WORLD TRADE  
ORGANIZATION   
IP/C/W/412/Add.7 
9 June 2004 
 
 (04-2506) 
Council for Trade-Related Aspects 
of Intellectual Property Rights Original:   English 
 
 
 
REPORT ON THE IMPLEMENTATION OF ARTICLE 66.2 
OF THE TRIPS AGREEMENT 
  
CANADA 
 
Addendum 
  
 The following communication, dated 31 May 200 4, from the Delegation of Canada is being 
circulated pursuant to paragraph 1 of the Decisi on on Implementation of Article 66.2 of the TRIPS 
Agreement. 
 
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I. INTRODUCTION 
1. Article 66.2 of the TRIPS Agreement requir es "developed country Members to provide 
incentives to enterprises and ins titutions in their territories for the purpose of promoting and 
encouraging technology transfer to least-developed co untry Members in order to enable them to create 
a sound and viable technological base".  The presen t note provides information on Canada's activities 
concerning technology transfer to least-developed countries (LDCs). 
2. In general, Canada provides domestic incentives for the transfer of technology in the form of 
(i) intellectual property embedded in transferred goods and services; (ii) management and business 
know-how to support production and distributio n of goods and services; and (iii) human 
capacity-building.  Several Canadian governme nt departments, agencies and programmes are 
involved in providing incentives, either directly or indirectly, for Canadian enterprises and institutions 
to engage in activities involving technology tran sfer to developing country Members and LDCs. 
3. The Canadian agencies principally involved in technology transfer activities are the Canadian 
International Development Agency (CIDA) and the International Development Research Centre 
(IDRC).  A number of other government department s, agencies and programmes such as Industry 
Canada, the National Research Council (NRC) a nd other volunteer programmes also contribute 
significantly to providing incentives for technology  transfer.  The present document is a list of 
ongoing activities. 
II. CANADIAN INTERNATIONAL DEVELOPMENT AGENCY (CIDA) 
4. CIDA is the lead organization responsible for Canada's Official De velopment Assistance 
(ODA) Programme.  CIDA in cooperation with partne rs in the private, civil society, and public 
sectors in Canada, developing country Members and LDCs, as well as with international organizations 
and agencies supports sustainable development in  over 100 developing country Members and LDCs.  IP/C/W/412/Add.7 
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 CIDA's activities are mainly directed to the As ia-Pacific, the Americas, Africa and Middle East 
regions.  Technology transfer is a core element of  CIDA's strategy, which includes key development 
goals of improving economic and social well-being,  and strengthening environmental sustainability 
and regeneration.  In cooperation with the private se ctor, one of the principal tools used to accomplish 
these goals is to make available the benefits of  new technologies, especially in information and 
communications.  
5. CIDA's Industrial Cooperation Program (CIDA -INC) supports private initiatives that help 
build the local private sector in developing and tr ansition countries through investment, access to new 
markets, and the transfer of knowledge, skills and technology, or that improve local infrastructure 
through professional services. The Investment Mechan ism supports enterprises that seek to invest in, 
and establish a long-term business relationship with a local partner to produce goods or services.  The 
Professional Services Mechanism supports consulting fi rms seeking to participate in infrastructure 
projects with positive developmental impacts in the host country. Eligible initiatives involve technology transfer and training in order to st rengthen skills, expertise and knowledge of local 
managers and employees in developing countries. The Division also supports specialized training 
institutes that mobilize sector-specific expertise through knowledge and tec hnology transfer activities 
to build capacity of management in the private sect or or private sector institutions in LDCs.  One 
example is support to the Canadian Petroleum In stitute to strengthen oil sector management in 
developing Members.  
6. CIDA's University Partnerships in Coopera tion and Development Program (UPCDP) and the 
Canadian College Partnership Program (CCPP) support partners hips involving, respectively, 
universities and colleges with their counterparts in  developing countries to facilitate human resource 
development.  These partnerships often involve t echnology transfer as part of a broader capacity 
development effort.  For example, CIDA supported a consortium of three Canadian universities that 
helped build Brazil's capacity in the mariculture sector through collaboration that included technology 
transfer.  
7. Another initiative supported by CIDA is the Inte rnational Youth Internship Program (IYIP) 
which gives young Canadian gradua tes an opportunity to contribute  to grass-roots cooperation in 
LDCs.  Sectors that benefit include communications, environment, health, industry, natural resources 
and water/sanitation.  Examples include the following: (i) a clean water project in Laos involving the 
transfer of certain technology from a Canadian non-gove rnmental organization to a local partner; (ii) a 
water/sanitation project in Uganda for the transfer of  gravity-flow methods to a local technical service 
organization; (iii) the transfer of pedal-powered  technology for pumps and tile making machines, 
solar power techniques and proper use of compos ting toilets, from a Canadian sustainable living 
institute to Friends of the Earth Sierra Leone.  
III. INTERNATIONAL DEVELOPMENT RESEARCH CENTRE (IDRC) 
8. IDRC is a Canadian public corporation mandate d to initiate, encourage, support and conduct 
research into the problems of developing regions of  the world, and into the means for applying and 
adapting scientific, technical and other knowledge to  the economic and social advancement of those 
