Intellectual Property AND INNOVATION:

technology transfer case studies

Communication from australia; canada; the european union; israel;
japan; korea, Republic of; new zealand; Singapore; switzerland; the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu; the United Kingdom and the United States of america

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1  INTRODUCTION

1.  Technology can improve productivity, enhance competitiveness, promote growth, and contribute to a country's development objectives.^[1] Many countries are therefore motivated to create a marketplace framework that attracts the voluntary transfer of technology and investment in technological innovation. At the WTO, this motivation has yielded papers, interventions, thematic sessions, and other discussions focused on the relationship between trade and technology. These endeavors would be complemented by a discussion of efforts that have been made to attract investment and technology and what factors made those efforts successful or unsuccessful, as well as of how to ensure an adequate enabling environment (human capital, infrastructure, legal framework, macroeconomic conditions) for technology transfer in the host countries. Further, it would be helpful to gather Members' insights on how proposed solutions could replicate specific successes and address specific failures.

2.  This discussion paper solicits case studies on the voluntary transfer of patent-protected or trade secret technology from one WTO Member to another and reflects on the importance of improving absorption capacities of the beneficiary country by means of appropriate domestic policies and capacity building. The guiding questions provided further below look to discover what made specific technology transfer projects attractive and successful in order to guide WTO Council for TRIPS discussions on how Members can better encourage and incentivize voluntary technology transfer on mutually agreed terms to address global challenges.

2  AVAILABILITY OF TECHNOLOGY

3.  In today's interconnected world, technology is increasingly disseminated online and can be accessed with the click of a button. For example, information on how to make and use patented technology^[2] is generally available from the websites of local patent offices or search engines, and can be used where patent protection has expired or has not already been sought^[3] and granted. Informal transfer of knowledge can also disseminate technology as researchers, students, and scientists communicate with each other through publications, conferences, meetings, and other exchanges. The technology embedded in products and services is disseminated as they make their way through supply chains and trade routes from one WTO Member to another. In addition, the reported activities under TRIPS Article 66.2 seek to incentivize the transfer of technology. These types of technology are readily available for anyone to use because they either are not protected, or are no longer protected, as intellectual property. Barriers to accessing readily available technologies can include domestic government policy and governance systems,^[4] the level of infrastructure development, and the lack of financial resources, freedom to access information, and knowledge of available opportunities for voluntary technology transfer.

4.  In instances where a given technology is protected by a patent or patents, the patent owner has the right to exclude others from using the technology in those countries where a patent has already been granted, and can set the parameters around accessing and using the technology until the term of protection expires.

5.  Technology can also be protected by trade secrets. Trade secrets can include information on how to make a product, research and development results, quality control methods, software algorithms, and so forth. These technologies are not available for others to access and use because they are secret. The owner of the trade secret can choose to share the technology with others, but must take reasonable steps under the circumstances to keep it secret in order to maintain it as a trade secret.

3  TRANSFERRING TECHNOLOGY

6.  The transfer^[5] of patent-protected technology and related know-how or trade secrets can take place through a broad range of mechanisms. Effective technology transfer can often require the adaptation and integration of the technology into the recipient's domestic context and may include capacity building, such as through building new infrastructure or the development of local expertise. Consequently, not every technology is appropriate to every domestic situation, and the local environment needs to be carefully evaluated before acquiring or transferring a new technology.

7.  A well-known way for a company to transfer technology is by voluntarily licensing the underlying patent or trade secret on terms that are mutually agreed by all parties. Voluntary licenses can facilitation the dissemination of a technology, while enabling the owner to retain ownership and control and setting clear expectations for a partnership that is beneficial to all parties. Voluntary licenses can, for instance, establish quality control requirements for manufacturing, set the region where the licensee is permitted to operate, and include the level of information, assistance, and support that the owner of the technology will provide. These agreements can be exclusive, granting the licensee sole rights within a defined territory, or non-exclusive, allowing multiple licensees to compete with each other and perhaps sub-license to others.

