The US is considering bringing an Anti-Counterfeiting Trade Agreement (ACTA). The ACTA is designed to combat the ?increase in global trade of counterfeit goods and pirated copyright protected works?. It is considering whether to involve Internet service providers (ISPs) in fighting copyright infringement. Details of the negotiations, previously held under a cloak of secrecy with all discussions held behind closed doors, have at last been published as a result of commitment of Barack Obama to transparency in government.

The Section 4 of the agreement is intended to address some of the special challenges that new technologies pose for enforcement of intellectual property rights, such as the possible role and responsibilities of Internet service providers in deterring copyright and related rights piracy over the Internet. No draft proposal has been tabled yet, as discussions are still focused on gathering information on the different national legal regimes to develop a common understanding.

The proliferation of counterfeit and pirated goods in international trade poses an ever-increasing threat to the sustainable development of the world economy. Trade in these goods causes significant financial losses for the right holders and legitimate businesses. It also hinders sustainable economic development in both developed and developing countries and, in some cases, represents a risk to consumers.

Expertise, innovation, quality, and creativity are the main factors for success in knowledge-based economies. Adequate protection and enforcement of intellectual property rights is a key condition for nurturing those factors. In 2006, Japan and the US launched the idea of a new plurilateral treaty to help in the fight against counterfeiting and piracy, the so-called ACTA.

The aim of the initiative was to bring together those countries, both developed and developing, that are interested in fighting counterfeiting and piracy, and to negotiate an agreement that enhances international co-operation and contains effective international standards for enforcing intellectual property rights.

Preliminary talks about such an anti-counterfeiting trade agreement took place throughout 2006 and 2007 among an initial group of interested parties (Canada, the European Commission, Japan, Switzerland and the US). Negotiations started in June 2008 with the participation of a broader group of participants (Australia, Canada, the European Union and its 27 member states, Japan, Mexico, Morocco, New Zealand, Republic of Korea, Singapore, Switzerland and the US).

A variety of groups has shown their interest in getting more information on the substance of the negotiations and has requested that the draft text be disclosed. However, it is accepted practice during trade negotiations among sovereign states to not share negotiating texts with the public at large, particularly at earlier stages of the negotiation. This allows delegations to exchange views in confidence facilitating the negotiation and compromise that are necessary in order to reach agreement on complex issues. At this point in time, ACTA delegations are still discussing various proposals for the different elements that may ultimately be included in the agreement. A comprehensive set of proposals for the text of the agreement does not yet exist to combat the ?increase in global trade of counterfeit goods and pirated copyright protected works.

The ACTA initiative aims to establish international standards for enforcing intellectual property rights in order to fight more efficiently the growing problem of counterfeiting and piracy. In particular, the ACTA is intended to establish, among the signatories, agreed standards for the enforcement of intellectual property rights that address today?s challenges by increasing international cooperation, strengthening the framework of practices that contribute to effective enforcement of intellectual property rights, and strengthening relevant enforcement measures.

The intended focus is on counterfeiting and piracy activities that significantly affect commercial interests, rather than on the activities of ordinary citizens. ACTA is not intended to interfere with a signatory?s ability to respect its citizens? fundamental rights and civil liberties, and will be consistent with the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (Trips) Agreement and will respect the Declaration on Trips and Public Health. The availability of life saving drugs to the developing countries at cheaper rates will be of great importance of ACTA.

ACTA aims to build on existing international rules in the area of intellectual property, in particular on the Trips Agreement, and is intended to address a number of enforcement issues where participants have identified that an international legal framework does not exist or needs to be strengthened.

The final provisions of the agreement include details on how the agreement will function, such as how to become a party to the agreement, how to withdraw from the agreement and how to amend the agreement in the future.

India should also take action to bring in legislation similar to ACTA to safeguard its Internet service providers for the protection of copyright infringements. It will also combat the ?increase in global trade of counterfeit goods and pirated copyright protected works.

?The writer is trade professor at IBS, Chandigarh. Email: vasu022@gmail.com