Notes from September 27, 2004

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

Thiru Balasubramaniam
Geneva Representative
CPTech

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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’s 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’s 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’ 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’s financial situation, Mr. Petit noted that
unlike other UN agencies, WIPO’s income is subject to market
fluctuation. Member States contribute 7% of WIPO’s budget. PCT
fees make up 76% of WIPO’s 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’s 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’s 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.

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WIPO Member States’ interventions

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

“Group B members believe WIPO’s 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’s Performance Report emphasize that ‘WIPO’s
strategic goals should also be 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.’

This is consistent with the 1974 Agreement between WIPO and the
United Nations, which notes in Article 1 that WIPO is
responsible for: ‘ …promoting 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…”

The representative from Canada noted that “the 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.”

Group B strongly urged the “General 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.”

The Group B delegations were “optimistic 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.”

Group B noted that WIPO’s work should “not duplicate or
contradict the work of other specialized UN agencies” with
respect to internationally agreed development goals.

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

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’s
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’s 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’s 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’etre, 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’t 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 “[T]oday’s heresy becomes tomorrow’s ideology.
India exhorted that the International Bureau should not be rigid
and adhere to strict ideology.

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