Report on the implementation of article 66.2
of the TRIPS agreement

Canada

The following communication, dated 16 September 2024, from the delegation of Canada, is being circulated pursuant to paragraph 1 of the Decision on Implementation of Article 66.2 of the TRIPS Agreement (document _IP/C/28).

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1 INTRODUCTION

1.  Article 66.2 of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) requires that "[d]eveloped country Members shall provide incentives to enterprises and institutions in their territories for the purpose of promoting and encouraging technology transfer to least developed country [LDC] Members in order to enable them to create a sound and viable technological base."

2.  Following the Decision of the Council for TRIPS of 19 February 2003 (document _IP/C/28), developed country Members submit annual reports on the actions taken or planned in pursuance of their commitments under TRIPS Article 66.2. Further to that decision, Members decided to provide new, detailed reports every third year, with updates in the intervening years. Canada's most recent detailed report was submitted in September 2023 (document _IP/C/R/TTI/CAN/4). The present report constitutes an update to Canada's 2023 report, with a view to providing current information on incentives in this area. This includes a detailed overview of actions taken or planned, with information on specific project or program incentives provided in Canada with respect to the technology transfer provisions under TRIPS Article 66.2. As in previous years, the Annex to this year's report provides an illustrative, non-exhaustive overview of incentives provided to Canadian enterprises and institutions in this area, which are either targeted specifically at LDCs or to groups of countries that at a minimum include an LDC.

3.  It is noted that the activities in this report are distinct from those outlined in Canada's corresponding 2023 report on technical cooperation activities under Article 67 of the TRIPS Agreement (document _IP/C/R/TC/CAN/5). However, as noted by various Members, and as expressed by the WTO Secretariat in the past, there is some overlap between the concepts of technology transfer and technical assistance. For instance, some forms of technical and financial assistance can constitute incentives for the transfer of technology, insofar as the IP-related legal and regulatory environment in a Member country can serve as a key consideration in creating enabling conditions for sustainable technology transfer.

4.  A variety of financial and non-financial incentives can exist in developed country Members to facilitate the transfer of technology. These incentives may include, inter alia, co-financing, tax incentives, insurance, and technical advice, as well as aid grants and loans, such as by way of official development assistance (ODA) in support of technology transfer-focused projects, programs and government-funded research. Most of the incentives outlined in this year's report fall under the latter category of programs or projects funded by Canadian ODA, primarily those aimed at the transfer of technology to LDC Members with a view to enabling them to create a sound and viable technological base.

5.  Canada understands technology transfer to include the transfer of technology embedded in physical goods and services (such as machinery and equipment), as well as the dissemination of technical and business information and knowledge upon which a product, process or service is based, as well as the transfer of skills and know-how. Accordingly, technology transfer may include, for instance, the embedded IP in transferred goods and services, management and business know-how to support the production and distribution of goods and services; and human resource capacity‑building.