Model Intellectual-Property

Guidelines for Business

Overview and Guidance
October 2007—Draft 3.2

Overview
These Model Intellectual-Property copyrighted software, books or news services, the important benefits to society that intel-
Guidelines are designed to help busi- or their own or someone else’s trademarks. lectual property brings.
nesses implement practical internal policies
The business community has an in- These Model Intellectual-Property
to improve protection of their own intellec-
centive to implement “best practices” Guidelines are designed to be useful
tual property (IP) and that of others, and to
to protect intellectual property. This is to a wide range of businesses in dif-
increase compliance with IP laws, so as to
no less true for small and medium enterprises ferent sectors, and are suitable to be tai-
reduce the business risks associated with
(SMEs) than for large companies. lored to deal more specifically with particular
counterfeiting and piracy.
industries or segments of the supply chain.
The volume of intellectual property with
Companies large and small in virtually
which a company must deal—whether its own They may be used directly as a basis for a
every industry increasingly use and
IP or that of others—is increasing in magni- company to create or improve internal
rely on intellectual property—the copy-
tude. The supply chain and other aspects of company policies or employee manu-
right, trademark, patent, trade secrets and
many businesses are increasingly international als. The terms of these Guidelines can also
other intangible rights that underlie many
in scope. be included in contracts between IP owners
products and services. In today’s economy,
and suppliers, such as manufacturing plants.
the “intellectual capital” embodied in inven- This means that the number and variety of IP
tions and creative content can be as impor- issues with which a company must deal are They are also suitable for adoption as the
tant to economic growth as traditional capi- growing, as is the possibility that a company basis of a compliance certification or an
tal, goods and services. may have inadequate systems in place for industry code of practice, whether vol-
managing its own or preventing the misuse of untary or mandatory, in particular industry
IP protections provide the incentives and re-
others’ IP. sectors.
turns on investments for intellectual capital
necessary to produce a continuous stream of This can lead to serious business risks. For These Model Guidelines are intended to be a
new innovations and creations. These make example, even where infringements are negli- “living document” capable of evolving to re-
individual companies, industry sectors and gent, there can be a risk of civil or even crimi- spond to the challenges of new technologies
national economies more competitive. They nal penalties for companies violating IP laws, and globalisation, and to political and eco-
also fuel cultural, technological, social and which can result in large compensation pay- nomic trade pressures. Like the intellectual
economic development, and improve our ments, business disruptions and distractions, property system more generally, these Guide-
health and life more generally. and even criminal liability in some cases. lines are intended as a balanced approach
that respects the legitimate interests of rights
Many highly innovative and creative compa- There is a range of other business risks associ-
owners, other stakeholders, the business com-
nies develop IP-based products as their own ated with dealing in IP fakes. These include
munity and society at large.
business. These include music and film stu- injuries or other damage from poor-quality
dios, computer and software enterprises, and industrial or automotive parts, health risks
pharmaceutical and consumer products com- from counterfeit food and pharmaceutical
panies. Other companies manufacture, dis- products, or computer damage or security
tribute or market products and services on problems from infringing hardware or soft-
behalf of IP owners, such as CD and DVD repli- ware products.
cation factories, food and drug retailers, and
printing companies and book shops. More fundamentally, counterfeiting and piracy
simply drain funds away from the rightful
Almost every business uses some form of IP, recipients (the creators and inventors) and
whether branded supplies or components, the legitimate economy, and undermine all of

© Photographer: Putnik | Agency: Dreamstime.com

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Model Intellectual-Property Guidelines for Business

Guidelines and Guidance

Objectives In order that the widest range of enterprises commit themselves to

prevent and deter counterfeiting and piracy,
support the innovative, creative and economic activity built upon intellec-
tual property (IP) protection,
comply with the intellectual property laws,
implement management practices to effect such compliance, and
manage the business risks associated with infringement,
companies are encouraged to undertake the following commit-
ments:

Company Policy 1. Corporate policy. Establish a corporate policy to conduct operations in

compliance with intellectual property laws and related best practice. Imple-
ment specific policies, procedures and practices to promote compliance.

