AIPPI Strategy Project Final Sept2012

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AIPPI STRATEGY PROJECT

Report and Recommendations

To

AIPPI Task Force

September 18, 2012


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Table of Contents

I. EXECUTIVESUMMARY...............................................................................................................................1A. METHODOLOGY....................................................................................................................................................1

B. GOVERNANCE/STRUCTURE......................................................................................................................................2

C. OPERATIONS.........................................................................................................................................................3

D. MEMBERSHIP.......................................................................................................................................................3

E. FINANCES.............................................................................................................................................................4

F. COMMUNICATIONS................................................................................................................................................5

G. SCIENTIFICWORK..................................................................................................................................................6

H. CONGRESSES/MEETINGS........................................................................................................................................7

II. ASSIGNMENT/BACKGROUND.....................................................................................................................9A. ASSIGNMENT........................................................................................................................................................9

B. PERSPECTIVES.......................................................................................................................................................9

III.

METHODOLOGY........................................................................................................................................

15

A. SURVEYS............................................................................................................................................................15

B. INTERVIEWS........................................................................................................................................................21

C. STRENGTHSWEAKNESSESOPPORTUNITIESTHREATS(SWOT).............................................................................21

IV. GOVERNANCE/STRUCTURE...................................................................................................................23A. FINDINGS...........................................................................................................................................................23

B.

SWOT..............................................................................................................................................................

31

C. COMMENTARY....................................................................................................................................................32

D. RECOMMENDATIONS............................................................................................................................................34

V. OPERATIONS.............................................................................................................................................36A. FINDINGS...........................................................................................................................................................36

B. SWOT..............................................................................................................................................................39

C.

COMMENTARY....................................................................................................................................................

41


VI. MEMBERSHIP.......................................................................................................................................43A. FINDINGS...........................................................................................................................................................43

B SWOT 46


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C. COMMENTARY....................................................................................................................................................52


VIII. COMMUNICATIONS..............................................................................................................................53A. FINDINGS...........................................................................................................................................................53

B. SWOT..............................................................................................................................................................54

C. COMMENTARY....................................................................................................................................................55


IX. SCIENTIFICWORK.....................................................................................................................................58A. FINDINGS...........................................................................................................................................................58

B. SWOT..............................................................................................................................................................59

C. RECOMMENDATIONS............................................................................................................................................61

X. CONGRESSES/MEETINGS...........................................................................................................................62A. FINDINGS...........................................................................................................................................................62

B. SWOT..............................................................................................................................................................64

C. COMMENTARY....................................................................................................................................................65


XI. COMPARATIVEANALYSIS..........................................................................................................................69A. FINDINGS...........................................................................................................................................................69

B. SWOT..............................................................................................................................................................75

C. COMMENTARY....................................................................................................................................................76


E. COMPARATIVEANALYSISOFASSOCIATIONSCHART....................................................................................................80

XII. CONCLUSIONSANDRECOMMENDATIONS............................................................................................98XIII. APPENDIX...........................................................................................................................................103

A. MEMBERSURVEY..............................................................................................................................................104

B.

NON

MEMBER

SURVEY

.......................................................................................................................................

105

C. INHOUSE(CORPORATIONS)SURVEY.....................................................................................................................106

D. RESULTSOFMEMBERSURVEY.............................................................................................................................107

E. RESULTSOFNONMEMBERSURVEY......................................................................................................................108

F. RESULTSOFINHOUSE(CORPORATIONS)SURVEY....................................................................................................109


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I. EXECUTIVE SUMMARY

AIPPI has undertaken this strategy project to identify ways in which the Association could

evolve its mission and approach and chart a course for the future. As a result of theresearch, findings and conclusions of this report, the following Mission Statementcommunicates the direction we recommend for AIPPI:

"The mission of AIPPI is to provide leadership in formulating fair, predictable and well-reasoned intellectual property policies and practices that balance the interests of allstakeholders and allow society to benefit from innovation, creativity and brand identity."

To achieve the true meaning and spirit of this mission, AIPPI will need to make significant

changes. Change is hard, especially for an Association that is proud of its history andtraditions. Furthermore, lawyers are trained to look backwards, rely on precedence andavoid risk.

AIPPI is not built to be the "mean and lean" thought and action leader. Leadership informulating fair, predictable and well-reasoned intellectual property policies and practiceswill require AIPPI to act with a sense of urgency and boldness. It cannot lead by issuingresolutions or reports and leaving implementation to chance. AIPPI's leadership will bemeasured by its ability to be influential to make a difference and have impact. Its

responsibility will be to represent the interests of IP stakeholders by drafting and advancingto reality policies and practices that will globally harmonize the treatment of IP in the law, inthe courts and in the marketplace.

For some this direction may be unnecessary or too aggressive. There is an argument to bemade that AIPPI does not need to be an organization of mass appeal or a "home to all."With 8,000 members, AIPPI has a significant constituency that is comfortable with its currentagenda.

This, then, is the first question that AIPPI must address. Does it want to stay as it is and

appeal to those who see its "scientific work" and intellectual studies as paramount? It couldstay the course and maintain the status quo. It also could become a more elite by-invitation-only think tank that elevates the level of its academic study.

The report presents findings on AIPPI as an organization; discusses AIPPI's strengths,weaknesses, opportunities and threats; assesses the implications and recommends action.

A. Methodology

The research for this report included a review of hundreds of AIPPI documents relatingto the organization, its operations, services activities and events. In addition, 3 onlinesurveys were conducted directed to Members, Non-members in IP and In-house(corporate) Non-members. More than 12,000 surveys were distributed and links to thesurveys were made available on the AIPPI website as well as in an article about thesurvey published by Managing Intellectual Propertymagazine. The Membership survey


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and threats was derived for each topic discussed in the report.

B. Governance/Structure

The present structure of AIPPI is unnecessarily complicated and cumbersome. It is topheavy with two very large and essentially identical decision-making bodies, theExecutive Committee and the Council of Presidents, and a Bureau that does not haveclear authority to act on behalf of the Association (e.g., an executive managementcommittee).

In addition, the Association is organized as a loose alliance of National/Regional Groups

over which AIPPI has little authority, giving rise to inconsistency and ineffectiveness.Each Group operates separately; the primary tie with AIPPI International is the "scientificwork" studies, through which each Group responds to the Questions and submits itsreport. Beyond that, AIPPI provides few direct services to the Groups, and the Groupsare not particularly collaborative with AIPPI.

While the remote relationship and independence of the National Groups wasunderstandable and made sense in the 19th century, when communications meantshipping reports across oceans, 21st century global interdependence begs for a more

cohesive and interactive organization.

Recommended actions are:

Substantially increase the responsibilities of the Bureau to make the decision-makingmore efficient and effective.

Ensure that the Bureau membership is balanced to provide equal priority tomembership services and initiatives, external relations, strategic directions, as wellas the programme.

Redefine and reconstruct the Council of Presidents to address Group harmonization,development and productivity.

Redefine and reconstruct the Executive Committee as a governing council/shareholders group that engages in major Association decisions (to be defined possibly to include strategic directions and the programme), and to regularly receivereports from the Bureau.

Harmonize the statutes of AIPPI International and the Groups, including membershipin AIPPI International and support to Groups; tighten up the loose confederation into

a more cohesive global organization of AIPPI chapters to the mutual benefit of theinternational and national/ regional groups.

Create a process for refused Group applicants, such as a Bureau Board of Appeals,and give the Bureau the power to accept members on behalf of Groups orIndependent Membership.


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C. Operations

Enhancing AIPPI's secretariat operations can provide more services to members,

increase efficiency and effectiveness of the Association and deliver greater value andsupport to the Groups. Besides its administrative functions, the staff can take a moresubstantive role in advancing the agenda and proactively supporting initiatives,committees and the Groups, including public relations and membership recruitment. Asenior level staff executive would provide substantial benefit to the operations byassisting the President, Vice President and Secretary General who are full-time IPprofessionals and not always available to handle all issues within their responsibilities.

