Patents and Clean Energy Technologies in Africa

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1 Patents and Clean Energy Technologies in Africa

2 UNEP - EPO: Patents and Clean Energy Technologies in Africa United Nations Environment Programme (UNEP) Division of Environmental Law and Conventions (DELC) international environmental law, governance and policy. supports governments for environmental challenges European Patent Office (EPO) one process for patent protection in up to 40 European countries. "patent information" - publication of patent documentation Patent rights subject of much discussion in climate change debate Rio conference 1992; Rio "plus 20" conference in 2012

3 Issues in the UNFCCC negotiations Climate Change Mitigation Technologies (CCMT) and IPR Issues Solutions under discussion IPRs a barrier for technology transfer into DCs? Facilitating access for DCs? ('Doha-type' approach) IPRs an incentive to innovate and a tool to bring inventions to the market? Capacity building? Alternative approaches to IPR? What are CCMT, who owns them and what are their licensing practices and intentions? Who defines what is environmentally relevant and how? (Unintended) consequences? Lack of empirical evidence!

4 The "social contract" implicit in the patent system Reveal invention Get exclusivity so that others can learn from it and improve upon it! Exclusively - limited to maximum of 20 years - geographically limited

5 Patents and Clean Energy Technologies (CET) in Africa Africa has vast untapped potential for clean energy technologies Hydro-electric, solar, geothermal, wind, biomass... Global patent system Legal protection for inventions in exchange for disclosure EPO Patent Information system 88 mio. patent documents available worldwide via the internet, free of charge EPO's Y02 classification "tagging" of climate change relevant technologies Patent applications patent applications relating to Clean Energy Technology Less than 1% of CET patent applications filed in Africa

6 Patent Filings World Wide (Les Echos 11 avril 2013)

7 Geothermal hot springs, Lake Bogoria, Great Rift Valley - already extensively used for electricity generation in Kenya!

8

9 Wind energy farm in Morocco

10 African patenting activity increasing more rapidly Global growth rate in the field of mitigation technologies: 5% African growth rate increased at a faster rate: 9% Growth rate for mitigation technology in specific areas Africa has been as high as 59%! inventive activity in Egypt, Algeria, Morocco and Kenya high on renewable energies

11 Example: The Kyoto effect Figures refer to claimed priorities.

12 Patenting in Africa by Inventor Country: (Patent applications registered at African patent offices, by country of the inventor)

13 An example of Climate Change ADAPTATION Technology Solar powered irrigation system supplies water to crops

14 Adaptation technologies a statistical analysis Inventive activity in Africa focuses on water desalination (45%), energy supply in remote locations (25%) solar water treatment (14%) rainwater collection (7%) and solar/wind-powered water pumping (7%) African share in worldwide inventive activity is very low (0.26 %) a higher share of African inventors seek protection in Africa (81 %) only 1 % seek protection worldwide Increased from 1980 to 2009 by 17 % per year on average

15 Inventive Activity in Africa: (Africa only) (Selected mitigation technologies - Y02; Number of priorities)

16 Relative Technological Advantage of Africa (Mitigation Technologies Y02)

17 Co-invention patterns a statistical analysis Co-invention indication for international co-operation : 12 % of mitigation technologies worldwide only 9 % of all inventions worldwide 23% of African mitigation inventions (with OECD countries) Almost no intra-african co-invention Africa s most frequent partners US, UK, Belgium, Germany, Sweden, France and Canada Adaptation technologies little co-invention mostly in desalination primarily with South Africa

18 European Patent Organisation - Quality patents for Europe and beyond? 38 member states Extension agreements for 2 states 4000 patent examiners 40 years of EPO - originally only 7 member states EPO - largest PCT search authority (40%) for up to 146 contracting states in PCT system African patent applications increasing rapidly - how to maintain quality? Quality patents - only granting temporary exclusive rights via patents for genuine technical inventions Approx. half of all patent applications at EPO are refused or withdrawn The scope of protection of those granted mostly reduced during examination process

19 Objectives of the global patent system To support innovation by : enabling technology developers to protect their investments; promote the dissemination of technical information by legally obliging inventors to publicise their inventions; allowing research and development activities to build upon existing inventions; establishing a framework for technology transfer, both locally and globally through licensing.

20 Patent rights and Technology Transfer Important factors for technology transfer access to real know-how from source companies (often "Trade secrets") suitably skilled staff scientific infrastructure favourable market conditions finance

21 General findings (EPO/OECD survey 2007) 20% of European patent owners license out Firm size: licensing activity U-shaped Companies from Nordic countries and UK license out more Motives for licensing out patents: 1. Earning revenue 2. Entering into cross licensing deals 3. Stop others from infringing your patents 4. Sharing technology with other companies Obstacles to licensing: 24% of patenting firms are willing to but not able to license Difficulty in finding licensing partners

22 Willingness to greater lenience versus DCs 'When entering into an out-license agreement with 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?' Licensing terms are more flexible, 50% Licensing terms are much more accommodating, 15% No difference in licensing terms, 30% Licensing terms are substantially more accommodating, 5%

23 Conclusions Africa has vast potential for clean energy technologies mostly unused! Global patent system enables technology developers to protect their investments less than 1% of CET patents filed in Africa technical information available for 88 mio. patent applications 1,5 mio relevant to CET As patent applications in Africa increase, maintain quality! Summary and full report

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