subject matter with the exception
that only process protection can be obtained in
Canada for pharmaceuticals and food stuffs and
Canadian pharmaceutical patents are subject to broad
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compulsory licensing requirements. Minimum standards
in other countries for subject matter protected by a
joint nation patent could be revised.
o Length of patent term. While the U.S. and Canada
recognize similar patent length terms of 17 years,
minimum patent term standards in other countries could
be lengthened. For example, Chile now grants a 20 year
term only to Chilean residents. In Ecuador, the patent
term runs from 3 to 12 years depending on the
importance of the invention.
o Staffing and control. The establishment of a joint
nation patent office would require that the U.S.
share, management and control of patent procedures
with our trading partners. Should the U.S. negotiate a
joint patent treaty with minor, rather than major
trading partners, a weighted system could be
established giving the U.S. management rights in
proportion to the expertise it would provide.
o Language. Patents issued from a joint nation patent
.Office would have to be issued in at least summaries of
multiple languages. While this would increase
administrative procedures and costs for the U.S., thn$e
costs could be covered by user fees. The U.S. patent
operation currently relies nearly 60 percent on user
fees to cover its operation.
Recommendation
The Working Group recommends that the U.S. approach informally
certain trading partners in the Western Hemisphere and the
Pacific Rim about exploring the idea of a joint patent offinc-
wit a goal toward the President announcing publicly such an
invitation.
Advantages
o Streamlines the patent procedure by eliminating th