Summary Report. Conference on Maximizing the Value of Intellectual Property in Turkey Thursday, 29 September 2011 TOBB Headquarters, Ankara, Turkey

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1 Conference on Maximizing the Value of Intellectual Property in Turkey Thursday, 29 September 2011 TOBB Headquarters, Ankara, Turkey Summary Report The International Chamber of Commerce s BASCAP group, together with ICC Turkey and the Economic Policy Research Foundation of Turkey (TEPAV) hosted a high-level conference designed to maximize the value of intellectual property in Turkey. The aim of the conference was to bring together high-level government officials from Turkey and the United States along with senior business executives from Turkish and global companies to explore how Turkey government and Turkish firms can significantly benefit by promoting and protecting effectively intellectual property. Within the context of the Turkish government s goal to to become one of the world s leading economies, the conference intended to demonstrate how a key pathway towards achieving this goal is to strengthen Turkey s IPR laws and regulations, along with better enforcement against counterfeiting and piracy. The conference featured high-level speakers from both government and business, including BASCAP member companies Universal Music, Proctor & Gamble, Pfizer, Daimler and Hewlett Packard. Mr. Rifat Hisarcıklıoğlu, President of ICC Turkey delivered the opening speech followed by high-level keynote speakers: Jeffrey P. Hardy, Director of ICC BASCAP, David Benjamin, Senior Vice president, Universal Music and co-chair of BASCA Steering Committee, Saffet Karpat, CEEMEA Region Vice President and Turkey Director of the Broad, Procter & Gamble, Francis J. Ricciardone, U.S Ambassador to Turkey and Hayati Yazici, Minister of Customs and Trade. The conference introduced two new ICC/BASCAP reports: an economic report on the impacts of IP theft on the Turkish economy and a white paper on policy recommendations designed to highlight areas that could improve Turkey s IP enforcement regime. The economic report describes impact on the Turkish economy and the risks associated with IP theft and through counterfeiting and piracy. The report reveals that the total economic value of counterfeiting and piracy in Turkey is as much as $10.6 billion every year, more than 1% of Turkish GDP. It also deprives the Turkish government of significant revenues for vital public services and dislocates thousands of legitimate jobs. The analysis suggests that the Turkish government loses over US$ 2.4 billion in lower tax revenues and higher welfare spending and counterfeiting and piracy have destroyed over 135,000 jobs. The second report is a white paper outlining a comprehensive set of policy recommendations that can substantially improve Turkey s IP protection and enforcement regime. This white paper is an important 1

2 instrument in developing a robust IP environment and rendering Turkey an innovation leader. This set of recommendations includes a wide range of policies and actions ranging from legal reforms and policy actions to technical assistance and capacity building measures, channels for international cooperation and tools for strengthening enforcement practices. The conference included three sessions. 1. IP, Innovation and Economic Growth. The moderator Güven Sak, Director of TEPAV stressed that effective IP protection increases research and innovation and that firms can earn substantially more from innovations that are protected by IPR. Speakers participated in this session were Okan Kara, EUREKA High level Representative, Scientific & Technological Research Council of Turkey (TUBITAK), Ahmet Koçer, Turkish Patent Institute, Hasan Mandal, Professor, Director of research and graduate policies, Sabanci University and Arzu İlhan Babaoğlu, General Manager, Hewlett Packard Turkey. Discussions revealed that sectors that rely on IPR protection are substantial contributors to the economy and that IP generates substantial economic activity, employment and growth. 2. IP and Investment. The moderator of the second session was Süreyya Serdengeçti, former Governor of Turkish Central Bank and Founding Director of TEPAV Stability Institute. Discussions were focused on how IPR attracts foreign direct investment (FDI) and promotes R&D and technology transfer in developing countries, driving development and economic growth. Speakers of this session were Göktekin Dinçerler, President, TOBB Venture Capital Assembly, Dr. Cemil İnan, R&D Director, Arcelik Inc, Zergül Özbilgiç, Turkish Ministry of Economy and Prof. Bojan Pretnar, WIPO Politika İstişare Komisyonu Kurucu Üyesi. 3. How IPR improvements can help Turkey become an innovation leader. The moderator of this session was Kaan Dericioğlu, President of Turkish Patent and Trademark Representatives Assembly. Speakers participated in the third session were Tansu Akın, Corporate Secretary and General Counsel, Mercedes-Benz, Hülya Erbay, Turkish Ministry of Customs and Trade, Jeffrey P. Hardy, Director of ICC BASCAP, Saruhan Kızılay, Turkish Ministry of Interior, and Kadri Yavuz Özbay, Turkish Patent Institute. Discussions were focused on the progress Turkey has made in recent years to improve the country s IPR regime and drew attention to certain remaining IP challenges that need to be addressed. In the session, a comprehensive set of suggested recommendations was introduced intending to help Turkey to address these challenges. In the conference, it was acknowledged that tackling counterfeiting is a huge challenge which requires a high level of policy coordination among different departments in the government, including the ministries of Culture and Tourism, Justice, Health, the Interior, Economy, Customs and Trade, as well as institutions such as the Turkish Patent Institute and the Scientific and Technical Research Council of Turkey (TUBITAK). From virtually all corners of government and industry present at the conference, it openly recommended that a working group including representatives from business companies and government officials be formed to follow up on the visions presented during the conference. Specifically, it was suggested that the policy recommendations presented during the conference could serve as a blueprint for evaluating policy suggestions and working together towards implementation. 2

