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Innovation, Science and Technology, and
Development: Strategic Considerations for
              IP Negotiations
      First Annual G77 and China Course for
   Developing Country Negotiators: The Strategic
            Dimensions of Negotiations
             November 19-20, 2012
                    Geneva
                  Nirmalya Syam
Innovation
Technological change that leads to the introduction
  of new or improved products and processes

 R&D
 Absorption, diffusion and transfer of technology
 Reverse engineering
Stages of Technological Development
 Initiation stage: Technology imported as capital
  goods
 Internalization stage: Local firms learn through
  imitation under a flexible IPR regime
 Generation stage: local firms and institutions
  innovate through their own R&D
The Relevance of IP

 IP  an incentive to reward inventors and creators 
  to benefit society through the use of such
  inventions and creations and foster scientific and
  technological progress
  this court has consistently held that the primary
  purpose of our patent laws is not the creation of
  private fortunes for the owners of patents but is to
  promote the progress of science and useful arts ...
  (US Supreme Court in Motion Picture Patents Co., vs.
  Universal Film Mfg. Co. (243 U.S. 502, p.511, 1917))
The Relevance of IP

    IP does not mean innovation, it may deter innovation
      - Access to and diffusion of manufacturing
    technologies
       - Access to technologies for climate change
The Relevance of IP

 Innovation and creativity also require competition
  and follow-on innovation and creativity
 Governments in formulating IP policy need to
  balance between:
   - Providing IP protection
   -          Providing access by competitors and
   consumers
 IP policy should be coherent with public policy
  areas of education, health, agriculture,
  environment, local employment, etc.
Striking a Balance
   The extent to which IP should be protected varies with the level of
    development of the country, priorities identified and among
    sectors.

   No 束 one-size-fits-all 損 model IP law

   Historical evidence: (Europe, USA, Rep. Korea)
     - Early stages of technological development require broad public
        domain for indigenous learning
     - Advanced stages of development require higher level of
        protection of technological assets
     - Even technologically advanced economies depend on
        competition and follow-on innovation
Development Oriented IP Policy - Challenges
   IP policy has to be integrated into different aspects of national
    development policies
   IP regimes must be in accordance with the realities of developing
    countries
      innovation systems are fragmented and weak, and depend
        overwhelmingly on foreign innovations
      very limited public sector investment in scientific activities
      domestic firms generate 束minor損 or 束incremental損
        innovations derived from the routine exploitation of existing
        technologies
Development Oriented IP Policy - Challenges

 Lack of local expertise
 Technical assistance  lack of appropriate
  development orientation
 Limited coordination on IP issues between related
  government departments
 Coercion exerted by developed countries to deter use
  of flexibilities and inappropriately raise standards of IP
  protection and enforcement
 Different components of IP (patents, trademarks,
  designs, copyright) may warrant different approaches
IP discussions in Multilateral Forum
                                                               WTO
Ideal framework                                   WIPO                   UNFCC
for cooperation:
                                     ITU                                             UNAIDS



                          UNCTAD                                                              UNDP
Millennium
Development
Goals                  ISO                                                                         Interpol


                       UN                                                     Bilateral &
                                                               IP
                     Human                                                    Regional
                                                                               Trade &               WCO
                     Rights
Reality:             bodies                                                  Investment
                                                                             Agreements
Focus on                 CBD                                                                       UPU
increasing IP
protection &
                               FAO                                                          UNEP
enforcement
..but                                      UPOV                               UNESCO

CHANGING                                                 WHO         UNIDO
Variety of issues:
Traditional focus on   Access, Affordability     Production of        Access to global       Missapropriation of
increasing standards   and availability of       medicines for        public goods, i.e      genetic resources
of protection and      medicines  WIPO,         diseases that        clean air and          and associated
enforcement of IPRs    WTO TRIPS                 mainly affect poor   water  WIPO,          traditional
and harmonization      Council, WHO              countries  WHO      UNFCCC, UNEP           knowledge  WTO
                                                 CEWG, GSPOA.                                TRIPS Council,
                                                                                             WIPO, CBD,
                                                                                             Nagoya Protocol

