RESTRICTED
WORLD TRADE WT/CTE/W/50
20May1997
ORGANIZATION(97-2106)
Committee onTrade andEnvironment
THE CONVENTION ONBIOLOGICAL DIVERSITY AND THE AGREEMENT ON
TRADE-RELATED ASPECTS OFINTELLECTUAL PROPERTY RIGHTS
Note bytheSecretariat
1. Thefollowing Notehasbeenprepared bytheSecretariat onrequest bytheCommittee onTrade
andEnvironment. Itisorganized intwoparts: itpresents, first, theprovisions oftheConvention
onBiological Diversity relating toIPRprotection andtheTRIPS Agreement, andsecond, provisions
oftheTRIPS Agreement relating totheConvention onBiological Diversity.
I. THE CONVENTION ONBIOLOGICAL DIVERSITY
A. Introduction
2. Theobjectives oftheConvention onBiological Diversity ("Biodiversity Convention"), stated
inArticle 1,are:(i)theconservation ofbiological diversity, (ii)thesustainable useofitscomponents,
and(iii)thefairandequitable sharing ofthebenefits arising outoftheutilization ofgenetic resources.1
Theprinciples oftheConvention arethat"States have, inaccordance with theCharter ofthe
United Nations andtheprinciples ofinternational law,thesovereign righttoexploit theirownresources
pursuant totheirownenvironmental policies, andtheresponsibility toensure thatactivities within their
jurisdiction orcontrol donotcause damage totheenvironment" (Article 3).
3. Thepresent Note reviews themain provisions oftheBiodiversity Convention which relate,
directly orindirectly, toIPRprotection andbyextension totheTRIPs Agreement.
B. IPR-related provisions oftheBiodiversity Convention
4. Intellectualpropertyrights(IPRs)undertheBiodiversityConventionhaveprovedtobeasensitive
issue inthenegotiation oftheConvention, andtheirtreatment isstillontheagenda oftheParties to
theConvention.2TheThird Conference oftheParties, which tookplaceinNovember 1996, recognized
inDecision III/17 that"further work isrequired tohelpdevelop acommon appreciation ofthe
relationship between intellectual property rights andtherelevant provisions oftheAgreement on
Trade-related Aspects ofIntellectual Property Rights andtheConvention onBiological Diversity, in
particular onissues relating totechnology transfer andconservation andsustainable useofbiological
diversity andthefairandequitable sharing ofbenefits arising outoftheuseofgenetic resources,
1Foradetailed account oftheBiodiversity Convention, seedoc.WT/CTE/W/8 (8June 1995), Section II.
2Seedoc.WT/CTE/W/8, p.6-10.WT/CTE/W/50
Page2
including theprotection ofknowledge, innovations andpractices ofindigenous andlocalcommunities
embodyingtraditionallifestylesrelevantfortheconservationandsustainableuseofbiologicaldiversity".3
(a) Conservation andsustainable useofbiological diversity
5. Under Article 10oftheConvention, Parties arerequired, asfaraspossible andasappropriate,
to"[i]ntegrate consideration oftheconservation andsustainable useofbiological resources intonational
decision-making"andto"[a]doptmeasuresrelatingtotheuseofbiologicalresourcestoavoidorminimize
adverse impacts onbiological diversity".
6. Parties totheBiodiversity Convention haveexamined theroleofIPRprotection -both direct
andindirect- intheconservation andsustainable useofbiological diversity. Views diverge astowhether
IPRprotection encourages conservation andsustainable useofbio-diversity, forinstance byencouraging
thedevelopment ofenvironmentally friendly newproducts andtechnologies, ormayrepresent athreat
forbiological diversity byfavouring monoculture ofproprietary cropvarieties ortheinappropriate
useofpesticides.4
(b) Sharing benefits from genetic resources
7. Althoughnotexplicitlyreferredto,IPRsaredeemedtoberelevantforseveralprovisionsdealing
withthesharing ofthebenefits resulting from genetic resources.5
8. States being recognized sovereign rights overtheir natural resources, theauthorization to
determineaccesstogeneticresourcesrestswithnationalgovernmentsandissubjecttonationallegislation
(Article 15.1). However, eachParty totheConvention shallendeavour tocreate conditions tofacilitate
accesstogeneticresources(Article15.2).Partiesbeinggrantedaccesstogeneticresourcesinaccordance
withtheprovisions ofArticle 15shall“endeavour todevelop andcarry outscientific research based
ongenetic resources provided byother Contracting Parties withthefullparticipation of,andwhere
possible in,suchContracting Parties ”.TheConvention further requires Parties totakeappropriate
measures “andinaccordance withArticles 16and19and,where necessary, through thefinancial
mechanism established byArticles 20and21withtheaimofsharing inafairandequitable waythe
results ofresearch anddevelopment andthebenefits arising fromthecommercial andother utilization
ofgenetic resources withtheContracting Party providing suchresources. Suchsharing shallbeupon
mutually agreed terms”.
