INTELLECTUAL PROPERTY: INTER-DISCIPLINARY NATURE – SOME LEGAL, SOCIAL AND ECONOMIC ASPECTS (PART 2)

Low level of effectiveness of institutional reforms in the sphere of IP is based on the fact that these reforms concern only the surface level, formal rules, while the value-based orientations and informal norms of behaviour determining the social practices of the participants of relations, stay beyond the scope of the reformers’ attention. Situation can be principally altered through application of socio-cultural mechanisms of regulation along with administrative and economic methods. The fact that the state is simultaneously acting both as the participant in the relations (as the user of the IP results) and the institute regulating the participants’ inter-relations, creates the feeling that it has own (state) interests regarding the issue of IP. Implementation of results of the juridical and economic research into practice does not necessary bring any effects due to the fact that the socio-cultural mechanisms for ensuring the state interests are not sufficiently elaborated. This is why there is a need to carry out reforms in the sphere of state governance and introduce innovative approaches in regulation of social processes.Analysis of the behaviour strategy shown by the IP creators and users allows us argue that their uncoordinated behaviour is determined not so much by different economic interests, but by non-coinciding values and orientations of norms. The state, acting as a principal regulating institution, should introduce more strict and effective regulations on the state borders and inside the country in order to maximally decrease the rate of legal violations in the sphere of IP. It should also carry out preventive measures, apply relevant economic methods, etc. Systemic interaction between the state and the society should provide for formation of an effective mechanism of social regulation, based on the technology of organizational-legal management, the economic motivation and the value- and purpose-based regulations.In Georgia, the social model for regulating relations in the IP sphere should be realized through the inter-connected stages. In particular, a mechanism for social regulation encompassing the intellectual (creative) self-realization, technological, financial, informative, personnel-related and managerial elements should be developed at the structural-creative stage

INTELLECTUAL PROPERTY: INTER-DISCIPLINARY NATURE - SOME LEGAL, SOCIAL AND ECONOMIC ASPECTS (Part 1)

In Georgia, similar to developed industrial countries, IP should become more and more expensive asset and can play the determining role in idealization of any governing/managerial strategies – be it strategies for development, stabilization, anti-crisis or other. Realization of given strategy will increase market capitalization of assets by an average 10-12%. Unfortunately, the majority of registered legal persons in Georgia does not properly manage intellectual property and does not take appropriate measures for its protection. When exporting goods to foreign countries, they often avoid lengthy procedures and financial expenditures needed for patenting devices, methods, substances or microorganism strains. At the same time, the existing mechanisms of state regulation in the sphere of IP are rather limited due to low effectiveness of applied forms and methods. Such an assumption is validated by the fact that the state governance mechanisms mostly rely on the economic and administrative influence methods which are less effective and require significant corrections.Paragraph 154 of the Agreement on association between the EU and Georgia essentially concerns protection and realization of the authors’ economic, business interests as well. It is pity that in the Agreement on association, with regard to intellectual property, the discussion concerns only economic and business aspects of this institute, but does not make any emphasis on its sociological component. To put order to the above and similar issues and to eliminate existing faults it is necessary to create a parliamentary commission on studying the intellectual property in the Parliament of Georgia and also to establish the Experts Council for protection of intellectual property and fighting against the counterfeit and piracy by the Government of Georgia.In Georgia, there is a high rate of violation of the special property and personal non-property rights of the holders of copyrights and adjoining rights, as well high share of counterfeit products. The culture of replicating and using the objects of intellectual property is at the relatively low level. Non-existence of a conceptually grounded policy harms the interests of the stakeholders such as creators of the intellectual property objects and those using these rights (holders of rights).In modern Georgia, none of the above mentioned stakeholders (society, state, other stakeholders) can be considered as fully protected by state from the violation of their rights. In particular, creators are frequently deprived of the possibility to make complete realization of own property or personal non-property rights, holders of rights – to protect themselves from piracy and unfair competition, consumers – to receive goods of the appropriate quality and the state – to receive the hidden tax revenues into state budget. Apart from that, significant violation of intellectual property rights brings the serious social effect

SOME PECULIARITIES OF EFFECTIVE STATE MANAGEMENT OF INTELLECTUAL PROPERTY AND INNOVATION IN GEORGIA. PART 1

The aspiration for a knowledge-based society, where intellectual property is protected, forces the government to seek more effective methods of governance; it becomes increasingly dependent on the knowledge and experience that are “located” outside this specific state.The number of domestic developments and patents received is relatively small, as well as the number of research innovations. Diffusion of knowledge and technology is taking place in the country. It would be desirable to increase the rate of organizational innovation.It is reasonable to provide members of the parliament and the government, as well as politicians with the relevant information about the multifunctional nature of intellectual creativity in a more accessible way. This information should be reliable and convincing, transparent, accessible, compressed and as simple as possible for perception.It is necessary to create special services and modernize the existing ones, organize the possibility of retraining of civil servants in specific areas and spheres of IP.For Georgia, the process of integration into international structures will be greatly simplified if the intellectual property management process is put on a qualitatively new level, and economic development is based on the active use of intellectual property and innovations.The Georgian National Intellectual Property Center and the Agency for Innovation and Technology of Georgia, whose functions and powers overlap directly or indirectly, deal with issues of intellectual property and innovation on the level of the Georgian government. However, there is no clear coordination between them, which affects the effectiveness of management.It is necessary to create a relatively stable, conservative and at the same time flexible system of laws in the field of intellectual property and innovation. Changes and amendments in the law should not occur spontaneously depending on the political situation. They must be purposeful, thought-out and comprehensive – without any special drastic changes in legislation