Impacts of patents     Commodification           Traditional          Erosion of genetic     Anti-competitive
and PVP on small       and privatization of      knowledge            resources leading      practices
scale farming and      life forms, i.e. plants   owners not           to loss of diversity   associated with IP
sustainable            and animals              rewarded and or      in animal and          use, i.e. refusal to
agriculture  WIPO,    WIPO, WTO                 respected           plant varieties -      license - WIPO
WTO, UPOV                                        WIPO IGC             WTO TRIPS
                                                 GRTKF, WTO           Council, CBD
                                                 TRIPS Council

IP-related technical   Lack of impact            Impact of IP         Lack of focus on       Role of
assistance             assessment of IP on       strategies of big    improving              collaboration and
insufficient or        development              business on          commercialization      non-IP, i.e. open,
inappropriate         WIPO CDIP                 SMEs - WIPO          and marketing of       models for
WIPO, WTO                                                             technologies           innovation - WIPO

Unforeseen             Access to cutting         Inoperability of     Access to              The scope of fair
consequences of        edge technologies         technologies and     research and           use of copyrighted
over IP-enforcement    for economic              systems due to IP    educational            works in digital
 WIPO ACE, WCO,       development              in standards        materials  WIPO       form and sharing
INTERPOL               WIPO, UNFCCC              WIPO, ITU            SCCR                   over the Internet 
                                                                                             WIPO SCCR
Important Issues in Relevant Fora
   WIPO  Mainstreaming development orientation in the technical
    assistance activities and norm-setting processes in WIPO;
    Implementation of the WIPO Development Agenda
   WTO, TRIPS Council  Retaining maximum flexibility in designing
    laws and regulations for IP protection and enforcement;
    interface with CBD;
    UNFCCC  The role of IPRs in relation to ensuring transfer of EST
    to developing countries
   WHO  Implementation of the GSPOA-PHI; CEWG
    recommendations for an R&D Treaty; keeping IP enforcement
    out of discussions on quality, safety and efficacy of medicines in
    the SSFFC negotiations
   Bilateral Negotiations  Resisting TRIPS plus provisions
Negotiating Considerations
   Coherence with national policy objectives - In multilateral,
    regional or bilateral negotiations, the outcome agreements should
    support domestic policy making on IP in accordance with
    development priorities in various sectors, and not constrict this
    policy space

   Coordination - Greater coordination among developing country
    negotiators within and across various fora where IP is a critical
    issue
      - Coordination between negotiators in CBD/Nagoya Protocol,
        FAO, WTO and WIPO
      - Coordination among negotiators in WIPO, WTO and UNFCCC
      - Coordination on bilateral and regional trade and investment
        agreement negotiators on IP chapters/provisions
How Can South Centre Assist
 Facilitate involvement of think tanks, research institutions,
  academics and civil society from the South on issues of IP and
  development

 Preparatory meetings

 Involvement of SC experts in technical assistance programmes

 SC assistance on national IP issues
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G77 training