The committee system can be streamlined, expanded and staff supported to include

more members that want to participate on committees and to accomplish more work forthe Association.


Create a broader based committee system that more effectively invites participationand productivity; provides fulfillment and recognition to members; and directs greaterresources and attention to the interests of the Association and its members beyondthe scientific work. Not limited to, but specifically relevant are the Membership and

Communications Committees. Reallocate the Secretary General and staff responsibilities.

Expand the role of staff in supporting AIPPI's operations.

Employ a senior level executive director and additional staff to increase involvementin the development of the AIPPI Groups, initiatives and activities that provide value tomembers.

Engage staff to more actively participate in membership recruitment, publicity andpublic relations.

Review and reconsider the leadership experience necessary for AIPPI's officers tohelp inform the Nominating Committee and provide continuity and succession for theAssociation.

D. Membership

The Association and the Membership Committee have expressed concern that themembership is not growing; the attrition rate is higher than they would like and AIPPI has

been unsuccessful in attracting members from the corporate and academic sectors. Thefact that membership recruitment and retention, and a large component of members'services are totally controlled by the Groups makes it difficult for AIPPI to initiatesolutions. However, the Membership Committee has set forth a significant number ofrecommendations that appear not to have been fully considered or implemented.

AIPPI has a positive image and legacy that it can build on to motivate those interested in


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Focus on demonstrating relevance and impact to members and potential members;

every initiative should be evaluated for its ability to actually make a difference.

Do not undertake a member development campaign until new programming hascommenced.

Use professional staff to increase the awareness of AIPPIs involvement and impactand to develop a membership campaign; create core strategies for all Groups andprovide direct support to priority groups.

Allow direct membership to AIPPI, bypassing Groups.

Institute a corporate membership rate and promote it. Exert influence/control over Groups and their membership process.

Add an industry focus to the scientific work and other Association activities, i.e.,industry groups and committees. Once new initiatives have been successfullylaunched and actively promoted, undertake a membership campaign in that industry.

Form joint ventures with academic institutions; include 1 or more academicinstitutions as partners in every topic studied.

Increase revenue-generating opportunities, e.g., by charging non-members foraccess to the resource library or by selling advertising.

Engage more people in the work of the Association and make sure the work of AIPPIallows more people to achieve their personal goals.

Tailor communications to be relevant to different categories of members/targetmembers.

Identify leaders in different countries or industries who could influence membershipgrowth. Draw them in e.g., as thought leaders, and promote their role/involvement

to prospective members.

E. Finances

AIPPI's financial situation is relatively sound and stable. It depends heavily onmembership dues and, therefore, obtaining and maintaining members must be a priorityfor the Association. The success of the Groups in attracting and serving members, aswell as collecting and timely transmitting AIPPI dues also directly impacts the financial

position of AIPPI. While it is not unusual that individual membership associations derivea large part of their revenue from dues, dues increases are always a highly sensitivetopic. Therefore, dues are not amenable to frequent or substantial increases.

For AIPPI to stay financially sound, it either needs to consistently and significantlyincrease membership (which it has not been doing) or create non-dues sources ofrevenue, especially from Congresses and meetings. The financial performance of these

t t b id ti i th A i ti ' l ti f ti l ti


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AIPPI should be its own best advocate and demonstrate its effectiveness. Forexample, using the newsletter or web to document that AIPPI was present at a

meeting is not the same as writing about AIPPIs relevance at the meeting/on thetopic.

Distinguish between the need to be a catchall publication on IP, as there are alreadynumerous publications reporting on IP, versus a publication/function focusing onAIPPIs role and purpose in the world.

Organize, edit and manage the scientific work and content of website; this is almostcertainly a very valuable body of work.

Distinguish between communications that are persuasive versus factual and

accurate; add the persuasive element. Use editorial techniques to engage new and existing members, i.e., Q&A, interviews

of key players, special focus on industries, focus on the impact of a resolution onbusiness/economic development.

Look ahead when planning content to emerging issues.

G. Scient ific Work

Members and non-members responding to the surveys both indicate their interest inAIPPI's scientific work and indicate that comparative law research is useful in improvingIP laws. There is less agreement on whether AIPPI studies the most important IP issuesor that AIPPI influences international law development. Furthermore, the availability ofAIPPI's research on the website is not well known nor is it considered a useful resource(perhaps because there is not much awareness of it or because it is not user-friendly).

The process of selecting the subjects and conducting the study is relatively rigid andrigorous, using essentially the same processes used for many years. 75% of the

members responding to the survey "like" the research process. The number ofquestions studied is dictated by amount of time available to discuss them at a Congressor Executive Committee meeting. This limits the questions studied and the number ofmembers who participate in the process. Younger members are particularly interestedin being more involved.

Among the criticisms are that the process deteriorates once a resolution is adopted; thesame effort is not given to advancing the work to make an impact. The designation"scientific work" is somewhat controversial with critics calling it confusing, confining or

misdescriptive.


Take on more projects and engage more people four questions are too few forsuch a large and ambitious association.

Make sure all key issues relevant to the IP community have coverage i.e., do not


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Use the scientific work to engage/address smaller groups of constituents i.e.,industry groups, groups in certain regions.

Communicate resolutions and rationale for the resolutions more effectively,frequently and clearly.

Leverage the research done so far what would be a better way of cataloging andcross-referencing; what additional content on each subject would be useful.

Liaise more closely and formally with law schools and professors to get access totheir resources.

Once edited and reorganized, sell access to the research library or researchservices.

Conduct and publish surveys based on research on key issues to draw attention tothe knowledge base and activities of the Association.

Assemble findings, e.g., report out in tabular form; use for public relations andmember campaigns.

Analysis of judicial decisions is a top recommendation. Incorporate this into theresearch process. [Note: IPO is involved in this.]

Populate the website so it is clear that the resolutions and amicus curiae briefs have

an impact. Establish a multi-year agenda set goals about what specifically you want to

influence and then organize around those goals; clearly articulate the intention andthe impact.

When agreeing to study a question, ensure that a core group of members isprepared to carry through beyond a resolution into action, impact and enactment.

H. Congresses/Meetings47% of the 1,001 member respondents to the survey indicated they have attended aCongress in the past 5 years and approximately 35% of them have attended a Forum.60% have attended a program of their Group in the last 3 years. 17% of Youngmembers have attended a Congress in the past 5 years, whereas 43% have attended aprogram of their Group in the past 3 years.

The most controversial issue concerning a Congress or Forum is selection of themeeting location and the "Olympic style" country presentations and Executive

Committee voting process. This contributes to the competition and tension amongGroups.

While the international meetings are significant to the Association, the Association'sstrategic objectives, membership development opportunities and financial ramificationsseem overshadowed by unspecific personal preference and politics. The meetingcontent and social program is essentially in the hands of the Host Group with a


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II. ASSIGNMENT/BACKGROUND

A. Assignment

This AIPPI Strategy Objectives Project commenced in February 2012, following morethan a year of discussion regarding the need for such a project and, thereafter, definitionand refinement of the project.

After several months of preliminary conversations, the Bureau members met in April2011 to reassess AIPPI's mission develop accompanying strategic directions for AIPPI.A Task Force composed of John Bochnovic, Chair, with members Stephan Freischem,Laurent Thibon, Karen Abraham, Sergio Ellerman, Renata Righetti, Kazuhiko Yoshida,John Osha, Membership Committee Chair Tal Band and Communications CommitteeChair Charters McDonald-Brown was formed to oversee the project. Cinzia Petruzzelloparticipated as Coordinator of the General Secretariat. In May 2011, Robin RolfeResources (RRR) was approached for assistance, which led to its subsequentengagement to design and execute the Strategy Objectives Project.

