TWN Info Service on
Intellectual Property Issues (June 07/03)
11 June 2007
G8: COMPROMISES ON CLIMATE; PUSHES OTHERS ON IP ENFORCEMENT
The G8 Declaration promotes a stronger IP system, through harmonising
the global patent system (to improve acquisition and protection of
patent rights worldwide) and stronger enforcement of IPRs in developing
countries.
The G8 text puts forward a 6-point plan to strengthen enforcement
of IPRs. They include:
• Endorsing the Guidelines for Customs and Border Enforcement Cooperation
to strengthen cooperation and coordination among our national customs
and law enforcement administrations.
• Endorsing new Guidelines for Technical Assistance on IPR protection
to interested developing countries, aimed at combating counterfeited
and pirated goods to strengthen intellectual property enforcement.
• Improving G8 countries' cooperative actions to combat serious IPR
crimes and use this as a basis to facilitate structured international
cooperation regarding the investigation and prosecution of those crimes.
• Continued study by national experts of the possibilities of strengthening
the international legal framework pertaining to IPR enforcement.
• To consider the establishment of an IPR Task Force focusing on anti-counterfeiting
and piracy to look at how best to improve the working of the international
IPR protection and enforcement, and produce recommendations for action.
(Full text of the G8 outcome is available at
http://www.g-8.de/Webs/G8/EN/Homepage/home.html)
The G8 move to continue to globally harmonise the patent system as
well as to harmonise enforcement was sharply criticized by development
experts and health-related NGOs.
Prof. Carlos Correa of the University
of Buenos Aires,
and a renowned expert on IP issues, said that the European Union has
a Directive on enforcement and it seeks to transfer this globally
through a G8 enforcement initiative, which would have negative effects
on developing countries.
Correa said that the WTO's TRIPS agreement already has enforcement
provisions, but what the EU wants is for developing countries to undertake
TRIPS-plus enforcement measures.
They should not pressure developing countries to discuss enforcement
issues, as it is up to the countries to use their national enforcement
laws, said Correa. Developing countries should not entertain invitations
for engagement, especially if it is to promote TRIPS-plus enforcement
measures.
An article on the G8 outcomes was published in the SUNS #6268 Monday
11 June 2007 and is reproduced below with permission.
Best Wishes
Sangeeta Shashikant
Third World Network
Tel: +41 (0) 22 908 3550
Fax: +41 (0) 22 908 3551
-------------------------------------------------------
SUNS #6268 Monday 11 June 2007
G8: COMPROMISES ON CLIMATE; PUSHES OTHERS
ON IP ENFORCEMENT
Geneva, 8 June (Martin Khor) -- Climate change and intellectual property
are among the issues of significance to developing countries that
are addressed in the G8 Summit Declaration of 7 June.
On climate change, a compromise was reached between German Chancellor
Angela Merkel (who chaired the G8 Summit in Heiligendamn) and US
President George W. Bush.
Merkel wanted the Declaration to agree to a global target that global
warming be limited to 2 degrees Celsius (compared to pre-industrial
levels), and that Greenhouse Gas emissions be reduced by 50% by 2050.
She also wanted a G8 commitment to a post-Kyoto Protocol framework
within the United Nations.
Before the Summit,
Bush opposed the German strategy, was against having these as G8 targets,
and announced his own initiative to invite 15 top emitting countries
to meetings to work out a global plan based on non-binding national
emission-reducing targets, outside the UN framework.
At the Summit,
the compromise worked out was that the two-degree target was eliminated,
and the 50% cut in emissions was mentioned but not as an agreed target,
only as something that would be considered.
The G8 countries committed to a UN process to seek a post-Kyoto framework,
but also "welcomed" the Bush initiative to host a meeting
of major emitters. And there was also prominent mention of involving
major developing countries.
Since Bush had been such a "denier" of the climate crisis,
and had seemed to oppose a UN approach, his agreement to the above
compromise was hailed as "a major step forward" by Merkel,
who said that she can "very well live with this compromise"
while noting that "none of these documents are binding".
