The Technology Mechanism and the role of intellectual property rights in technology transfer 

Ahmed Abdel LatifSenior Programme Manager Innovation, Technology and Intellectual PropertyICTSD

UNDP Workshop for Delegates to UNFCCC COP‐17 and Rio+20Algiers, 11‐13 October 2011

International Centre for Trade and Sustainable Development           www.ictsd.org

The Bali Action Plan called for enhanced action on technology developmentand transfer to support action on mitigation and adaptation, including, interalia, consideration of: (i) Effective mechanisms and enhanced meansfor the removal of obstacles to, and provision of financial and otherincentives for, scaling up of the development and technology to developingcountry Parties in order to promote access to affordable environmentallysound technologies (EST)

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Bali Action Plan  ‐ Technology Transfer (2007)

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UNFCCC Technology Mechanism (2010)

Technology Mechanism

Technology Executive Committee

(TEC)

Climate Technology Centre and Network

(CTCN)

• A more dynamic approach to technology transfer– Increased R&D cooperation– International and National Technology Action Plans– Facilitation of a network of technology centers– Strengthening of national innovation systems– Partnerships

• Pending issues– Finance and institutional set up– Fleshing out some of its functions

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The Technology Mechanism

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Functions of the TEC and CTCN

Technology

TEC

Overview of technological needs/

Analysis of policy and technical

issues

Recommend

Actions to promote

technology development and transfer

Guidance on policies and

program priorities with

special consideration

to LDCs

Actions to address

barriers to technology

development and transfer

cooperation with relevant international stakeholders/

Promote coherence

across activities

Catalyze the use of technology

action plans

Promote collaboration

on the development and transfer

of technology

CTCN

1. Provide advice on technology needs2. Facilitate the

provision of information and

training3. Facilitate the deployment of

existing technology

Stimulate collaboration,

technology development and transfer

as well as opportunities

for North/South, South/South

and triangular technology cooperation

Facilitate a Network of national, regional,

sectoral and international technology

centres, networks,

organizationand

initiatives

a) The relationship between the TEC and the CTCN and theirreporting lines;

(b) The governance structure and terms of reference for the CTCNand how the CTC will relate to the Network;

(c) The procedure for calls for proposals and the criteria to be usedto evaluate and select the host of the CTCN;

(d) The potential links between the Technology Mechanism and thefinancial mechanism;

(e) Consideration of additional functions for the TEC and the CTCN;

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TM related issues to be settled by Durban

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IP and transfer of ESTs

• The most divisive issue in the technology discussions. Disagreementshave focused on whether IPRs are a barrier to the transfer of cleantechnologies (developing countries) or an essential pre‐requisite topromote innovation, technology development and transfer(industrialized countries).

• No reference to IPRs in Cancun final decisions

• Bangladesh, Bolivia, China and Ecuador indicate that TMshould address IPRs, April 2011

• IPRs issues raised at first meeting of TEC, September 2011

• India suggests to add IPRs to the agenda of the Durban COP,October, 2011

• Durban COP ?

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Proposal by India for Durban

OPTION 1

• Launching a process under the COP or crafting a facilitative IPRs   regime relating to critical mitigation and adaptation technologiesAWG‐LCA clearly tasking it with, and identifying desired inputs, eventual outcome and timeframe to reach it

OPTION 2

• Reintroducing the IPRs issue under the relevant AWG‐LCA agendaitem/process on technology

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What are IPRs?

Intellectual Property Rights (IPRs) are exclusive legal rights which give toinventors and creators, for a limited time period, ownership over theirinventions and creations and the ability to define the terms of their use duringthat period.

IPRs fall in the following categories:Industrial Property

PatentsTrademarks Geographical Indications Industrial DesignsIntegrated Circuits 

Artistic and Literary PropertyCopyright

Undisclosed Information

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sample ‘Environmental’ patent application

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Complexity of international IP rules

International  Intellectual Property Rules

National  IP Laws: IP is territorial !

WTO TRIPS AGREEMENT

WIPO

Regional IP Agreements (OAPI/ARIPO)

Bilateral and Regional Trade Agreements 

• TT is a complex and multidimensional process contingent on many factors (finance,local absorptive capacity, enabling environment).

