WIPO NATIONAL SEMINAR ON INTELLECTUAL PROPERTY RIGHTS AND THE PROTECTION OF PHARMACEUTICAL PRODUCTS Damascus, April 25 and 26, 2005

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WIPO NATIONAL SEMINARON INTELLECTUAL PROPERTY
RIGHTS AND THE PROTECTION OF PHARMACEUTICAL
PRODUCTSDamascus, April 25 and 26, 2005

• Effective Protection and Enforceability of
  Industrial Property Rights as an Incentive for
  the Transfer of Technology
• WIPO Secretariat

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Effective protection

• 1. Introduction
• 2. International transfer of technology
• 3. The impact of industrial property on
  technology transfer
• 4. Building trust by the licensor and the
  licensee
• 5. Do developing country governments have a role
  to play in technology transfer?

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Effective protection

• 1. Introduction

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• Technology is a systematic and organized set of
  information that enables the production of goods
  and services
• Transfer of technology is the transmission of
  technology by the holder of the information and
  the reception of such information by the
  recipient in a manner that enables the latter to
  practice it in an autonomous manner

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• Transfer of technology and dissemination of
  technology are not synonymous
• Transfer communication by the licensorreception/
  absorption/adaptation by the licensee
• Dissemination communication (TRIPS Article 29
  and Paris Convention, Article 12)

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• 2. International transfer of technology

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• Mechanisms
• a) imports of machinery
• b) technical and industrial cooperation
• c) technical assistance
• d) space concentration
• e) transferring rights in intangible goods (i.e.
  building partnerships)

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• 3. The impact of industrial property on
  technology transfer

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• Imports of machinery
• the role of IP is peripheral, although relevant,
  particularly in sectors where international
  competition is stronger (such as the
  petrochemical and the cement industries)
  relevance as to the breadth of the know-how
  transferred trade secret protection may be also
  very important when it comes to enforcement

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Effective protection

• Technical and industrial cooperation and
  technical assistance (contracts of maintenance,
  training, etc)
• The role of industrial property protection has a
  crucial importance as a guaranty of the
  protection of non-proprietary information

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• Space concentration (industry and business
  clusters)
• knowledge spillovers (the mysteries of the trade
  become no mysteries, but are as it were in the
  air, Alfred Marshall)
• market for specialized skills
• backward and forward linkages associated with
  large local markets
• IP is important as a background framework, in
  particular for promoting the establishment of the
  pioneering industries

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Effective protection

• Transferring rights in intangible goods (i.e.
  building partnerships)
• IP is of the essence!
• a) IP provides for a legal framework that
  generates trust
• b) IP reduces transaction costs

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Effective protection

• There is no partnership where there is no trust
• (i) trust by the licensor that the licensee
  shall comply with his obligations
• (ii) trust by the licensee that the technology is
  adequate to achieve its purposes and that the
  licensor shall honor the guaranty of performance

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• b) IP reduces transaction costs
• (i) technology transfer in a weak IP environment

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• (i) technology transfer in a strong IP
  environment

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• 4. Building trust by the licensor and the licensee

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• Building trust by the licensor
• Proprietary rights in technical creations
  (patents, utility models, layout-designs,
  industrial designs, plant varieties)
• Distinctive signs (marks)
• Non-proprietary competitive advantages (unfair
  competition, trade dress, trade secrets, test
  data)
• Enforcement (rules that permit effective action
  against any act of infringement, including
  expeditious remedies to prevent infringements and
  remedies which constitute a deterrent to further
  infringements).
• All these elements combined are a guaranty that
  the licensee will not free ride on the
  information received from the licensor

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• Building trust by the licensee
• a) partly covered by the disclosure requirements
  of patents
• b) negotiating ability and experience, so as to
  avoid the usual traps in licensing agreements
• c) a good and effective commercial law that
  protects the contractual rights of the licensee.

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• 5. Do developing country governments have a role
  to play in technology transfer?

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• a) governments are not supposed to directly
  interfere in private contracts (experience shows
  that government interference hinders more than it
  helps private parties tend to conceal
  information and circumvent red tape)
• b) but governments can have an important role
  they can fill the gap in information between the
  parties they can establish incentives for
  technology transfer they can contribute to the
  climate of reciprocal trust by establishing and
  enforcing effective ip protection

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• Thank you.Nuno Pires de CarvalhoActing
  Director-Advisor
• Industrial Property Legislation for Development
• If you have any questions regarding this
  presentation do not hesitate to contact me at
• nuno.carvalho_at_wipo.int