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Infinite Possibilities

2016 U.S. Chamber Index Fact Sheet


Intellectual property fuels the creation of knowledge-based economies. By providing a legal infrastructure through which ideas can
become products, robust IP systems foster innovation leading to economic growth, job creation, and sustained competitiveness in
global markets. The U.S. Chambers International IP Index provides economies with a comprehensive roadmap to harnessing the
benefits that robust IP systems provide.

The Index maps the IP environment in 38 economies around the world, collectively accounting for nearly 85% of global gross
domestic product (GDP). Each economys score is based upon 30 indicators spread across six categories Patents, Copyrights,
Trademarks, Trade Secrets, Enforcement, and International Treaties. The 4th edition of the Index also includes an updated
measure on physical counterfeiting to provide a more accurate estimate of the estimated level of counterfeiting in the economies
benchmarked in the Index. An overall score approaching 30 is indicative of a highly robust IP system.

The 4th Edition of the Index not only measures the relative strengths of each economys IP environment, but also demonstrates the
benefits associated with those strengths. The Index includes six new correlations on the relationship between strong IP rights and
socio-economic benefits, as well as updated statistical information for 13 of the correlations from the 3rd edition of the Index. The
new correlations include:
Access to finance: Economies with robust IP regimes are more likely to attract venture capital and private equity funding.
High-quality human capital: Economies with favorable IP protection possess on average 2.5 times more R&D-focused
personnel within their workforces.
Foreign direct investment attractiveness: Economies with robust IP systems receive on average a 45% higher Standard and
Poors credit rating than economies whose IP systems lag behind.
Inventive activity: The top 10 economies in the Index exhibit patenting rates more than 30 times greater than the bottom
10 economies in the Index.
Advanced technology markets: People and firms in economies scoring above the median level of the Index are 30% more
likely to enjoy access to the most recent technological developments.
Streamlined and enhanced access to creative content: Advanced and easy-access delivery of streaming services is three
times greater in economies scoring above the median level of the Index than in those scoring below the median. Access in
the top five economies is up to 25 times greater than in the lowest five.
Key Findings
The Index includes many examples of positive momentum in economies that have recognized the infinite possibilities provided by
robust IP protections and invested in a stronger innovation ecosystem:
The Canadian government extended the copyright term for sound recordings to 70 years and implemented ex officio authority for
customs officials.
The Indonesian government introduced implementing regulations for the 2014 Copyright Act, which create an online notification
system for rights holders to request action against alleged infringing websites.
In Israel, a new Index economy, 2014 reforms significantly enhanced the environment for patent protection. In particular, Israel
has introduced patent restoration for biopharmaceuticals and regulatory data protection for submitted clinical data.
Malaysias IP environment has improved gradually over the last four years, resulting in a cumulative increase in the countrys
score. As a TPP negotiating partner, the IP standards within the agreementonce ratified and implementedwill further
strengthen Malaysias IP environment.
The UAE introduced a series of measures to deter TV piracy and combat the production and trafficking of counterfeit goods.

Overall Economy Scores

30

25

20

15

13.05 13.06
12.30 12.43 12.64
11.87
11.44 11.55 11.74
10.41
10 9.42
8.62 8.91
8.54 8.59
7.83
7.05 7.40
6.42

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Other economies still have ample room to improve their IP environment in order to unleash the benefits of intellectual property:
Broadly, a number of economies, including Brazil, Russia, China, India, and Indonesia, introduced or maintained policies tying
market access to sharing of IP and technology. Such forced-localization policies tend to undermine the overall innovation
ecosystem and deter investment from foreign IP-intensive entities.
Copyright protection remains a particular challenge for many high-income economies in Europe, including Italy, Poland,
Switzerland, and Sweden, particularly due to the absence of policies to more effectively combat online piracy.
The Australian High Court reversed the earlier Federal Court ruling in DArcy v. Myriad Genetics, weakening the patentability of
isolated-genetic material and biotechnology inventions.
In Ecuador, another new Index economy, the government continues to actively pursue an innovation policy that in
large measure undermines or weakens the protection of IP, including the active use of compulsory licenses for
biopharmaceutical products.
While the United States excels at promoting IP-intensive industries in many ways, enforcement related to trade secrets theft
and counterfeit seizures remains a relative weakness, causing the U.S. to be ranked fifth in enforcement.

30
28.61
27.53
27.12 27.22 27.36

25.63
25 24.79 24.90

23.32 23.34
22.69

21.38
20.06
20
18.75
18.17

15 14.78 14.79
13.77 13.83

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Global Intellectual Property Center
1615 H Street, NW
Washington, DC 20062
www.theglobalipcenter.com