• TT involves knowledge which is embodied not only in IPRs such as patents but alsoin blueprints, designs, know‐how and trade secrets.

• IPRs are important to promote innovation. By offering protection against a loss ofcontrol of information in technology‐related transactions, IPRs facilitate thetransfer of technology.

• IPRs have also an impact on cost of technology acquisition and rate of technologydiffusion. Licensing conditions play a key role.

• Role of IPRs can vary according to technology and sector.

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IPRs and technology transfer 

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IP, Innovation and Transfer of ESTs

IP

Innovation

Practical Measures

Fast tracking “green” patent applications

New clean energy patent classification  

(EPO)

Technology Diffusion and 

Transfer

LDCs

Incentives (TRIPS.66.2)

High‐Middle Income Developing Countries

Licensing

Open Innovation Open 

Innovation 

Green Exchange

Eco‐Patent

Commons

IPC Green Inventory(WIPO)

While some participants did not see a place for IPR in the CTCN discussions, someothers suggested that the CTCN and TEC could undertake the following functions :

(a) Identify the concrete IPR obstacles and propose alternatives;

(b) Support the use of flexibilities available within TRIPS.

(c) Support the development of proposals for national legislation that would giveeffect to flexibilities in intellectual property rights;

(d) Undertake initiatives to promote and benefit fully from innovations that are inthe public domain;

(e) Ensure that environmental climate‐related technologies are in the public domainand free of patents;

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IP in Bangkok Workshop Report (April, 2011)

• Formulation of policies and programmes for the effective transfer of ESTs thatare publicly owned or in the public domain;

• Purchase of patents and licenses on commercial terms for their transfer todeveloping countries on non‐commercial terms, taking into account the needto protect intellectual property rights;

• In compliance with and under the specific circumstances recognized by therelevant international conventions adhered to by States, the undertaking ofmeasures to prevent the abuse of intellectual property rights, including ruleswith respect to their acquisition through compulsory licensing, with theprovision of equitable and adequate compensation;

• Provision of financial resources to acquire ESTS in order to enable in particulardeveloping countries to implement measures to promote sustainabledevelopment that would entail a special or abnormal burden to them;

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IP was already there in Chapter 34 of Agenda 21  (1992)

Peer reviewed by IPCC experts

TERI (India)

ERI  (China)

ECN(Netherlands)

ICC WBCSD LESI

UNEP‐EPO‐ICTSD Report on Patents and Clean Energy

Mapping of renewable energy technologies

Patent landscape of clean energy generation technologies

New patent classification for  clean energy technologies 

(Y02C, Y02E)

Survey of licensing practices in clean 

energy technologies

OECD Environment Division: statistical analysis of patent data

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Countries leading patenting activity in clean energy technologies

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Relative growth rate for selected clean energy technologies

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Patenting trends between countries: wind energy

• 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

• 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

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Licensing Survey in Clean Energy Technologies

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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?'

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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

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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?‘

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Factors affecting Licensing with developing countriesWhen 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?

• IPRs have an important effect on the transfer of climate friendlytechnologies. However, such effect is often complex and difficult toidentify and assess. It varies according to technology, sector and country.

• Importance of IPRs either over‐estimated or underestimated. In any case,the issue and options to address it should be discussed !

• More empirical evidence is needed to understand the role of IPRs in thetransfer of climate friendly technologies particularly at the country level,and from the perspective of technology demandeurs in developingcountries.

• More expert level dialogue is needed to examine the issue.

• Risks of forum shifting at Durban ? (WTO? WIPO?)

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Some conclusions

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Debate on IP and climate change has wider significance

Global IP Discussions

WTO WIPO WHO

GSPOA onPublic Health,

Innovation and IP(2008)

WIPO Development

Agenda (2007)

TRIPS/Public HealthTRIPS/Biodiversity

UNFCCC

?

Thank you

Ahmed Abdel Latif

ICTSD

aabdellatif@ictsd.ch

www.ictsd.org

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