Guidance

1.1 The commitment of a company or other enterprise to intellectual-property compliance re-

quires approval, support and ongoing review by the highest level of company management,
generally in the form of a resolution by and periodic reports to its board of directors or
similar management body. Note, many of the recommendations herein can form a useful
basis for designing a corporate policy.

1.2 “Intellectual property” refers to all major forms of legal protection of intangible rights pro-
tected by the law, including copyright, trademark, patent, trade secrets, design rights and
the like.

1.3 Different detailed procedures and practices for IP compliance may well be warranted for
different industries. Several existing policies warrant consideration, including for optical
media manufacturing the International Recording Media Association Anti-Piracy Compliance
Program Standards & Procedures, and the IFPI Good Business Practices for Optical Disc
Mastering & Manufacturing Plants. For the software and information-technology industries,
procurement and asset-management guidelines and standards contain useful IP-
compliance practices, including in the Business Software Alliance Software Management
Guide, the IT Governance Institute’s Control Objectives for Information and Related Tech-
nology (COBIT®) version 4.0, and the ISO standard ISO/IEC 19770-1, Software Asset
Management. Note that many of the recommendations in these ICC/BASCAP Model IP
Guidelines can form a useful basis for a corporate policy.

2. Lawful use. Acquire, use and deal in only licensed copies of copyright pro-
tected material, and genuine articles of trademark and patent protected prod-
ucts, in carrying out the company’s business.

Guidance

2.1 This commitment covers the entire range of a company’s input, use and output activities
that involve intellectual-property related products or services. The commitment to pur-
chase only legitimate IP-based materials for use in a business or as part of a supply chain
are described in more detail below.

2.2 Products used in business but not directly included in manufactured outputs, particularly
computer software, reference books, news services, and the like, are typically protected by
copyright as well as trademark and are infringed by unlicensed copying and distribution.
This commitment requires not copying or using infringing materials of this sort in the busi-
ness.

2.3 IP-based products manufactured and put into circulation by a business without the authori-
sation of the rights owner are also infringing. This includes such products as discs contain-
ing unlicensed copyright material (films, music, software, games), fake branded goods
(computer hardware, industrial products, food, cigarettes, automotive parts, consumer
products), and counterfeit pharmaceuticals. This commitment requires not manufacturing,
marketing, selling, distributing, disseminating or otherwise dealing in any such infringing
items.

2.4 Adequate budget needs to be allocated for all IP-related materials used in the business, so
there is no incentive for employees to use infringing materials.
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Model Intellectual-Property Guidelines for Business

3. Protection of company IP. Take reasonable steps to identify and protect

the company’s own intellectual property.

Guidance

3.1 A company’s understanding and protection of the intellectual property that it has itself
developed not only helps the company to reap the benefits of its own creativity and innova-
tion, it sets a good precedent for respecting third parties’ IP.

3.2 Protection of a company’s own IP may take many different forms depending on its sector
and particular business. With respect to industrial inventions, this may involve documenta-
tion of innovations and registration of patents or design rights. Review of trade names and
symbols, and registration and proper usage of trade marks, are appropriate for many busi-
nesses. Documentation of original copyrightable works, and in some cases registration or
notice of copyright, may be needed. Processes for renewing such rights, and paperwork
and other evidence of the existence of such rights, should be carefully maintained.

3.3 There are a wide range of strategies that a company may employ to deter others from
infringing its IP rights. Depending on a company’s business and industry sector, these can
include:
Use of technological protections in its IP-related products and processes.
Selection of business partners that adhere to IP “best practices”.
Co-operation with enforcement authorities on the national, regional and international
level.
Co-operation among rights owners and intermediaries, and intermediaries (including
wholesalers, transporters, retailers, internet service providers (ISPs) and other on-line
services) to take steps to deter copyright infringement and the sale of counterfeited and
pirated products.
File criminal complaints or take legal actions as appropriate.
Work with industry associations to combat various types of counterfeiting and piracy.