While the overarching question posed by the Task Force was "what AIPPI should be inthe next ten years," the scope and priorities of the project were set forth in a ProvisionalReport prepared by John Bochnovic, dated October 4, 2011. The essential elementswere to revisit AIPPI's purposes and activities with a focus on member satisfaction andincreasing membership.

Ultimately, the stated objective of the project to be conducted by RRR was to "Prepare amission statement and strategies for AIPPI that will support the objectives of theAssociation and, when implemented, will satisfy the needs and interests of AIPPI'smembers and be attractive to non-members, thereby increasing the likelihood ofmember participation and membership growth, including attendance at the Association'sinternational meetings."

RRR divided the project into five tasks: (i) Develop a Work Plan; (ii) Satisfaction andPerception Surveys (Members and Non-members); (iii) Competitive Assessment andGap Analysis; (iv) Structure and Services Assessment; and (v) Report andRecommendations. The assignment was managed on a strict timeline to enablecompletion of the report and recommendations in advance of the October 2012 SeoulCongress.

B. Perspectives

1. AIPPI Situation Statement

Founded in 1897, AIPPI is a 115-year-old international non-profit membershipassociation of individuals and legal entities in the field of intellectual property,including practitioners, academics, government and judicial officials, IP owners orindividuals otherwise interested in the regimes for the protection of IP. The


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members (i.e., in-house counsel, patent and trademark attorneys, IP managers), withthe largest number in Japan.

The purposes of AIPPI are to: (i) Promote understanding of the need for intellectualproperty protection at national and international levels; (ii) Study and comparelegislation to propose improvements; and (iii) Encourage international agreementsadvancing protection for IP and harmonization of laws. The Statutes provide thatAIPPI shall pursue these objectives by disseminating information, conductingcongresses and meetings and "making representations" to governmental bodies andother organizations. To these ends, AIPPI is engaged in the following activities:

Scientific work, which includes the study, comparison, development of

positions with respect to national and international IP laws and treaties; Education through meetings, e.g., presentations at congresses and

forums/conferences;

Fostering professional relationships among its constituencies through thescientific work studies teams, association entities and meetings.

During the past several years of global economic downturn, the AIPPI membershiphas held relatively steady (-2% since 2010; +1% over 5 years). Similarly, attendance

at the bi-annual Congresses since 2004 has been relatively stable at about 2,000attendees (with approximately 2,300 attendees in Paris 2010, the high; andapproximately 1,800 attendees in Gothenburg 2006, the low).

Over the past 12-15 years, during which IP has been a "hot" business and legalsubject, the Association has not grown substantially, and it has not benefitted asmuch as several other international IP organizations.

2. AIPPI Historical Perspective

The AIPPI 1897-1997 Centennial Edition,published in celebration of AIPPI's 100thanniversary closes with the chapter, "The Role of AIPPI in the 21st Century" (pp.493-497), written by AIPPI Past President Peter Dirk Siemsen. Given the objectivesof this report, it seems appropriate to consider Mr. Siemsen's observations andcounsel at the time of the Association's centennial.

Before commenting on AIPPI's future, Mr. Siemsen pays homage to AIPPI's firstpresident, Professor Eugne Pouillet, quoting from his speech at the Association'sfounding meeting:

"We have laid the basis for an association which, initiated by a few men ofgoodwill, will extend itself over the whole world. This association will have thepurpose to bring to the inventive industry and the fair commerce the benefit ofprotection of industrial property; thus it will accomplish a work of progress and ofj ti " ( 493)


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"AIPPI's image will have to show simultaneously the solidarity of its traditionalpast combined with a modern face reflecting its capacity to deal with all thechanges and innovations coming about it.

Resolutions and actions will have to be as well founded as ever, but the meansto achieve them will have to be adapted, without hesitation, to the developmentsas they come along.

This will be the AIPPI which will be capable of attracting new blood and keep itsleading role in the next century.

We shall have to think about all this from now onwards, if we wish to keep AIPPIon the right tracks and as prominent in the world of intellectual property as whenwe inherited it." (pp. 496-497)

Now more than a decade into the new millennium and AIPPI's second century, it istime to reassess how the Association has progressed in the 21st century and what itmust now do to sustain itself and flourish in the years to come.

3. External Perspective WIPO

a) AIPPI's Relationship with WIPOAIPPI's history is closely linked to its long-standing relationship with WIPO, whichsuccessfully integrated many of AIPPI's resolutions into the international IPharmonization agreements that it forged through its member States. In the morerecent years, WIPO has been less effective in singularly advancing initiatives,while other international bodies, such as WTO and WHO, have increased theirinterest and impact on the global development of intellectual property. Inaddition, a myriad of national, bilateral, regional and multilateral organizations

and arrangements now govern intellectual property rights, making the scope andissues of harmonization all the more complex.

b) WIPO's Strategic Plan (Medium Term Strategic Plan 2010-2015)

In its strategic plan, WIPO acknowledges the changing landscape of intellectualproperty. In the Foreword to the Plan, the Director General identifies a number ofchanges that have influenced the current IP environment (pp. 5-7). They areworth noting as context for AIPPI's strategy objectives:

The new "knowledge economy", which has intensified investment in creatingnew knowledge, is reflected in large increases in the number of patent,trademark and industrial design applications; and has caused a long backlogin applications before government intellectual property offices.

The changes resulting from technology production shifting to Asia, includingthe need for patent offices to develop additional linguistic capabilities intechnical terms sed to determine patentabilit and rights to operate hich


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The evolution of innovation models, including open innovations by whichinventors collaborate through a variety of structures, transactions andcooperation to acquire technology.

The digital revolution, which among other effects, has changed the concept ofcopyright ownership and traditional business models for financing technologydevelopment.

The Director General goes on to contrast the historical role of WIPO in driving IPharmonization initiatives with contemporary market-driven issues that are criticalto the role of intellectual property.

"Many of the questions that have preoccupied the Organization in thepast century have concerned the conditions for the grant of IP rights.These remain important questions but another area of change is theemphasis that is also being placed on the use of IP rights after their grant.It is this latter area that has attracted attention in the fields of transfer oftechnology, competition law, health, the environment, collectivemanagement of copyright, the intersection of the finance system and IP(the valuation of intangibles, securitization, insurance and so forth) andthe role of IP in development. The shift of emphasis reflects anacknowledgement that IP is a market-based mechanism. As such, thegrant of IP titles can only tell part of the story. The capacity to use IPrights after grant tells the other part." Ibid., 6.

The WIPO Strategic Plan also recognizes that WIPO must change to survive. Inaddressing challenges and opportunities, the plan acknowledges:

"The past decade has been marked by a lack of progress in the normativework of the Organization, with Member States unable to reach agreement

in several areas. The lack of progress in norm-making contrasts sharplywith the rapid pace of technological change, which, in many instances,directly impacts the environment in which IP operates. Failure on thepart of the Organization to provide the forum for giving attention toneeded adjustments and changes entails a number of risks. The role ofthe Organization in economic rule-making will wither. Multilateralapproaches may be replaced by bilateral or plurilateral processes in otherfora; and solutions may be developed by default by the market or bytechnology, rather than by public policy under the influence ofgovernments." Ibid., 12.

The Plan adopted by WIPO sets out 9 strategic goals:

Strategic Goal I: Balanced Evolution of the International NormativeFramework for Intellectual Property

Strategic Goal II: Provision of Premier Global IP Services


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Strategic Goal IX: An Efficient Administrative and Financial SupportStructure to Enable WIPO to Deliver its Programs

c) WIPO's Directions

The point to be made with respect to AIPPI is that WIPO, its long-time ally inthought leadership, is taking a different look at IP and traditional approaches toharmonization, and AIPPI must do so as well.

