WORLD TRADE
ORGANIZATIONIP/C/W/132/Add.1
9 April 1999
(99-1413)
Council for Trade-Related Aspects
of Intellectual Property RightsOriginal:  English
IMPLEMENTATION OF ARTICLE  66.2:  INFORMATION FROM
DEVELOPED COUNTRY MEMBERS
Addendum
UNITED STATES
The present document reproduces the information on the implementation of Article 66.2 of
the TRIPS Agreement, which has been received from the delegation of the United States on
17 February 1999.
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Summary of Legislation Involving Technology Transfer to Developing Countries1
Title 20: Education
Section 226 :  encourages state governments, universities, colleges and businesses to establish
scholarships for students from the Caribbean and Central America.  The goal of the scholarships is to
assist in the development of the eligible countries.
Title 22: Foreign Relations and Intercourse
Section 2151 :  declares a policy of providing support for the people of developing countries
to acquire knowledge and resources.  Also known as the Foreign Assistance Act of 1961.
Section 2151d :  authorizes the President to furnish assistance by providing data collection
and analysis, the training of skilled personnel, research and development of energy sources and pilot
programs to test new methods of energy production to developing countries.  See sub-sections (b) and(d).
Section 2182 : encourages the use of solar technology in worldwide housing projects.  The
legislation is unclear if it is explicitly encouraging the transfer of solar technology.
Sections 2191 and 2194 :  creates the Overseas Private Investment Corporation to mobilize
and facilitate U.S. private capital and skills to improve development in less developed countries.
Section 2293:   establishes a development fund to encourage the private sector to promote
development in the Sub-Saharan Africa.  One type of assistance is providing research on agriculturalpractices.  See sub-section (I)(1)(A).  Other assistance methods include providing technical support,
training and education to improve the use of natural resources.  See sub-sections (I)(1)(B)(ii-iii).
                                                     
1 The texts of the laws referred to in the list, and other background material on the relevant activities,
are available in the WTO Secretariat for consultation by interested delegations.IP/C/W/132/Add.1
Page 2
Sections 2295, 2295a and 2295b:   authorizes the President to provide a variety of assistance
to the independent states of the former Soviet Union.  Under subsection (7), the President can
authorize assistance in providing appropriate telecommunications technologies and training to
develop skills necessary to produce educational television.  Under sub-section (10), the President can
promote environmental technology, education, research and training by U.S. businesses anduniversities.
Section 2351:   encourages U.S. enterprises to contribute to the economic strength of less
developed friendly countries by the exchange of ideas and technical information.
Section 2421a:   establishes a capital projects office within the Agency for International
Development (AID).  The purpose of the office is to  assist in the growth of a developing country's
infrastructure.  Subsection (c)6)(B) encourages U.S. high technology firms to help develop a
technological infrastructure.
Section 3262:   creates a programme to assist in the energy development of developing
countries.  The programme provides for the development of energy resources, the application ofsuitable energy technologies and an exchange of scientists, technicians and energy experts.
Chapter 50 (sections 3501-3513):   establishes the Institute for Scientific and Technological
Cooperation.  The purpose of the Institute is to encourage research on the problems of development in
developing countries and to facilitate scientific and technological cooperation.  Section 3503 definesthe functions of the Institute, which include supporting U.S. research on critical development
problems, encouraging the exchange of scientists and experts and fostering the involvement of U.S.
enterprises in scientific and technology cooperation with the developing countries.
Section 4703:   provides scholarships for undergraduate studies at U.S. schools for nationals
of developing countries to assist in the economic development of the countries.
Chapter 63 (Sections 5401-5495):   establishes the Support for East European Democracy
(SEED) Programme.  The activities of the SEED Programme include agricultural assistance, grants to
support "Enterprise Funds," which provide technical assistance and training, and programmes to
provide technical skills to assist in the development of the economy.  See sections 5401(c), 5421,
5422 and 5423.  The SEED Programme also establishes scholarships to enable students from Polandand Hungary to study at U.S. universities, colleges or businesses.  See section 5442.  Additionally, the
statute authorizes the Environmental Protection Ag ency (EPA) to provide education, training and
research to Hungary and Poland.  See section 5452.
Section 5821:   creates American Business Centres in the independent states of the former
Soviet Union.  The centres may facilitate in the de monstration and use of U.S. agricultural equipment
and technology.  The Centres also serve as a repository of technical information.
Section 5861:   establishes a research and development foundation, created by the Director of
the National Science Foundation in consultation with the Director of the National Institute ofStandards and Technology.  The Foundation partially funds joint research, development and
demonstration ventures between U.S. business and scientists and engineers and entrepreneurs of the
independent states.
Title 26: Internal Revenue Code
Section 501:   provides a tax credit for qualified organizations (see subparagraph (A) and (B)
of section 41(e)(6) as redesignated by section 231(d)(2)) of the Internal Revenue Code of 1986) that
operate exclusively in reviewing technology disclosures, obtaining protection and licensingIP/C/W/132/Add.1
Page 3
technology or providing research grants.  This law is not limited to organizations that provide
technology transfer to developing countries.
Sections 951, 955, 956, 959 and 1248:   concerns a U.S. shareholder's tax liability in a foreign
corporation that invests in a less developed country.  There is no direct mention of technology in anyof the sections.
Title 42: The Public Health and Welfare
Section 7671b:   requires the Administrator to submit to Congress a report identifying
technology transfer programmes that could promote methane emissions reductions in lesser developed
countries.  See Methane Studies Act, subsection (c)(2).
Section 13316:   creates a technology transfer programme which assists U.S. firms to transfer
renewable energy technologies to foreign countries.  The programme establishes a financial assistance
to encourage U.S. companies to participate in energy projects in developing countries.  See sub-
sections (b)(7), (b)(9) and (d)(1)(A).
Section 13362:   creates a technology transfer programme which assists U.S. firms to transfer
clean coal technologies to foreign countries.  The programme establishes a financial assistance to
encourage U.S. companies to participate in energy pr ojects in developing countries.  See subsections
(b)(7), (b)(9) and (d)(1)(A).
Section 13387:   establishes a technology transfer programme concerning environmental
technologies.  The programme creates a financial mechanism to encourage U.S. enterprises in energy
projects that substantially reduce environmental pollutants in developing countries.
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