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ISSUES RELATED TO ISSUES RELATED TO TECHNOLOGY ANDTECHNOLOGY AND

INVESTMENT POLICIES INVESTMENT POLICIES AND THE TRIPS AGREEMENT AND THE TRIPS AGREEMENT

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Commercial Diplomacy ProgrammeCommercial Diplomacy Programme

Assad Omer, DITEAssad Omer, DITE

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IMPORTANCE OF IMPORTANCE OF TECHNOLOGY FOR THE TECHNOLOGY FOR THE

INTEGRATION OF DEVELOPING INTEGRATION OF DEVELOPING COUNTRIES IN THE GLOBAL COUNTRIES IN THE GLOBAL

ECONOMYECONOMY

Knowledge-based global economy Knowledge-based global economy Critical determinants of a country’s Critical determinants of a country’s

ability to compete successfully are: ability to compete successfully are: the abilities to create new the abilities to create new

technology and to acquire and technology and to acquire and adapt successfully technologies adapt successfully technologies from both external and internal from both external and internal sourcessources

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The challenge is: The challenge is: to establish and maintain effective access to to establish and maintain effective access to

technology and technology and to devise mechanisms for deploying it to devise mechanisms for deploying it

effectively within the economy. effectively within the economy. Modern technology transfer:Modern technology transfer: as a dynamic and evolving process that as a dynamic and evolving process that

requires constant adaptation by all actorsrequires constant adaptation by all actors Created technological assets determine Created technological assets determine

comparative advantage in today's economy.comparative advantage in today's economy.

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IMPORTANCE OF TECHNOLOGY IMPORTANCE OF TECHNOLOGY FOR THE INTEGRATION OF FOR THE INTEGRATION OF

DEVELOPING COUNTRIES IN THE DEVELOPING COUNTRIES IN THE GLOBAL ECONOMYGLOBAL ECONOMY

New technologies such as information New technologies such as information technology and electronic commerce technology and electronic commerce

facilitate such transfers facilitate such transfers if they are used effectively by recipient if they are used effectively by recipient

firmsfirms Access to these critical technologies may Access to these critical technologies may

be limited in an overly protectionist be limited in an overly protectionist intellectual property environment that intellectual property environment that

does not properly balance incentive to does not properly balance incentive to innovate against the needs for innovate against the needs for dissemination of knowledgedissemination of knowledge.

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Technological development is Technological development is important for:important for:

the integration and the integration and participation of developing countries, participation of developing countries,

in particular the least developed, in in particular the least developed, in the international trading system.the international trading system.

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Considerably change in the global regime Considerably change in the global regime for protecting technology development for protecting technology development and technology acquisition and technology acquisition

Agreement on Trade-Related Aspects of Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)Intellectual Property Rights (TRIPS)

Technological knowledge: the know how Technological knowledge: the know how of processes for producing goods and of processes for producing goods and services and the organizational and services and the organizational and management information management information

A key component: the transfer of the A key component: the transfer of the skills and intangible know how skills and intangible know how to to produce and distribute goods and produce and distribute goods and services efficientlyservices efficiently

LEGAL REGIME PROTECTING LEGAL REGIME PROTECTING TECHNOLOGYTECHNOLOGY

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Reduced obstacles to FDI Reduced obstacles to FDI TNCs to disperse production TNCs to disperse production

activities within integrated activities within integrated international production systemsinternational production systems

New opportunities for countries to New opportunities for countries to attract FDI and then attract FDI and then

to maximize the benefits associated to maximize the benefits associated with in term of employment , transfer with in term of employment , transfer of managerial skills and technologyof managerial skills and technology

VARIOUS MODES OF TRANSFERVARIOUS MODES OF TRANSFERUNCTAD

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FirstFirst,, the strengthening of the IPRs the strengthening of the IPRs regime:regime:

more local innovation and additional more local innovation and additional inward foreign direct investment and inward foreign direct investment and technology transfer technology transfer

higher prices for protected technologies higher prices for protected technologies and products and and products and

restricts abilities to achieve diffusion restricts abilities to achieve diffusion through product imitation or copying through product imitation or copying

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SecondlySecondly, basic principle:, basic principle: a balance between a balance between the needs of innovative firms and the needs of innovative firms and

their licensees for protection from their licensees for protection from easy appropriation of their easy appropriation of their intellectual property, and intellectual property, and

the needs of legitimate follow-on the needs of legitimate follow-on competitors and consumerscompetitors and consumers

Thirdly,Thirdly, the impact of the various the impact of the various disciplines of IPRs: disciplines of IPRs:

will differ among countries will differ among countries depending, depending, inter alia,inter alia,

IPRs system, the level of economic IPRs system, the level of economic and technological development, and and technological development, and the mode of implementation.the mode of implementation.