3 List of BASCAP companies participating in the conference 1) David Benjamin, Senior Vice president, Universal Music and co-chair of BASCA Steering Committee. 2) Saffet Karpat, CEEMEA Region Vice President and Turkey Director of the Broad, Procter & Gamble. 3) Arzu İlhan Babaoğlu, General Manager, Hewlett Packard Turkey. 4) Tuncay Teksöz, Health Policy Director, Pfizer Turkey. 5) Tansu Akin, Corporate Secretary and General Counsel, Mercedes-Benz Turk A.S Daimler. List of participants SALİHA BETÜL AKKAN AHMET GÖN AHMET GÖRGÜLÜ AHMET KOÇER ALEXANDRA ILIOPOULOU ALİ ŞİMŞEK ALİ YILDIRIMOĞLU ARZU İLHAN BABAOĞLU ARZU OĞUZ AYLİN BAŞAK ATA AKKAN LAW OFFICE MOBAYS FURNITURE ETİ GROUP OF COMPANIES TURKISH PATENT INSTITUTE BASCAP Ankara Smuggling, Intelligence and Narcotics Directorate of Customs DESTEK PATENT A.S HEWLETT PACKARD ARZU OĞUZ LAW OFFICE TECHNOLOGY DEVELOPMENT FOUNDATION OF TURKEY AYŞE AKINCI CANDOĞAN AYŞE ARICIOĞLU AYŞE NUR KILINÇ AYŞE ÖZER AYŞEGÜL ERSİN BAHADIR AZİZ SAKİN BARIŞ ZÜHDÜ KALAYCI BAŞAK DEPREM BERRIN BENLI BOJAN PRETNAR BUKET ÇAĞLAR BURCU DİKMEN BÜLENT DEĞERLİ BÜLENT ŞEREF SARIOĞLU CAN MİNDEK CANAN ÇAKMAKÇI NIKE TURKEY GAZİ UNIVERSITY -FACULTY OF LAW MIDDLE EAST TECHNICAL UNIVERSITY ROKETSAN GÜN LAW OFFICE NOVUSENS Innovation & Entrepreneurship Institute WORLD INTELLECTUAL PROPERTY ORGANIZATION MINISTRY OF FINANCE Chief Legal Advisory and General Directorate of Proceedings THE SCIENTIFIC AND TECHNOLOGICAL RESEARCH COUNCIL OF TURKEY ANKARA DIRECTORATE OF CUSTOMS ENFORCEMENT ECONOMIC DEVELOPMENT FOUNDATION BİLKENT CYBERPARK 3