Developing countries, especially the ones with big populations and
thus have higher total emissions (although still having low per capita
emission levels), can be expected to be under more pressure to take
on obligations of various sorts to reduce emissions.
However, countries like China,
India and Brazil, which are part of the five "outreach
countries" engaging in a dialogue with the G8 at the Summit, are expected to
continue their strong stance that developing countries not be subjected
to legally binding reduction commitments.
[According to media reports, China,
India, Brazil, South Africa
and Mexico were expected on Friday to
call amongst others for unimpeded access to the latest fuel-efficient
technologies without onerous intellectual property requirements, to
help them curb their emissions.]
Global talks on climate change are accelerating, spurred by growing
evidence of climate change and its devastating effects, and by the
imminent expiry of the Kyoto Protocol. The next large meeting under
the UN Framework Convention on Climate Change will be in Bali
in early December, and negotiations will begin there on a post-Kyoto
framework.
There will also be a one-day special discussion on climate change
organized by the UN in September in New
York on the sidelines of the UN General Assembly.
The G8 Summit Declaration text on climate change includes the following:
"We are therefore committed to taking strong and early action
to tackle climate change in order to stabilize greenhouse gas concentrations
at a level that would prevent dangerous anthropogenic interference
with the climate system. Taking into account the scientific knowledge
as represented in the recent IPCC reports, global greenhouse gas emissions
must stop rising, followed by substantial global emission reductions.
"In setting a global goal for emissions reductions in the process
we have agreed today involving all major emitters, we will consider
seriously the decisions made by the European Union, Canada and Japan which include at least a halving
of global emissions by 2050. We commit to achieving these goals and
invite the major emerging economies to join us in this endeavour...
"We stress that further action should be based on the UNFCCC
principle of common but differentiated responsibilities and respective
capabilities. We reaffirm, as G8 leaders, our responsibility to act.
We acknowledge the continuing leadership role that developed economies
have to play in any future climate change efforts to reduce global
emissions, so that all countries undertake effective climate commitments
tailored to their particular situations.
"We recognise however, that the efforts of developed economies
will not be sufficient and that new approaches for contributions by
other countries are needed. Against this background, we invite notably
the emerging economies to address the increase in their emissions
by reducing the carbon intensity of their economic development.
"Action of emerging economies could take several forms, such
as sustainable development policies and measures, an improved and
strengthened clean development mechanism, the setting up of plans
for the sectors that generate most pollution so as to reduce their
greenhouse gas emissions compared with a business as usual scenario.
"We acknowledge that the UN climate process is the appropriate
forum for negotiating future global action on climate change. We are
committed to moving forward in that forum and call on all parties
to actively and constructively participate in the UN Climate Change
Conference in Indonesia in December 2007 with a
view to achieving a comprehensive post 2012-agreement (post Kyoto-agreement)
that should include all major emitters.
"To address the urgent challenge of climate change, it is vital
that major economies that use the most energy and generate the majority
of greenhouse gas emissions agree on a detailed contribution for a
new global framework by the end of 2008 which would contribute to
a global agreement under the UNFCCC by 2009.
"We therefore reiterate the need to engage major emitting economies
on how best to address the challenge of climate change. We embrace
efforts to work with these countries on long term strategies. To this
end, our representatives have already met with the representatives
of Brazil, China,
India, Mexico
and South Africa
in Berlin on 4 May 2007. We
will continue to meet with high representatives of these and other
major energy consuming and greenhouse gas emitting countries to consider
the necessary components for successfully combating climate change.
"We welcome the offer of the United States to host such a meeting
later this year. This major emitters' process should include, inter
alia, national, regional and international policies, targets and plans,
in line with national circumstances, an ambitious work program within
the UNFCCC, and the development and deployment of climate-friendly
technology. This dialogue will support the UN climate process and
report back to the UNFCCC."
The Declaration also has many pages on technology, market mechanisms,
adapting to climate change, and a lengthy section on energy efficiency,
marking the issues of climate and energy as the main issue of the
G8 Summit.