4. Consultants Perspective

RRR staffed this project with three consultants who brought together theircomplementary individual knowledge and extensive experience in internationalorganization development and IP association management.

Robin Rolfe, a US lawyer with in-house and law firm experience, was ExecutiveDirector of INTA for more than 15 years, during which INTA transitioned from asecond tier US IP association to become the largest association of trademark ownersin the world with the largest number of private practitioner members from the mostcountries, the largest meeting of IP professionals and an active international affairs

agenda and trademark issues advocacy program.

Tove Graulund, a European Trademark & Design Attorney, was the in-house chief IPcounsel of a Danish company for many years and later was director of trademarks ata Scandinavian regional IP firm. In addition to her work with RRR, she is a WIPOconsultant. She served in multiple volunteer leader positions at Marques, includingas Chair for 5 years, during which Marques redefined its image and increasedactivities and membership.

Nancy Lasersohn is an experienced chief marketing officer for multi-national lawfirms, in which positions she planned and executed brand repositioning, marketingand communications initiatives. She was a pioneer in law firm strategic planning andbusiness development as a senior vice president at one of the first consulting firms toadvise law firms.

Preliminary Statement of FindingsIn the following chapters, we will present our findings on AIPPI as anorganization; discuss its strengths, weaknesses, opportunities and threats;

assess the implications and recommend action.Generally, we consider AIPPI's premise and aims worthy and see a need andopportunity for IP thought leadership and scholarship. However, we concludethat much of AIPPI's value is lost without contemporary and timelymechanisms to fulfill its work. AIPPI's structure and operations are based onold business and organization models that are too large and bulky to allow for


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needs to say of itself which is:

o The past decade has been marked by a lack of progress in a number

of AIPPI's objectives.o AIPPI has been unable to reach agreement on how it can/should

change to continue as a thought leader on the development of IP lawand as the leading global IP association.

o Failure on the part of AIPPI to give attention to the neededadjustments and changes entails a number of risks to its future,including that the Association may wither or be replaced by otherorganizations, processes and fora that are more effective andresponsive to the development of IP law, technology and AIPPI'sconstituencies.


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III. METHODOLOGY

As indicated in the Project Proposal and Work Plan, to inform this project RRR reviewed

hundreds of AIPPI documents relating to:

Governance, structure, leadership selection, decision-making and operations

Membership, membership services, membership participation

Congresses and meetings

Publications, including the website

Strategic planning

National/Regional Groups ("Groups, including Independent Members), reporting andreports

Prior AIPPI surveys

NGO recognition, access to and audiences with governments, quasi-governmentalorganizations and other organizations

Advocacy, education and information dissemination

Key alliances

RRR also conducted surveys (see A below) and interviews (see B below), as well as acomparative study of 5 associations (AIPLA, APAA, FICPI, INTA, LESI) selected by theBureau Task Force overseeing this project.

Each chapter of this report includes a section identified as Findings. The Findings aredrawn from the AIPPI materials, Surveys, Interviews and Comparative Analysis (seeComparative Analysis Section).

A. Surveys

RRR developed and administered three separate electronic surveys: a membershipsurvey, a non-member survey (excluding individuals employed by corporations) and anin-house non-member (corporation employees) survey. The survey questions areattached as Appendix A, B and C, respectively.

The membership survey was distributed to all members of AIPPI for whom AIPPI hademail addresses. The survey was sent three times and links to the survey were posted

on AIPPI's website and social media.

John Bochnovic, on behalf of the Bureau, made several requests of the Groups to obtaincontact details for non-members from both corporations and law firms, and receivedinput from fewer than 10 Groups. RRR also used its own resources to identify about4,000 non-AIPPI members and corporate non-members to survey.


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In addition to direct emailing of the survey links and notices posted on AIPPI's electronicoutlets, Managing Intellectual Propertymagazine published a short item about thesurveys and a link to them.

The statistics relevant to the survey are:

Number of surveys sent Number of surveys completed*

AIPPI Members 7,695 1,001

Non-Members 2,932 176

In-House Non-Members 1,408 56

* Some surveys were "not completed" meaning that the respondents did not continue tothe end of the survey. The survey instrument recognizes surveys where some questionsare not answered but it does not recognize uncompleted surveys. A review of thesesurveys determined that most of the uncompleted surveys were merely opened with noresponses entered.

The results of the surveys are attached as Appendices D, E and F.

Overall, the responses are positive and supportive of the objectives of AIPPI. The

surveys also provide useful information about steps the Association could take toimprove its value to members. We highlight below some of the noteworthy findings anddistinctions among the respondent categories, to the extent we are practically able tocross-reference and compare them.

With respect to the member surveys, it is important to note that while the response ratewould be more than satisfactory if the member respondents were a random sample, thisgroup of member respondents is not "random." Rather, the respondents are among themore active participants in AIPPI. We know this because 47% say that they have

attended a Congress or forum in the past five years and we know that 47% of the AIPPImembership (approximately 4,000 individual members) has not attended such an event.The survey results provide insight, but are not definitive.

Of the 2,932 non-members and 1,408 in-house (corporate) non-members who were sentsurveys, 176 and 56, respectively, completed surveys. This is a very low response rateand also not a large enough sample from which to draw conclusions. With that caveat,we have attached the non-member survey results (Appendices E and F) and notevariations here. Again, the responses are not projectable or representative. We had few

responses from people who work in corporations about 12% of the members andabout 7% of the non-members. Again, this is in no way a valid sample; nonetheless, wehave pointed out differences between corporate and law firm/service firm responses.

We received 36 responses from people who identified themselves as being in Academia,too small a number from which to draw reliable conclusions. With the same caveatregarding the sample size, we have noted where responses from this category of AIPPI


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1. Profile of Member Respondents

a) 7,695 members were invited to participate in the survey and 1,001 responses

were received. This is a respectable number, although as previously noted, thisgroup does not represent the large proportion of members who are not active,e.g., have not attended a Congress/forum or have not participated in thescientific work. The respondents are not just the core AIPPI leadership group,however, as only 20% report being on an AIPPI committee in the past five years.

b) Patent attorneys/agents, IP lawyers/litigators and trademark lawyers comprisemost of the member respondents. Overwhelmingly, their work involvesinternational IP issues and they work in law firms/service firms.

c) Member respondents cluster by nationality, with most responses from Japan,Italy, Germany, France, Switzerland and China. (Appendix G).

2. Involvement in AIPPI

a) Member respondents are more likely to be active in their Groups than in AIPPIInternational, with only 20% reporting having served on an internationalcommittee or worked on an international project within the past five years.

However, this is a group that is engaged at some level: one-third of respondentshave been involved in the scientific work at some point and almost half reporthaving attended an international meeting in the past five years.

3. Motivation to Belong

a) The initial motivations of member respondents to join AIPPI vary, althoughconsistently the most important reasons given are to gain professional

knowledge/participate in intellectually stimulating work, collaborate and networkwith peers and create opportunities for business development.

b) Younger members are particularly interested in the development of professionalknowledge. "Everything" is important to them, including the opportunity toparticipate in research and serve in a leadership role. They are not stronglymotivated by travel.

c) Older members are more likely to be motivated by travel opportunities.

d) Non-members would be motivated to join AIPPI for much the same reasons, withlow cost an additional motivator. Those who work in services (law firms) wouldbe motivated by business development considerations.


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4. AIPPI Mission

a) Across all categories of member respondents, there is strong agreement about

the importance of harmonization of IP laws and that comparative law research isuseful in improving IP laws. There is a significant drop in strong agreement thatAIPPI exercises leadership in developing national IP laws; somewhat moreagreement that AIPPI influences the development of international IP law; andagreement that AIPPI "does a good job" researching and developingrecommendations about IP law around the world. 35% of respondents stronglyagree that the work of AIPPI is useful and another 50% somewhat agree.

b) 44% of all survey respondents strongly agree that AIPPI is a prestigious

organization; however, that number falls significantly for Japanese respondentsand for corporate non-members.