3.4 Customs offices typically require particular assistance with respect to a company’s own IP.
Registering intervention applications with Customs, and providing product information,
training and prompt responses to Customs’ requests for assistance, can substantially im-
prove Customs’ efforts to stop shipments of infringing items at the border.

4. Compliance officer. Appoint a qualified senior director or manager as in-

tellectual-property compliance officer, with responsibility for developing, im-
plementing and enforcing the company’s policy.

Guidance

4.1 For an enterprise to achieve intellectual-property compliance, it is necessary for someone

within the organisation to be personally responsible and accountable for making it happen.
This person needs to be sufficiently senior to have or obtain a comprehensive overview of
the organisation’s activities; to have the authority to develop and execute the company’s IP
compliance policies, procedures and practices; and to deal with infractions and complaints.

Education and 5. Employee policies. Secure agreement from all employees and subcontrac-
Awareness tors to comply with the laws and the company’s IP-compliance policy.

Guidance

5.1 As with health and safety codes and other requirements of the law, employees should be
required to comply with the IP laws and the company’s policies, practices and procedures
related to intellectual property. This should include commitments not to engage in any
infringing activity on company premises or equipment or in any way related to the com-
pany operations, and to maintain the confidentiality of the trade secrets and other confi-
dential information of the company and third parties.

5.2 Intellectual-property compliance typically should be part of an employee’s terms and condi-
tions of employment, or part of a policies and procedures handbook that is distributed to
and binding on employees. These requirements should be in writing and made available to
all employees upon joining the company and in periodic reminders thereafter. IP-
compliance requirements are different and additional to any provisions in employee con-
tracts or handbooks that govern IP ownership in the case of employee-created works or
inventions.
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Model Intellectual-Property Guidelines for Business

5.3 Similar requirements and terms and conditions should be included in contracts with inde-
pendent contractors. Such contracts should always be in writing. Customers and suppliers
often require IP-compliance by a company’s contractors, which is most easily secured in an
initial written agreement with the contractor.

5.4 Employees and contractors should commit not only to respecting intellectual property in the
course of their work for the company—such as in purchasing, product development, manu-
facturing, marketing and the like—but also more generally with respect to their activities on
company premises and company equipment. It is best practice not to allow employees to
install or use infringing copies of software, music, published materials or games on com-
pany computers, or to open the company computer network to outsiders for illegal access,
transmission or storage of copyright or trade-secret material.

5.5 Infractions of the company IP-compliance policy should, like other serious misconduct, be
subject to employee discipline and possible dismissal. Typically, the IP-compliance officer
would determine the severity of an infraction and provide advice to the personnel staff
responsible for administering the appropriate disciplinary action.

6. Training and awareness. Train the compliance officer and relevant em-
ployees and subcontractors on intellectual-property compliance and company
policy.

Guidance

6.1 Training of relevant personnel should cover applicable intellectual-property laws, licensing
requirements, intellectual-property owners in the relevant field, and the company’s policies,
procedures and practices.

6.2 The compliance officer needs to understand intellectual property laws as well as the busi-
ness and licensing practices in the IP fields relevant to the company’s business, in order to
design and maintain IP-compliance policies, procedures and practices that are effective,
efficient and workable for the company. For example, a compliance officer in a CD replica-
tion business needs to be familiar with copyright rules related to music, licence agreements
used by record companies and other rights owners, and information on the rights owners in
the relevant field, such as through one of the many available public databases.

6.3 Employees and contractors likewise need IP-related training and information relevant to
their work. A company involved in developing pharmaceutical, chemical or similar prod-
ucts, for example, needs for its employees to understand how to document the company’s
own inventions, and how to handle third-party inventions in the area. A production man-
ager in a replication plant needs to understand that it is an infringement for commercial
software, music or films to be pressed onto CDs or DVDs if a licence agreement is not in
place with the rights owner. In many companies, the purchasing manager needs to under-
stand that use of a recognised brand label on a fake product is an illegal counterfeit.

