[Ecommerce] Notes from first day of WIPO General Assembly (September 27, 2004)

[Thiru Balasubramaniam]

Notes from September 27, 2004

These are my notes from the first day of the WIPO General Assembly.

Thiru Balasubramaniam
Geneva Representative
CPTech

-------------------------------------




Director-General Kamal Idris: The Director General noted that the Policy
Advisory Commission (PAC) and the Industry Advisory Commission (IAC) are
think tanks that provide policy guidance to WIPO. The DG emphasized the
role of WIPO in domain name arbitration. He called for the adoption of a
revised trademark treaty. He urged that the patent system should be
available to all. The DG indicated that 12 WIPO Member States
implemented 12 national and regional action plans. With respect to PCT
fees, he remarked that they were the main source of income for WIPO.
Thus, the International Bureau was in support of higher patent fees to
compensate for the shortfall in its revenue. Perhaps the most
significant point of the DG=92s introductory remarks was his conviction
that harmonization and development were not mutually exclusive.

Deputy Director-General Rita Hayes (Copyright and Related Rights and
Industry Relations): Mrs. Hayes noted that everything in WIPO=92s program
of work is inter-connected. She asserted that a strong copyright system
of protection is needed for economic development. She stated that small
and medium enterprises (SMEs) are a key sector for WIPO Member States=92
economies.

Deputy Director-General Philippe Petit (External Relations and
Cooperation with Certain Countries in Europe and Asia): Deputy
Director-General noted that WIPO has cooperated with WTO since 1996 on
technical assistance on intellectual property and transfer of
technology. At the request of the World Health Organization, WIPO is
cooperating with WHO Commission on Intellectual Property and Health (CIPIH)=
.

With respect to WIPO=92s financial situation, Mr. Petit noted that unlike
other UN agencies, WIPO=92s income is subject to market fluctuation.
Member States contribute 7% of WIPO=92s budget. PCT fees make up 76% of
WIPO=92s budget. From 1997-2003 there was a reduction in PCT fees by 40%.
After 2001, PCT income decreased. The actual number of PCT applications
was 30,000 less than projected by the International Bureau. Currently,
there is an income shortfall of 70 million Swiss Francs (CHF). To
mitigate this, WIPO seeks to rein in its expenditures. These cost saving
measures are expected to save 30 million CHF. The IB indicates that if
PCT fees are increased by 12% in 2005, the expected revenue would be
raised by 20 million Swiss francs. Thus, the budget deficit of 70
million CHF would be reduced to 20 million CHF.

Mr. Petit noted that WIPO=92s construction program did not create the
budget deficit. The decrease in PCT fees was responsible. If PCT fees
are not increased, WIPO will have to tap into its reserves. With respect
to WIPO=92s construction program which was approved by its Member States,
two companies were awarded building contracts. It was later discovered
that these two companies could not work together. According to Mr.
Petit, building will resume in 2005. WIPO will evacuate from its
prestigious Chambesy site.

Deputy Director-General Geoffrey Yu (Economic Development Sector): Mr.
Yu noted that 34,000 people were reached by WIPO training seminars. WIPO
works on demand with full consent of relevant Member States. Social and
cultural values must be realized as well. The International Bureau has
had dialogues on free and open source software.

--
WIPO Member States=92 interventions

Canada, on behalf of Group B (15 original European Community states,
Japan, USA, Canada, Australia, New Zealand, Switzerland and some others):

=93Group B members believe WIPO=92s work should help support the
multilateral development of intellectual property, not as an end in
itself, but as a means to help achieve the economic, social and cultural
well-being of individuals and societies across the planet. In that
light, we are pleased to see paragraph 6 of the Secretariat=92s
Performance Report emphasize that =91WIPO=92s strategic goals should also b=
e
viewed in the larger context of the UN Millenium Declaration adopted by
the UN General Assembly in September 2000, placing the eight Millenium
Development Goals at the heard of the global agenda.=92

This is consistent with the 1974 Agreement between WIPO and the United
Nations, which notes in Article 1 that WIPO is responsible for: =91
=85promoting creative intellectual activity and for facilitating the
transfer of technology related to industrial property to the developing
countries in order to accelerate economic, social and cultural development=
=85=94

The representative from Canada noted that =93the overarching strategic
goals already set out by WIPO are the right ones. WIPO should continue
to exploit its core competencies to build a better understanding of
intellectual property, to develop the IP system, and to enhance the
efficiency of the Secretariat and the services it provides. These are
all areas in which WIPO must be successful if the Organization is to
play a strong supporting role in the United Nations system toward
achieving the internationally agreed development goals, including those
contained in the UN Millennium Declaration.=94

Group B strongly urged the =93General Assembly to set our patent
discussions back on track by approving the proposal by the US and Japan
to establish a more manageable, yet sufficiently comprehensive, new work
plan for the Standing Committee on Patents.=94

The Group B delegations were =93optimistic that, later this week, the WIPO
General Assemblies will be in a position to enable convening future
diplomatic conferences on the protection of broadcasting organizations.=94

Group B noted that WIPO=92s work should =93not duplicate or contradict the
work of other specialized UN agencies=94 with respect to internationally
agreed development goals.

