The Green Economy: Trade and Sustainable Development Implications. From Rio to Rio:Technology Transfer, Innovation and Intellectual Property

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1 Ad Hoc Expert Meeting on The Green Economy: Trade and Sustainable Development Implications Geneva, Switzerland Nov 2011 From Rio to Rio:Technology Transfer, and Intellectual Property By Mr. Ahmed Abdel Latif Senior Program Manager, Intellectual Property and Technology, ICTSD The views expressed are those of the author and do not necessarily reflect the views of UNCTAD

2 Technology key in achieving sustainable development and a green economy From Rio to Rio : Technology Transfer, and Intellectual Property Ahmed Abdel Latif Senior Programme Manager, Technology and Intellectual Property UNCTAD Ad Hoc Expert Meeting on the Green Economy: Trade and Sustainable Development Implications Wednesday, 9 November 2011 International Centre for Trade and Sustainable Development The Rio Summit (1992) and Technology Transfer Technology transfer emphasized in Rio+20 submissions UNFCCC Technology Mechanism ( ) UNFCCC Technology Mechanism : a more dynamic approach to technology transfer Technology Mechanism?? Green Fund Governance? Increased R&D cooperation International and National Technology Action Plans Facilitation of a network of technology centers Strengthening of national innovation systems Partnerships Technology Executive Committee (TEC)? Climate Technology Centre and Network (CTCN) Host? However, these factors should be taken into account: Diversity of technological needs Need to build on national efforts

3 and UNFCCC Technology Mechanism Green innovation Priority Areas: Strengthening of national systems of innovation and technology innovation centers Technology Mechanism Aim: to accelerate the innovation and diffusion of ESTs and stimulate cooperative research and development US India Solar Plan China Five Year plan Green Technology Executive Committee Climate Technology Centre and Network Facilitate networks and international partnerships to accelerate the innovation and diffusion of ESTs Korea OECD UAE RIO+20= Global Green and Technology Partnership (GGITP) GGITP Accelerate technology development and transfer Encourage green innovation Diffusion of publicly funded R&D and publicly owned technologies Formulation of policies and programs for the effective transfer of ESTs that are publicly owned or in the public domain (Chap. 34, Agenda 21). Technology and R&D are not just in the hands of the private sector. A significant share of R&D is funded by governments and carried out by a multitude of public bodies (research centers, universities etc). This is even more so in developing countries. ICTSD Rio+20 Submission Promote collaboration Facilitate network of green technologies centers Should the results of publicly funded research be disseminated on the same basis as privately funded research? Example of EU: publicly funded research should be widely disseminated through open access publication of scientific data and papers (EU digital Agenda ). Open Greater regional and bilateral cooperation: the case of clean energy US China Clean Energy Forum EU India Solar Energy cooperation IBSA US India Clean Energy Partnership (PACE) China India Climate Cooperation Accord Some possible key messages for RIO+20 on Technology Transfer Technology transfer should figure prominently in Rio+20 outcome The conference should welcome and support the creation of the UNFCCC Technology Mechanism. Emphasize the importance that the Mechanism is endowed with the necessary financial resources. Call for the rapid operationalisation of the Mechanism Examine the replicability of the UNFCCC Technology Mechanism to green technologies while avoiding duplication Pay special attention to the diffusion of publicly funded/owned R&D/technologies Harness regional and bilateral cooperation Make South South cooperation a bigger reality

