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2018 | OriginalPaper | Buchkapitel

15. Protecting and Promoting Clean Energy Innovation Through the Trade Secrets Regime: Issues and Implications

verfasst von : Darshana Sumanadasa

Erschienen in: Intellectual Property and Clean Energy

Verlag: Springer Singapore

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Abstract

This chapter explores the role that the trade secrets regime plays in protecting information relating to clean energy technologies and implications of such protection. It observes the increasingly important role played by trade secrets in protecting and promoting clean energy technologies form the embryonic phase to commercialisation phase. It is evident that secretly held valuable information, including renewable energy know-how, is subject to an ‘IP stealing arms race’, especially in relation to the global trade and cybersecurity arsenal. Therefore, it can be suggested to introduce more harmonised and stringent laws including the criminal sanctions for trade secrets misappropriations. However, this chapter argues that the policy makers should be more cautious over possible repercussions relating to over-protection and over-reliance on the trade secrets regime. These repercussions may include its impact on follow-on innovation, knowledge diffusion and technology transfer which are essential aspects in battling climate change. This chapter argues that trade secrets law should provide a balance in its effect which equally addresses the important protective aspects of clean energy technologies but also the protection of the need for knowledge diffusion and technology transfer.

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Vorheriges Kapitel Environmental Sousveillance, Citizen Science and Smart Grids

Nächstes Kapitel Energy Democracy, Renewables and the Paris Agreement

United Nations Framework Convention on Climate Change (UNFCCC) (2015) Adoption of the Paris Agreement, 21st Conference of the Parties, Paris: United Nations. 12 Dec 2015 FCCC/CP/2015/L.9/Rev.1 http://unfccc.int/paris_agreement/items/9485.php. Accessed 28 Nov 2017. Hereinafter referred to as Paris Agreement.

See Preamble, Article 4 and Article 5 of the UNFCCC.

Article 2 of the UNFCCC.

Frankfurt School—UNEP Collaborating Centre for Climate and Sustainable Energy Finance (2017).

BP (2017).

Patent Cooperation Treaty, TIAS 8733; 28 UST 7645; 9 I.L.M. 978 (1970).

OECD (2014).

See Article 39.2 of the TRIPS Agreement 1994.

For example, the formula of Coca-Cola, ingredients of the original recipe of Kentucky Fried Chicken and the recipe of Nutella.

For example, Lena Blackburn’s baseball rubbing mud.

For example, the New York Times’s best seller list.

For example, Premarin: The manufacturer keeps some information relating to the ingredients (using of horse pee and the process of extracting the equine estrogens) of the drug.

For example, WD-40.

For example, Google search algorithm, content moderation of social media such as Tweeter and Facebook.

See Article 27.1 of the TRIPS Agreement 1994.

See Article 39.2 of TRIPS Agreement 1994.

Bently (2012, p. 74).

Ibid.

Jorda (2007, p. 1051).

Horstmann et al. (1985, p. 838).

Scotchmer and Green (1990, p. 132).

Erkal (2004, p. 430).

Lewis (2014, p. 547).

Keller and Reece (2013, p. 6).

Ibid.

See for example, Chile-$3.4 billion; Mexico-$ billion; South Africa-$4.5 billion; Brazil-$7.1 billion; Germany-$8.5 billion; India-$10.2 billion; United Kingdom-$ 22.2 billion; Japan-$36.2 billon; United States-$44.1 billion and China-$ 102.9 billion: Harrington (2016).

A government may allow someone else other than the patentee to produce the patented product without the consent of the patentee in national emergencies: See Article 31 of the TRIPS Agreement 1994.

Importing of a patented original product purchased at a lower price in another country: See for example, Section 107A(b) of the Patent Act 1970 (India) (as amended).

Research or safe harbour exception: See Roche Products, Inc. v. Bolar Pharmaceutical Col., Inc 733 F.2d 858 (Fed. Cir. 1984).

See Article 31 of the TRIPS Agreement 1994.

Brant and Lohse (2014 p. 14).

See for example, Humphreys (2005).

Memorandum of Understanding on Enhancing Cooperation on Climate Change, Energy and the Environment at the U.S.—China Strategic and Economic Dialogue Bureau of Public Affairs (2009) Office of the Spokesman. Washington https://2009-2017.state.gov/r/pa/prs/ps/2009/july/126597.htm. Accessed 29 Nov 2017.

See also US-China Clean Energy Research Centre (CERC) http://www.us-china-cerc.org/.

