UNCTAD
ISSUES RELATED TO TECHNOLOGY
AND
INVESTMENT POLICIES
AND THE TRIPS AGREEMENT
UNCTAD
Commercial Diplomacy Programme
Assad Omer, DITE
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IMPORTANCE
OF
TECHNOLOGY
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FOR THE INTEGRATION OF
DEVELOPING COUNTRIES IN THE
GLOBAL ECONOMY
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Knowledge-based global economy
Critical determinants of a country’s
ability to compete successfully are:
the abilities to create new technology
and to acquire and adapt successfully
technologies from both external and
internal sources
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The challenge is:
 to establish and maintain effective
access to technology and
 to devise mechanisms for deploying it
effectively within the economy.
 Modern technology transfer:
 as a dynamic and evolving process that
requires constant adaptation by all
actors
 Created technological assets determine
comparative advantage in today's
economy.
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IMPORTANCE OF TECHNOLOGY FOR
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THE INTEGRATION OF DEVELOPING
COUNTRIES IN THE GLOBAL
ECONOMY
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New technologies such as information
technology and electronic commerce
facilitate such transfers
if they are used effectively by recipient firms
Access to these critical technologies may be
limited in an overly protectionist intellectual
property environment that
does not properly balance incentive to
innovate against the needs for dissemination
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of knowledge.
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Technological development is important
for:
 the integration and
 participation of developing countries, in
particular the least developed, in
 the international trading system.
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LEGAL REGIME PROTECTING
TECHNOLOGY
Considerably change in the global regime for
protecting technology development and
technology acquisition
Agreement on Trade-Related Aspects of
Intellectual Property Rights (TRIPS)
Technological knowledge: the know how of
processes for producing goods and services
and the organizational and management
information
A key component: the transfer of the skills
and intangible know how to produce and
distribute goods and services efficiently 6
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VARIOUS MODES OF TRANSFER
Reduced obstacles to FDI
TNCs to disperse production activities
within integrated international
production systems
New opportunities for countries to
attract FDI and then
to maximize the benefits associated
with in term of employment , transfer of
managerial skills and technology
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EFFECTS OF THE TRIPS AGREEMENT
First, the strengthening of the IPRs
regime:
more local innovation and additional
inward foreign direct investment and
technology transfer
higher prices for protected technologies
and products and
restricts abilities to achieve diffusion
through product imitation or copying
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Secondly, basic principle:
a balance between
the needs of innovative firms and their
licensees for protection from easy
appropriation of their intellectual
property, and
the needs of legitimate follow-on
competitors and consumers
Thirdly, the impact of the various
disciplines of IPRs:
will differ among countries depending,
inter alia,
IPRs system, the level of economic and
technological development, and the
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mode of implementation.
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EFFECTS OF THE TRIPS AGREEMENT
In assessing the long-term costs and
benefits stemming from TRIPS,
two important points need noting:
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Countries more likely to benefiting from
additional technology transfer
with broader modernization
programmes for technology
development, including human resource
and skills development.
Countries with net cost are those with
less technological development and
transfer
these countries should take full
advantage of technical assistance
programmes offered by Aricle 66.2 of
the Agreement
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EFFECTS OF THE TRIPS AGREEMENT
Many developing countries face growing
dependence on foreign sources of
technology, therefore:
There is the possibility that rights
holders act in ways that are detrimental
to competition.
In this context, the TRIPS Agreement
incorporates a series of pertinent
provisions (Articles 7, 8 and 40).
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Guiding principles may be :
 to stimulate competitive advantages in
 exploiting spillovers,
 leakages and
 the products of reverse engineering by
clearly defining exceptions to
protection.
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IPRs REGIME: MAIN CHANGES
REQUIRED IN THE NATIONAL
LEGISLATIONS
1. General obligations
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National treatment (Art. 3).
Most-favoured-nation
treatment (Art. 4).
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2.
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a.
IPRs categories and standards
Copyrights and related rights (Art.9)
Protection of computer programs
(Art.10)
 Rental rights (Art. 11).
 Protection of performers, producers
extended organizations (Art. 14).
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b. Trademarks
Protection of service marks(Arts. 15 and
16).
 Protection of well-known marks (Art.
16.2).
 Elimination of restrictions on use of
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trademarks (Art. 20).
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c.
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Geographical indications (Art. 22)
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wines and spirits (Arts. 23 and 24 )
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d. Industrial designs (Arts. 25 and 26)
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e. Patents
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Scope of protection (Art. 27).
Non-discrimination (Art. 27.1).
Term of protection (Art. 33).
Other uses without authorization of
the patent-holder (Art. 31)
– Process patents (burden of
proof)(Art. 34).
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– Plant varieties(Art. 27).
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f. Layout designs of integrated
circuits(Arts. 35-38)
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g. Undisclosed information and test
data
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–Protection of trade secrets (Art. 39)
–Protection of test data
h. Anti-competitive practices in
contractual licences (Art. 40.2)
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–International dimension (Art.40.3)
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– 3.
Enforcement
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a. General obligations (Art. 41).
 .Procedures (Arts. 43-50)
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c.
Customs cooperation
(Art. 51)
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d. Criminal procedures (Art. 51).
e. Indemnification of the defendant
(Art. 48)
 f.
Acquisition and maintenance of IPRs
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(Art. 62)
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4. Dispute settlement (Arts. 63 and 64).
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Transitional arrangements (Art. 65)(Art.
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70.8)
Least developed countries are entitled to
delay application of the Agreement (Art.
66)
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Technical cooperation
Developing countries(Art. 67)
LDCs (Art. 66.2)
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