8.  Research institutions can also be involved in the transfer of technology. For example, some universities and non-profit research institutions commercialize patent-protected inventions arising from publicly funded research. This has led to significant technology transfer through the licensing and creation of new resulting companies. These models have been adopted in various WTO Members to promote the dissemination of publicly funded research. 

9.  Collaboration between government research laboratories in different countries, or between a government research lab and a private company, is another area where technology transfer arises, particularly in areas such as health, agriculture, and environmental sustainability. These arrangements help build long-term partnerships and strengthen institutional capacity for technology absorption and adaptation.

4  TECHNOLOGY TRANSFER EXAMPLES

10.  Practical examples are essential in order to gain a better understanding of how technology transfer happens. A quick online search will uncover many examples of technology transfer projects, across industries such as agriculture, environmental sustainability, and manufacturing. Here are several examples:

·_              Some IP office websites provide access to case studies, including in the textiles, vehicles, and manufacturing industries, to illustrate how patents facilitate technology transfer from organizations that conduct research and development.^[6]

·_              The World Intellectual Property Organization (WIPO) provides an online platform, "WIPO GREEN," which is for technology exchange. WIPO GREEN supports global efforts to address climate change by connecting providers and seekers of environmentally friendly technologies.^[7]

·_              Articles and research papers provide details of technology transfer projects, such as a business partnership between a Japanese company and a Tanzanian company to produce long-lasting insecticide-treated nets,^[8] and technical know-how provided to Sri Lankan companies in the manufacturing and textile industries.^[9]

·_              Developed Member reports on the implementation of TRIPS Article 66.2 list incentives that they provide to enterprises and institutions in their territories for the purpose of promoting and encouraging technology transfer to least-developed country Members in order to enable them to create a sound and viable technological base. These reports often contain details on the capacity building and technology transfer projects that have been incentivized.

11.  The area of public health provides a number of examples of innovative technology transfer mechanisms. For example, the Medicines Patent Pool (MPP) facilitates sublicensing of patents for health technologies associated with treating HIV, hepatitis, COVID-19, cancer, and other diseases across geographical markets. The MPP licenses these health technologies, working closely with technology originators to understand the technical requirements for technology transfer, and then enters into voluntary sublicensing agreements with producers in eligible countries to increase access to lifesaving medicines and to facilitate the development of those medicines. 

12.  For the above examples and other projects, the guiding questions focus on what made the technology transfer projects attractive and successful. 

5  Guiding questions

The discussions of technology transfer in the TRIPS Council will benefit from technology transfer case studies that demonstrate how technology transfer works in the real world.

What technology transfer projects to or from companies, government authorities, or other entities in your territory have been successful? What elements are important to ensure the feasibility and success of such projects? For these projects:

Relevant factors and roles

a._         What business or other conditions and factors led to the project being initiated and pursued? To what extent do these conditions and factors relate to intellectual property?

b._         What was the technology that was transferred?

c._         What were the intellectual property aspects of the technology transfer?  For example, was a patent or trade secret licensed?  Was training provided on how to use trade secrets or other confidential business information?

Parties involved in the transfer of technology

d._         For the entity that transferred the technology, what were the reasons for selecting the recipient? For example, was there an interest in expanding into a region or market, to begin or deepen a commercial relationship, or to spur further innovation?

e._         Was the legal or regulatory environment of the territory where the recipient was located a consideration for the technology transfer project?

f._          For the entity that received the technology, what actions were taken to attract the transfer and make use of the technology? Did the company or entity take special steps to prepare to receive the technology?

Results, successes, and challenges

g._         What were the challenges faced in transferring or receiving the technology, and how were those challenges overcome?

h._         What was the result of the project from the perspective of the transferor, recipient, and their respective countries, workforces, and/or markets?

i._          Has your government taken any steps to encourage voluntary technology transfer into or from your country? For example, did a government entity provide assistance to a company that led the company to successfully receive technology?

j._          What can Members learn from these projects to better encourage and incentivize technology transfer to address the challenges facing the world today and in the future?

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