|
| TRIPS Article 27: Patentable Subject Matter
3. Members may also exclude from patentability:
(b) plants and animals other than micro-organisms,
and essentially biological processes for the production
of plants or animals other than non-biological and microbiological
processes. However, Members shall provide for the protection
of plant varieties either by patents or by an effective
sui generis system or by any combination thereof. The
provisions of this subparagraph shall be reviewed four
years after the date of entry into force of the WTO Agreement.
|
Introduction
This paper summarises GRAINs view of what should
be done with the World Trade Organisations Trade Related Intellectual
Property Rights (TRIPS) Article 27.3(b) during its 1999 Review. Article
27 is one of the most contentious principles underpinning the new multilateral
trade system. Its subparagraph 3(b) is particularly threatening, requiring
all WTO member states to grant legal monopolies on the very basis of food
security: crop biodiversity. The implications for farmers, scientists,
consumers on the one hand and a few transnational corporations aiming
to control the world's food supply on the other are immense. For this
reason, the review agenda of TRIPS is an important and immediate concern
for many developing countries.
GRAIN collaborates with a broad range of scientists,
governments, civil society groups, farmers organisations and popular movements
in different parts of the world. The ideas articulated below come from
many people working and strategising together to create a much more conducive
basis for local communities to enjoy their fullest rights and powers to
live and work with biological diversity. TRIPS is a new obstacle in this
path because it usurps the rights of these communities. It also undermines
the promises of the Convention on Biological Diversity.
TRIPS Article 27.3(b), which requires all WTO countries
to provide some kind of intellectual property right (IPR) on plant varieties,
is up for review in 1999. In 2000, the entire TRIPS Agreement will be
reviewed. In the meantime, a whole new round of trade negotiations
which could result in further changes to TRIPS could commence before
2000. What can be attained or safeguarded through this process? In terms
of the 1999 review, GRAIN sees three broad scenarios developing countries
can fight for.
The way TRIPS stands at the moment, the only way to fully
ensure a fair deal for communities and people in developing countries
is to remove biodiversity from TRIPS altogether. Since achieving this
ambitious goal may take more time than the 1999 review allows, the most
practical fall-back option is to secure a five-year suspension of the
implementation of Article 27.3(b) so that developing countries, which
are facing enormous difficulties with TRIPS, may sort out the solutions
more appropriately. In any case, developing countries must at least ensure
that there is no strengthening of the TRIPS Agreement, as some developed
countries are pushing for. It is important to stress that these are not
mutually exclusive options and they should be fought for simultaneously.
The basis and consequences of these three options are discussed in more
detail below.
1) BIODIVERSITY OUT OF TRIPS
Remove biodiversity from the legal jurisdiction of WTO
by providing broader exclusions under TRIPS.
Background:
TRIPS requires member states to provide patent protection
for all fields of technology. Articles 27.2 and 27.3 outline which inventions
member states may exclude from patent protection and under what conditions.
The exceptions to the rules are in these two articles: the objective here
is to expand them.
Article 27.3(b) currently requires all member states
to provide intellectual property protection either patents or an effective
sui generis system or both for plant varieties. No definition of
"effective sui generis system" is given, yet developing
countries must put such systems in place by the end of 1999 if they choose
this as an alternative to patenting and if they wish to avoid punitive
trade sanctions.
Most developing countries are contemplating the sui
generis route to compliance, instead of patenting. A number of influential
bodies, including the WTO itself, are pushing for a narrowing of the sui
generis option to one legislative model provided by the Union for
the Protection of Plant Varieties or UPOV (see Option 2 below). This is
unfair and uncalled for. UPOV is not mentioned in the TRIPS Agreement
when other relevant IPR treaties are. Independent legal and economic experts
have reiterated in many fora and publications that UPOV's offerings should
not be swallowed as an effective sui generis system for TRIPS (Leskien
& Flitner, 1997; Lesser, 1999) and that there is ample scope for manoeuvre,
flexibility and national discretion in interpreting the sui generis
option (South Centre, 1997).
There are grave problems associated with intellectual
property protection of plant varieties, particularly the UPOV Convention
itself (Gaia & GRAIN, 1998b). The major ones are summarised below.
Impact on producers:
UPOV introduces legal and economic restrictions on
farmers' livelihood practices. Farmers' rights are reduced by law to
a "privilege", or derogation, which is subject to the vagaries
of national law under the 1991 treaty.1 As a general principle, access to genetic resources
declines through their privatisation and becomes subject to restrictive
terms, whether for production or breeding purposes. Although farmers
are responsible for 80-90% of the seed supply in the South, this will
massively shift to private control under plant variety rights regimes.
