are ipr a barrier to the transfer of climate change
TRANSCRIPT
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Are IPR a barrier to theAre IPR a barrier to thetransfer of climate changetransfer of climate change
technology?technology?
Study available at:Study available at:
http://trade.ec.europa.eu/doclib/docs/2009/febhttp://trade.ec.europa.eu/doclib/docs/2009/feb
ruary/tradoc_142371.pdfruary/tradoc_142371.pdf
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The backgroundThe background
Technologies relevant to emission reduction areTechnologies relevant to emission reduction are
increasingly being patented > private goodsincreasingly being patented > private goods
Developing countries claim that IPR rules constitute aDeveloping countries claim that IPR rules constitute a
barrier to technology transferbarrier to technology transfer
Are there any arguments in favour of extending TRIPsAre there any arguments in favour of extending TRIPs
compulsory licensing to climate change technology ?compulsory licensing to climate change technology ?
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Empirical approach: patent countsEmpirical approach: patent counts
Study by Copenhagen Economics & Danish IPR Company, for theStudy by Copenhagen Economics & Danish IPR Company, for the
European Commission / DG TradeEuropean Commission / DG Trade
Count of patent applications 1998-2008 for 7 relevant technologies:Count of patent applications 1998-2008 for 7 relevant technologies:
waste, solar, ocean, fuel cell, biomass, geothermal, windwaste, solar, ocean, fuel cell, biomass, geothermal, wind
Representative sample of low-income (32 countries) and emergingRepresentative sample of low-income (32 countries) and emerging
markets economies (BRICs + Ukraine, Argentina)markets economies (BRICs + Ukraine, Argentina)
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The GapThe Gap
Number of patent applications, annualNumber of patent applications, annual
Year Totalworldwide
Emergingmarkets
Low-Incomecountries
1998 9.118 342 3
2002 19.982 992 10
2007 27.505 3.439 10
2008 19.701 4.037 6
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Implications of the GapImplications of the Gap
Hardly any patents registered in low-income countriesHardly any patents registered in low-income countries
Patents are not an obstacle; there are no applicationsPatents are not an obstacle; there are no applications
Relaxing the patent regime would not have any impactRelaxing the patent regime would not have any impact
There are other reasons: technological capacity, marketThere are other reasons: technological capacity, marketsize, purchasing powersize, purchasing power
Look for economic solutions, not legal: Cheaper alternativeLook for economic solutions, not legal: Cheaper alternativetechnologies, foreign aid, etc.technologies, foreign aid, etc.
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ClosingClosing the Gapthe Gap
Fast growth in Emerging Markets: catching-upFast growth in Emerging Markets: catching-up
In 1998: 1 in 25 / in 2008: 1 in 5 in EMIn 1998: 1 in 25 / in 2008: 1 in 5 in EM 1/3 EM patents owned by EM residents1/3 EM patents owned by EM residents
Spectacular growth in patenting in ChinaSpectacular growth in patenting in China
Not weaker but stronger IP enforcement wouldNot weaker but stronger IP enforcement wouldbenefit EM, especially Chinabenefit EM, especially China
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Monopolistic market structure?Monopolistic market structure?
Unlikely: there is sufficient competition betweenUnlikely: there is sufficient competition between
patents owned by different countries, companiespatents owned by different countries, companies
and individualsand individuals
Different technologies are substitutes in fightDifferent technologies are substitutes in fight
against climate changeagainst climate change
IPR price component is lowIPR price component is low
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Ow ners hip of fuel ce ll tec hnology patent ap
in de veloping c ountries
Japa
28%
US25%
Chin
21%
Kore
7%
Res
19%
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Ow ners hip of solar te chnology patent appli
in developing c ountries
Chin
38%
Japa
29%
US
13%
Kore
10%
Rest
10%
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ConclusionsConclusions
Patents are hardly used in low-income countriesPatents are hardly used in low-income countries Economic factors explain low technology transferEconomic factors explain low technology transfer Use economic instruments to address thisUse economic instruments to address this
Patents growing fast in emerging markets, esp.Patents growing fast in emerging markets, esp.ChinaChina
Local ownership growing fast tooLocal ownership growing fast too Strengthening patent enforcement would benefitStrengthening patent enforcement would benefit
themthem