See Halbert (2016, p. 258).

Rimmer (2012).

Rowe and Mahfood (2014).

Li (2014).

Kirschbaum (2014).

Dinwoodie (2009).

Rowe and Mahfood (2014, p. 65).

United States v Sinovel Wind Group Co., Ltd 794 F.3d 787 (7th Cir. 2015), Rehearing En Banc Denied Sept. 17, 2015.

United States v. Sinovel Wind Grp. Co., 794 F.3d 787 (7th Cir. 2015) (No. 13-CR-84-BBC).

Ibid.

Weisman (2012).

United States v. Sinovel Wind Group Co., 794 F.3d 787 (7th Cir. 2015) (No. 13-CR-84-BBC). The court said that ‘Sinovel USA’s sole function was and is to do the acts and bidding of Sinovel China, while giving Sinovel China a jurisdictional firewall against liability and culpability. Sinovel USA was Sinovel China’s puppet, so that its presence and acts in the U.S. can be imputed to Sinovel China.’

United States. v. Sinovel Wind Group Co. Ltd., 13-cr-00084, U.S. District Court, Western District of Wisconsin (Madison).

Hanna et al. (2018).

Ibid.

MacAskill (2016).

Tesla Motors v. Fisker Coachbuild CIV 472032 4/14/2008 Cal.Super; See also Fisker Coachbuild Llc v. Tesla Motors Inc 30-2008-00115679-CU-PT-CJC, 12/4/2008, Cal. Super.

Lamonica (2008).

United States of America v. Yu Qin and Shanshan Du 688 F.3d 257 (6th Cir. 2012) United States Court of Appeals, Sixth Circuit; See also United States of America v. Shanshan Du and Yu Qin, 570 F. App’x 490 (6th Cir. 2014) June 26, 2014, United States Court of Appeals, Sixth Circuit.

Economic Espionage Act 1996, 18 U.S.C. § 1832(a)(5) and 18 U.S.C. § 1832(a)(3).

Nippon Steel and Sumito Metal Corporation v Posco and Posco America Corporation No. CIV.A. 12-2429 DMC, 2013 WL 1867042 (D.N.J. May 2, 2013).

Bultman (2015).

United States of America v Wang Dong, Sun Kailiang, Wen Xinyu, Huang Zhenyu, Gu Chunhui 1 May 2014, Criminal No. 14-118 United States District Court for the Western District of Pennsylvania (Pittsburgh).

Ibid.

Sumanadasa (2017).

Article 39 provides for the protection of undisclosed information and test data. ‘Trade secrets’ and ‘undisclosed information’ are interchangeably used to denominate the same.

Article 10 bis of the Paris Convention for the Protection of Industrial Property 1883 provides that “any act of competition contrary to honest practices in industrial or commercial matters constitutes an act of unfair competition”. It does not contain any specific mention specifically relevant to trade secrets. Instead, it states following three examples of unfair competition: (i) all acts of such a nature as to create confusion by any means whatever with the establishment, the goods, or the industrial or commercial activities, of a competitor; (ii) false allegations in the course of trade of such a nature as to discredit the establishment, the goods, or the industrial or commercial activities, of a competitor; (iii) indications or allegations the use of which in the course of trade is liable to mislead the public as to the nature, the manufacturing process, the characteristics, the suitability for their purpose, or the quantity, of the goods.

Correa (2007, p. 368).

Rowe and Sandeen (2015, p. 26).

WTO (1989). This view was supported by a group of developing countries including India, Brazil, Argentina, Chile, China, Colombia, Cuba, Egypt, Nigeria, Peru, Tanzania and Uruguay.

See Article 1.1 of the TRIPS Agreement 1994: ‘Members shall be free to determine the appropriate method of implementing the provisions of this Agreement within their own legal system and practice.’

18 U.S.C. § 1831—Economic Espionage; 18 U.S.C. § 1832—Trade Secret Theft.

US Chamber of Commerce (2013).

For example, the Economic Espionage Act 1996—18 U.S.C. § 1831—Economic Espionage.

van Caenegem (2014, p. 19).

See Lord Upjohn per Boardman v Phipps (1967) 2 AC 46; Latham CJ per Federal Commissioner of Taxation v United Aircraft Corp (1943–1944) 68 CLR 525.

Baker and McKenzie (2013).

Directive (EU) 2016/943 of the European Parliament and of the Council of 8 June 2016 on the protection of undisclosed know-how and business information (trade secrets) against their unlawful acquisition, use and disclosure.

