1. Recognizing that some of the barriers that impede the diffusion of green technologies include:

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1 DATE: OCTOBER 21, 2011 WIPO GREEN THE SUSTAINABLE TECHNOLOGY MARKETPLACE CONCEPT DOCUMENT

2 EXECUTIVE SUMMARY 1. Recognizing that some of the barriers that impede the diffusion of green technologies include: Inadequate networks for sharing information, including relevant patent data, know-how and associated technologies; Lack of a focal information point where prospective partners can learn of ongoing work and capabilities in specific areas. 2. Recognizing the policies and instruments within the United Nations Framework Convention on Climate Change (UNFCCC), in particular the Technology Mechanism created in Cancun in December The World Intellectual Property Organization (WIPO) 1 in collaboration with industry, in particular the Japan Intellectual Property Association (JIPA) 2, proposes improving the process for adaptation and diffusion of technology through the development of a platform facilitating partnerships and the marketbased exchange of green technologies. Importantly, the platform would benefit all developers and users of green technologies, anywhere in the world, and be specifically set up to support developing country access. 4. The Platform would serve as a partnership hub providing a forum where interested parties can meet and learn about available technology opportunities, as well as available funding for implementation and create networking opportunities. Specifically, it would provide the following services: a. A comprehensive database of environmentally sound technologies; b. Technology will be offered as a package, including know-how, services and materials. The terms of access for research, manufacture and/or sale will be governed by individually negotiated agreements; c. Formulated technology needs will be uploaded; and d. A range of specific supporting activities, such as facilitating partnering, negotiation of agreements, assistance in getting finance and accession to financing options as well as dispute resolution will be offered. 5. The key objective is that environmental technologies be adopted and deployed by as many parties as possible in developed, emerging and in developing countries. These technologies may contribute markedly to the worldwide efforts towards the establishment of a low-carbon society. The platform also aims at lowering barriers to diffusion and broader use, including inadequate information and networks as well as the lack of efficient licensing procedures. 1 WIPO is a specialized agency of the United Nations. It is dedicated to developing a balanced and accessible international intellectual property (IP) system, which rewards creativity, stimulates innovation and contributes to economic development while safeguarding the public interest. 2 JIPA is a non-profit, non-governmental organization, which has approximately 1190 members. It represents industries and users of the intellectual property (lp) system, and provides related institutions all around the world with well-timed, suitable opinions on improvement of their IP systems and their utilization. 2

3 THE CHALLENGE 6. In order to mitigate the impact of and adapt to climate change, the United Nations Framework Convention on Climate Change in Article 4 calls for all parties to promote and cooperate in the development, application and diffusion, including transfer, of environmentally sound technologies. A Technology Mechanism was agreed in Cancun in December 2010 fulfilling this commitment. The roles of the Climate Technology Centre and Network (CTCN) under this mechanism include sharing information and knowledge, building capacities and facilitating technology development, deployment and transfer. The services of the suggested platform aim to support and operate in conjunction with the CTCN in the future. Definition of Green Technologies 7. Environmentally sound technologies are described in Chapter 34 of Agenda 21 (The United Nations Programme of Action from Rio, 1992) as protecting the environment, are less polluting, use all resources in a more sustainable manner, recycle more of their wastes and products, and handle residual wastes in a more acceptable manner than the technologies for which they were substitutes. These include know-how, procedures, goods and services, and equipment as well as organizational and managerial procedures. Technology Transfer 8. Agenda 21 continues to describe the need for favourable access to and transfer of environmentally sound technologies, in particular to developing countries, through supportive measures that promote technology cooperation and that should enable transfer of necessary technological know-how as well as building up of economic, technical, and managerial capabilities for the efficient use and further development of transferred technology. Technology cooperation involves joint efforts by enterprises and Governments, both suppliers of technology and its recipients. Therefore, such cooperation entails an iterative process involving government, the private sector, and research and development facilities to ensure the best possible results from transfer of technology. Intellectual Property Rights 9. Intellectual Property Rights are a key enabler of innovation and serve the broader goals of diffusion and absorption of technologies. IP protection provides the commercial and economic incentives and assurances for firms and innovators and can, if well managed, be a driver in the sharing of technology and know-how. Private trade and investment activity, supported by IPR, typically involves local partners, the local talent pool, and local worker training, which is of particular importance in emerging and developing country economies. Private sector investment enables the development of local supply chains, and the sharing of good business practices and technological know-how. WIPO s Engagement 10. WIPO Green will contribute to the achievement of the Millennium Development Goals on ``Ensuring Environmental Sustainability and Developing a global Partnership for Development. 3

4 11. Recognizing that much needs to be done still to get the world closer towards reaching the Millennium Development Goals, WIPO s Member States agreed on a Development Agenda ( with which WIPO aims to ensure that development considerations form an integral part of WIPO s work. The primary areas where this initiative would reinforce the Development Agenda s goals include: To initiate discussions on how, within WIPO s mandate, to further facilitate access to knowledge and technology for developing countries and LDCs to foster creativity and innovation and to strengthen such existing activities within WIPO (section 19). To explore intellectual property -related policies and initiatives necessary to promote the transfer and dissemination of technology, to the benefit of developing countries (section 25) WIPO should cooperate with other IGOs to provide to developing countries, including LDCs, upon request, advice on how to gain access to and make use of intellectual property-related information on technology, particularly in areas of special interest to the requesting parties. (Section 30). The Technology Marketplace 12. WIPO is planning to provide a platform to establish frameworks to bring together the specific skills of different partners. Such frameworks are needed to develop mutually beneficial partnerships between developed and developing country enterprises, encourage market-based exchange of information and technology and encourage capacity building in order to stimulate innovation and allow for real technology transactions. The key elements elaborated below provide such a framework. 1) Partnership Hub 13. The platform would serve as a hub to connect various partners, including technology providers and users, the R & D community, both public and private, funding agencies and others interested in pursuing the development, manufacture and broader deployment of green technologies. 14. WIPO will also facilitate policy dialogue and capacity building workshops among partners and build broader participation and collaboration with the other WIPO programs and other UN organizations on the subject of innovation, technology transfer and access. 2) A Global, Comprehensive Information Database 15. Most environmental technologies are developed and owned by companies. The information on these technologies is scattered all over the world. As part of this initiative, WIPO will create and host a comprehensive database where technologies will be gathered. The user will be able to find various environmental technologies as well as challenges at once. 16. Displaying patents alone does not suffice to facilitate the diffusion of technology. The user will often encounter difficulties in implementing the technology on the basis of a mere patent license. Therefore, a unique feature of the platform is that technology will be offered, to the extent agreeable by the technology provider, as a package, including know-how, services and materials needed to implement the technology. 4

