An ICC statement on the proposed EC directive harmonizing utility models says the initiative fails to provide a fair balance between the rights of the innovator and the rights of any third party wishing to introduce a similar technology.

The "utility model" is an intellectual property right that is easier to obtain than a patent, but may provide weaker protection. ICC believes that the enforcement potency of any intellectual property right granted should be in line with the contribution made by the innovation. For example, an innovation introducing a completely new concept should have greater protection than one which merely moves a process a logical stage forward.

ICC, however, fears that the current proposal would allow an intellectual property right with the same strength as a patent to be obtained under much easier conditions. The EC draft Directive is proposing a simple registration system for obtaining an intellectual property right for an innovation, the statement explains.

But while innovations must display an "innovative step" to qualify for a patent, this will not be necessary to qualify for the protection of a utility model.

ICC, which supports efforts to harmonize national intellectual property laws, believes the EC proposal could become acceptable if changes were made to it. These would include making it harder to obtain the right in the first place, and possibly reducing the potency of the right itself.

ICC, which represents thousands of member companies and associations from over 130 countries, believes that the protection of intellectual property stimulates international trade and investment, and encourages transfer of technology, both essential for economic growth.