4 CELALETTİN CENGİZ GÜMÜŞTÜS CEMİL İNAN CENK SEVİNÇ ÇİĞDEM SEZER DAVID BENJAMIN DENİZ ÖNCEL DENİZ YAZAR DİLEK EKER DUYGU SIR ESFOR Security Consulting ARÇELİK GRUP OFİS PATENTS & TRADEMARKS ADANA ÜSAM UNIVERSAL MUSIC US EMBASSY TURKISH STANDARDS INSTITUTION TUKAS Food Industry and Trade Co. EBRU ERKUL EBRU KANIK EKİN KARAKUŞ ANKARA PATENT ELİF EROL ELİF SARIOĞLU EMRAH ASLAN ERCAN KAZLI ERKAN TUNCER ERTUĞRUL ONUR ESİN ÇINAR ESRA ZEYNEP CEHİZ FİLİZ CANKAT FİLİZ KARASOY ABBOTT LABORATORIES Republic of Turkey Ministry of Customs and Trade ESENBOGA CUSTOMS ENFORCEMENT OFFICE REPUBLIC OF TURKEY SMALL AND MEDIUM-SIZED ENTERPRISES DEVELOPMENT ORGANIZATION COCA COLA AYGAZ A.S. ANKARA PATENT GRUP OFİS PATENTS & TRADEMARKS ETİ GROUP OF COMPANIES FİLİZ SAYAR FRANCIS RICCIARDONE FÜSUN GÜNER US AMBASSADOR Petkim Petrochemical Holding Inc. GONCA ATALAY GÖKTEKİN DİNÇERLER GÜLBEN CİRAV GÜNER BAŞARSLAN GÜROL MEHMET GÜR GÜVEN SAK HACER SELİN ALPAT HALİL YILDIRIM HASAN MANDAL HASİBE IŞIKLI HAŞİM BÜYÜKBALCI HATİCE TOKSOY PUMA PHILLIP MORRIS ECONOMIC POLICY RESEARCH FOUNDATION OF TURKEY ROKETSAN GOLDART HOLDING SABANCI UNIVERSITY MINISTRY OF DEVELOPMENT TETSIAD ABU-GHAZALEH INTELLECTUAL PROPERTY TMP AGENTS (AGIP) HAYATİ YAZICI 4

5 HÜLYA ATAK HÜLYA ÇAYLI HÜLYA ÇETİN HÜLYA ERBAY REPUBLIC OF TURKEY PRIME MINISTRY UNDERSECRETARIAT OF TREASURY PARAGON CONSULTING AND REPRESENTATION MINISTRY OF JUSTICE GENERAL DIRECTORATE OF CUSTOMS IRMAK YALÇINER İBRAHİM EKDİAL İBRAHİM ÖZTÜRK İLGEN ERCAN İLKNUR ÇALIŞKAN ALTINOLUK İRFAN ELMACI İSKENDER ELVERDİ İSMAİL BAŞ İSMAİL TOKSÖZ JEFFREY P.HARDY JOHN LATHERS KAAN DERİCİOĞLU KADRİ YAVUZ ÖZBAY KIVANÇ ÇINAR KORAY SEÇKİN NIKE B.V. TURKEY BRANCH ALTINOLUK ÇALIŞKAN LAW OFFICE REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY THE UNION OF CHAMBERS AND COMMODITY EXCHANGES OF TURKEY TURKISH NATIONAL POLICE BARTIN CHAMBER OF COMMERCE AND INDUSTRY ICC BASCAP US Embassy ANKARA PATENT TURKISH PATENT INSTITUTE INFORMASCOPE SEÇKİN BOOK PUBLISHING A.S. KORCAN DERİCİOĞLU LAIRD TREIBER LEVENT DURUKAN MAHMUT KARYAĞDI MATTHEW DREW MEHMET ATEŞ MEHMET FUAT MORGÜL MEHMET GÜN MEHMET YAYLIOĞLU MİNE ACAR ENGİN MURAT ASIK MURAT L. AKMAN MURAT PİŞKİN MURAT ÜZÜMCÜ MUSTAFA İHSAN KIZILTAŞ MUSTAFA SARAÇÖZ US EMBASSY SWISS EMBASSY INTRA TOURISM A.S. HEWLETT PACKARD NOVARTİS KORDSA GLOBAL GÜN LAW OFFICE KÜTAHYA CHAMBER OF COMMERCE AND INDUSTRY AYGAZ A.S. MSD BOGAZICI UNIVERSTIY CANAKKALE PATENT AND TRADEMARK OFFICE ÜZÜMCÜ A.S ORTADOĞU TEKNOPARK A.S THE UNION OF CHAMBERS AND COMMODITY EXCHANGES OF TURKEY MUSTAFA TÜRKER YILDIRIM MUSTAFA YÜCEEL NESLİHAN BÜYÜKDİLLAN KONYA CHAMBER OF COMMERCE NEZAHAT ULUSOY 5

