Financing of Intellectual Property & WIPO’s work ATRIP Congress 2005 Montreal July 11-13, 2005

WIPO - an introduction u World Intellectual Property Organization –specialized agency of the United Nations (one of 16) –182 Member States –Secretariat “International Bureau” –permanent and ad hoc committees - Standing Committee on Copyright and Related Rights –permanent and ad hoc observers –dual-oriented

WIPO’s mandate u Convention Establishing the World Intellectual Property Organization (Stockholm, July 14, 1967) –entered into force in 1970, amended 1979 –WIPO’s mission to “promote the protection of intellectual property throughout the world through cooperation among States” in order to encourage creativity and innovation u Agreement between the United Nations and WIPO (1974) –WIPO’s purpose is the “promotion of creative intellectual activity and the facilitation of the transfer of technology related to intellectual property to the developing countries in order to accelerate economic, social and cultural development” (article 1)

WIPO’s main activities u Normsetting –treaty-making processes (administers 23 treaties) u Providing international IP services to private sector –registration services for patents, trademarks and designs –dispute resolution (WIPO Arbitration & Mediation Center) u Enhancing access to and use of the IP system –assists developing country members, as well as SMEs to use IP as a tool for economic development –explores emerging issues in commercialization of IP –distance learning programs (WIPO Worldwide Academy) –seminars, conferences, studies and documents

WIPO’s work on copyright developments u Guide on Surveying the Economic Contribution of the Copyright-Based Industries u Study on Limitations and Exceptions to Copyright and Related Rights in the Digital Environment u Study on Current Developments in the Field of Digital Rights Management u Guide to the Copyright and Related Rights Treaties Administered by WIPO and Glossary of Copyright and Related Rights Terms u Survey on Implementation of the WCT and WPPT u Task Force Group on Model Law for Copyright u Studies on the Economic Impact of Database Protection in Developing Countries and Countries in Transition

Changes in international IP policy-making... u New stakeholders –greater public involvement in IP (as creators, distributors and consumers) –greater value and investment in IP as intellectual capital in the knowledge society u Participation at WIPO –only States can be Members per WIPO Convention –traditionally open to non-State observers –permanent observer status currently held by 172 international NGOs, 65 IGOs and 10 national NGOs

Changes in IP policy-making u Information Society - speed and flexibility of policy- making –flexible ‘soft law’ approaches F joint recommendations (e.g., use of trademarks online) F best practices (ccTLD Best Practices for Prevention and Resolution of IP Disputes) F Uniform Domain Name Dispute Resolution Policy (UDRP) –new ways to reach global public (online delivery of information, interactive online fora, distance learning) –speed of technological change risks excluding some countries from meaningful participation –more cross-sectoral communication and collaboration among international and national organizations

WIPO & IP Management u IP management for economic development (micro and macro) –education to create awareness of IP –IP licensing, negotiation skills –IP strategy for business & government –IP valuation and accounting –IP financing (secured transactions) F develop legislative and institutional framework for IP financing F UNCITRAL’s work

International Developments - Security Interests in IP Rights u United Nations Commission on International Trade Law (UNCITRAL) –legal body est. by UN General Assembly, 1966 –mandate for progressive harmonization and unification of international trade law –Commission of 60 elected Member States, plus Working Groups (all States plus observers) and Expert Working Groups u Working Group VI (Security Interests): –UN Convention on the Assignment of Receivables in International Trade –draft UNCITRAL Guide on Secured Transactions

UN Convention on the Assignment of Receivables in International Trade –adopted UN General Assembly, 2001 –objective: to facilitate low-cost credit through uniform rules on international receivables financing –scope: covers IP as intangible assets F removes legal obstacles to international financing practices (e.g., validate assignments of future receivables and bulk receivables, invalidates contractual limitations such as anti-assignment clauses) F enhances certainty and predictability (e.g., priority between competing claims based on law of the State in which the assignor/licensee is located governs priority) F regime governing priority between competing claims harmonizes domestic assignment laws –3 signatories (US, Luxembourg, Madagascar), no ratifications –commentary to be written

Draft UNCITRAL Legislative Guide on Security Interests –based on UN Assignment Convention, proposed for adoption 2006 –objective: to provide recommendations/commentary to assist States to modernize their secured transactions laws –scope: tangible and intangible assets - includes IP F highlight possible need for adjustment of general recommendations for security rights in IP to accommodate existing IP law F where conflict, IP rights/law prevails F Guide does not address IP issues, but States urged to take account of increasing importance of IP assets to companies seeking credit –to be discussed at Working Group meeting, Vienna, September 5-9, 2005 (and Expert Working Group)

WIPO’s future work on IP financing u Possible future work? –Clarification of UN Assignment Convention in context of IP, and commentary… –Discussion of UNCITRAL Draft Legislative Guide: scope of recommendations, and receivables (based on Assignment Convention): recommendations and commentary –Separate work addressing IP financing and secured transactions laws in context of Guide.. –Inter-agency cooperation –Education, research and studies (IP valuation, financing)..

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