5. Corporate Non-Members

a) In-house (corporate) non-members agree with the goal of harmonization. Fewercorporate non-members strongly agree that the scientific work/comparative lawresearch is useful to improving IP laws, although they do agree it is important.

Corporate non-members are significantly less likely than members to stronglyagree that AIPPI exercises leadership, influences laws, focuses on the mostimportant IP issues, deals with issues relevant to their business, provideseducational opportunities and is prestigious.

b) In-house (corporate) non-members are less interested in influencing IP laws,professional networking and business development. They are more interested inindustry-focused information.

6. Leadership and Structure

a) A significant proportion of member respondents do not understand clearly howAIPPI "works," what the relationship is between the National/Regional Groupsand AIPPI, whether their membership is optional or automatic withNational/Regional Group membership. In addition, member respondents do not"strongly agree" that the leadership of AIPPI is responsive to the membership.

b) Almost 50% of member respondents would like to serve on a committee or in a

leadership position. This number climbs for younger members and for membersfrom China, and falls for respondents from Japan.

7. National/ Regional Groups

a) The member respondents do not strongly agree that membership in their


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8. Cost

a) The cost of membership in AIPPI is viewed as reasonable; only 10% of member

respondents somewhat or strongly agree the cost is not reasonable. There is asignificant difference in the response to this question from Japaneserespondents; they are much more likely to express concern about the cost ofboth National Group and AIPPI membership. Academics also are more likely todisagree that the cost of membership is reasonable.

b) About 12% of member respondents strongly agree that a corporate/firmmembership scheme would be attractive to their employers and 42% somewhatagree. Corporate non-members are more likely to strongly endorse a corporate

membership scheme (23%); however, the total percentage who strongly andsomewhat agree that corporate/firm membership would be attractive is 38%.

9. Scientific work

a) 33% of member respondents have participated in the research process. Even ifthey have not, about 73% report that they "like" the research process. Thisnumber varies among the Groups from different countries and it may be

worthwhile to probe what could be improved.b) There is agreement among member respondents that the issues AIPPI studies

are important issues and that AIPPI does a good job researching and developingrecommendations. The topics are somewhat less likely to be viewed as relevantto an individuals work and less likely to be viewed as relevant to his or heremployer.

c) There is very significant drop in member respondents' awareness andperceptions of the usefulness of the AIPPI on-line research library. Improving the

usefulness of and access to the research is a clear recommendation of themember respondents.

d) Academics are much more likely to view the scientific work as useful to improvingIP laws, much more likely to view the issues that AIPPI studies as importantissues in international IP law and more likely to say that AIPPI is prestigious anddoes a good job researching and developing recommendations about IP lawaround the world.

10. Conferences

a) 47% of member respondents have attended a Congress in the past five years;about 36% have attended a Forum. 30% of the member respondents alsostrongly agree that attending the Congresses and Forums are worthwhile, andanother 37% somewhat agree


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c) Those who do not strongly agree that the meetings are worthwhile aredisproportionately member respondents from Japan, along with the 25% of themember respondents who say that the discussions of international law

issues/scientific work are not of interest to them. Those 25% are less likely tohave worked on a committee/project in the past five years, less likely to havejoined AIPPI for "networking," and also less likely to be motivated by travel.

d) Member respondents from the United States are disproportionately motivated bytravel and the appeal of the location where the conference is being held.

e) Member respondents who have not attended a Congress report the reasons asbeing cost, schedule conflict, inconvenient location, topics on the program or no

business reason to attend. "Other" is a frequent response.f) Member respondents from Brazil are much more likely to report that they do not

attend AIPPI meetings because they prefer attending other IP meetings.

g) Academics are much more interested in topics on the program, discussion of thescientific work and discussion of "hot" topics.

11. Increasing the Value of AIPPI to Member Respondents

a) The top responses to that question are:

Compile and analyze judicial decisions this is the number one response forall except corporate non-members; however, corporate non-members supportthis as an initiative.

Improve access to and ease of use of the AIPPI comparative law library.

Increase value for business development (except corporate members).

Build a global portal for IP.

Create templates for practitioners. Act more quickly on important issues.

Have more impact globally.

Create a member directory.

Participate as an amicus more frequently.

b) Other Differences Among Respondents (both Members and Non-Members):

Respondents from Italy are disproportionately trademark specialists; theywant more focus on their specialization.

Those most interested in an IP reporting service to analyze and report on IPactivities of government agencies are disproportionately from China andJapan.

US respondents' priorities are business development, improve theff ti f th N ti l G t b di t b ild l b l


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Corporate non-members are less likely to respond to the options given,suggesting indifference. There is some interest in focus on my industry, builda global IP portal and improve access to the AIPPI research library.

Academic respondents express no strong interests.

12. Observations

a) AIPPI has "name equity" among member respondents who support its objectiveseven though they do not strongly agree that the Association is effective atinfluencing law reform.

b) It is reasonable to assume that those who did not respond to the survey 87% of

the members may have less favorable views and/or are less committed toAIPPI.

c) The primary motivation for joining AIPPI is for the high level discussion andintellectual exchange, yet respondents do not want this work to be an academicexercise. They seek a personal benefit in terms of professional development, acommercial benefit in terms of business relationships, and they want to see therelevance and impact of the Associations work. Academics seem morecomfortable with the approach as it is.

d) The member respondents generally value AIPPI International just as much asthey value their National Group, with some exception for Academics.

e) Presumably if non-members have "needs" related to what AIPPI provides theyhave found another resource for fulfilling them. There are not many unmet needsexpressed. Corporate non-members specifically do not agree that the scientificwork is relevant to their business.

B. Interviews

Early in the project, RRR conducted 6 "baseline" telephone interviews with memberswho are or have recently been actively involved in AIPPI. The interview subjects wereidentified by the Task Force and included at least 1 interview subject from eachcontinent except Africa. The interview topics were broad and allowed the subjects toexpound on the topics they thought were most significant. The responses wereinformative and helped guide the preparation of the surveys.

Later in the process, RRR interviewed an additional 11 individuals by telephone andindividually surveyed the General Secretariat (6 staff members) with an open-answerquestionnaire to which each staff member responded confidentially.

C. Strengths Weaknesses Opportun ities Threats (SWOT)


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SWOT factors. RRR has not imposed this limitation in its SWOT analysis and readilyacknowledges that its categorization is subjective. Moreover, it is entirely possible thatconditions can fit into more than one category a weakness may also be an opportunity

or a threat.

The SWOT analysis in this report is largely drawn from the Findings.


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IV. GOVERNANCE/STRUCTURE

A. Findings

1. Survey Analysis

a) Member Question: I understand how AIPPI International works.

Yes Somewhat No

All member respondents 52% 41% 7%

Active in AIPPI International committee 83% 17% 0%

Not active in AIPPI International committee 43% 48% 9%

Active in AIPPI National committee 71% 25% 4%

Not active in AIPPI National committee 38% 54% 8%

Young members (20-29 years old) (Appendix H) 34% 50% 16%

b) Slightly more than half of the total of the members responding feel that they knowhow AIPPI International works. A little less than 7% percent respond "No" toknowing how the organization works. 16% of the Young members do not knowhow the Association works.

c) Among those who have not served on a committee of AIPPI International or aGroup, 57% do not know or only understand "somewhat" how the Associationworks.

d) All member respondents who have been active in a committee of AIPPI

International know how AIPPI works (83% know; 17% somewhat know).

2. Structure of Governance

a) General Assembly

All members constitute the General Assembly and are entitled to vote(however, membership in AIPPI International is subject to conditions

determined by each Group, subject to AIPPI Statutes). Chaired by the AIPPI International President.