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In assessing the long-term costs and In assessing the long-term costs and benefits stemming from TRIPS, benefits stemming from TRIPS,

two important points need noting: two important points need noting:

EFFECTS OF THE TRIPS EFFECTS OF THE TRIPS AGREEMENTAGREEMENT

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Countries more likely to benefiting Countries more likely to benefiting from additional technology transfer from additional technology transfer

with broader modernization with broader modernization programmes for technology programmes for technology development, including human development, including human resource and skills development.resource and skills development.

Countries with net cost are those Countries with net cost are those with less technological development with less technological development and transfer and transfer

these countries should take full these countries should take full advantage of technical assistance advantage of technical assistance programmes offered by Aricle 66.2 programmes offered by Aricle 66.2 of the Agreementof the Agreement

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Many developing countries face Many developing countries face growing dependence on foreign growing dependence on foreign sources of technology, therefore:sources of technology, therefore:

There is the possibility that rights There is the possibility that rights holders act in ways that are holders act in ways that are detrimental to competition.detrimental to competition.In this context, the TRIPS Agreement In this context, the TRIPS Agreement incorporates a series of pertinent incorporates a series of pertinent provisions (Articles 7, 8 and 40).provisions (Articles 7, 8 and 40).

EFFECTS OF THE TRIPS EFFECTS OF THE TRIPS AGREEMENTAGREEMENTUNCTAD

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Guiding principles may be :Guiding principles may be : to stimulate competitive advantages to stimulate competitive advantages

inin exploiting spillovers, exploiting spillovers, leakages and leakages and the products of reverse engineering the products of reverse engineering

by clearly defining exceptions to by clearly defining exceptions to protection. protection.

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1.1. General obligationsGeneral obligations

National treatment National treatment (Art. 3).(Art. 3).

Most-favoured-nation Most-favoured-nation treatment (Art. 4).treatment (Art. 4).

IPRs REGIME: MAIN CHANGES IPRs REGIME: MAIN CHANGES REQUIRED IN THE NATIONAL REQUIRED IN THE NATIONAL

LEGISLATIONSLEGISLATIONS

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2. IPRs categories and standards a. Copyrights and related rights (Art.9)a. Copyrights and related rights (Art.9) Protection of computer programs (Art.10) Protection of computer programs (Art.10) Rental rights Rental rights (Art. 11).(Art. 11). Protection of performers, producers extended Protection of performers, producers extended organizations (Art. 14). organizations (Art. 14).

b.b. TrademarksTrademarks Protection of service marks(Arts. 15 and 16).Protection of service marks(Arts. 15 and 16). Protection of well-known marks (Art. 16.2).Protection of well-known marks (Art. 16.2). Elimination of restrictions on use of Elimination of restrictions on use of trademarks (Art. 20).trademarks (Art. 20).

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c.c. Geographical indicationsGeographical indications (Art. 22)(Art. 22)

wines and spirits (Arts. 23 and 24 )

d.d. Industrial designs (Arts. 25 and 26)Industrial designs (Arts. 25 and 26)

e.e. PatentsPatents– Scope of protection (Art. 27).– Non-discrimination (Art. 27.1).– Term of protection (Art. 33).– Other uses without authorization

of the patent-holder (Art. 31)– Process patents (burden of

proof)(Art. 34). – Plant varieties(Art. 27).

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f.f. Layout designs of Layout designs of integrated circuits(Arts. 35-38)integrated circuits(Arts. 35-38)

g. Undisclosed information and g. Undisclosed information and test test datadata –Protection of trade secrets (Art. 39)–Protection of test data

h. h. Anti-competitive practices in Anti-competitive practices in contractual licences (Art. 40.2)contractual licences (Art. 40.2)–International dimension International dimension (Art.40.3)(Art.40.3)

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– 3.3. EnforcementEnforcement

a.a. General obligations General obligations (Art. 41)(Art. 41).. ..Procedures Procedures ((Arts. 43-50Arts. 43-50))

c.c. Customs cooperationCustoms cooperation (Art. 51)(Art. 51)

d.d. Criminal procedures Criminal procedures (Art. 51)(Art. 51)..

e.e. Indemnification of the Indemnification of the defendant defendant (Art. 48)(Art. 48)

f.f. Acquisition and maintenance Acquisition and maintenance of IPRs of IPRs (Art. (Art. 62)62)

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4.4. Dispute settlementDispute settlement (Arts. 63 and (Arts. 63 and 6464).).

Transitional arrangements Transitional arrangements (Art. 65)(Art. 65)(Art. 70.8)(Art. 70.8)

Least developed countries are Least developed countries are entitled to delay application of the entitled to delay application of the Agreement (Art. 66)Agreement (Art. 66)

Technical cooperationTechnical cooperation Developing countries(Art. 67)Developing countries(Art. 67) LDCs (Art. 66.2) LDCs (Art. 66.2)

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