Group B expressed serious concern about WIPO=92s financial situation. With
respect to the proposal to increase the fees for PCT filings, there
remained within Group B, =93strong reservations as well as strong
opposition, due to insufficient information and justification provided
to warrant its approval.=94

Trinidad and Tobago: The Minister from Trinidad and Tobago conveyed
their condolences on the passing away of Arpad Bosch (Former DG of WIPO).

There exists a prevailing view that IPRS are only good for developed
countries and multinationals. However, the Minister says that the onus
is on developing countries to protect their own IPRs. The Minister
extended his gratitude to WIPO for technical assistance.

Egypt, on behalf of the African Group: The UNCTAD XI raised the issue of
policy space. WIPO must not ignore demands from civil society
organizations to protect public health. The African Group repudiated a
one size fits all approach to IP protection. IP rules must be
implemented but must take into consideration the costs and benefits of
various approaches.

Egypt noted that technical assistance must be geared towards building an
IP infrastructure and flexibilities in order pursue public policy
objectives. Egypt noted the increasing role of open collaborative
development projects. Egypt remarked that almost 10 years had passed
since the passage of the TRIPS Agreement. Further development of IP was
only suitable if it addressed public policy concerns. Egypt noted that
it was critical to incorporate the development dimensions into WIPO=92s
program of work.

Venezuela: WIPO must take into account the UN Millennium Development
Goals. Venezuela noted that there is a need for cooperation on
traditional knowledge, genetic resources, and small and medium sized
enterprises. Venezuela remained convinced that patent harmonization
would adversely affect developing countries. The costs outweigh the
benefits.

Senegal: Senegal supported the intervention by Egypt on behalf of the
African Group. Senegal supports the collaboration between WIPO and WHO
collaboration. Senegal wants to ensure that there is a better balance
between IPRs and public interest.

Morocco: Morocco indicated its concern with the financial situation of
the Organization. Morocco noted the curious state of finances. Since
there was a 40% decrease in the PCT filing fees, Morocco agreed to a
temporary increase in PCT fees. Morocco and the US signed an Free Trade
Agreement in June 2004. This FTA contains an IP chapter. Reassert
Morocco=92s commitment to participate in WIPO activities.

Italy: Italy noted that the European Community acceded to Madrid
Protocol on Trademarks. Italy awarded WIPO DG Kamal Idris the
Intellectual Property Culture Prize in May 2004. This ceremony took
place in Venice. This venue is significant as 530 years ago, Venice
awarded the first patent.

Zambia: Zambia acknowledged the statement of African Group regarding PCT
fees. Zambia noted that IP has a key role in development but it should
be seen in a wide context encompassing economic, social and cultural
goals. Developing countries have not really benefited from IP
protection. Zambia supported the higher PCT fee proposal by the
International Bureau.

Pakistan on behalf of the SAARC countries: The SAARC countries expressed
concerns with the IP system grouped around three clusters. The first was
the negative impact on the price on essential goods including
pharmaceuticals and educational software. The second concern was the
persistent misappropriation of traditional knowledge and the lack of
benefit sharing. The third concern was the ability of countries to
innovate and be competitive amidst the clarion call for maximalist
intellectual property protections. Certain aspects of IP posed
undesirable effects.

Benin, on behalf of LDCs: The representative from Benin thanked WIPO for
technical assistance. Intellectual Property acts as a lever for foreign
direct investment. The combined population of 50 LDCs numbers 700
million. The LDCs supply less than 1% of the world=92s GDP. Development is
first and foremost. WIPO has important role in knowledge transfer.
System must benefit all. TRIPS obligations for are nearing. TRIPS
implementation will incur costs.

India: India associated itself with Asian Group and SAARC group
statements. WIPO has a challenging task as a specialized agency of the
UN. One must not forget its raison d=92etre, societal benefit. WIPO must
address concerns of developing countries. India has made strides the
software pharmaceuticals sector. Each country needs sufficient
flexibility within their IP regimes so the costs don=92t outweigh
benefits. The time has to take heed of public interest and health
concerns. With respect to the protection of broadcast organizations, a
broad consensus needs to be achievement before the convening of a
diplomatic conference. With respect of traditional knowledge, the
heritage of human civilization need full protection. India indicated
that there is a need for international protection against bio-piracy.
Emphasize public awareness, public interest, SPLT, Reform on PCT. India
noted that =93[T]oday=92s heresy becomes tomorrow=92s ideology. India exhor=
ted
that the International Bureau should not be rigid and adhere to strict
ideology.