  • 1. Innovation, Science and Technology, and Development: Strategic Considerations for IP Negotiations First Annual G77 and China Course for Developing Country Negotiators: The Strategic Dimensions of Negotiations November 19-20, 2012 Geneva Nirmalya Syam
  • 2. Innovation Technological change that leads to the introduction of new or improved products and processes R&D Absorption, diffusion and transfer of technology Reverse engineering
  • 3. Stages of Technological Development Initiation stage: Technology imported as capital goods Internalization stage: Local firms learn through imitation under a flexible IPR regime Generation stage: local firms and institutions innovate through their own R&D
  • 4. The Relevance of IP IP an incentive to reward inventors and creators to benefit society through the use of such inventions and creations and foster scientific and technological progress this court has consistently held that the primary purpose of our patent laws is not the creation of private fortunes for the owners of patents but is to promote the progress of science and useful arts ... (US Supreme Court in Motion Picture Patents Co., vs. Universal Film Mfg. Co. (243 U.S. 502, p.511, 1917))
  • 5. The Relevance of IP IP does not mean innovation, it may deter innovation - Access to and diffusion of manufacturing technologies - Access to technologies for climate change
  • 6. The Relevance of IP Innovation and creativity also require competition and follow-on innovation and creativity Governments in formulating IP policy need to balance between: - Providing IP protection - Providing access by competitors and consumers IP policy should be coherent with public policy areas of education, health, agriculture, environment, local employment, etc.
  • 7. Striking a Balance The extent to which IP should be protected varies with the level of development of the country, priorities identified and among sectors. No 束 one-size-fits-all 損 model IP law Historical evidence: (Europe, USA, Rep. Korea) - Early stages of technological development require broad public domain for indigenous learning - Advanced stages of development require higher level of protection of technological assets - Even technologically advanced economies depend on competition and follow-on innovation
  • 8. Development Oriented IP Policy - Challenges IP policy has to be integrated into different aspects of national development policies IP regimes must be in accordance with the realities of developing countries innovation systems are fragmented and weak, and depend overwhelmingly on foreign innovations very limited public sector investment in scientific activities domestic firms generate 束minor損 or 束incremental損 innovations derived from the routine exploitation of existing technologies
  • 9. Development Oriented IP Policy - Challenges Lack of local expertise Technical assistance lack of appropriate development orientation Limited coordination on IP issues between related government departments Coercion exerted by developed countries to deter use of flexibilities and inappropriately raise standards of IP protection and enforcement Different components of IP (patents, trademarks, designs, copyright) may warrant different approaches
  • 10. IP discussions in Multilateral Forum WTO Ideal framework WIPO UNFCC for cooperation: ITU UNAIDS UNCTAD UNDP Millennium Development Goals ISO Interpol UN Bilateral & IP Human Regional Trade & WCO Rights Reality: bodies Investment Agreements Focus on CBD UPU increasing IP protection & FAO UNEP enforcement ..but UPOV UNESCO CHANGING WHO UNIDO
  • 11. Variety of issues: Traditional focus on Access, Affordability Production of Access to global Missapropriation of increasing standards and availability of medicines for public goods, i.e genetic resources of protection and medicines WIPO, diseases that clean air and and associated enforcement of IPRs WTO TRIPS mainly affect poor water WIPO, traditional and harmonization Council, WHO countries WHO UNFCCC, UNEP knowledge WTO CEWG, GSPOA. TRIPS Council, WIPO, CBD, Nagoya Protocol Impacts of patents Commodification Traditional Erosion of genetic Anti-competitive and PVP on small and privatization of knowledge resources leading practices scale farming and life forms, i.e. plants owners not to loss of diversity associated with IP sustainable and animals rewarded and or in animal and use, i.e. refusal to agriculture WIPO, WIPO, WTO respected plant varieties - license - WIPO WTO, UPOV WIPO IGC WTO TRIPS GRTKF, WTO Council, CBD TRIPS Council IP-related technical Lack of impact Impact of IP Lack of focus on Role of assistance assessment of IP on strategies of big improving collaboration and insufficient or development business on commercialization non-IP, i.e. open, inappropriate WIPO CDIP SMEs - WIPO and marketing of models for WIPO, WTO technologies innovation - WIPO Unforeseen Access to cutting Inoperability of Access to The scope of fair consequences of edge technologies technologies and research and use of copyrighted over IP-enforcement for economic systems due to IP educational works in digital WIPO ACE, WCO, development in standards materials WIPO form and sharing INTERPOL WIPO, UNFCCC WIPO, ITU SCCR over the Internet WIPO SCCR
  • 12. Important Issues in Relevant Fora WIPO Mainstreaming development orientation in the technical assistance activities and norm-setting processes in WIPO; Implementation of the WIPO Development Agenda WTO, TRIPS Council Retaining maximum flexibility in designing laws and regulations for IP protection and enforcement; interface with CBD; UNFCCC The role of IPRs in relation to ensuring transfer of EST to developing countries WHO Implementation of the GSPOA-PHI; CEWG recommendations for an R&D Treaty; keeping IP enforcement out of discussions on quality, safety and efficacy of medicines in the SSFFC negotiations Bilateral Negotiations Resisting TRIPS plus provisions
  • 13. Negotiating Considerations Coherence with national policy objectives - In multilateral, regional or bilateral negotiations, the outcome agreements should support domestic policy making on IP in accordance with development priorities in various sectors, and not constrict this policy space Coordination - Greater coordination among developing country negotiators within and across various fora where IP is a critical issue - Coordination between negotiators in CBD/Nagoya Protocol, FAO, WTO and WIPO - Coordination among negotiators in WIPO, WTO and UNFCCC - Coordination on bilateral and regional trade and investment agreement negotiators on IP chapters/provisions
  • 14. How Can South Centre Assist Facilitate involvement of think tanks, research institutions, academics and civil society from the South on issues of IP and development Preparatory meetings Involvement of SC experts in technical assistance programmes SC assistance on national IP issues