No. 6 Tracking the value of intangibles Perspectives on access tomedicines and IP rights p. 2 p. 7 Regulating machinedata: less is more forglobal growth p. 27 Table of Contents 2Tracking the value of intangibles7Perspectives on access to medicines and IP rights14Embraer: Brazil’s pioneering aviation giant22Innovative app enables social inclusion and boosts literacy27Regulating machine data: less is more for global growth31Trade secrets: the hidden IP right35“Brexit” passes EU trademark test Editor:Catherine Jewell © WIPO, 2017 Attribution 3.0 IGOlicense (CC BY 3.0 IGO) The user is allowed to reproduce, distrib-ute, adapt, translate and publicly performthis publication, including for commercialpurposes, without explicit permission,provided that the content is accompa-nied by an acknowledgement that WIPOis the source and that it is clearly indi-cated if changes were made to the orig-inal content. Adaptation/translation/derivatives shouldnot carry any official emblem or logo,unless they have been approved and val-idated by WIPO. Please contact us viathe WIPO website to obtain permission. When content published by WIPO, suchas images, graphics, trademarks orlogos, is attributed to a third party, theuser of such content is solely respon-sible for clearing the rights with theright holder(s). To view a copy of this license, please visithttps://creativecommons.org/licenses/by/3.0/igo Acknowledgements:7Marco Aleman, Patent Law Division,Thomas Bombelles, Departmentfor Transition and Developed Countries, WIPO14Victor Vazquez Lopez, Department for Transition and DevelopedCountries, WIPO22Kaori Saito, Human Resources Management Division, WIPO27Paolo Lanteri, Copyright Law Division, WIPO31Marco AlemánandTomoko Miyamoto, Patent Law Division, WIPO35David Muls, Brands and Designs Sector, WIPO Cover images:Left to right: springtime78 / iStock /Getty Images Plus; StockPhotosArt /iStock / Getty Images Plus; Courtesy ofEmbraerMain image:Wenjie Dong / iStock / Getty Images Plus One third of the valueofthe products you buy comesfrom intangibles such astechnology and branding. Tracking the valueof intangibles What is intellectual property (IP) worth? A new report from WIPO includes freshevidence. Lead authorCarsten Fink, WIPO’s Chief Economist, explains. ByToby Boyd,Communications Division,WIPO The latestWorld Intellectual Property Reportexamines the role ofintangible capital in global value chains. What exactly does that meanand why is it important? Let’s start with global value chains. These days, products are manufactured all over theworld and production is global. Your smartphone, for example, includes lots of differentcomponents made in factories in different parts of the world. Some microprocessorsmay be made in the Republic of Korea, the screen may be made in the United States,other parts elsewhere, and then they may all be sent to another factory in China forassembly and packing before being shipped off to retailers and, ultimately, consumers. The idea of the global value chain basically relates to the production process, fromthe conception of a product through to its delivery to the consumer. It means lookingat the product supply chain in its broadest sense and measuring the value that iscontributed at each stage in that chain. And what about intangible capital? Going back to our example of the smartphone, the value of different components of aphone consists of far more than its physical parts. A huge amount of the value comesfrom intangibles – things like the design of the phone, all the technology behind it,including the skills and knowledge of those who make it, and the way it is branded.Even the design of the box the phone comes in may be a valuable asset for the phonemanufacturer, helping to distinguish their phone from that of competitors. Intangibles can be hard to measure – they are, after all, things that you literally can’tput your finger on – but they are crucial to the look, feel, functionality and appeal ofsmartphones and the other products we buy. In this edition of theWorld IntellectualProperty Report, we seek to shed some light on just how much these intangibles areworth, in their various forms, and the role they play in the production process. That sounds challenging. How did you go about it? There were two main strands to our research. First, we sought to calculate the valueof intangibles at the macroeconomic level to put a figure on their overall worth. It wastechnically challenging but we worked with a team of researchers at the University ofGroningen who assembled data on global value chains for manufactured productscovering around one-quarter of global output. Intangiblesare key toseizing newopportunitiesin the coffeemarket In particular, the Groningen team estimated the valueadded within the global value chains of 19 different man-ufacturing industries. Value added basically means thedifference between what goes in and what comes out ateach stage of production. The fin