6 NİHAL ZEMHERİ NUR ÇENETOĞLU NURCAN BÖGE OKAN KARA ONUR MUTLU ÖMER FARUK ÖZEROĞLU ÖZCAN BULGEN ÖZEN PERVAN RAMAZAN KAYGUSUZ REMZİ CAN SAFFET KARPAT ROKETSAN THE SCIENTIFIC AND TECHNOLOGICAL RESEARCH COUNCIL OF TURKEY SANOVEL PHARMACEUTICAL UFUK UNIVERSITY EMBASSY OF THE FEDERAL REPUBLIC OF GERMANY BİLKENT CYBERPARK DIYARBAKIR CHAMBER OF COMMERCE AND INDUSTRY PROCTER & GAMBLE SALİH NAFİ ALIÇ SARUHAN KIZILAY SEDA SUSAL SAATCİ SERDAR SAKA SERDAR TANER DEMİR SERHAT İDAL SERTAÇ KÖKSALDI SEYFULLAH ATÇI SHINJI HIRAI SİNEM ARMAĞAN SUNA BİLGEN POLATKAN SÜREYYA SERDENGEÇTİ TURKISH NATIONAL POLICE PHILLIP MORRIS PHILLIP MORRIS KORDSA GLOBAL IDAL PATENT MANAGEMENT ARÇELİK OPET PETROLIUM EMBASSY OF JAPAN EMBASSY OF JAPAN ECONOMIC POLICY RESEARCH FOUNDATION OF TURKEY ŞAFAK ÇOLAK ŞEHNAZ ÖZER ŞEREF CAN ARAT TAMER ASMAN TANSU AKIN TAYFUN BAYSAL TAYLAN ARIHAN TOLUN BENÖN TOM COLEMAN TUBA ÖZSEZEN TUBA SÖZERİ TUNCAY TEKSÖZ UFUK CIPLAK UĞUR GURDAD YALÇINER UMUT İLKAY KAVLAK URS WÜEST REPUBLIC OF TURKEY PRIME MINISTRY UNDERSECRETARIAT OF TREASURY TÜREGÜN & ARAT & ARI. Attorney Partnership HALKBANKASI A.S. MERCEDES BENZ TURKEY ELSEVIER BV ARIHAN LAW OFFICE Kocaeli Chamber of Industry US EMBASSY YASED INTERNATIONAL ASSOCIATION OF INVESTORS NOVARTİS PFIZER PHARMACEUTICALS KOC HOLDING YALCINER PATENT AND CONSULTING EUROPEAN UNION DELEGATION OF TURKEY SWISS EMBASSY 6

7 ÜMİT PAMUKÇU ÜNER KARABIYIK YAŞAR TOZAR YELİZ GERİŞ MINISTRY OF FINANCE Chief Legal Advisory and General Directorate of Proceedings ÜNER PUBLISING A.S MARPATAŞ PATENT OFFICE YİĞİT ULUSOY YUSUF KURTOĞLU REPUBLIC OF TURKEY PRIME MINISTRY UNDERSECRETARIAT OF TREASURY ZERGÜL ÖZBİLGİÇ 7