Meets at each Congress, when called by the Bureau or upon request of 20%of members from at least 5 Groups.

Agenda set by the Executive Committee.

Power to adopt/amend/revoke Statutes.


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o Delegates from the Groups = more than 63 (based on Group size)o Delegates representing Independent Members = 6 (based on number

of Independent Members)

o Members of the Enlarged Bureau = 15 (plus 4 Statutory Committees,on invitation)

o Presidents and Members of Honour = 52o Chairpersons of Statutory Committees = 5

Chaired by the AIPPI International President

Normally meets annually - at each Congress and in the interim year betweenCongresses (technically, once between two successive Congresses) withexceptions determined by the Executive Committee or in urgent cases, the

Bureau or Council of Presidents. In matters of urgency as determined by the Bureau, may vote by

correspondence.

Sets own agenda.

Power to adopt/amend/revoke regulations and adopt resolutions in the nameof AIPPI.

Decides on 'scientific work' (Questions) proposed by the ProgrammeCommittee).

Decides on budget, subscription fees (dues), and auditor proposed by theTreasurer General.

Decides "actions to be taken by the Association."

Decides on recognition/ withdrawal of recognition of Groups.

Decides the number of delegate for each Group (based on Regulationsallocations by Group size).

Elects the Bureau* and "gives direction;" reviews and approves the Bureau'swork.

Elects the President and Vice President* (effective 2010 and 2012).

Elects the Assistants to the Reporter General and Secretary General (basedon proposal of the Bureau).

Elects the Finance Advisory Committee*.

Elects the Programme Committee*.

Elects the Membership Committee*.

Elects the Congress Representative (effective 2012)**.

"Gives direction," reviews and approves work of the Council of Presidents.

*Elections are from candidates proposed by the Council of Presidents, asproposed by the Nominating Committee.**Election is based on recommendation of the Nominating Committee incooperation with the Group hosting the next Congress.


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o Presidents of the Groups = 63o Delegate representing the Independent Members= 1o Members the Enlarged Bureau = 15 (plus 4 Statutory Committees, on

invitation)o Presidents and Members of Honour = 52o Chairpersons of Statutory Committees = 5

Chaired by the AIPPI International President.

Normally meets annually at each Congress or Executive Committeemeeting or at meetings determined by the Bureau.

In matters of urgency as determined by the Bureau, may debate and vote bycorrespondence.

Admits/ excludes Independent Members. Elects the Presidents and Members of Honour.

Elects the Communications Committee***.

Elects the Nominating Committee***.

Nominates the Bureau****.

Nominates the Finance Advisory Committee*.

Nominates the Membership Committee****.

Nominates the Congress Representative in cooperation with the Group

hosting the next Congress.

***Elects and nominates based on recommendation from the NominatingCommittee.

****Nominations are based on candidates proposed by the NominatingCommittee.

d) The Bureau

Managing Board of the Association responsible for the direction andmanagement guided by the decisions of the Executive Committee andCouncil of Presidents.

May take any action in the name of the Association in case of urgentnecessity.

Keeps informed of the activities and "shall take appropriate decisions."

Takes steps to give effect to decisions, resolutions and recommendations ofthe Association.

Composition: 9 memberso Presidento Vice Presidento Secretary Generalo Reporter Generalo Treasurer General


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Enlarged Bureau includes the Bureau members plus Assistants to theSecretary General and Reporter General (6), and, on invitation by theBureau, may extend to the Chairs of the Programme Committee, Finance

Advisory Committee, Membership Committee and/or the CommunicationsCommittee (4) and anyone else invited.

o At least 15 members.

Chaired by the AIPPI International President.

Normally meets 2 times per year, 1 time in conjunction with the Congress orExecutive Committee meeting and 1 time separately; may convene whencalled by the President, Secretary General or 3 Bureau members.

President is responsible for chairing meetings of all governance entities,

leading the Association based on decisions taken and be the formalrepresentative of the Association.

Vice President is responsible to be a deputy to the President and in theabsence of the President act in his/her place.

Secretary General is responsible for:o Preparation of administrative matters, including events and

communications.o Relations with Groups and Independent Members, including

monitoring their compliance with the Statutes and Regulations.

Reporter General is responsible for:o Directing and reporting on the studies and discussions of the

Association.

Treasurer General is responsible for the finances and financial management,including the budget.

Prepares Regulations.

Conducts External Relations.

May appoint Working Committees and Special Committees.

All members of the Bureau are ex officio members of the WorkingCommittees and Special Committees.

Appoints delegates to represent Independent Members on the ExecutiveCommittee.

3. Committees

a) 5 Statutory Committees are elected with responsibilities as defined in the

Regulations

Nominating

Finance Advisory

Programme

Membership

C i ti


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Working procedures are defined in the Regulations.

c) Special Committees are formed and appointed by the Bureau Formed based on the nature of the question and urgency.

Formed at the discretion of the Bureau.

Currently 22 Active (dates of formation are not published; no specified termlength).

d) Bureau Advisory Committees

3 Active: Translation, Use of Language

4. National and Regional Groups

a) Independent entities, subject to being "in harmony" with the Statutes andRegulations of the Association.

Some Groups are wholly and exclusively national/regional AIPPIorganizations; some Groups are separate national associations that also

function as the AIPPI national Group.

b) Set their own conditions for membership.

c) Admit/ exclude members of their Group, subject to the Association's conditions ofpolitical neutrality and non-discrimination.

d) Elect their Group president who is ex officio a voting member of the ExecutiveCommittee and the Council of Presidents.

e) Appoint delegates of their Group to the Executive Committee.f) Except for Group presidents and delegates, any member elected or appointed to

a position created by the Statutes shall fulfill that position independent of theinterests of their Group.

g) Considerations for formation of National Group appear to be advisory.

h) Best practices of AIPPI National Groups issued September 2011 appear to beadvisory.

5. Efficiency

a) Redundancy

Membership of the Executive Committee and the Council of Presidents isid ti l t th E ti C itt i l d t G d l t


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b) Decision-making

Executive Committee is the principal decision-making body of AIPPI

normally meets 1 time each year exception determine by the ExecutiveCommittee or in urgent cases by the Bureau or by the Council of Presidents;in cases of urgency as determined by the Bureau, may vote bycorrespondence.

Council of Presidents may act on behalf of the Executive Committee in caseof urgency normally meets 1 time each year; in cases of urgency asdetermined by the Bureau, may debate and vote by correspondence.

Bureau may take any action in the name of the Association in the case ofurgent necessity normally meets 2 times a year but actually meets monthly

by teleconference. Membership Committee is authorized when necessary to contact the Groups

in order to fulfill the tasks of the Committee "keeping in mind that theSecretary General is responsible for the relations between the Bureau andtheGroups."

c) Selection of Leaders

Bureau members are elected by the Executive Committee, nominated by theCouncil of Presidents, proposed by the Nominating Committee.

Assistants to the Secretary and Reporter Generals are elected by theExecutive Committee, proposed by the Bureau.

Statutory Committees (except the Nominating and CommunicationsCommittees) are elected by the Executive Committee, nominated by theCouncil of Presidents, proposed by the Nominating Committee.

Communications Committee is elected by the Council of Presidents onrecommendation of the Nominating Committee in cooperation with theBureau.

6. Structure of Governance Interviews and Comparative Analysis

a) Governing Bodies

The structure is too hierarchical and inefficient, and there is a need forsimplification.

The governance is too fractured and the Bureau needs to be given moreresponsibility and at the same time the Council of Presidents needs to beturned into an advisory body rather than a decision-making body.

There is a lack of leadership in the Executive Committee and, as a result,drive and leadership have been made at a regional level.