6.4 It is best practice for the compliance officer and relevant employees and consultants to
receive such training both when they take on a particular IP-related role, and periodically
thereafter, given employee and product turnover as well as evolution in the licensing and
business practices in every field. Relevant industry professional groups as well as law firms
and societies offer such training in most countries.

Supply, 7. Supplier and customer notification. Notify relevant suppliers and cus-
Manufacture and tomers that the company complies with intellectual-property laws and expects
them to do the same.
Distribution

Guidance

7.1 It is good business practice for a company to notify relevant suppliers and customers that
the company maintains anti-piracy policies, practices and procedures, and that the com-
pany requires such suppliers and customers do the same, subject to termination or other
sanctions for non-compliance. This sets the right expectations for business dealings and
can pre-empt problematic requests or activities, such as orders for supply of counterfeit
products.

7.2 The company’s contracts with suppliers and customers should include provisions allocating
responsibility for counterfeit goods or other IP violations. These can include IP indemnities,
“make good” and financial remedies, delisting the infringer as an approved source or cus-
tomer, and contract termination.
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Model Intellectual-Property Guidelines for Business

8. Legitimate inputs. Where possible, obtain intellectual-property related

inputs for the business from legitimate and auditable vendors.

Guidance

8.1 A Input activities such as purchasing of components or supplies, or third-party design,

development, manufacturing or other services, often involve copyrighted, trademarked or
patented articles. This commitment is to purchase products and services that do not in-
fringe intellectual-property laws.

8.2 Particularly for manufacturing operations, it is important that a company obtain inputs from
fully auditable vendors that source exclusively from original manufacturers, franchised
distributors or first owners of the goods.

8.3 More detailed “best practices” on securing legitimate inputs and other supply chain issues
can be found in specific industry guides, as well as in the US Chamber of Commerce publi-
cation, No Trade in Fakes: Supply Chain Tool Kit.

9. Contractual provisions. Document all intellectual-property related trans-

actions, and supplier and customer relationships, accurately and in adequate
detail.

Guidance

9.1 One of the hallmarks of a business that is at serious risk from inattention to intellectual-
property issues, or that is actively engaged in counterfeiting or other infringing activity, is
inadequate or missing written records.

9.2 Particularly for companies engaged in manufacturing IP-based products, such as pharma-
ceutical manufacturing companies, food and consumer-product production plants, and CD/
DVD replication plants, it is vital that production of IP-protected items be properly docu-
mented and auditable.

9.3 Documentation should include detailed and accurate written agreements, purchase and
sales orders, production records, invoices and shipment documents. Purchase, production,
sales, invoice and shipping records need to be sufficiently specific to identify each IP-
protected item (for example, the individual industrial or consumer product unit, musical
track, software or film title, drug or chemical identification, food product, or trademark);
the quantity and price of each; and the correct destination and consignee for each.

9.4 Similarly, master production copies and production samples should be kept and stored
securely, as they can be a protection for the company and its suppliers and customers as
well as the IP owner. Particularly in the case of a dispute or claimed infringement, master
copies and production samples can be helpful for tracing the source of illicit products or
parts and assigning liability to the correct party.

9.5 Claimed transfers of intellectual property rights should be in writing. This is particularly
important if a company outsources development of intellectual-property related material,
as written agreements can prevent disputes over IP ownership and possible claims of in-
fringement.

9.6 IP-related contracts should be clear and cover all the relevant topics in sufficient detail.
These include the technology or material to be used, the rights licensed or reserved, con-
sumer or trade terms and conditions as appropriate, confidentiality obligations, monitoring
and due-diligence obligations, and termination and other remedies in case of an IP viola-
tion.
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Model Intellectual-Property Guidelines for Business

10. Supplier and customer awareness. Obtain reliable identification and

background information on intellectual-property related suppliers and custom-
ers.

Guidance

10.1 Much of the trade in counterfeits takes place between and on behalf of inadequately identi-
fied or anonymous suppliers and customers. Pseudonyms, post office boxes, mere “points
of contact” and unidentified email addresses can be indicators of a supplier or customer
dealing in counterfeits, as can the person’s or company’s lack of an obvious or documented
connection with the industry sector for the particular IP-related products.