4 Intellectual Property, and Technology Transfer (1) Intellectual Property, and Technology Transfer Article 7 of TRIPS: Objectives The protection and enforcement of intellectual property rights IP should contribute to the promotion of technological innovation and to the transfer and dissemination of technology, to the mutual advantage of producers and users of technological knowledge Green Exchange Open Open Eco Patent Commons Practical Measures LDCs Technology Diffusion and Transfer High Middle Income Developing Countries and in a manner conducive to social and economic welfare, and to a balance of rights and obligations Fast tracking green patent applications IPC Green Inventory (WIPO) New clean energy patent classification (EPO) TRIPS Art 66.2 Licensing IP already mentioned in Chapter 34 of Agenda 21 (1992) Purchase of patents and licenses on commercial terms for their transfer to developing countries on non commercial terms, taking into account the need to protect intellectual property rights; In compliance with and under the specific circumstances recognized by the relevant international conventions adhered to by States, the undertaking of measures to prevent the abuse of intellectual property rights, including rules with respect to their acquisition through compulsory licensing, with the provision of equitable and adequate compensation; Reorienting IP regime towards diffusion of technology as opposed to innovation alone PAKISTAN The promotion of a global IPRs regime Open that facilitates the transfer of such technologies, in keeping with the commitments undertaken by each country LAC REGION it is essential to remove IP barriers so that there might exist a true transfer of environmentally friendly technologies from developed countries to developing countries.. All forms of IP over life should be abolished BOLIVIA IP in Rio+20 submissions Consideration must also be given to the role of patent protection and IPRs along with an examination of their impact on the access to and transfer of environmentally sound technology, in particular to developing countries G77 and CHINA IP plays a significant role in fostering technological innovation. Brazil recognizes international protection of IPRs provided for primarily in the WTO TRIPS Agreement. Brazil also recognizes that in some cases IP can create barriers to the dissemination and transfer of clean or socially relevant technologies, such as medicines. Proposals like patent pools and funds to finance the transfer of clean technologies and their development in developing countries offer promising opportunities and should be discussed. However, these solutions shall not replace the flexibilities built into the IP international regime. BRAZIL Stalemate on IP at the UNFCCC negotiations Why this stalemate? Disagreements have focused on whether IPRs are a barrier to the transfer of clean technologies or an essential prerequisite to promote innovation, technology development and transfer. No reference to IPRs in Cancun final decisions IPRs issues raised at first meeting of TEC (September 2011) Proposal by India to add IPRs to the agenda of the Durban COP, October, 2011 Durban COP? Analogy with public health and access to medicines has its limitations. Empirical evidence is both limited and recent. Maximalist views came to dominate the debate preventing the emergence of a balanced and objective discussion. Growing importance of intellectual property in the green energy race

5 UNEP EPO ICTSD Report on Patents and Clean Energy Peer reviewed by IPCC experts ERI (China) ECN (Netherlands) TERI (India) ICC WBCSD LESI Relative growth rate for selected clean energy technologies Countries leading patenting activity in clean energy technologies Licensing Survey in Clean Energy Technologies Part A: General questions Proportion of CET related patents Importance and trends in in and out licensing activities Collaborative IP mechanisms, importance for overall business strategy Limited Licensing towards developing 'To what extent has your organisation entered licensing agreements that involve licensees (which are not majority-controlled subsidiaries) based in developing countries in the last three years?' Part B: Developing countries (DCs) Licensing activities in DCs? Which ones? Factors affecting licensing agreements in DCs? Flexibility of licensing terms in DCs? Part C: General statistics Type of organization, country of headquarter, size, CET fields, R&D

6 BRIC countries important for licensing With which countries has your organisation been most involved in licensing or other commercialization activities of intellectual property in the field of CETs More lenient licensing terms towards developing countgries 'When entering into an out-license agreement wth parties that are based in developing countries, to what extent do the monetary terms of your license reflect your willingness to introduce greater lenience due to differences in the purchasing power of the parties? Factors affecting Licensing with developing countries When your organisation is making a decision whether or not to enter into a licensing or co-operative development agreement with a party in a developing country, to what extent would the following factors positively affect your assessment? Some possible key messages for Rio+20 on IP Global IPRs regime should facilitate the transfer and diffusion of green technologies and ensure affordable access to them Recognition of important role of IP protection in promoting technological innovation and of concerns regarding possible adverse effects of IPRs on the transfer of green technologies to developing countries Call for more empirical evidence regarding possible impact of IPRs on the transfer of green technologies to developing countries by technology, sector and country. Recognition of international commitments including rights, obligations and flexibilities contained international IP instruments Start by examining practical issues to build trust such as: Fast tracking of green patent applications Improving availability of patent information on green technologies Improving availability of technological information in the public domain Encouraging more licensing of clean energy technologies to developing countries patent pools/funds Thank you Ahmed Abdel Latif ICTSD Follow us on Twitter: ICTSDIP Find us on Facebook:, Technology and IP Programme (ICTSD)

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