Contrary to what many people assume, corporate breeders do take farmers
to court for alleged piracy of proprietary seed and they are actively
pursuing more powerful means to prevent the reuse of seed on the farm
(such as contract law governing purchase agreements, "terminator"
type technologies and hybridisation).
Genetic erosion:
UPOV is biased towards the needs of industrial agriculture,
especially through its Distinction-Uniformity-Stability criteria; the
uniformity criterion alone has been singled out as favouring, for example,
purelines as opposed to varietal mixtures on the market. By allowing
companies to collect royalties on seed sales, UPOV stimulates the corporate
take-over of plant breeding which means fewer actors supplying the market.
Corporations are not in the business of genetic conservation (they rely
on genebanks) and tend to work with highly stabilised elite material
with wide adaptation. These highly marketed varieties tend to replace
more diverse traditional materials, and consequently the diversity being
used by farmers declines. These are the trends: the reports on varietal
replacement and the narrowing genetic base of modern cultivars are readily
available (FAO, 1998, provides one recent compilation). 2
Adverse impacts on R&D: 3
Impact studies conducted in one UPOV member state,
the USA, report a decline in the flow of germplasm among breeders, a
decline in the sharing of scientific information and a decline in the
rate of progress in plant breeding (Pray & Tripp, 1998, for a recap).
Scant other studies have been done in countries with UPOV experience,
despite nearly 40 years of practice. It is noteworthy, however, that
UPOV was obliged to revise its treaty in 1991 in order to address an
important dysfunction in its own system: instead of providing an incentive
for innovation (breeding truly novel varieties), UPOV was providing
an incentive for plagiarism (making slight changes on existing varieties
and calling them "new" and worthy of protection).
There is also fundamental conflict between TRIPS and
the Convention of Biological Diversity (CBD, Gaia & GRAIN, 1998a).
The major points of contention are that:
-
TRIPS does not allow for the full exercise of national
sovereignty over biodiversity (because it obliges countries to enact
intellectual property rights on plant varieties)
-
TRIPS does not allow countries to seek a share
of benefits obtained from patented biodiversity (there is no provision
requiring patentees to disclose the country of origin of any biological
materials, therefore no claims can effectively be made from the
countries of origin)
-
TRIPS does not require patentees to fulfil access
obligations towards genetic resources (it therefore condones and
facilitates biopiracy)
-
TRIPS overrules (and legally compromises the development
of) CBD Art 8(j) because patent claims can be worded to embrace
and expand on indigenous knowledge without recognition of or compensation
for it. Turmeric, neem, and basmati from the Indian subcontinent,
and ayahuasca from the Amazon, are well known cases of this but
there are many others. Also, UPOVs type of plant variety protection
(PVP) certificates are being granted on traditional plant varieties
from developing countries, for example in Australia (RAFI, 1998).
These are conflicts at the level of substantive provisions,
not mere operating principles. And it is clearly TRIPS which undermines
the implementation of CBD. Parliaments, governments, heads of state and
trade negotiators increasingly recognise this. Annex 1 provides a snapshot
of documented instances where political leaders have called for the primacy
of CBD over TRIPS in the past year alone. It is important to remember
that TRIPS was not negotiated as a discrete treaty. It was drawn up by
a small group of GATT negotiators and became part of a take-it-or-leave-it
package toward the end of the Uruguay Round. Therefore, governments were
not able to say yes or no to TRIPS specifically in consideration of their
obligations to CBD.
The industry argues that intellectual property protection
is necessary, indeed a "prerequisite", for investment and innovation.
Any review of the literature will indicate that this is not so. There
is no cause-effect link between strong intellectual property right (IPR)
regimes and increased investment. If one looks at foreign direct investment
(FDI) flows as mapped by UNCTAD, for example, there is no correlation
between FDI inflows and the availability of strong IPR protection. FDI
flows are highly concentrated in a few countries and 60% of them amount
to capital flows within the same corporation via mergers and acquisitions.
China attracts a full third of all FDI going to the developing world,
yet her scorecard does not shine for protecting US or European intellectual
property! Germany is consistingly running a negative FDI balance sheet
(more investment leaves the country than arrives) these years, not because
Germany offers a bad climate for IPR enforcement. In reality, and despite
a lot of effort, economists have not managed to isolate IPRs from
other factors of economic development in order to say with confidence
what they lead to other than monopoly pricing, market distortions
and a range of abusive business practices. For these reasons, it is widely
accepted among economists that arguments about strong IPR laws stimulating
investment are simply not well founded (Abbot, 1998). Even the World Bank
has recently reported that the relationship between IPR and trade flows
is ambiguous in general and insignificant in high technology sectors specifically
(Fink and Primo Braga, 1999). As to innovation, much of it goes on in
absence of IPR as illustrated by the whole history of plant breeding,
health care and even recent decades of biotechnological R&D. Most
importantly, there are many tools to stimulate innovation, which are more
in the public interest and which do not foster dangerous monopolies,4
but governments are being encouraged to overlook them.
On the broader scale, there is a large body of opinion
held by academia, politicians, and civil society groups all over the world,
that IPRs should not be regulated under the World Trade Organisation at
all.5 Refining the jurisdiction of TRIPS would
be part of a more fundamental reassessment of whether trade policy instruments
governing market access should determine national intellectual property
regimes.
Meaning of the proposal:
This is the most clear cut position being voiced for
the review agenda: to remove the legal obligation embedded in WTO's trade
regime for countries to apply IPRs (patent or sui generis system)
toward any form of biodiversity. Both the patent and sui generis
systems under TRIPS imply private and exclusive monopolies. Implementation
of such regimes, under the guise of incentives for R&D, should be
optional, not obligatory
For many grassroots groups in the South, and for GRAIN,
this is a non-negotiable position. Providing incentives for innovation
with biodiversity or "sustainable use" in environmental
jargon is not a trade issue. It is about strengthening capacities
and rights at the local and national levels, rather than forcing people
to rely on technology packages from outside. In practical terms, it means
that the 1999 review will need to amend Article 27.3(b) to provide member
states with the option of excluding all biological diversity-related inventions
from their IPR laws. "Biodiversity-related" includes inventions
based on traditional knowledge which do not necessarily involve biological
resources per se. This exemption will also require changes to Article
27.2 in the 2000 review of the whole TRIPS Agreement, since this article
requires the patenting of micro-organisms.
This option calls for an expansion of what may be excluded
from TRIPS. Many Southern groups supporting this position are not calling
for a new obligation on countries that currently provide IPR on life forms
to prohibit this. The idea, rather, is to use the review to adjust TRIPS
to the needs of developing countries and reconcile it with the Convention
on Biological Diversity (CBD). With a full exemption for biodiversity
in TRIPS, countries would have greater scope to implement the conservation
and sustainable use objectives of CBD and devise more appropriate incentives
for exploitation of biodiversity. They would also be able to incorporate
benefit-sharing provisions in their IPR regimes, as the European Parliament
fought hard for but lost in the final vote last year on the EU directive
on patenting biotechnological inventions.
2) FIVE-YEAR SUSPENSION OF ARTICLE 27.3(b)
Implementation of TRIPS Article 27.3(b) should be suspended
in 1999, allowing both developing and least developed countries an additional
five years to develop legislation which both satisfies current obligations
and better serves the needs of the countries and their people.
Background:
The TRIPS Agreement allows member states to fulfil their
obligations to protect IPR over plant varieties through an "effective
sui generis system". However, it fails to describe or define
such a system. UPOVs plant variety protection system, developed
by industrialised countries for industrial agriculture, is often cited
as a sui generis system appropriate to TRIPS. Indeed, UPOV members
are lobbying for the insertion of a reference to UPOV in TRIPS as the
model sui generis legislation (UPOV, 1998). If that were not enough,
the World Intellectual Property Organisation and the WTO have teamed up
with UPOV to carry out a series of joint seminars aimed at convincing
developing countries to adopt UPOV-type legislation or join the Union
as compliance with TRIPS Article 27.3(b). One seminar was held in Geneva
for all developing countries in February while another was conducted for
Asia-Pacific in Bangkok in March. In early May, a similar exercise targeted
anglophone Africa.
The pressure being drilled into the minds of African
authorities is particularly phenomenal and scandalous. In February
1999, UPOV succeeded in making eleven of some of the poorest countries
in Africa actually believe that they had to join UPOV to fulfill their
TRIPS obligations.6 These eleven countries
which are members of the French-speaking African Organisation of
Intellectual Property or OAPI have least-developed country (LDC)
status with WTO. As LDC members of WTO, they do not have to implement
TRIPS 27.3(b) until 1 January 2006. Yet, somehow, they were led to believe
that they should discard the seven years still ahead of them to work out
the most appropriate solution for their farmers and simply fall in line
with the industrialised countries' highly rigid sui generis regime.
This unnecessary move clashes head-on with the work under way at the Organisation
for African Unity to develop sui generis systems that ensure the
protection and development of community rights in Africa (OAU/STRC, 1998).
Even if the "sui generis system" is
left more open to interpretation, member states of the WTO will not know
what "effective" means until a dispute panel is tasked with
passing judgement on the matter. While no disputes have arisen so far,
WTO authorities expect such disputes to take off against developing
countries after 2000 (Otten, 1998). In the meantime, numerous legal
experts and industry associations have ventured their own views on the
matter. For Leskien and Flitner (1997), an effective sui generis
system under TRIPS 27.3b would be one that simply provides a remuneration
to the breeder of a plant variety. For CIOPORA (1998), the international
breeders association for asexually-reproduced plants, an effective sui
generis right under TRIPS is one that provides... the same protection
as a patent.
These ambiguities are making the task of member states
to implement the provision extremely difficult. Plant variety protection
laws are in effect in perhaps 20 or so developing countries. Drafts are
being drawn up or debated in others. Countries are behind schedule in
meeting the deadline of TRIPS Article 27.3(b) and have voiced the need
for an extension of the timeframe.
This need is being voiced in the context of at least
two problems:
The first is the growing uncertainty about the nature
of the review itself. Developed countries are deliberately trying to narrow
the review down to a discussion of implementation only. This is a tactic
to defer any renegotiation of TRIPS from its proper venue a well-focused
review that is part of the WTO's built-in agenda to the more controversial
agenda of a new round of trade talks. The new round, a full scale negotiation
of multiple trade agreements, is expected to be launched at the Third
Ministerial Conference in Seattle, November 1999. Developed countries
would prefer to discuss the substance of TRIPS at this venue because they
can more easily steer the South into making concessions on IPR for improved
market access when more than Article 27.3(b) is on the negotiating table.
Developing countries have argued in both formal and informal sessions
of the TRIPS Council that the 1999 review must focus on the provision
of the Article, as stated in the Article itself. The Association of Southeast
Asian Nations (ASEAN) has been most formal in tabling this demand (TRIPS
Council Secretariat, 1998).
The second problem that is emerging as we move deeper
into 1999 is that developing countries are being deliberately pressured
to adopt legislation with no time for public discussion. This is causing
consternation among civil society groups and farmers organisations. Why?
Because the basis of national agriculture seed supply is
being reframed under a new legal system that will very profoundly affect
not only markets but the very fabric of R&D at the national level.
In a country like Pakistan, where the government is being forced to do
something by the year's end that will spare it another trade dispute with
the US, the authorities expect that the PVP Act which they have put up
for adoption will result in foreign companies being "persuaded"
to supply their market (Ahmad et al, 1999). How then can Pakistan develop
its independent scientific research capacities? How can an appropriate
national breeding force, that works in cooperation with farmers' agendas,
develop? It clearly will not develop, because multinational corporations
and research institutes have their own agendas. The rush to escape punishment
from more powerful trading partners is causing governments to disregard
more democratic policy-making processes and is already inspiring tremendous
resistance from the people who will be most affected.
A moratorium on the timeframe of implementation of Article
27.3(b) could diffuse some of these tensions and, more importantly, should
allow for more democratic and intelligent handling of a far-reaching policy
shift in world agriculture.
Meaning of the proposal:
Suspending the implementation of Article 27.3(b) for
five years for both developing and least developed countries might not
require any amendment to the Article, but might affect Article 65 of TRIPS
on transition periods. The benefits of suspending implementation would
include the following:
-
Developing countries would be relieved of their
obligation to implement 27.3(b) by the end of this year. No IPR
system need be hastily established for or extended to plant varieties.
-
A substantive review of Article 27.3(b) could cover
the agenda needed and demanded by developing countries. Future disputes
already foreseen over the meaning of "effective sui generis"
could possibly be avoided.
-
The Review of 27.3(b) could be constructively carried
into the TRIPS review scheduled for 2000. Members of WTO would then
get a fuller grasp of the implications of "protecting"
plant varieties under TRIPS in relation to their commitments to
the CBD. They would also have more opportunity to explore possible
alternatives to IPRs as incentive mechanisms for developing biodiversity
in the context of plant breeding.
-
Members of the CBD and the WTO's Committee on Trade
and Environment could continue their scheduled examination of the
relationship between TRIPS and CBD in absence of a crippling fait
accompli.
3) RESISTING THE STRENGTHENING OF TRIPS
Any proposal to strengthen the IPR obligations of developing
countries under TRIPS should be fiercely resisted.
Background:
We know from historical accounts of the Uruguay Round
of GATT negotiations that the United States has always pushed for TRIPS
to require the fullest patent protection possible worldwide. This means
the least exclusions from what can be monopolised at the national level.
Developing countries opposed the introduction of any IPRs into
GATT. They lost. The Europeans then fought for an exclusion related to
plant varieties which are not patentable in Europe. They won. The
result was Article 27.3(b) which allows for a sui generis "alternative"
to patenting.
Despite TRIPS, the US imposes "TRIPS-plus"
standards of IPR protection on many countries through bilateral investment
treaties, bilateral research cooperation agreements and Section 301 of
its own 1974 Trade Act. Many industry associations in the US are not satisfied
with the protection that TRIPS currently offers to "their" intellectual
property. For these reasons, the US government is intent on strengthening
TRIPS towards greater rights for US business concerns. Other developed
countries support the US position.
As hosts of the WTO's Third Ministerial Conference later
this year, the US has already announced in the WTO General Council its
expectation that the conference will include in its agenda "eliminating
the exclusion from patentability of plants and animals and incorporating
key provisions of the UPOV agreement regarding plant variety protection"
(United States, 1998).
The US agenda presents the worst case scenario for agricultural
biodiversity in developing countries. Consequently, the least that should
be done during the TRIPS review is to resist every building block of that
legal construction. This is feasible in the context of a discrete review
of TRIPS by the TRIPS Council, where consensus rules. It would not be
so feasible if the entire discussion is deferred to the new round of trade
negotiations, where virtually anything goes.
Meaning of the proposal:
If the worst case scenario were to materialise, the strengthening
of TRIPS could mean several things, including:
-
inserting a reference to UPOV in TRIPS. Depending
on the reference, this could oblige all WTO member states to apply
UPOV's standards of intellectual property protection to plant varieties.
It could even require all WTO member states to formally join UPOV.
-
deleting the sui generis option from Article
27.3(b) so that plant varieties must be patentable in all WTO member
states.
-
deleting Article 27.3(b) entirely. This would mean
that not only plant varieties but plants and animals per se
must be patentable in all WTO member states.
Industrial sectors in the developed countries are intent
on seeing this scenario unfold so that they may expand their commercial
control of the world's biodiversity. For that reason alone, developing
countries should absolutely resist the strengthening of WTO members' obligations
under TRIPS. Any move on the part of the industrialised countries to introduce
UPOV, to narrow down or delete the still open sui generis option
or even to do away with Article 27.3(b) will only push the South deeper
into the corner of ceding their rights to benefit from the valuable biodiversity
that their communities are still maintaining and developing. Resisting
this pressure is a sine qua non of any further negotiation over
TRIPS, where the real objective is to disentangle biodiversity from the
multilateral trade regime.
Annex 1
POLITICAL APPEALS FOR THE PRIMACY OF CBD OVER TRIPS
in chronological order, over the past year
|
Event
|
Relevant statement or highlights
|
| Southern and Eastern African Trade Information
and Negotiations Initiative, 30 March 4 April 1998, Harare |
Senior trade negotiators from 17 ESA countries
decided that "The Eastern and Southern African countries should
push that the TRIPS Agreement prohibits the patenting of biological
materials and living organisms, as this patenting would have adverse
effects on Community Rights." Further, "ESA countries should
actively participate in the CBD to establish an equitable system of
the sharing of benefits in the use of biological resources and to
ensure that the treatments of IPRs does not facilitate biopiracy but
instead prohibits biopiracy and protects the rights of local communities
and developing countries." a |
| Organisation of African Unity (OAU)
Head of States Summit
Ouagadougou, June 1998
|
The Summit "recommend[ed] that Governments
of Member States:
i) give due attention as a matter of priority to
the need for regulating access to biological resources, community
knowledge and technologies and their implication for intellectual
property rights as entrenched in the international trade regime
of the TRIPS Agreement;
ii) adopt the draft [OAU] Model Legislation on
access to biological resources and call on Member States to initiate
the process at national level involving all stakeholders in accordance
with national interest and enacted into law;
iii) initiate a process of negotiation among African
countries to formulate and adopt an African Convention on Biological
Diversity with emphasis on conditions for access to biological resources
and protection of community rights;
iv) develop an African Common Position to safeguard
the sovereign rights of Member States and the vital interests of
our local communities and forge alliance with other countries of
the South on the revision of TRIPS in 1999."b
|
| "Environment for Europe" Ministerial
Conference, 23-25 June 1998, Aarhus, Denmark |
More than 50 European, North American and
Central Asian Environment Ministers issued a joint statement. In a
section that the United States refused to endorse, the Ministers declared
that environmental agreements should take precedence over other international
agreements, particularly in the area of trade. The ministers emphasized
that the objectives and obligations of multilateral environmental
agreements "should not be hampered by other international agreements,"
stressing the need "to ensure that WTO rules, provisions and
procedures take full account of the need to promote a high level of
environmental protection."c |
| WTO Committee on Trade and Environment
meeting, 23-25 July 1998, Geneva |
One member addressed the need for CTE to
examine and recommend measures to reconcile the TRIPS Agreement with
MEAs [Multilateral Environment Agreements], suggesting that a provision
for prior informed consent was needed in the TRIPS Agreement to implement
benefit-sharing pursuant to the CBD. Several members, including Norway,
Australia, Canada and Korea, noted the importance of ensuring consistency
between CBD and TRIPS. Norway called for flexibility in TRIPS toward
living materials, stressed that ethical considerations are involved,
and pointed out that the links between IPRs and the loss of biodiversity
had not been explored. Several members raised concern about the relationship
between IPR and the protection of traditional knowledge related to
biodiversity, and welcomed the decision of CBD's COP IV to establish
a working group to examine the relationship between CBD (especially
article 8j) and TRIPS. Colombia pointed out the need to ensure that
TRIPS requires patent applications to state the country of origin
of biological samples because without this information there can be
no compensation or benefit sharing as required by MEAs such as Andean
Pact Decision 391. Colombia stressed that patents on biological material
should not be issued without reference to the country of origin and
that TRIPS had to ensure this through its own regulations (e.g. dispute
settlement mechanism).d |
| EU-ACP Joint Assembly, 21-24 September
1998, Brussels |
The ACP-EU Joint Assembly confirmed the
importance of the CBD principles such as prior informed consent when
accessing genetic resources, sovereign rights of states over their
genetic resources and the equal distribution of the benefits arising
from the use of these resources. It asked the EU, its member states
and the ACP countries to respect these principles in their national
legislation and promote them in international fora, calling for special
attention to the rights of indigenous and local communities. The Assembly
noted that CBD requires signatories to protect and promote the rights
of communities, farmers and indigenous peoples with respect to their
biological resources and knowledge systems as well as benefit-sharing,
and asserted that IPR should not conflict with the objectives of the
CBD. The ACP-EU Assembly, therefore, "called for the recognition
and affirmation of the precedence of the CBD over any other international
agreement on matters related to biological diversity" and "urgently
called for the 1999 Review of TRIPS 27.3b to take into account the
objectives and provisions of the CBD and maintain the option of excluding
all life forms and related knowledge from IPR protection."e |
| European Parliament, Strasbourg
session of October 1998 |
"Stresses that the principle enshrined
in the Convention [on Biological Diversity] concerning the sovereign
rights of all countries to their own genetic resources and emphasizes
that that right must take precedence over other principles in the
international agreements concluded by the Community, e.g. in the patent
sector; stresses that the sovereign rights of other countries [to
their own genetic resources] must also be recognized in all EU legislation."f |
| Southern and Eastern African Trade Information
and Negotiations Initiative, 4-9 March 1999, Kampala |
"As far as Africa is concerned, the
most serious problem in TRIPS is that it does not specifically recognise
the rights of local communities to their traditional and indigenous
knowledge, and this may lead to unjustified patenting of their knowledge
and of biological resources by foreign corporations. African countries
should make proposals to correct this situation and thus propose revisions
to the Agreement that will support their development and access to
appropriate technology. With regard to Article 27.3b, even though
developing countries have not yet started implementing this article
due to their transitional periods, they have however, identified areas
of priority to be considered in the review. African countries are
very concerned that Article 27.3b may facilitate the appropriation
of local knowledge of the use of biological resources through patenting
of this knowledge by corporations. We urge that the following priorities
and proposals be considered in the review of this Article; the option
for countries to exclude all biological materials or life forms from
patentability the development by African countries of a suitable sui-generis
systems of protection for plant varieties, indigenous knowledge and
technologies and community rights in line with their national developmental
priorities; and to ensure that the TRIPS agreement conforms with the
Convention on Biodiversity. "g |
Compiled by GRAIN, April 1999
1. For example, Japan prohibits
farmers from saving planting material of 23 genera and species under its
implementation of UPOV (Otomo, 1999). The US restricts seed saving to
the amount of seed needed to replant a crop, beyond which it is now unlawful
(van Wijk, 1996). In the European Union, farmers can only save seed of
certain crops and must pay a recurrent royalty each time, except for small
farmers.
2. A recent UPOV meeting held in Bangkok tried to estimate
whether modern rice varieties are less diverse than traditional rice varieties.
The findings are contradictory: some report a reduction in genetic diversity,
others find little difference between landraces and improved varieties.
The studies come from countries which have not implemented UPOV legislation
and therefore say nothing about the impact of PVP on genetic diversity.
See "Some Findings on Rice", a collection of research
findings presented at the Regional Workshop on "The Protection of
Plant Varieties under Article 27.3(b) of the TRIPs Agreement" organised
by UPOV, WIPO and WTO, Bangkok, 18-19 March 1999.
3. There is ample evidence of IPR systems stifling research
and innovation. However, we cannot present it here. See Gaia and GRAIN,
"Intellectual
Property Rights and Biodiversity: The Economic Myths". Global
Trade and Biodiversity in Conflict, Issue 3, October 1998.
4. Fiscal measures such as tax policies, public research
spending, reward systems and patent buy-outs are some such tools. On fiscal
measures, the OECD has published numerous studies; public research is
a well-known subsidy to private R&D; on reward systems vs IPR, see
for example the work of Shavell and van Ypersele; on patent buy-outs,
we refer to the work of Michael Kramer from Harvard University.
5. At the High Level Symposium on Trade and Development
held at WTO on 17-18 March 1999, Professor T. N. Srinivasan, Chair, Department
of Economics, Yale University, went so far as to suggest to Heads of State
and of UN agencies that the TRIPS Agreement be taken out of GATT and handled
by the World Intellectual Property Organisation. His argument that IPRs
are not a trade issue was strongly applauded by the delegates.
See http://www.wto.org/wto/hlms/sumhldev.htm
6. Benin, Burkina Faso, Central African Republic,
Chad, Congo, Djibouti, Guinea, Mali, Mauritania, Niger and Togo were among
the 15 OAPI member states which signed the UPOV Convention of 1991 on
25 February 1999. Ratification must now follow in each individual country
for UPOV to take effect, which the OAPI Secretariat hopes will be accomplished
by the end of 1999.
a.
Strengthening Africa in World Trade, Report
of the first SEATINI Workshop, Harare.
b. Community Rights and the Control of Access to Biological
Resources, DOC. CM/2075 (LXVIII)) ADD. 1.
c. International Environment Reporter, Bureau of
National Affairs, Washington DC, 8 July 1998
d. WTO CTE Press Release, PRESS/TE 025, of 13 August 1998.
This discussion is representative of the numerous debates on the matter
that CTE has been the venue of. India has played a particularly active
role in these discussions by enumerating the conflicts between TRIPS and
CBD and proposing measures for the reconciliation of TRIPS with CBD.
e. ACP-EU2612/98/fin,
ACP-EU 2503/98/fin and ACP-EU2613/98/fin, ACP Secretariat, Brussels
f. EP Resolution A4-0347/98 on the European Community
Biodiversity Strategy (COM(98)0042)
g. Strengthening Africa in World Trade, The Second
SEATINI Workshop Report, Harare.
References:
* Abbott, Frederick M (1998). "The enduring enigma
of TRIPS: A challenge for the world economic system." Journal
of International Economic Law, Vol. 1, No. 4, Oxford University Press,
December.
* Ahmad, Syed Irfan, Muhammad Ibrahim and Mian Muhammad
Wajid (1999). "National Experience and Plan to Implement Sui generis
Systems in Pakistan." Paper presented at the UPOV-WIPO-WTO Joint
Regional Workshop on "The Protection of Plant Varieties under Article
27.3(b) of the TRIPS Agreement." Bangkok, 18-19 March 1999.
* CIOPORA (1998). Position Paper of CIOPORA Regarding
Article 27.3 of the TRIPS Agreement. International Community of Breeders
of Asexually Reproduced Ornamental and Fruit Tree Varieties, Geneva, October.
* FAO (1998). The state of the world's plant genetic
resources. UN Food and Agriculture Organisation, Rome. See Chapters
1.5.2 and Annex 2.
* Fink, Carsten and Carlos A Primo Braga (1999). How
Stronger Protection of Intellectual Property Rights Affects International
Trade Flows. Working Papers - International Economics, World Bank,
February. URL: http://www.worldbank.org/html/dec/Publications/Workpapers/wps2000series/wps2051/wps2051.pdf
* Gaia Foundation and GRAIN (1998a). "TRIPS versus
CBD. Conflicts between the WTO regime of intellectual property rights
and sustainable biodiversity management." Global Trade and Biodiversity
in Conflict, No. 1, London/Barcelona, April. URL: http://www.grain.org/publications/gtbc/issue1.htm
* Gaia Foundation and GRAIN (1998b). "Ten reasons
not to join UPOV." Global Trade and Biodiversity in Conflict,
No. 2, London/Barcelona, May. URL: http://www.grain.org/publications/gtbc/issue2.htm
* Leskien, Dan and Michel Flitner (1997). "Intellectual
Property Rights and Plant Genetic Resources: Options for a Sui Generis
System." Issues in Plant Genetic Resources, No. 6. International
Plant Genetic Resources Institute, Rome, June.
* Lesser, William (1999). "The Elements of an Effective
Sui Generis System for the Protection of Plant Varieties."
Paper presented at the UPOV-WIPO-WTO Joint Regional Workshop on "The
Protection of Plant Varieties under Article 27.3(b) of the TRIPS Agreement."
Bangkok, 18-19 March 1999.
* OAU/STRC (1998). Draft Model Law on Community Rights
and Access to Genetic Resources. Science, Technology and Research
Commission of the Organisation for African Unity, Addis Ababa, March.
Available online at URL: http://users.ox.ac.uk/~wgtrr/OAU-decl.htm
* Otten, Adrian (1998). "Implementation of the TRIPS
Agreement and prospects for its further development." Journal
of International Economic Law, Vol. 1, No. 4, Oxford University Press,
December.
* Otomo, Tetsuya (1999). "The Japanese Experience
in Implementing a Sui Generis System." Paper presented at
the UPOV-WIPO-WTO Joint Regional Workshop on "The Protection of Plant
Varieties under Article 27.3(b) of the TRIPS Agreement." Bangkok,
18-19 March 1999.
* Pray, Carl and Robert Tripp (1998). "Industrial
Policy Issues: Participation, Prices and Property Rights." Maize
Seed Industries in Developing Countries, Morris M L (ed), Lynne Rienner
/ CIMMYT, Boulder.
* Rural Advancement Foundation International and Heritage
Seed Curators Aurstralia (1998). Plant Breeders Wrongs. Report
released September 16, 1998. URL: http://www.rafi.org
* South Centre (1997). The TRIPs Agreement: A Guide
for the South. The Uruguay Round agreement on Trade-Related Intellectual
Property Rights. Geneva, November. URL: http://www.southcentre.org/publications/trips/toc.htm
* TRIPS Council Secretariat (1998), personal communication,
9 December.
* United States Government (1998). "Preparations
for the 1999 Ministerial Conference: General Council Discussion on Mandated
Negotiations and the Built-In Agenda. Communication from the United States",
WT/GC/W/115, 19 November 1998, WTO, Geneva. URL: http://www.wto.org/ddf/ep/C4/C4652e.doc
* UPOV (1998). "The Fifteenth Extraordinary Session
of the Council." Plant Variety Protection, No. 84, Union for
the Protection of New Varieties of Plants, Geneva, April.
* van Wijk, Jeroen (1996). "How does stronger protection
of intellectual property rights affect seed supply? Early evidence of
impact." Natural Resource Perspective, Number 13, November
1996. Overseas Development Institute, London. URL: http://www.oneworld.org/odi/nrp/13.html
For further information, please contact
Genetic Resources Action International (GRAIN)
Girona 25, pral
08010 Barcelona Spain
Tel: (34-93) 301 13 81
Fax: (34-93) 301 16 27
Email:
Web: www.grain.org
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