10.2 Reliable identification and background information should include correct names, and com-
plete addresses and telephone numbers. Brokers also should obtain and provide this infor-
mation in respect of the ultimate clients.

10.3 “Know your customer and supplier” is simply good business practice. Documentation of the
true identity, background and contact details of suppliers and customers is not only a sub-
stantial deterrent to counterfeiting and piracy, it helps a company manage other kinds of
risks, including supply, payment, quality and similar problems.

11. Required licences. Obtain written proof of intellectual-property rights and

all required licences, prior to manufacturing, shipping or offering any intellec-
tual-property based products or services.

Guidance

11.1 Unauthorised copying, distribution, transmission or other dealing in IP-protected goods or

services in the course of a business is virtually always infringement absent a licence from
all of the relevant rights owners.

11.2 Licences must be authentic documents and must specify each protected work, trademark
or invention licensed, the time period during which the licence is valid, and the specific
uses and quantities licensed.

11.3 Licences should be in writing. Genuine IP licences rarely cover an IP owner’s entire range
of products, trademarks or rights, or are of unlimited duration. Companies should insist
that licences for duplication, manufacturing, or distribution of IP-related products are very
specific as to what has been licensed, for what period and for what uses.

12. Due diligence. Inspect documentation and materials for warning signs that
infringing material may have been supplied or ordered. Make further enquiries
as needed to determine the status of suspicious activity.

Guidance

12.1 Ignorance is no excuse for counterfeiting and piracy. Many intellectual-property infringe-
ments are “strict liability” violations, such as reproducing and distributing copyright mate-
rial, trademark branded goods or patented pharmaceutical products without a licence, re-
gardless that the material has been ordered by a customer. Due diligence on licences,
goods, masters, orders, information and other items supplied in relation to IP-related
goods or services can reduce the risk of infringement.

12.2 Good practice in this area includes inspection of supplier and customer information, li-
cences, goods received, production masters and order terms for warning signs that infring-
ing material may have been supplied or ordered. If any of these raise warning signs, fur-
ther enquiries may be needed, including consultation with the relevant rights owner or
industry anti-piracy body, to determine the status of suspicious activity.

12.3 Warning signs vary by industry. These may include, for example, orders for large quantities
of unmarked copies of recognised products; use of well-known trademarks or claims of
licence by unknown companies; large cash payments; poor-quality workmanship or pack-
aging; removal, recreation or separate shipment of trademark labels or technological pro-
tections; or incorrect or inadequate labelling of contents, geographic origin or production
plant.
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Model Intellectual-Property Guidelines for Business

12.4 Some rights owners themselves offer information and assistance to help determine whether
products or licences are legitimate; others do so through their industry anti-piracy body.
Customer and supplier agreements should explicitly allow consultation with the relevant
rights owner or industry anti-piracy body if there is a reasonable suspicion of IP infringe-
ment.

Security and 13. Physical and network security. Maintain physical and IT security suffi-
Confidentiality cient to ensure the integrity of company records and operations, and to pro-
tect intellectual property and confidential material.

Guidance

13.1 Companies involved in manufacturing and distributing IP-based goods need secure prem-
ises and personnel procedures to prevent theft, unauthorised access, “third shifts” or other
unauthorised manufacture or shipment, disclosure of trade secrets, and other unlawful
practices.

13.2 Companies involved in using licensed intellectual property also need to be able to prove
and account for licensed activity. This requires secure storage of related contracts, li-
cences, financial records and other documentation—a good business practice in all events.

13.3 Copies of IP-based products, trade secrets and other confidential information, and company
records increasingly are held on computers and computer networks. Good IT security is
important for safekeeping of all such items, and for preventing IP infringement resulting
from unauthorised electronic access, storage, copying, posting, transmission or disclosure
of third parties’ intellectual property.

