RESTRICTED
WORLD TRADE IP/C/W/63
7May1997
ORGANIZATION(97-1978)
Original: English Council forTrade-Related Aspects
ofIntellectual Property Rights
REVIEW OFLEGISLATION INTHE FIELDS OFPATENTS, LAYOUT-DESIGNS
(TOPOGRAPHIES) OFINTEGRATED CIRCUITS, PROTECTION OF
UNDISCLOSED INFORMATION AND CONTROL OF
ANTI-COMPETITIVE PRACTICES IN
CONTRACTUAL LICENCES
Replies from Bulgaria toquestions posed by
theEuropean Communities andtheirMember States
Thefollowingcommunication,dated5May1997,hasbeenreceivedfromthePermanentMission
ofBulgaria.
_______________
Preliminary Remarks
TheRepublic ofBulgaria fulfilled itsconstitutional requirements fortheaccession totheWTO
Agreement. According totheprocedures envisaged intheBulgarian Constitution, theParliament of
theRepublic ofBulgaria ratified thelegal instrument fortheAccession oftheRepublic ofBulgaria
totheMarrakesh Agreement Establishing theWTO -theProtocol fortheAccession ofBulgaria to
theMarrakesh Agreement Establishing theWTO, andtheMarrakesh Agreement Establishing theWTO,
including Annex 1B-Agreement onTrade-Related Aspects ofIntellectual Property Rights (Ratification
Law, State Gazette No.93/1996).
After thepromulgation ofthefulltextoftheWTO Agreement inaspecial edition oftheState
Gazette theprovisions ofArticle 5,paragraph 4oftheConstitution oftheRepublic ofBulgaria are
applicable.Article5,paragraph4oftheConstitutionstatesasabasicprinciplethatInternationalTreaties
ratified bytheParliament, promulgated andentered intoforce fortheRepublic ofBulgaria become
anintegral partoftheinternal legislation, andincases ofcollision oftheprovisions oftheinternal
legislation withthatoftheInternational Treaties thelastwould prevail.
REPLIES TOQUESTIONS POSED BYTHE EUROPEAN COMMUNITIES AND THEIR
MEMBER STATES
Patents
1. Does thereference inSection 1(2)oftheBulgarian Patent Lawof1993 to"foreign natural
andlegalpersons" effectively extend patent protection toallnationals ofMembers oftheWorld Trade
Organization, asdefined in,andinaccordance with, Article 1.3ofTRIPS? Please explain.IP/C/W/63
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UndertheprovisionsofArticle1,paragraph2oftheBulgarianPatentLaw(1993),theeffectively
extended patent protection inthescope ofthatlawisaccorded toallforeign natural andlegalpersons,
whoarenationals ofMembers oftheWorld Trade Organization, asdefined inArticle 1.3ofTRIPS.
2. Does theBulgarian Patent Lawof1993 prohibit thegrant ofacompulsory licence in
circumstances where therightholder justifies hisorherfailure tousethesubject matter ofthepatent
inaccordance withArticle 2.1ofTRIPS inconjunction with5(A)(4) oftheParis Convention? Ifso,
whatarethese circumstances?
Under theprovisions ofArticle 32,paragraph 1,subparagraphs 1and2ofthePatent Law,
acompulsory licence cannot berequested andgranted forfailure tousethesubject matter, provided
thatatleastoneofthefollowing conditions isathand:
- failure tousetheinvention foraperiod offouryears fromthedateoftheapplication
forapatent orofthree years from thegrant ofapatent, provided thatthetimelimit
which expires laterisvalid;
- insufficient useoftheinvention tosatisfy theneeds ofthenational market, within the
timelimits asperabove, unless thepatent owner proves valid reasons forthat.
Inthatrespect thePatent Lawisinfullcompliance withArticle 2.1ofTRIPS inconnection
withArticle 5(A)(4) oftheParis Convention.
3. Does theBulgarian Patent Lawof1993 provide forthepatentability ofmicro-organisms in
accordance withparagraph (b)ofArticle 27.3ofTRIPS?
Under Article 7,subparagraph 3ofthePatent Law (1993), protection isgranted for
microbiological methods andproducts obtained through theminfullcompliance withArticle 27.3(b)
ofTRIPS.