5 17. The basic underlying principle is for participants to register technologies and/or know-how that they want to make available on commercial terms. The terms of access, whether for research, manufacture, operation and/or sale will be governed by individually negotiated agreements. 18. Users could also formulate specific needs and the database would facilitate matching these with the technology providers. For instance, a user might be looking for technologies to induce sea water desalination appropriate to desert areas. A technology provider could offer corresponding technologies or customize them to the user s needs. In case the demand cannot be met by a single provider, the platform would enable communication between several technology providers to find a joint solution. 19. The database would be partly open to the global public. Registered users would be able to reach out directly to the technology provider for more information, and if appropriate, enter into a licensing, purchase or any other agreement. Registration would also be necessary to contact a user who posted a technology need. 3) Supporting Services: Licensing Negotiation, Financing and Management of Disputes 20. Recognizing that the current markets for green technologies are small in many countries, technology providers have to accept specific risks in order to explore such emerging and developing country markets. Such risks often act as deterrents, especially for small and medium size enterprises, since they can be too costly to warrant the investment of time and resources needed to build the necessary relationships and partnerships. Such risks, however, can be reduced and mitigated against through a range of measures. Licensing Negotiation 21. Licensing negotiations can be complex and time-consuming, both from the perspective of the customer and the provider of the technology or service. Although each license must be negotiated on its own merit, we can work with key partners to develop model clauses for licensors and licensees to use. 22. These basic licensing tools would be made available on the database. Creating standards for transparency and consistency in the negotiation of licenses with the good faith of patent holders will provide greater certainty to those seeking licenses, speed up the administrative process of deploying the proprietary assets and create economies of scale. Dispute Settlement 23. Parties may, if they so choose, use the WIPO Arbitration and Mediation Center for alternative dispute resolution. The arbitration, mediation and expert determination procedures offered by the Center are widely recognized as particularly appropriate for technology disputes involving intellectual property. If necessary, a tailored dispute resolution scheme might be developed. Financing 5

6 24. The Platform will facilitate access to third parties who offer financing deals including carbon credits, grants or guarantees. Examples might include: Payment to technology providers through a combination of payments and Carbon Credits. For example, the Clean Development Mechanism (CDM) allows emission-reduction (or emission removal) projects in developing countries to earn certified emission reduction (CER) credits. These CERs can be traded and sold to meet a part of the emission reduction targets under the Kyoto Protocol of entities or countries. Provision of credit for licensees or purchasers Credit Guarantee on transaction by major international financial institutions in the event of non-payment or unauthorized use of the technology. The financial guarantees will in turn be supported by the host country where the licensee is located, with commitments to strengthen the enforcement of industrial property rights (based on the Asian Cleantech Guarantee Facility business model). VALUE PROPOSITION 25. For users, the scheme might offer several benefits: GOVERNANCE One credible focal information point where prospective partners can learn of new technologies in specific areas worldwide It may expand technology options for users to solve their issues The Platform provides access to technology, technical assistance as well as licensing and financial support Expand business opportunities as the platform will facilitate reaching out to potential partners globally Reputational benefits as companies can show that they are proactively engaging in promoting the uptake of green technologies Reduced economic risks related to doing business with developing country partners The platform will provide a credible entry into the UNFCCC process, specifically the Technology Centres & Networks 26. The governance structure must ensure effective decision-making and costeffective implementation. A small Secretariat hosted by WIPO will have a coordination and outreach role and would work with technical resources within WIPO to ensure its functionality and accessibility. 27. Establishing mechanisms to support the functioning of WIPO Green is planned. These mechanisms would provide inputs into the strategies of the Platform, and plan and undertake programs for the promotion, effective use and funding of the mechanism. These mechanisms would be comprised of selected international organizations, industry bodies and companies and representatives of civil society and non-governmental organizations working on environmental issues. CALL FOR PARTNERS 6

7 28. The database would rely on voluntary contributions by companies. It will not require forced contributions or sharing of patents and/or other forms of IP. Its success will depend on their willingness to provide high-quality green technologies and tailored, innovative solutions. Participants are expected to offer both protected and associated information that are potentially relevant to deploy the technologies. 29. This proposal seeks the support of the following potential partners: Governments Companies; Business Associations; UN and other Intergovernmental/Multilateral Institutions (such as the Secretariat of the UNFCCC, UNDP, UN DESA, UNIDO, GEF, the World Bank, and others); Research organizations (private and public/government organizations) as well as academic institutions; National and Regional Patent Offices; Philanthropic Foundations; Funding Agencies; and, Non-governmental Organizations and Policy Leaders. For more information, please contact World Intellectual Property Organization (WIPO) Global Challenges Division 34, chemin des Colombettes 1211 Geneva 20 Switzerland Tel. : wipo.green@wipo.int 7

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