EXPLORING THE GEORGIAN SOCIAL CAPITAL IN FINANCIAL LITERACY

The authors show several aspects of the Georgian Social Capital formation. Orthodox charges and the Soviet time influence on the financial decision making process are considered. The work includes the comparative analysis of the financial literacy, Gross Demotic product and Human Development Index of the Caucasian countries: Azerbaijan, Armenia and Georgia (which have the same Soviet history but different religions).Authors have considered the Monophysitism attitude toward wealth, luxury and usury, which have been dominating in Georgia since the III century.In the work one can find the results of the empirical research covering the Georgian youth focus groups, which examined their attitude to the financial issues.The authors prove that social capital has memories, which are forming attitudes and then transform into habits. Authors note that we should create memories about money making business by spreading the financial literacy in order to form attitudes and transform them into habits

SAMTSKHE-JAVAKHETI REGION - SOME ASPECTS OF DEVELOPMENT: PROBLEMS AND PROSPECTS

Since the Soviet period a serious number of problems have been accumulated today in one of the regions of Georgia - Samtskhe-Javakheti. Samtskhe-Javakheti shares the border with Turkey and Armenia. Here the problem of poverty is pressing; there are also contradictions between different ethnic groups. The authors analyse economic indicators from a variety of authoritative sources. The authors also conducted a case study. Despite the fact that the state invests some money in the development of the region, it is ineffective. Therefore, we need more efficient, radically new approaches. According to the authors there is a need to introduce a development policy for several strategic areas: infrastructure,education, development of skills for the profi t-making households and the use of specifi c network programs

STATE REGULATION OF PATENTS AND LICENSES TRADING, COMING CLOSER TO EUROPEAN STANDARDS: ECONOMIC AND LEGAL ASPECTS

During transition of technologies and property rights, patent and license trading it is necessary to set a “reasonable compensation” or a “reasonable royalty”. As a rule the amount of royalty is calculated in countries of the EU empirically. As for Georgia, without reliable statistical data foreign rates of royalty are used. This brings the problem of justification of separate economic indexes during calculation of the price for a patent or a license (applicable to our market conditions). Georgian experts have unstable position towards determination of the reasonable amount of benefits foregone or the damage from violation of intellectual property rights, as well as justification of “fair” license payments. Problems of assessment and price formation are manifested in connection with consideration (by general courts of Georgia) of judicial cases connected with complaints about reparation of damages caused by illegal use of intellectual property, at judicial determination of the size of reparation on the basis of the reasonable royalty and at determination of the cost of IP stated in the Patent Law of Georgia. The Patent Law of Georgia does not include special obligatory methods of assessment and recommendations on price formation during commercialization of intellectual property and calculation of the amount of damage (benefits foregone) caused by illegal use of intellectual property – this is a serious omission. The problem of assessment of patents, licenses and other objects of intellectual property in Georgia has arisen on the national level. It involves matters connected with exporting and customs supervision at implementation of international connections and trade, barter transactions during work, providing services and products of intellectual property expressed in physical form. In accordance with this the necessity of assessment and registration of products of intellectual activity is determined. In times of state regulation of patent and license trading and promotion of competence it is necessary to observe general European standards. Such norms should include: 1) establishment of quantitative limits in production of the patented goods or the use of the process; 2) cross-licensing connected with partition of the market or limitation of production; 3) keeping control over operations of the licensee set in the license agreement after the expiration of the patent; 4) prohibition to the licensee of selling products competing with the production of the licensor; 5) obligations to transfer all improvements made by the licensee in the licensed object towards licensor (in exclusive ownership); 6) prohibition of exporting from the territory of licensee to other countries of the EU if a licensor does not possess patents in these countries; 7) payment of the increased reward or fee for selling of goods in a way not presupposed by the agreement by the patent owner, licensee

Quenched Chiral Perturbation Theory for Vector Mesons

We develop quenched chiral perturbation theory for vector mesons made of light quarks, in the limit where the vector meson masses are much larger than the pion mass. We use this theory to extract the leading nonanalytic dependence of the vector meson masses on the masses of the light quarks. By comparing with analogous quantities computed in ordinary chiral perturbation theory, we estimate the size of quenching effects, observing that in general they can be quite large. This estimate is relevant to lattice simulations, where the $\rho$ mass is often used to set the lattice spacing.Comment: 18 pages, 8 figures, uses REVTeX and epsf.st

Radiative Leptonic B_c Decays in Effective Field Theory

The recent discovery of the B_c meson by the CDF collaboration and proposed new experiments at Fermilab and CERN motivate new theoretical studies of the B_c system. Here we investigate the radiative leptonic decay B_c -> gamma l nu. This process is an important background to the annihilation process B_c -> l nu, which will be used to extract the B_c decay constant. We perform a model-independent calculation, based on QCD, of the partial width and various kinematic distributions. We also examine the decay within the framework of NRQCD, an effective field theory of nonrelativistic quarks, generalizing the NRQCD Lagrangian to include external sources for the weak and electromagnetic currents. Finally, we comment on the role of the B_c* intermediate state for very soft photon energies.Comment: 15 pages, including 5 embedded postscript figures, uses REVTeX; various clarifications added, results and conclusions unchanged; version to appear in Phys. Rev.

Quenched Chiral Perturbation Theory for Heavy Baryons

Heavy baryon chiral perturbation theory is extended to include the effects of quenching. In this framework the leading nonanalytic dependence of the heavy baryon masses on the light quark masses is studied. The size of quenching effects is estimated by comparing the results of quenched and ordinary chiral perturbation theories. It is found that in general they can be large. This estimate is relevant to lattice simulations of the heavy baryon masses.Comment: 14 pages, 5 figures, uses REVTe