13.4 Good IT security includes such protections as anti-virus and anti-spyware software, internal
computer and network access restrictions, firewalls and other restrictions of access from
the internet to the company’s computers and networks (including via peer-to-peer sys-
tems), and prohibitions on unapproved installation or distribution of IP-protected material
on company computers or networks. For further information on IT security issues related
to IP infringement, see the IFPI/MPAA/IVF publication Copyright and Security Guide for
Companies and Governments.

14. Asset management. Implement asset identification, inventory and con-

trol processes sufficient to ensure that intellectual-property related assets
are manageable and traceable.

Guidance

14.1 IP-related products that a business uses in conducting its own operations, such as software
and other IT products, should be inventoried and managed like other key assets throughout
their life cycle.

15. Trade-secret and confidential-information protections. Use best

efforts to protect the company’s and third parties’ trade secrets and other
confidential material.

Guidance

15.1 Companies involved in manufacturing or dealing in intellectual-property based products

often require or have access to trade secrets or confidential information of the IP owner in
the course of such activities. Access to such trade secrets or confidential information typi-
cally depends on contractual or other legal obligations to use best efforts to protect and not
to disclose or use the intellectual-property owner’s trade secrets or other confidential infor-
mation, except as expressly authorised by the rights owner. Such restrictions ordinarily
would not apply, however, to the extent that such material has been disclosed by the rights
owner or with its permission without such restrictions, or that a government or court order
has required such disclosure.

15.2 More generally, confidentiality undertakings with customers and suppliers should not be
drafted or used to prevent legitimate consultation of law enforcement authorities, or rele-
vant anti-piracy bodies or rights owners in the case of a reasonable suspicion of IP infringe-
ment, such as in the case of a customer order for an apparently counterfeit product.
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Model Intellectual-Property Guidelines for Business

16. Technological anti-piracy measures. Respect, not interfere with, and

maintain the security of technological anti-piracy measures used by rights
owners with their intellectual-property based products and processes.

Guidance

16.1 IP rights owners increasingly rely on various types of technological anti-piracy measures in
their products, product packaging, chemical formulas, and distribution, in order to prevent
and deter counterfeiting. Companies involved in manufacturing, marketing and distributing
such IP-based products should support these goals by following any instructions from the
IP owners as to how these technological protections should be applied, and not removing,
circumventing, disabling or taking any other action that impairs their effectiveness in any
way.

16.2 Licensed IP-based products used in a company’s internal business operations also may
contain technological anti-piracy measures, which also should be respected. Indeed, mod-
ern copyright laws typically make it an offence to circumvent such measures.

Compliance 17. Recordkeeping. Keep intellectual-property related documentation and

and Audit related materials for a period of not less than three years.

Guidance

17.1 Good business recordkeeping is required by virtually every accounting standard and tax
authority world-wide. IP-related records and related materials should be kept with other
business records for a similar time period as such other records, which typically is not less
than three years after their expiration (this period is longer in some countries). The re-
cords and materials to be maintained should include copies of intellectual-property related
agreements, purchase orders, production records, shipment documents, licences, masters
and production samples.

18. Labelling. Label completely and accurately all intellectual-property related

products and packaging manufactured or supplied.

Guidance

18.1 A common tell-tale sign of counterfeit articles is mislabelling. Articles, packaging or ship-
ping boxes may indicate the wrong contents, or may have no labelling at all. The geo-
graphic origin or manufacturer identification on such materials may be missing or incorrect.
Content listings of mixed shipments may fail to mention counterfeit articles that have been
included with other items.

18.2 Labelling should be complete and accurate as to specific products, quantities and origin.
Accurate and legible identification markings or codes should be included, whether industry-
standard or rights-owner specific, as to manufacturing plant, product identification, batch
number and other designations.

18.3 Individual rights owners typically have specific labelling requirements. There are also stan-
dard labelling requirements applicable in particular industries, for example the IFPI/Philips
Source Identification (SID) disc and mould codes applicable to manufacturing of all optical
discs. All applicable rights-owner and industry-standard labelling practices should be fol-
lowed scrupulously and without exception.
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Model Intellectual-Property Guidelines for Business

19. Audits and Monitoring. Perform an intellectual-property asset and man-

agement audit at least once every year.

