Publicly Supported RD Coupled with a Well Structured IPR Regime Promote Technology Transfer

1. Publicly Supported R&D Coupled with a Well Structured IPR Regime Promote Technology Transfer Elmer Holt, Economist Office of Policy & International Affairs United States Department of Energy & Current Member of Expert Group on Technology Transfer UNFCCC/EGTT Side Event on Development and Transfer of Technologies � Bonn, Germany � 19 May 2006

2. Quote from The Economist in _____ �THE public will learn that patents are artificial stimuli to improvident exertions; that they cheat people by promising what they cannot perform; that they rarely give security to really good inventions, and elevate into importance a number of trifles�no possible good can ever come of a Patent Law, however admirably it may be framed.�

3. Much Has Changed Since 1851 As part of trade deal negotiated in 1994, countries joining the World Trade Organization (WTO) must also agree to a set of Trade-Related aspects of Intellectual Property rightS, commonly known as TRIPS TRIPS in an international agreement of itself that sets out minimum standards for the legal protection of intellectual property.

4. Public Policy Driven Publicly supported R&D is major part of some countries� industrial policies and/or science and technology development strategy. It is not uncommon in many countries to providing public funds to national laboratories, universities, and private firms to develop new technologies that lack short-term commercial viability. Having spent public money does not necessarily make the technology �publicly owned.�

5. Assigning Rights to Publicly Funded Technologies As noted by the earlier speakers, there is a high degree of commonality among Parties in the assignment protocol. One or more of the participants to the process is assigned the property right. That entity is encouraged/has an incentive to commercialize and license as broadly as possible Having engaged in the creative phase of developing the technology (process, music, etc.) that entity should be able to share in the revenue stream.

6. IPR Protection Important to Parties Because it: Stimulates Creativity/Innovation, both domestically and internationally Promotes Competition Provide opportunities to establish national comparative advantage Contributes to prosperity and international trade Improves access to new technologies

7. Key Component of Establishing the Right Enabling Environment Strong IPR Regime Sends Positive Signals to: Business and Industry, both domestic and international Inventors Investors Research Organizations Authors Musicians

8. Contribution to Tech Transfer A well functioning intellectual property regime should, in addition to the attributes noted previously, also facilitate the transfer of technology through: Foreign direct investment Joint ventures Licensing

9. Patent Licensing is Occurring As noted earlier, the licensor is the owner, which, in most cases is an entity (institution, private firm, etc.) other than a government. Such is consistent with the concept that the government should not distort markets by picking winners.