Article 19: ‘Member States may, in compliance with the provisions of the TFEU, provide for more far-reaching protection against the unlawful acquisition, use or disclosure of trade secrets than that required by this Directive, provided that compliance with Articles 3, 5, 6, Article 7(1), Article 8, the second subparagraph of Article 9(1), Article 9(3) and (4), Article 10(2), Articles 11, 13 and Article 15(3) is ensured.’

The European Union has adopted a common definition on trade secrets which is similar to the TRIPS definition (Article 2). The Directive specifies the circumstances when the acquisition, use and disclosure of a trade secret is unlawful or lawful (Article 3 and 4); and the measures, procedures and remedies that should made available to the rightful holder of trade secrets in case of alleged misappropriation (Articles 6–9 and 12–14). It also provides provisions for the preservation of confidentiality of trade secrets in the course of legal proceedings. (Article 9 and 15).

Article 18.78 of the Trans-Pacific Partnership 2015.

Defend Trade Secrets Act of 2016, S. 1890, 114th Cong. § 2 (2016), http://dfat.gov.au/trade/agreements/tpp/Pages/trans-pacific-partnership-agreement-tpp.aspx.

Among other things, it provides for a uniform definition of ‘trade secrets’ and ‘misappropriation’; civil seizure and other remedies; and safe harbour for whistle-blower employees. Nevertheless, it provides that ‘nothing in the amendments made by this section shall be construed … to pre-empt any other provision of law’ and thus will not pre-empt existing state trade-secret laws. Therefore, DTSA simply layers a new federal law on top of the state trade secrets laws adding more laws instead of creating uniform national law.

Sibble (2014, pp 18–20).

See § 1831 and 1832 of Economic Espionage Act.

Trade secrets law supports ‘relative secrecy’ as against ‘absolute secrecy’. Therefore, it allows the sharing of protected information contained in trade secrets with a limited group of individuals and businesses.

Bently (2012, p. 82).

See Haberman (2016).

WHO Medical Centre (2017).

Parry (2007).

Chandrasekharan et al. (2015, pp. 6366, 6370).

See Article 33 of the TRIPS Agreement 1994.

Chandra (2010, p. 69).

Hettinger (1989, p. 38).

Varadarajan (2014–2015, p. 1405).

Ibid.

Chief Medical Officer of Health of Ontario (2010); See also The Senate—Select Committee on Wind Turbines (2015).

Adam (2007).

European Patent Office (EPO), the United Nations Environment Programme (UNEP), and the International Centre for Trade and Sustainable Development (ICTSD) (2010).

Grübler (1998, p. 462).

Brooks (1995).

100

Gallagher et al. (2006, p. 208).

101

UN General Assembly (1972) United Nations Conference on the Human Environment, 15 December 1972.

102

UN Framework Convention on Climate Change, New York, 9 May 1992, International Legal Materials (1992).

103

Doc. No. FCCC/CP/2010/7/Add.1, 15 March 2011 (Decision CP.16).

104

Correa (2016, p. 87).

105

See Article 10 of the Paris Agreement 2015.

106

Center for Global Development (2015).

107

See Article 3 of UN Framework Convention on Climate Change 1992: ‘parties should protect the climate system …on the basis of equality and in accordance with their common but differentiated responsibilities and respective capabilities.’

108

The Rio Declaration on Environment and Development (1992) Principle 7 states: ‘In view of the different contributions to global environmental degradation, States have common but differentiated responsibilities. The developed countries acknowledge the responsibility that they bear in the international pursuit of sustainable development in view of the pressures their societies place on the global environment and of the technologies and financial resources they command.’

109

See Article 7 of the TRIPS Agreement 1994 which sets out that intellectual property protection ‘should contribute to the promotion of technological innovation and to the transfer and dissemination of technology, to the mutual advantage of producers and users of technological knowledge and in a manner conducive to social and economic welfare, and to a balance of rights and obligations’.

110

See Article 37: Trade and Transfer of Technology of the Doha Ministerial Declaration 2001; and the Doha Declaration on the TRIPS Agreement and Public Health 2001.

111

WTO (2003).

112

Correa (2005, pp. 254–256).

113

Rimmer (2011, p. 110).

114

WTO (2013).

115

Zhuang (2017, p. 363).

116

Bone (1998, p. 278).

117

Jorda (2007, pp. 1043–1057).

118

AIPPI (2010).