Guidance

19.1 Ongoing monitoring, correction of problems, and refinement of a company’s IP-compliance

policy, are an important part of ensuring that the company’s policies, procedures and prac-
tices are workable and are followed.

19.2 An intellectual-property audit should be undertaken upon adoption of an IP-compliance

policy, and at least once every year, to ensure compliance with the law and company poli-
cies, procedures and practices. Discrepancies should be corrected, and any needed modifi-
cations to policies, procedures and practices evaluated and implemented.

20. Exemplars. Supply exemplars of intellectual-property based products pro-

duced on production lines used in the company’s operations to relevant rights
owners, their industry anti-piracy bodies and law enforcement authorities on
request.

Guidance

20.1 Legitimate manufacturing plants should have nothing to hide. Providing exemplars, such
as sample discs from each of an optical-disc replication plant’s production lines, helps both
to discourage counterfeiting and to track down infringers when piracy does take place.

21. Co-operation with IP owners and public authorities. Provide rea-

sonable assistance to rights owners, industry anti-piracy bodies and law-
enforcement authorities in their investigations of possible intellectual-
property infringements.

Guidance

9.1 Companies dealing in IP-related products and services are well served to co-operate when
problems of infringement arise, such as by producing IP licences and other information
relating to suspect articles, orders or activity. The fight against the black economy of
counterfeit and pirate goods requires diligence and co-operation among IP owners, public
authorities and companies in every part of the supply chain.
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Model Intellectual-Property Guidelines for Business

FAQs — Frequently Asked Questions

Q. What are the “Model IP A. Business Action to Stop Counterfeiting and Piracy (BASCAP), an initiative of the
Guidelines for Business”? International Chamber of Commerce (ICC), has developed this set of Model IP
Guidelines to provide detailed information to businesses on practical steps they
can take to improve their compliance with IP laws and to protect their own IP.
The guidelines provide specificity on good IP practice, addressing internal IP use,
supply chain practices, relations with intermediaries, and the handling of third-
party IP. The guidelines are therefore useful for dealing with counterfeiting and
piracy in all its forms within companies, from IP development to component sourc-
ing, manufacturing, wholesaling, retailing and internal corporate use. Recommen-
dations for protecting a company’s own intellectual property are also included.

Q. Why is BASCAP A. BASCAP developed these Guidelines as a management tool to help companies of
doing this? all sizes reduce the risks of intellectual property theft, and to deter piracy and
counterfeiting. Piracy and counterfeiting are an economic blight with serious and
disruptive consequences for companies found to be engaged in such activity. This
is because piracy and counterfeiting have broader consequences: They deter in-
ventiveness and creativity, deprive governments of tax revenue, compete unjustly
with legitimate economic activities and jobs, weaken consumer confidence in
legitimate branded products, pose serious health and safety risks, and feed organ-
ised crime. Business and government together, each playing its part, can reduce
intellectual property theft and the business and social damage that it causes.

Q. Why are these A. Companies have an incentive to implement “best practices” not only to protect
Guidelines needed? against the risks of theft of other companies’ and individuals’ intellectual prop-
erty, but also to protect their own creativity and innovation in IP-based products
and services. The global economic trend is to increase investment in and reliance
on intellectual property as an essential element of economic growth. The prob-
lem is that intellectual property is an intangible asset that requires not only legal
protection but also good management and use in order to realise its full potential.
Besides discouraging illegitimate use of intellectual property, therefore, these
Guidelines are also designed to help companies protect their own investments in
intellectual property.

Q. Who will use them? A. Companies large and small in virtually every industry increasingly use and rely on
intellectual property, and thus can benefit from implementing policies based on
the Guidelines. Small and medium enterprises (SMEs) and large companies in-
volved in the development, manufacture, supply, or distribution of intellectual-
property based products and services, as well as the large number of other com-
mercial concerns that use some form of IP-based material in their own business,
will benefit.