TNAG-1927-FCO40-2744-Future-of-Hong-Kong-Sino-British-Joint-Liaison-Group-sub-gro-1989 — Page 6

Notes on the Preamble

12.

The Preamble is a new text aimed at seeking a compromise between the text of the Introduction in the last version of the draft Treaty

(document IPIC/CE/IV/2) and the proposal for an alternative wording for the Introduction, which was made by the Delegation of Argentina during the fourth session of the Committee of Experts in the following terms:

13.

"Convinced that protection against the unauthorized copying of layout-designs (topographies) of integrated circuits and against the marketing of microchips incorporating layout-designs copied without the authorization of the creator of such layout-designs is an incentive for the creation of new devices serving technological and economic progress;

Desiring to introduce a protection system that balances public interests and those of the creators of layout-designs of integrated circuits;

With a view to laying the groundwork for the promotion of broader dissemination of semiconductor products and the transfer of technology towards developing countries in particular,

Have concluded the following Treaty:"

The Preamble is designed to indicate the reasons for which international protection for the intellectual property rights of the creators of layout-designs (topographies) of microchips should be granted (the first paragraph), the aims that the Treaty pursues (the second paragraph) and the envisaged effects that it is expected will be achieved through the conclusion of the Treaty (the third paragraph).

14. Ad first paragraph: The reasons, set out in the first paragraph of the Preamble, are social and economic. The social reason consists in a long-standing historical practice--which is to be found in many different societies and in different eras, and which lies at the foundation of intellectual property--namely, the recognition of the interests of creators in a just reward for the contribution made by them through their creativity.

15.

Two economic reasons lie behind the assurance of international protection. One is the incentive for creation. The other is the promotion of the acquisition of foreign technology.

16.

The incentive for creation arises from the exclusive rights which protection accords to the creator. These exclusive rights enable the creator to prevent unlawful reproduction or commercial dealing, thereby enabling him to obtain a position in the market that would not be available if others, who have not incurred the substantial investment of human, financial and technological resources in creation, were permitted to copy the fruits of his creation. The possibility of obtaining this market position and the monetary reward that results from protection encourage the investment of further resources in creative activity.