119

Nordenfelt v Maxim Nordenfelt Guns and Ammunition Co Ltd (1894) AC 535, 565.

120

Rowe and Sandeen (2015, p. 90).

121

Ibid., pp. 203–260.

122

Sandeen and Levine (2016).

Bently L (2012) Patents and trade secrets. In: Wilkof N, Basheer S (eds) Overlapping intellectual property rights. Oxford University Press, Oxford, Chapter 3

Correa CM (2005) Can then TRIPS agreement foster technology transfer to developing countries. In: Maskus K, Reichman J (eds) International public goods and transfer of technology under a globalised intellectual property regime. Cambridge University Press, Cambridge, pp 227–256

Correa CM (2016) Intellectual property rights under the UNFCCC: without response to developing countries’ concerns. In Sarnoff JD (ed) Research handbook on intellectual property and climate change. Edward Elgar, Massachusetts, pp 74–91

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Boardman v Phipps [1967] 2 AC 46

Federal Commissioner of Taxation v United Aircraft Corp (1943–1944) 68 CLR 525

Fisker Coachbuild Llc v. Tesla Motors Inc 30-2008-00115679-CU-PT-CJC, 12/4/2008, Cal. Super

Nippon Steel & Sumito Metal Corporation v Posco and Posco America Corporation No. CIV.A. 12-2429 DMC, 2013 WL 1867042 (D.N.J. May 2, 2013)

Nordenfelt v Maxim Nordenfelt Guns and Ammunition Co Ltd [1894] AC 535, 565

Roche Products, Inc. v. Bolar Pharmaceutical Col., Inc 733 F.2d 858 (Fed. Cir. 1984)

Tesla Motors v. Fisker Coachbuild CIV 472032 4/14/2008 Cal.Super

United States. v. Sinovel Wind Group Co. Ltd., 13-cr-00084, U.S. District Court, Western District of Wisconsin (Madison)

United States v. Sinovel Wind Group Co., 794 F.3d 787 (7th Cir. 2015) (No. 13-CR-84-BBC)

United States of America v. Yu Qin and Shanshan Du 688 F.3d 257 (6th Cir. 2012) United States Court of Appeals, Sixth Circuit

United States of America v. Shanshan Du and Yu Qin, 570 F. App’x 490 (6th Cir. 2014) June 26, 2014, United States Court of Appeals, Sixth Circuit

Defend Trade Secrets Act of 2016, S. 1890, 114th Cong. § 2 (2016)

Economic Espionage Act 1996, 18 U.S.C. § 1832(a)(5) and 18 U.S.C. § 1832(a)(3)

Patent Act 1970 (India)

Doha Declaration on the TRIPS Agreement and Public Health, WTO 4th Ministerial Conference, Doha, Qatar, 2001. https://www.wto.org/english/res_e/booksp_e/ddec_e.pdf. Accessed 30 Nov 2017

Doha Ministerial Declaration 2001

Marrakesh Agreement Establishing the World Trade Organization, opened for signature 15 April 1994, 1867 UNTS 3 (entered into force 1 January 1995) annex 1C (‘Agreement on Trade-related Aspects of Intellectual Property Rights’—TRIPS Agreement 1994)

Paris Agreement to the United Nations Framework Convention on Climate Change, opened for signature 12 December 2015 (entered into force 4 November 2016) (in UNFCCC, Report of the Conference of the Parties on its Twenty-First Session, Addendum, UN Doc FCCC/CP/2015/10/Add.1, 29 Jan 2016)

Paris Convention for the Protection of Industrial Property (March 20, 1883; effective July 7, 1884, and amended June 2, 1934 and July 14, 1967) (the Paris Convention)

The Rio Declaration on Environment and Development 1992

Trans-Pacific Partnership 2015 (TPP) http://dfat.gov.au/trade/agreements/tpp/Pages/trans-pacific-partnership-agreement-tpp.aspx

United Nations Framework Convention on Climate Change 1992, Opened for signature 9 May 1992, 1771 UNTS 107 (entered into force 21 March 1994)

Titel: Protecting and Promoting Clean Energy Innovation Through the Trade Secrets Regime: Issues and Implications
verfasst von: Darshana Sumanadasa
Verlag: Springer Singapore
Buch: Intellectual Property and Clean Energy
Print ISBN: 978-981-13-2154-2

Electronic ISBN: 978-981-13-2155-9

Copyright-Jahr: 2018
DOI: https://doi.org/10.1007/978-981-13-2155-9_15

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