regions.  IDRC has been promoting technologies for managing and sharing technology for the past 34 
years through funding partnerships with other donors,  including the private sector.  The following is a 
list of ongoing programmes including ID RC's technology transfer activities. 
9. The International Development Research Ce ntre (IDRC) has a longstanding commitment to 
advancing the role of information transfer in development. A traditi on of innovation that began with 
an emphasis on building databases and informat ion systems has evolved into a focus on the 
transformative nature of information and communi cation technologies (ICTs).  IDRC was one of the 
first development agencies to embrace ICTs as a key means to foster development and alleviate  IP/C/W/412/Add.7 
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 poverty, and its Information and Communication Technologies for Development programme area 
supports a number of complementary initiatives.  Firs t, there is Bellanet, an international initiative 
designed to facilitate inter-agency collabora tion through using information and communication 
technologies (ICTs) more effectively, which incl udes the African Networking Initiative and the 
African Information Society Initiative.  Second, ID RC continues to sponsor the major undertaking of 
the Communities and ICTs for Africa (Acacia) programme with a view to empowering African 
communities with an ability to apply ICTs to thei r own social and economic development.  Its Pan 
Americas Networking initiative has also helped LDCs such as Haiti in developing capacity for 
Internet use.  IDRC's Pan Asia Networking initia tive has focussed on LDCs such as Vietnam, Laos, 
Sri Lanka and Nepal where IDRC assisted in the elab oration of a participatory process for formulating 
the country's information technologies policy, as well as its implementation. 
10. Building on this wide range of experience, IDRC has established two major Canadian-led 
initiatives to bridge the digital divide:  the Institu te for Connectivity in the Americas, emerging from 
the Summit of the Americas in 2001, and Connectivity Africa, resulting from the 2002 G8 Annual Summit.  It also continues to support community  telecentres in countries such as Mali, Mozambique, 
Senegal, Tunisia and Uganda in order to accelerat e their participation in the information economy. 
11. IDRC's Environment and Natural Resource Management programme area comprises several 
programmes aimed at generating innovations within  local communities of LDCs to manage their 
resources in a sustainable fashion.  Such innova tions make be technical  (e.g. improved production 
techniques), institutional (e.g. decision-making or planning processes) and/or policy-focused. 
12. IDRC fosters the building of broad-based alliances between Canadian companies and 
institutions and LDCs with the aim of helping to  bridge the developing world's scientific and 
technological gap.  A good example is a collabor ative community-based natural resource management 
project in Laos linking York University (Canada), the University of Sydney (Australia), Chiang Mai 
University (Thailand), and the National University of Laos (NUOL). With parallel funding from other 
international groups, the alliance seeks to build r esearch capacity at the NUOL through undertaking 
small projects on natural resource management and food security, which are critical issues for Laos. 
13.  The Research on Knowledge Systems (RoKS) exploratory initiative was launched in June 
2001 to explore, from a developing country standpoint, the ways in which knowledge is produced, communicated, and applied to development problems,  and to investigate the policy and institutional 
frameworks that govern this process.  RoKS also  acts as IDRC's policy effort in support of 
knowledge, science and technology (S&T) for capacity building in the South by helping cast light on 
cross-cutting issues in the areas of environment and natural resource management, information and 
communication technologies for development, and social and economic equity. RoKS plays a catalytic role in stimulating research for policy change. It does this through an annual research 
competition, workshops and seminars, commissioned pa pers, and ongoing analys is of emerging trends 
in knowledge policy both in Canada and abroad  through collaborations with donor agencies and 
research partners.  In April 2003, RoKS, in pa rtnership with the United Nations Educational, 
Scientific, and Cultural Organiza tion (UNESCO), hosted a consultati on on an Evaluation of National 
S&T Reviews in developing countries. The cons ultation allowed for an open dialogue among 
like-minded representatives from developing countries and international organizations to learn from 
past experiences, studied how ongoing national assessments had been designed and were being 
implemented, and collectively deliberated on how future reviews might be enhanced. 
14. RoKS also oversees IDRC's contribution to the New Partnership for Africa's Development 
(NEPAD) S&T agenda through the African Foru m on Science and Technology for Development 
(AFSTD). This grant is helping the AFSTD de velop its research programmes and activities to 
promote the application of S&T for economic grow th and poverty reduction.  AFSTD will create IP/C/W/412/Add.7 
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 networks of excellence and programmes across A frica in priority areas include S&T policies, 
technological innovation, science and engi neering education, and biotechnology. 
IV. INDUSTRY CANADA 
15. Industry Canada sponsors several programmes for the transfer of technology by Canadian 
institutions and enterprises to LDCs.  In the fi eld of telecommunications, through its "Connecting 
Canadians" initiative, which includes "Connecting Ca nada to the World", Industry Canada promotes 
global interconnectivity and inter- operability of broadband networks, applications and services (e.g. 