Under thathypothesis, theprovisions ofArticle 37(2) ofthePatent Lawlaydown thecondition
thatthedescription should contain anindication ofthefactthatthedeposit hasbeen made atan
internationaldepositoryinstitutionincaseswherethepatentapplicationreferstobiologicallyreproducible
material, including micro-organisms.
4. Article 30ofTRIPS mentions "notunreasonably prejudice" incases ofexceptions totherights
conferred toapatent owner. However, Section 20(1) oftheBulgarian Patent Lawof1993 usesthe
terms "does notcause significant material prejudice"? HowisthispartofthePatent Lawinterpreted?
Please explain.
Under theprovisions ofArticle 20,paragraph 1ofthePatent Law, theeffect ofthepatent
doesnotextend totheuseofobjects ofinventions fornon-commercial purposes (forprivate needs).
Theexpression "ifsuchusedoesnotcause significant damages fortheowner ofthepatent" cannot
beconsidered separately, butonlyinconnection withthelimitation ofusage forprivate needs. Inthat
aspect, according totheprovisions ofthePatent Law, theeffect ofthepatent doesnotextend tothe
useofpatent inventions fornon-commercial purposes (forprivate needs) ifsuchusedoesnotcause
significant damages fortheowner ofthepatent. Inthatrespect weassume thatArticle 20,paragraph 1
ofthePatent Lawdoesnotcontradict Article 30ofTRIPS.
5. Does theBulgarian Patent Lawof1993, inparticular inlightofSection 32(7), comply with
Article 31ofTRIPS? Please explain.IP/C/W/63
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Theprovisions ofArticle 32,paragraph 7ofthePatent Lawensure thepriority oftheconditions
forgranting ofcompulsory licence, laiddown inbilateral ormultilateral agreements (including TRIPS)
towhich Bulgaria isaparty, overtheconditions stipulated inArticle 32.
Article 32ofthePatent Lawcomplies withArticle 31ofTRIPS, because theprovisions of
paragraph 7provide fortheimplementation oftheconditions forgranting ofcompulsory licences to
patent owners from WTO Members, aslaiddown inArticle 31ofTRIPS.
6. DoestheBulgarianPatentLawof1993imposeonaproposedcompulsorylicensee,asacondition
precedent tothegrant ofthecompulsory licence, theobligation tomake reasonable efforts toobtain
authorization fromtherightholder onreasonable terms andconditions inaccordance withArticle 31(b)
ofTRIPS? Please explain.
There isnoexplicit provision forthatcaseinthePatent Law, butinlinewithArticle 32,
paragraph 7asstated above, concerning alicensee fromWTO Members, theapplicant willberequired
prior tothegrant ofthecompulsory licence, tohavemade reasonable efforts toobtain authorization
from therightholder onreasonable terms andconditions.
Account should alsobetaken ofthefactthat,inaccordance withtheprovisions ofArticle 32,
paragraph 1,acompulsory licence mayberequested onlybytheperson involved, i.e.theinterest of
thepetitioner hastobemotivated intherequest; andaccording toparagraph 2thepetitioner hasto
prove thatheisinaposition tousetheinvention within thelimits ofthecompulsory licence requested.
7. Does theBulgarian Patent Lawof1993 require thatnotification ofacompulsory licence be
given totherightholder incases ofnational emergency inaccordance withArticle 31(b) ofTRIPS?
There isnoexplicit provision inthePatent Law, butasstated inreply 5above alladditional
conditions, stipulated inArticle 31ofTRIPS areobligatory fortheRepublic ofBulgaria, including
therequirement fornotifying theright holder induetimewhen granting acompulsory licence in
situations ofnational emergency orother circumstances ofextreme urgency.
8. Does theBulgarian Patent Lawof1993 limitthescope andduration ofacompulsory licence
tothepurpose forwhich itwasauthorized inaccordance withArticle 31(c) ofTRIPS? Please explain.
Under theprovisions ofArticle 32,paragraph 1,subparagraph 3thetimeperiod forthe
compulsory licence granted incaseofdeclared national emergency islimited forthetimeperiod of
itsduration.
Forother cases ofcompulsory licence grants, thePatent Lawdoesnotstipulate rules for
limitation oftheduration depending onthepurpose ofthegrants. Theprovisions ofArticle 32,
paragraph 5ofthePatent Lawonlydefine thetimelimits, within which alicensee should havestarted
thepreparation forusing, respectively using theinvention object oflicensing.