It is a positive that the Groups elect the delegates for the Executive


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o AIPLA Generally a 6 year officers "ladder;" President 1 year term;President Elect becomes President, 2 Vice Presidents; ImmediatePast President is an Officer; Board of Directors, 20 members,

composed of Officers + 12 non-officers elected for 3 year terms, 4new members elected by membership annually.

o INTA Officers "ladder" typically starts at Vice President level;President 1 year term (may not be re-elected); President Electbecomes President; 2 Vice Presidents; only Regular Members(Trademark Owners) eligible as officers; Board of Directors, 36members including Immediate Past President, President, meets 4times per year, no more than 1/3 of the Board can be from other than

Regular Members; Executive Committee of Board, composed ofOfficers plus 4 other Board members, may exercise all powers of theBoard except fill Board vacancies or amend the Bylaws; a GeneralCounsel to the association is selected from the Associate Members(law firms) and is not a member of the Board.

o LESI 9 members of the Board of Directors, including a PresidentElect and 4 Vice Presidents; President Elect becomes President withother Vice Presidents typically moving up the echelon.

e) National/ Regional Groups (Groups)

It is difficult that Groups have their own Statutes, which provides room for notabiding with efforts for harmonization and consistency of the Groups.

AIPPI runs more as a loose affiliation of separate organizations than as amodern global organization.

There is no consistency as to whether membership of the Groupautomatically establishes membership in AIPPI International. [Note: RRR

understands that membership in the National/ Regional Group of AIPPIautomatically confers membership in AIPPI International. The disparity ariseswhen the National/ Regional AIPPI Group is incorporated into (part of) anational organization.]

It seems unclear what the responsibility and obligations of the Groups are vis--vis the work of AIPPI.

The concept of National Groups and the use of flags at the meetings isproblematic; it turns delegates into country representatives rather than IPexperts or indeed executives of an organization.

Some National Groups are represented by more delegates than others andthe use of the flags leads to the concept of large countries and smallcountries rather than an increase in the pool of experts and knowledge.

Each Group has its agenda or reports on its findings. At the ExecutiveCommittee meetings, members sit with their national groups behind theirfl th th i l li d d i i ki i b d


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It is uncertain what steps some National groups take to promote theResolutions; it is difficult to know if a Group can be counted on to cooperate.

More support should be offered to the Groups.

3 of the 5 comparative associations have national/ regional groups, namelyAPAA, FICPI and LESI

o APAA 18 recognized groups; membership in a group automaticallycreates membership in APAA; groups must comply with statutes andregulations of APAA.

o FICPI 14 national associations, 21 national sections; membership ineither group automatically creates membership in FICPI; groups areautonomous, some groups are (some are not) self-governing with

respect to the admission of new members; in addition, there areindividual members from 49 countries/ regions who are admitted onapplication and with recommendations of professional character bydecision of the Executive Committee.

o LESI 32 national/ regional member societies, however, residency isnot required to join a society; LESI statutes set rules and obligationsof societies.

B. SWOT

1. Strengths

a) AIPPI has a committed leadership. E.g., there is a good attendance at ExecutiveCommittee and Council of Presidents meetings.

b) AIPPI has a pool of volunteers who want to participate and/or become leaders.

c) Members active on committees understand how the Association works.

d) AIPPI has Groups and established constituencies in 62 countries and 1 region.

e) AIPPI has Independent Members from some countries in which it does not havea Group.

f) AIPPI is stable, is well-established and has a global structure that has been ineffect for a long time.

2. Weaknesses

a) AIPPI's structure is large, multi-level and complex; it is difficult to reach decisionsquickly and efficiently with governing bodies overseeing or advising each other.

b) It is difficult to sustain priorities and implement programs given the change inleadership without a strategic plan and a clear succession arrangement (AIPPI


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d) Lack of "control" of, proactive interaction with, and support to Groups can resultin inefficiency and inconsistency among the Groups, their leadership, memberbenefits/services, participation/contributions to AIPPI, membership growth and

member satisfaction.

e) AIPPI does not have Groups or members in more than 100 countries; AIPPI hasnot converted the countries of Independent Members into Groups.

f) The elective processes, political issues in the Groups and the complex tieredcommittee structure create barriers to participation for members.

3. Opportunities

a) The existing interest in and support of the Association can be a platform fororganizational development.

b) More members can be engaged and organized in structures that allow them todistinguish themselves, meaningfully contribute and, with higher levels ofinvolvement, commitment and satisfaction, can become better membershiprecruiters for AIPPI.

c) Existing governance can be amended without much disruption to programs.

d) Many sound recommendations have already been put forth.

4. Threats

a) Some Groups may not be willing to change statutes and act in a moreharmonized way.

b) The nationalistic approach and treatment within the larger governing bodies of

AIPPI risk polarization and tension.

c) Lack of control for and support to Groups by AIPPI International can lead to theirremoteness, lack of engagement, inefficiency and/ or inconsistency.

d) If changes are not implemented, more people (members and prospectivemembers) may view AIPPI as archaic and/or ineffective.

e) Individuals who understand the governance and structure may be seen asrunning the Association for their own purposes.

C. Commentary

The present structure seems unnecessarily complicated and cumbersome. It is basedon old organization models that have been replaced over the years with more


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and to regularly receive reports from the Bureau. The Bureau would be empowered tofunction as the executive management (typically called an executive or managementcommittee). The Council of Presidents would be redefined to focus on issues relevant to

Group organizational development: member services, meetings and harmonizationinitiatives, and to serve in an advisory capacity to the Bureau with respect to Groupissues and concerns. In other words, use the shared knowledge and experience of thePresidents to help them improve their Groups.

The size of the Executive Committee is less of a concern if it is counter-balanced bygiving substantially more responsibilities and authority to the Bureau. Otherwise, it isalmost impossible to reach any decision, let alone be efficient, with such a largeassembly governing the Association. RRR sees the statutory provision allowing the

Executive Committee to act in urgent matters as an inadequate solution to slowdecision-making and to be used only in matters of utmost importance that would requireall Groups to be heard. Furthermore, we do not think voting by correspondenceprovides the debate and deliberation that it suggests. An informed Bureau will betterserve the interests of AIPPI's members.

If the Executive Committee is to retain its primary governance function, we see it asessential to reduce the size to fewer than 100 members (either by reducing the numberof pro-rata Group delegates or creating a 1 Group 1 Representative/Alternate

structure) and increasing the number of meetings per year (perhaps 1 in person and 2by electronic technology). The Executive Committee also could include representationfrom an Industries Council (committees with industry issues focus), if one is created.

The Bureau membership should be balanced to ensure that its executive priorities areequally focused on policy making, member services and scientific programme. Werecognize the importance of the harmonization studies (programme) of the Associationand that the Reporter General and his/her Deputies and Assistants are enormouslyvaluable; however, their representation in the Bureau is far more specific and singularly

targeted than the Secretary General's or other officer positions, which is likely toinfluence the focus and priorities of the Bureau toward the traditional studies work.

We also recognize the political trade-off that must have occurred in creating a CongressRepresentative seat on the Bureau with the change in the office of President to lead theAssociation rather than represent the next Congress. However, the creation of aCongress Representative is also singularly focused and not necessary or appropriate fora Bureau position. On the other hand, we think a Bureau member principallyresponsible for Group relations and who proactively coordinates with the Council of

Presidents, interacts directly with the Groups and AIPPI International designated Groups'staff, would be a well-considered addition to the Board (or current Bureau memberreassignment, e.g., Deputy Secretary General).