telehealth and telelearning).  This work aims to  improve the domestic and international investment 
climate in order to create incentives to global markets, including developing country Members and LDCs, by spurring companies to make their produc ts and services export-ready.  It also supports 
international collaboration for Canadian research institutions in emerging high-growth areas of 
electronic commerce, genomics, environmental technologies and advanced engineering. 
16. In addition, Industry Canada plays a leading role in the advancement of the Connectivity 
Agenda for the Americas through the Summit of  the Americas process and the Inter-American 
Telecommunications Commission (CITEL) work pr ogramme and continues to promote global 
connectivity through its work at the In ternational Telecommunication Union (ITU). 
17. Industry Canada is also particularly active in  the technology transfer area. The Branch has 
organized seminars and workshops on ICT policy and regulatory issues for LDCs, hosted incoming 
study missions, and fostered discussion on viable pr o-competitive regulatory options through its work 
in the Asia Pacific Economic Cooperation Telecommuni cations Working Group.  In its participation 
to the CITEL, Industry Canada takes every op portunity to promote common frequency bands and 
services so that our industry can benefit from new radio equipment markets. 
18. Industry Canada's Office of Inte rnational Partnerships (OIP) provides a single portal to the  
Canada's state-of-the-art information and co mmunication technology skills  and products for any 
country or foreign organization wishing to build its  own electronic learning network.  The OIP links 
foreign governments, agencies and companies w ith Canadian companies, organizations and 
entrepreneurs for developing and applying informatio n and communication technology to the learning 
and training environment.  The OIP offers a vehi cle for the exchange of technical knowledge and the 
co-development of learning materials and applications for Internet. 
19.  Another Industry Canada unit involved in technology transfer is the Spectrum Engineering 
Branch (DGSE), which is responsible for the t echnical integrity and quality of the engineering 
planning which is the basis for the orderly regul ations, management and exploitation of the radio 
frequency spectrum. The DGSE is responsible for the technical and strategic planning which 
underpins Canadian telecommunication regulatio ns, testing, certification and accreditation 
procedures.  It is also responsib le for international negotiations, tr eaties, agreements  and arrangements 
associated with its spectrum management obligati ons.  DGSE is specifically involved in technology 
transfer activities through the Technology Transfer and Support office (DTT).  DTT provides training 
to foreign governments of developing and least deve loped countries (LDC).  DTT's goal is to promote 
Canadian spectrum management technologies and know-how through technology transfer activities 
through Canadian private sector partners. 
V. NATIONAL RESEARCH COUNCIL (NRC) 
20. The National Research Council's Industrial Res earch Assistance Program  (IRAP) encourages 
and supports Canadian small and medium-sized entities to develop international technology-based 
partnerships with both developed and less developed economies.  IRAP , in partnership with Canada's 
Department of Foreign Affairs and Internati onal Trade, supports group missions to explore  IP/C/W/412/Add.7 
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 opportunities for partnerships.  IRAP, and NRC as a whole have been active in developing 
technology-based partnerships in the Asian-Pacifi c region, in part through the Industrial S&T 
Working Group of APEC which Industry Canada Chaired last year. 
VI. VOLUNTEER PROGRAMMES 
21. Canada funds a number of volunteer progra mmes where skilled Canadians are sent to 
developing country Members and LDCs to help sup port the development of a viable technology base 
in those countries.  For example, Canada's NetC orps Canada Internationa l (NetCorps) programme 
provides internships for Canadian s to work abroad in the area of information and communication 
technologies, which operates as a complement to Industry Canada's "Conn ecting Canada to the 
World" strategy.  NetCorps is funded through the Human Resources Department's Youth Employment 
Strategy, and overseen by Industry Canada's In formation Highway Applications branch in 
coordination with the NetCorps Coalition of Cana dian volunteer organizations, including Canada 
World Youth (lead), Alternatives, Canadian Univer sity Service Overseas, Oxfam-Québec, Volunteer 
Services Overseas Canada, Canadian Crossroads Inte rnational, Canadian Society for International 
Health and Human Rights Internet.  The focus on show-casing the informa tion technology expertise 
of young Canadian and establishi ng partnerships with local private, public or non-profit entities in 
locally-tailored human capacity-building and infrastru cture-building projects in such fields such as 
health, education and agriculture . NetCorps programmes benefit hos t organizations in developing 
country Members and LDCs, including Ethiopia, Se negal and Malawi.  By October 2002, NetCorps 
will have placed over 1000 volunteers abroad and Ca nadians returning from the field are asked to 
share their experiences with programme sponsors. 
VII. MULTILATERAL ACTIVITIES 
22. At the multilateral level, Canada continues to  actively contribute to many international 
financial institutions which, in turn, foster initia tives providing incentives for technology transfer to 
developing country Members and LDCs.  In this respect, Canada's continuing contribution to the 
WTO's technical assistance fund, the Inter-Ameri can Development Bank, the African Development 
Bank and the Asia Development Bank all help to encourage the transfer of technology supported by 
human-capacity building for the foundations upon which may be built a sound and viable technological base.  
 
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