Referring tothelimitation ofthescope ofthecompulsory licence, thepetitioner, inaccordance
withArticle 32,paragraph 2ofthePatent Law, hastoprove thatheisinaposition tousetheinvention
within thelimits ofthecompulsory licence requested, i.e.hehastorestrict thescope ofthecompulsory
licence requested totheextent hehimself isinaposition tousetheinvention.
However, inthemeaning oftheprovision Article 32,paragraph 7ofthePatent Law, there
arenoobstacles tolimitthescope andduration ofacompulsory licence tothepurpose forwhich it
wasauthorized inaccordance withArticle 31(c) ofTRIPS.IP/C/W/63
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9. Does theBulgarian Patent Lawof1993 permit theassignment ofacompulsory licence with
partoftheenterprise orgoodwill which enjoys suchuseinaccordance withArticle 31(e) ofTRIPS?
Inconformity withtheprovisions ofArticle 31(e) ofTRIPS andArticle 4(A)(4) oftheParis
Convention, Article 32,paragraph 4ofthePatent Lawpermits thecompulsory licence tobeassigned
onlytogether withpartoftheenterprise orgoodwill wherein theinvention subject tosuchalicence
isbeing used.
10. Does theBulgarian Patent Lawof1993 restrict, incompulsory licensing situations, theuse
ofthesubject matter ofthelicensed patent tousewhich ispredominantly forthesupply ofBulgaria ’s
domestic market inaccordance withArticle 31(f)ofTRIPS?
Although there isnoexplicit provision inthePatent Law, thehypothesis ofArticle 32,
paragraph 1,subparagraph 2requires thegrant ofacompulsory licence when there isinsufficient use
oftheinvention "tosatisfy theneeds ofthenational market". Thathypothesis preconditions thelimitation
ofthegranted compulsory licence totheexclusive usenecessary tosatisfy exclusively theneeds of
thedomestic market oftheRepublic ofBulgaria. From another point ofview, ascitedinreply 5above,
under theprovision ofArticle 32,paragraph 7ofthePatent Law, thelimitation under Article 31(f)
ofTRIPS, istobeapplied tothepatent holders ofWTO Members.
11. Does theBulgarian Patent Lawof1993 permit thetermination inallcases ofacompulsory
licence ontheground thatthecircumstances which ledtothecompulsory licence haveceased toexit
andareunlikely torecur inaccordance withArticle 31(g) ofTRIPS?
Under theprovisions ofArticle 32,paragraph 1,subparagraph 3ofthePatent Law, the
compulsory licence granted incases ofdeclared national stateofemergency istobeterminated for
theduration ofthedeclared national stateofemergency, i.e.incaseofcancellation ofthestateof
emergency.
Inallother cases, according totheprovisions ofArticle 55,paragraph 2,subparagraph 2of
thePatent Law, therightholder ofapatent, inthelimits ofwhich thelicence hasbeengranted, has
therighttorequest itstermination iforwhen thecircumstances under which ithasbeengranted cease
toexistorareunlikely toreappear.
Aspecial procedure, regulated intheLawonObligations andContracts shallbeapplied in
cases ofviolation ofother conditions, envisaged when thecompulsory licence hasbeengranted.
12. Does theBulgarian Patent Lawof1993 require theadequate remuneration ofarightholder
incircumstances where thesubject matter oftherightholder ’spatent isthesubject ofacompulsory
licence inaccordance withArticle 31(h) ofTRIPS?
Theprovisions ofArticle 66ofthePatent Lawstipulate anopportunity forthepatent holder,
towhom acompulsory licence hasbeengranted, torequest theSofiaTown Court fordispute concerning
remuneration ofsums, which provides aprotection tothelegalinterests ofthepatent holder. When
acompulsory licence hasbeengranted, anadequate remuneration ofsums isduetothepatent holder
andtheiramount maybedisputed incourt.
13. What entity isresponsible foradjudicating requests forthegrant andtermination ofcompulsory
licences under theBulgarian Patent Lawof1993 andaredecisions made inrespect ofsuchrequests
subject toreview byadistinct higher authority inaccordance withArticle 31(i)ofTRIPS?IP/C/W/63
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Thecompetentauthorityforassignmentorterminationofcompulsorylicenceundertheprovisions
ofArticle 80,paragraph 4ofthePatent LawisthePatent Office oftheRepublic ofBulgaria; therequests
forcompulsory licence under theprovisions ofArticle 55,paragraph 2areconsidered bytheDepartment
forDisputes atthePatent Office. Itsdecisions under theprovisions ofArticle 59inconnection with
Article 58,paragraph 5,subparagraph 2ofthePatent Lawareobjects oflegalcontrol bytheSofia
Town Court.
14. Withrespect toacompulsory licence granted inorder topermit exploitation ofthesubject matter
ofapatent (the"second patent") which cannotbeexploited without infringing another patent (the
"first patent"), doestheBulgarian Patent Lawof1993, inaccordance withArticle 31(l)ofTRIPS:
(a) require thatthesecond patent involve animportant technical advance ofconsiderable
economic significance inrelation totheinvention claimed inthefirstpatent;
(b) provide totheowner ofthefirstpatent therighttoacross-licence onreasonable terms
tousethesecond patent; and/or
(c) prohibit theassignment oftherighttousethefirstpatent except withtheassignment
ofthesecond patent?
Under theprovision ofArticle 32,paragraph 3ofthePatent Law, acompulsory licence may
begranted infavour ofapatent holder, whose invention, forwhich apatent hasbeenassigned (second
patent) isincluded inthescope ofanother patent (first patent) under thecondition that,despite the
steps undertaken bytheholder ofthesecond patent, anagreement forlicence atreasonable andfair
conditions hasnotbeenconcluded.
Asstated inreply 5above, onbasis oftheprovision ofArticle 32,paragraph 7ofthePatent
Law, allother conditions provided forinArticle 31(l)(i), 31(l)(ii), 31(l)(iii) ofTRIPS areapplied for
allpatent holders ofWTO Members.
15. Does Bulgarian Lawmake provision, inthecontext ofcivilproceedings forinfringement in
respect ofapatented process forobtaining anewproduct andinaccordance withArticle 34.3ofTRIPS,
forconsideration ofthelegitimate interests ofadefendant inprotecting itsmanufacturing andbusiness
secrets incircumstances where thedefendant isrequired toprove thattheprocess usedtoobtain an
identical product isdifferent fromthepatent process?
Fortheprotection ofmanufacturing andbusiness secrets inthelegalprocedure theprovisions
ofArticle 105,paragraph 2oftheCode onCivil Procedures envisage theopportunity toconsider the
circumstances ofthecaseonrequest ofoneoftheparties before theCourt. Only theparties, their
representatives and,ifnecessary, experts, witnesses andthose, allowed bythecourt, mayparticipate
inthecase.
Layout-designs (topographies) ofintegrated circuits
1. Does Bulgarian lawprovide fortheprotection oflayout-designs (topographies) ofintegrated
circuits inaccordance withArticles 35to37ofTRIPS?
ThePatent Office hasprepared aDraft LawonProtection ofLayout Designs (Topographies)
ofIntegrated Circuits, fullyharmonised withtheTreaty onIntellectual Property inRespect ofintegrated
circuits, adopted atWashington in1989. TheDraft isunder consideration bytheLegislative Council
attheMinistry ofJustice anditsexamination bytheCouncil ofMinisters oftheRepublic ofBulgaria
ispending.IP/C/W/63
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Protection ofundisclosed information
1. DoesBulgarian Lawprovide natural andlegalpersons withthemeans ofpreventing information
lawfully within theircontrol frombeing disclosed to,acquired by,orusedbyothers without theirconsent
inaccordance withArticle 39.2ofTRIPS?
Article 14,paragraph 3oftheLawontheProtection ofCompetition stipulates prohibition on
thedivulging oftheprotection oftradesecrets. Thelearning, useordivulging ofundisclosed information
contrary tobona fidetrade practices isconsidered asunfair competition under thelaw.Thelaw
guarantees therightofnatural andlegalpersons whose interests havebeenharmed either bymeans
oftheirrighttoreferthecasetothecourt personally, orbyclaims lodged bytheauthorized body for
protection ofcompetition orthedistrict prosecutor. Under theprovisions ofArticle 14,paragraph 5
oftheLawontheProtection ofCompetition, employees ofanyenterprise ororganization, aswell
asofstatebodies (including theperiod aftertermination oftheir employment contracts) maynot
communicate theproduction ortrade secrets which theyhavelearned through theiremployment for
aperiod offiveyears, except where alonger termisstipulated intheemployment orother contract.
2. Does thephrase "inamanner inconsistent withhonest trade practice" inSection 14ofthe
Bulgarian LawontheProtection ofCompetition of1991include (i)breach ofcontract, (ii)inducement
tobreach; and/or (iii)theacquisition ofundisclosed information bythirdparties whoknew, orwhere
grosslynegligentinfailingtoknow,thatpracticescontrarytohonestcommercialpracticewhereinvolved
intheacquisition inaccordance withArticle 39.2ofTRIPS?
Although thereisnolegaldefinition forthephrase used"incontrary tobonafidetradepractice"
inArticle 14oftheLawontheProtection ofCompetition (1991), theauthorised body forprotection
ofcompetition assumes initspractice suchaction asbreach ofcontract, inducement tobreach and/or
theacquisition ofundisclosed information bythird parties whoknew, orwere grossly negligent in
failing toknow, asinconsistent withbonafidetrade practice.
3. DoestheBulgarian LawontheProtection ofCompetition of1991restrict thetypeofundisclosed
information which maybeprotected from disclosure, acquisition oruseevenifsuchundisclosed
information meets thecriteria setforth inArticle 39.2ofTRIPS?
Under theprovision ofArticle 14,paragraph 2oftheLawontheProtection ofCompetition,
production ortrade secrets alsoinclude decisions anddatarelated totheeconomic activity, whose
learning, useordivulging could create athreat ofdamaging thebusiness interests oftheentitled person.
TheBulgarian Government hastaken thenecessary stepsforchanges inthenational legislation
withaviewtoharmonization withtheprovisions ofArticle 39.2ofTRIPS.
4. Does Bulgarian lawrequire, asacondition oftheprotection ofundisclosed information, that
theinformation sought tobeprotected have been subject toreasonable steps tokeepitsecret in
accordance withparagraph (c)ofArticle 39.2ofTRIPS?
Under theprovision ofArticle 14,paragraph 3oftheLawontheProtection ofCompetition
thelearning ofanother ’sproduction ortradesecret iscontrary tobonafidepractice when accomplished
through eavesdropping, entering intopremises, opening ofcorrespondence, photographing orexamining
without theconsent oftheowner ofdocuments ormaterials stored inamanner astolimitaccess to
them, orthrough fraud oroffering abenefit topersons whohaveaccess tothesecret through official
orcontractual relations.IP/C/W/63
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Further tothattheBulgarian Government hasundertaken thenecessary steps forchanges in
thelegislation inconformity withtheprovisions ofArticle 39.2ofTRIPS.
5. Does Bulgarian lawprovide fortheprotection ofundisclosed testorother data, filedasa
condition oftheapproval ofthemarketing ofpharmaceutical orofagricultural chemical products,
against unfair commercial useinaccordance withArticle 39.3ofTRIPS?
TheLawontheProtection ofCompetition of1991 doesnotprovide fortheprotection of
undisclosed testorother data,filedasacondition oftheapproval ofthemarketing ofpharmaceutical
orofagricultural chemical products against unfair commercial use.TheGovernment oftheRepublic
ofBulgaria hasundertaken thesteps necessary fortheimprovement ofthestated lawinconformity
withArticle 39.3ofTRIPS.
5. Does Bulgarian lawprovide fortheprotection ofundisclosed testorother data, filedasa
condition oftheapproval ofthemarketing ofpharmaceutical orofagricultural chemical products,
against disclosure inaccordance withArticle 39.3ofTRIPS?
TheLawontheProtection ofCompetition of1991 doesnotprovide fortheprotection of
undisclosed testorother data,filedasacondition oftheapproval ofthemarketing ofpharmaceutical
orofagricultural chemical products against disclosure. TheGovernment oftheRepublic ofBulgaria
hasundertaken thestepsnecessary fortheimprovement ofthestated lawinconformity withArticle 39.3
ofTRIPS.
Control ofanti-competitive practices incontractual licences
1. Does theBulgarian LawontheProtection ofCompetition of1991 permit theprevention or
control ofintellectual property contractual licensing practices other thanthose which mayconstitute
an"abuse ofintellectual property rights having anadverse effect oncompetition intherelevant market"
within themeaning ofArticle 40.2ofTRIPS?
TheLawontheProtection ofCompetition of1991hasnoexplicit provisions ontheprevention
orcontrol ofintellectual property contractual licensing practices. Respective changes inthelegislation
inconformity withArticle 40.2aretobeundertaken bytheParliament shortly.