Adopting the CEFTA decision on intellectual property rights creates a favorable environment for the protection of that area, which will lead to greater competitiveness, growth and prosperity of businesses in the region.
"The adoption of the CEFTA decision on intellectual property rights will mark a turning point for the region. It is an important foundation that lies at the very heart of a functioning Common Regional Market, with long-term implications for innovation, small businesses and economic development," the statement said.
By creating an enabling environment for intellectual property protection and cooperation, CEFTA, it added, lays the foundation for a future characterized by increased competitiveness, growth and prosperity.
"The announcement is about the adoption of an important decision by which the CEFTA parties will take a significant step in order to strengthen innovation and support for small businesses. The decision is aimed at intellectual property rights (IPR) and represents a key moment for the economic growth of the region," according to CEFTA.
One of the goals in the section on cross-sectoral trade measures of the Action Plan for the Common Regional Market in the period from 2021 to this year is to adopt a new framework for aspects of intellectual property and related rights related to trade.
"The goal of the new framework is to ensure the harmonization of regulations or minimum standards for legal protection in different areas of intellectual property, which includes the implementation of the principle of non-discrimination to ensure equal protection regardless of which CEFTA country the company originates from," the statement said.
Equally important for integration and free trade within the Common Regional Market is the introduction of a regional exhaustion regime in CEFTA, at least for industrial designs and trademarks.
"This means that the recognition of a trademark or industrial design by CEFTA does not give the right holder the ability to prohibit its use in connection with goods, services or products that are legally marketed by any CEFTA party." This is an important step in preparing the region for the EU-wide exhaustion regime that will apply after accession to the European Union," the statement said.
The new framework will take into account EU and global (TRIPS) practices and will be further strengthened by improved coordination between IPR offices.
The experts of the CEFTA parties agreed on the text of the decision at the technical level, which requires compliance with the latest legislative solutions of the European Union.
Trade expert at the CEFTA Secretariat, Marko Mandic, said that, in practice, the decision introduces key principles based on EU practice and also sets the necessary framework for enabling coordination between CEFTA parties in establishing a unified approach to the protection and enforcement of intellectual property rights.
"The most significant are the principle of non-discrimination and the exhaustion regime of CEFTA, as well as the establishment of a coordinating body within CEFTA that will unite offices for IPR and other key bodies engaged in IPR and their protection. As a result of this coordination, we will soon have a real-time exchange of information relevant to the implementation of customs measures, the implementation of online tools and the digitization of files related to intellectual property rights," said Mandić.
According to him, through educational activities and continuous cooperation with the bodies of the European Union, especially the Office for Intellectual Property of the European Union (EU IPO), the decision will be supported through awareness-raising activities, the establishment of counters for information on intellectual property, as well as key points for inclusion of small and medium-sized enterprises in the protection and development of their intellectual property rights.
CEFTA stated that the protection of intellectual property rights plays a key role in the growth of today's economies. This is especially important for start-ups, small and medium-sized enterprises because protecting their innovations levels the playing field, allowing them to compete with much larger companies.
"Based on the research conducted by the EU IPO in 2022, only ten percent of small and medium-sized enterprises in the EU state that they have registered their intellectual property rights, but of that number, 93 percent reported a positive impact of that registration on business," it is stated in announcement.
Small and medium-sized enterprises with registered intellectual property mostly reported that registration improved their reputation or image, 60 percent, that it provided them with better intellectual property protection, 58 percent, and that it gave them better long-term business prospects, 48 percent.
"When asked about the reasons why they do not protect their intellectual property, SMEs usually cite lack of information, complex and expensive registration procedures, as well as complex and expensive court procedures in cases of infringement of intellectual property rights. "However, the study highlights that the main obstacle to the registration of intellectual property rights for small and medium-sized enterprises is the lack of knowledge about what intellectual property is and how it can benefit their business," CEFTA said.
The framework is expected to improve processes related to the registration and enforcement of intellectual property rights, providing greater clarity and certainty for businesses operating in the region. By harmonizing regulations on intellectual property rights, CEFTA aims to create an enabling environment for innovation and investment, and to stimulate economic growth and competitiveness.
"With the establishment of clearer and more consistent IPR regulations, it will be easier for small businesses to protect their innovations and intellectual property rights. "An important segment of the work of the future coordinating body within CEFTA will be raising awareness, especially among small companies and startups, about the benefits of registering intellectual property rights," the announcement states.
On the other hand, effective protection of intellectual property rights promotes foreign direct investment and encourages innovation, providing small companies with a wide range of tools to help stimulate their success and benefit consumers and society through a continuous flow of innovative, competitive products and services and market expansion.
"The integration of goods and services markets will allow small CEFTA economies to become part of not only regional but also global supply chains and production networks, which would reduce costs for consumers and make these economies more attractive for foreign investment," CEFTA said. e.
The impact of the decision extends beyond economic growth, bringing wider societal benefits. By promoting innovation and entrepreneurship, the CEFTA Parties foster a culture of creativity, which can lead to the development of new solutions to pressing social challenges and contribute to overall social progress.
"Although the decision represents a significant step forward for the CEFTA region, challenges remain in ensuring effective implementation and enforcement of the new framework for the protection of intellectual property rights. Close cooperation between the countries will be necessary in solving potential problems and providing safe terrain, so that all interested parties benefit from this decision," the announcement concludes.
Bonus video:
