WTO NEWS: SPEECHES — DG PASCAL LAMY

International Seminar on the 15th Anniversary of TRIPS


> Pascal Lamy’s speeches

  

Ladies and Gentlemen,

I applaud the Government of China and the Shanghai WTO Affairs Consultation Center for hosting this International Seminar on the 15th Anniversary of TRIPS, the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights.

By virtue of TRIPS, intellectual property has now been a central part of the multilateral trading system for 15 years. The journey has been fascinating, sometimes controversial, passing through a series of momentous public policy issues ranging from public health to traditional knowledge, at a time when the role and impact of intellectual property have never been more significant, economically and socially.

At the end of this 15 year journey, as I join you in Shanghai, appropriately enough through digital means, I am delighted that you have gathered to review past experiences, and to exchange ideas for the 15 years to come. And I can think of no more auspicious location than your country to examine TRIPS as it is today, and to contrast it with the state of affairs in 1995 when it was coming into legal force, just as the WTO itself was formed.

The astonishing transformation of the Chinese economy, and the parallel transformation of its place within the global trading system, has been one of the most remarkable developments in the international economy in the past 15 years; and in 2001 the decision at Doha on the accession of China represented a fundamental milestone in both the evolution of China and the WTO.

The same 15 years have seen a remarkable transformation in the international economy with the consolidation of knowledge-based economic growth and a sharp rise in commercial transactions based on intellectual property, particularly through the rise of the Internet since the mid-90s; and the same Ministerial Conference issued the Doha Declaration on TRIPS and Public Health, representing a fundamental milestone in the evolution of TRIPS.

What brings together these two major lines of development — the economic transformation of China, and the legal transformation of international intellectual property law? Clearly, it is the fact that China has itself emerged as a major player in the international intellectual property domain. The promotion of innovation is now a national development strategy.

The figures speak for themselves. In 1995, as TRIPS came into force, some 18,000 patent applications were filed in China. In 2008, the number had risen over 16 times to 290,000, and it continues to grow at a double digit rate. Domestic firms account for over two thirds of this activity — a very high proportion for any economy, developed or developing. The trademark statistics are even more striking. Around 700,000 trademark applications are filed each year in China, the overwhelming majority originating from local enterprises, a proportion that is virtually unequalled. Each of these filings represents a specific choice to create a new brand or to build an existing one, to help build a presence in the domestic market, and for many to lay the basis for entry into the global market.

The economic and systemic impact of China’s recent but rapid uptake of the intellectual property system was thrown into sharp relief in 2008: in that year, a Chinese company filed more international patent applications than any other global firm. You don’t need to be an expert numerologist to see that the pace and scale of innovation are striking.

But the intended benefits of intellectual property — its ‘social and economic welfare’ — are not realized simply by filing an application. Nor can the impact of intellectual property on an economy be measured by a simple headcount of documents filed. We need to consider how the system is used, in a very practical sense, and how the general principles set out in TRIPS are elaborated and applied in the local context.

The National Intellectual Property Strategy provides an overarching framework for these efforts, and we can see an impressive growth in the professional and management skills required to make effective use of the intellectual property system. The WTO itself has delivered many capacity building programs directly with China or involving Chinese participants.

Yet recent developments also show a practical interest in ensuring that intellectual property rules do not pose unintended obstacles to achieving broader social objectives. these include implementation of the mechanism for export of vital medicines to countries with limited production capacity; and the introduction of measures against anticompetitive abuse of intellectual property rights under the new Anti-Monopoly Law. Reflecting, perhaps, its rich heritage of traditional knowledge and genetic resources, China has also recently introduced into its patent law a requirement to disclose the original source of genetic resources, a measure implemented in the light of the Convention on Biological Diversity.

Enforcement of intellectual property has been a challenge for China, as indeed for many countries, and it is no secret that some key trading partners still underscore enforcement as a persistent concern. The WTO has been able to perform its role in providing a neutral set of rules to establish the expectations for intellectual property enforcement that trading partners can ask of one another. The recent panel decision concerning enforcement of intellectual property in China has clarified those legal standards, and the scope for national choices within that framework. China has already reported to the WTO that it has implemented the recommendations emerging from that dispute. Clearly, attaining the right balance between focussing enforcement resources most effectively against infringing activities on the one side, and facilitating legitimate trade and dissemination on the other side, will remain a tough practical challenge and it takes a bit of time, especially in a big country such as China. But I am sure that all welcome the clear resolve of China to meet this challenge and the progress made in the past.

China’s experience within the TRIPS framework is a leading example of how one country takes up the task of moving towards a higher value added economy, transforming research capacity into useful new products, building brands, and balancing commercial incentives with wider social objectives. China’s journey over the past 15 years offers insights, ideas, policy choices and practical experiences that deserve our close attention. I look forward to hearing of the proceedings of this Symposium and to learn from your reflections on both the future state of the Chinese knowledge economy, and the evolution of the TRIPS Agreement in the 15 years to come.
China is the home of three great inventions such as the paper, the compass, and powder, from which the world benefits till now. I believe a better protection of intellectual property will further stimulate the creativity and wisdom of people and contribute to future world prosperity and development.

I wish this meeting a success.

Thank you for your attention.

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