AIPPI International does not control membership of the Groups and there isinconsistency in how the National Groups set the membership in their Groups and,

ll i t t b hi i AIPPI I t ti l ( t ti ll l t il )


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premised on harmonization of IP, there is every reason for a stronger and more mutuallyvaluable relationship between AIPPI and its National/ Regional Groups. The oldstructure dealt with the challenges of international communications (e.g., when phone

calls, let alone Skype, were non-existent and Scientific Work reports were literallyshipped across the oceans) by providing for each of the Groups to operate asindependent entities. Today, global interdependence is fundamental and all themembers of the AIPPI family will benefit from a more collaborative and cohesiveAssociation. There is no reason to dissolve the Group structure. In fact, it is animportant component of AIPPI but strengthening the Groups as part of the global AIPPIis vital to AIPPI advancing its global agenda.

In its research, RRR has identified instances in which several Groups have undermined

the Association by refusing membership to persons with an interest in the Association.AIPPI cannot tolerate local politics that weaken the Association and a change inadmissions procedures could avoid such refusals in the future. One option would be togive the Bureau authority to act as a "Board of Appeal" to individuals who have beenrefused; another option would be to accept the membership application to a Group onbehalf of AIPPI; and a third option would be to accept such applications as IndependentMembers.

In reconsidering the Groups and International relationship, it may be useful to prepare a

Statute template and to review and resolve with each Group unnecessary complicationsthat help achieve harmonization. For example, it would be beneficial for all to have morestreamlining of, for instance, the accounting years. As AIPPI admits Groups in thefuture, new Groups would be introduced to the template as part of their authorization.

Finally, RRR heard several criticisms about a lack of leadership. We consider this aconsequence of structure and not individual weaknesses. There are no signs of seriousissues with the leadership beyond the structural restraints of the Association thatrestricts effective leadership.

The opportunity for AIPPI is not merely to tinker with its structure, but, rather, to fix it witha 21st century organizational structure that favors global (not nationalistic) approaches ingovernance and is managed by a representative democracy that is small enough to behighly responsive to issues.

D. Recommendations

Substantially increase the responsibilities of the Bureau to make the decision-makingmore efficient and effective.

Ensure that the Bureau membership is balanced to provide equal priority tomembership services and initiatives, external relations, strategic directions, as wellas the programme.

Redefine and reconstruct the Council of Presidents to address Group harmonization,


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Harmonize the statutes of AIPPI International and the Groups, including membershipin AIPPI International and support to Groups; tighten up the loose confederation intoa more cohesive global organization of AIPPI chapters to the mutual benefit of the

international and national/ regional groups. Create a process for refused Group applicants, such as a Bureau Board of Appeals,

and give the Bureau the power to accept members on behalf of Groups orIndependent Membership.


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V. OPERATIONS

A. Findings

1. AIPPI Headquarters and Group Operations

a) AIPPI International has little authority or control over its Groups, has little directinvolvement with their initiatives and provides little support for their programs.Except for issues selected by the Programme Committee, which generatesvaried participation and contributions from the Groups, each Group creates andmanages its own agenda. The activity and effectiveness of the member Groupsvaries.

b) Each Group is responsible for recruiting, renewing and maintaining members, aswell as setting the terms of membership and the relationship of members toAIPPI (automatic, voluntary membership in the International Group).

c) The Bureau is responsible for the direction and management of AIPPI and isexpected to keep informed of the activities of the different bodies of theAssociation and take appropriate decisions, guided by the decisions of theExecutive Committee and the Council of Presidents). It also is responsible forconducting the external relations of the Association and taking steps to giveeffect to the decisions, resolutions and recommendations of the Association.

d) It has been the practice of the Bureau to meet monthly by teleconference. TheRegulations provide that, normally, the Bureau meets 2 times per year, once at aCongress/Executive Committee meeting and 1 time at a separate meetingdetermined by the Bureau.

e) 48% of members responding to the membership survey do not understand oronly somewhat understand how AIPPI works.

2. Volunteer Leadership and Participation

a) 60% of members responding to the membership survey have not served on anAIPPI committee or worked on a project within the past 5 years.

b) 48% of members responding to the membership survey are interested in servingon an AIPPI committee or in a leadership position.

c) 83% of members responding to the membership survey say that it was very orsomewhat important to them when they joined AIPPI to have an opportunity to be

involved with AIPPI International.

d) According to AIPPI's governing documents, a total of approximately 75 AIPPImembers can serve on the Association's 5 Statutory Committees, withrestrictions on committee size being defined in the Statutes or Regulations.

e) The Statutory Committee chairs and members are elected The process requires


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f) 9 Working Committees address questions of the "Working Programme" (alsocalled the Questions), and 22 Special committees usually support the Questionswork with subject expertise or when urgency requires. Committees are

appointed by the Bureau in its discretion. Chairs of the Working Committees areappointed by the Bureau and each Working Committee may include 1representative from each Group. Members of the Bureau are ex officio membersof all Working Committees and Special Committees.

g) All 5 comparative associations have committee structures with standingcommittees typically organized by discipline/topic subjects of continuing focusand addressing specific timely issues. Special/ad hoc committees addressspecific subjects.

AIPLA 53 committees

APAA 6 standing committees, a website group, workshops group and adhoc committees

FICPI 11 commissions

INTA 6 Board committees, 29 non-Board committees divided intosubcommittees.

h) The Secretary General position imposes the responsibility for managing and

running an 8,000 member worldwide organization on a volunteer who is, mostlikely, a full-time IP professional. The position is supported by a Deputy and (ifrecommended by the Bureau and elected by the Executive Committee)Assistants, who also are full-time IP professionals. Specifically, the SecretaryGeneral is charged with the administration of the organization, activities andmeetings, including events and communications, the latter in cooperation with theReporter General.

i) Assistant Secretaries General appear to have regional (geographic)

responsibilities as assigned by the Secretary General.j) The Reporter General, also a full-time IP professional, is responsible for directing

the studies and discussions of the Association and for reporting on them incooperation with the Deputy Reporter Generals and such Assistants as arecreated in the discretion of the Bureau. While the Reporter General'sresponsibilities are substantial, they are within the expected expertise of IP legalexperts and not completely dissimilar to other associations' law journal editors.

k) There is no leadership ladder or succession plan for officers and other Bureau

members, although the statutes provide for fulfilling of vacancies and thereappears to be an unofficial echelon within the Bureau.

l) The responsibilities of the Membership Committee, consisting of a Chair plus amaximum of 15 members and the Secretary General or Deputy SecretaryGeneral, are:


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Make proposals to the Bureau of its own initiative and/or on the suggestion ofmembers.

Make recommendations to the Bureau and develop ways and means to

increase membership in various parts of the world and specifically in sectorsnot well represented by AIPPI.

Conduct surveys of members' interests and needs.

Develop and propose to the Bureau initiatives to support new members.

Report to the membership on its activities.

When necessary, contact the National/Regional Groups to fulfill itsCommittee responsibilities, keeping in mind that the Secretary General isresponsible for the relations between the Bureau and the National/Regional

Groups.m) The responsibilities of the Communications Committee, consisting of a Chair and

12 members, plus at least 1 member of the Programme Committee, the ReporterGeneral and the Secretary General as ex-officio members, are:

Advisory Committee to the Bureau and implementer of Bureau decisions.

Gather information from around the world, analyze what is relevant andprovide periodic and special reports to the Programme Committee andReporter General.

Disseminate information including: important news to the members,continuously proposing updates and improvements to the content of thewebsite and depositary of approved IP articles; information produced byAIPPI, i.e., Reporter General, "destined for cultural, business and generalaudiences."

Act as custodian of the history of AIPPI.

n) Interviews:

Work in AIPPI, the international organization, is organized and managed fromthe top down with not enough opportunities and interesting work to engage asignificant number of ordinary members.

The path to leadership is slow and difficult; members get impatient and turntheir attention to other organizations, particularly younger members.

Despite AIPPI's diversity objectives, some observe that AIPPI is "too old, toowhite, too male, too European, too IP boutique, too patent."

3. Staff

a)

Documents

AIPPI Strategy Project Final Sept2012