On intellectual property, the G8 Declaration promotes a stronger IP
system, through harmonising the global patent system (to improve acquisition
and protection of patent rights worldwide) and stronger enforcement
of IPRs in developing countries.
The G8 Declaration promotes a "new dialogue" on innovation
and IP protection with major emerging economies, using the OECD as
a platform. The dialogue will cover: (a) the role and economic value
of IP protection; (b) market incentives for innovation and the diffusion
of knowledge at the national level; (c) the importance of efficient
innovation value chains that promote commercialization of patented
research results and exploit licensing as a major driver for the international
transfer of technology.
"The dialogue could ascertain measures the industrialized countries
and major emerging economies can take to achieve fully effective implementation
and protection of intellectual property rights within their own territory...
Participants in the dialogue may also taking initiatives aimed at
strengthening IP protection which should then be addressed in the
WTO and WIPO.
The G8 text puts forward a 6-point plan to strengthen enforcement
of IPRs. They include:
• Endorsing the Guidelines for Customs and Border Enforcement Cooperation
to strengthen cooperation and coordination among our national customs
and law enforcement administrations.
• Endorsing new Guidelines for Technical Assistance on IPR protection
to interested developing countries, aimed at combating counterfeited
and pirated goods to strengthen intellectual property enforcement.
• Improving G8 countries' cooperative actions to combat serious IPR
crimes and use this as a basis to facilitate structured international
cooperation regarding the investigation and prosecution of those crimes.
• Continued study by national experts of the possibilities of strengthening
the international legal framework pertaining to IPR enforcement.
• To consider the establishment of an IPR Task Force focusing on anti-counterfeiting
and piracy to look at how best to improve the working of the international
IPR protection and enforcement, and produce recommendations for action.
The G8 move to continue to globally harmonise the patent system as
well as to harmonise enforcement was sharply criticized by development
experts and health-related NGOs.
Prof. Carlos Correa of the University
of Buenos Aires,
and a renowned expert on IP issues, said that the European Union has
a Directive on enforcement and it seeks to transfer this globally
through a G8 enforcement initiative, which would have negative effects
on developing countries.
Correa said that the WTO's TRIPS agreement already has enforcement
provisions, but what the EU wants is for developing countries to undertake
TRIPS-plus enforcement measures.
They should not pressure developing countries to discuss enforcement
issues, as it is up to the countries to use their national enforcement
laws, said Correa. Developing countries should not entertain invitations
for engagement, especially if it is to promote TRIPS-plus enforcement
measures.
The health group Medecins Sans Frontieres (MSF) said that the G8 demand
for higher IP levels in emerging economies is set to have a negative
impact on access to affordable medicines in all developing countries
and fails to promote innovation where it is most needed.
Middle-income countries such as India
and Brazil
are key producers of affordable essential generic medicines used across
the developing world. "If the G8 further increases patent protection,
it will keep prices of new drugs high across Africa, Asia and Latin
America, and it will do nothing to stimulate innovation where it is
most needed," said Dr Tido von Schoen-Angerer, director of MSF's
access to medicines campaign.
The G8 Declaration also has a section on "systemic stability
and transparency of financial markets/hedge funds." The assessment
of potential systemic and operational risks associated with hedge
funds, advanced financial techniques and products such as credit derivatives
show that these activities has become more complex and challenging,
and there is need to be vigilant.
"The global hedge fund industry should review and enhance existing
sound practices benchmarks for hedge fund managers; in particular
in the areas of risk management, valuations and disclosure to investors
and counter-parties in the light of expectations for improved practices
set out by the official and private sectors," stated the G8 Declaration.
"Counter-parties and investors should act to strengthen the effectiveness
of market discipline, including, by obtaining accurate and timely
portfolio valuation and risk information. Supervisors should act so
that core intermediaries continue to strengthen their counter-party
risk management practices.
"In the exercise of their supervision of hedge funds, counter-parties,
relevant authorities should monitor developments and cooperate among
themselves. We welcome that the Financial Stability Forum (FSF) will
report to finance ministers as from October of this year on the progress
and actions taken in respect of these recommendations.”