9. ThelastConference oftheParties hasrequested theExecutive Secretary oftheConvention
to"cooperate closely withtheWorld Trade Organization through theCommittee onTrade and
Environment toexplore theextent towhich there maybelinkages between Article 15andrelevant
articles oftheAgreement onTrade-related Aspects ofIntellectual Property Rights".
10. Article19addresseshandlingofbiotechnology(includingbiosafetyaspects),accesstoinformation
andresearch, anddistribution ofbenefits ofbiotechnology. Parties must takeappropriate measures
"toprovide fortheeffective participation inbiotechnological research activities bythose Contracting
Parties, especially developing countries, which provide thegenetic resources forsuchresearch, and
where feasible insuchContracting Parties" (paragraph 1).Parties arefurther required to"take all
practicable measures topromote andadvance priority access onafairandequitable basisbyContracting
3ThefulltextoftheDecision isreproduced indoc.WT/CTE/W/44.
4Seeforinstance doc.UNEP/CBD/COP/3/22.
5Seeforinstance Decision III/17 (Intellectual Property Rights), para. 1(b), anddoc.UNEP/CBD/COP/3/23.WT/CTE/W/50
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Parties, especially developing countries, totheresults andbenefits arising frombiotechnologies based
upongenetic resources provided bythose Contracting Parties. Suchaccess shallbeonmutually agreed
terms" (paragraph 2).
(c) Access toandtransfer oftechnology
11. Access toandtransfer oftechnology areseenasplaying animportant rolefortheconservation
andsustainableuseofbiologicaldiversity,andtomakeuseofgeneticresources.6Inaddition,technology
transfer islinked toaccess togenetic resources since, pursuant toArticle 1,theequitable sharing of
thebenefitsarisingoutoftheutilizationofgeneticresourcesincludesthe"appropriatetransferofrelevant
technologies". Withtheexception ofbiotechnology (Article 19),theConvention doesnotspecify which
technologies arerelevant tomeeting itsobjectives.
12. Article 16isthemainprovision dealing withaccess toandtransfer oftechnology, andcontains
various explicit references toIPRs. Thisprovision, which wascarefully negotiated, iscomplex: most
ofitsparagraphs contain cross-references toother paragraphs and/or toother provisions ofthe
Convention. Itdoesnoteasily lenditself tosummary andistherefore quoted inextenso :
"1. EachContracting Party, recognizing thattechnology includes biotechnology, andthat
bothaccess toandtransfer oftechnology among Contracting Parties areessential elements
fortheattainment oftheobjectives oftheConvention, undertakes subject totheprovisions
ofthisArticle toprovide and/or facilitate access forandtransfer toother Contracting Parties
oftechnologies thatarerelevant totheconservation andsustainable useofbiological diversity
ormake useofgenetic resources anddonotcause significant damage totheenvironment.
"2. Access toandtransfer oftechnology referred toinparagraph 1above todeveloping
countries shallbeprovided and/or facilitated under fairandmostfavourable terms, including
onconcessional andpreferential terms where mutually agreed, and,where necessary, in
accordance withthefinancial mechanism established byArticles 20and21.Inthecaseof
technology subject topatents andother intellectual property rights, suchaccess andtransfer
shallbeprovided onterms which recognize andareconsistent withtheadequate andeffective
protection ofintellectual property rights. Theapplication ofthisparagraph shallbeconsistent
withparagraphs 3,4and5below.
"3. Each Contracting Party shalltakelegislative, administrative orpolicy measures, as
appropriate, withtheaimthatContracting Parties, inparticular those thataredeveloping
countries, which provide genetic resources areprovided access toandtransfer oftechnology
which makes useofthose resources, onmutually agreed terms, including technology protected
bypatents andother intellectual property rights, where necessary, through theprovisions of
Articles 20and21andaccordance withinternational lawandconsistent withparagraphs 4
and5below.
"4. Each Contracting Party shalltakelegislative, administrative orpolicy measures, as
appropriate, withtheaimthattheprivate sector facilitates access to,jointdevelopment and
transfer oftechnology referred toinparagraph 1above forthebenefit ofbothgovernmental
institutions andtheprivate sector ofdeveloping countries andinthisregard shallabide bythe
obligations included inparagraphs 1,2and3above.
6Seeforinstance Decision III/16, para. 4,reproduced indoc.WT/CTE/W/44.WT/CTE/W/50
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"5. TheContracting Parties, recognizing thatpatents andother intellectual property rights
mayhaveaninfluence ontheimplementation ofthisConvention, shallcooperate inthisregard
subject tonational legislation andinternational lawinorder toensure thatsuchrights are
supportive ofanddonotruncounter toitsobjectives."
13. Decision III/17, adopted attheThird Conference oftheParties notes "thepotential mutual
benefits ofexchanging information related toArticle 16oftheConvention onBiological Diversity
andthelawsandregulations received bytheCouncil onTrade-related Aspects ofIntellectual Property
Rights pursuant tonotification requirement ofArticle 63oftheAgreement onTrade-Related Aspects
ofIntellectual Property Rights".7
(d) Traditional andindigenous knowledge
14. TheBiodiversity Convention emphasises theimportance ofin-situ conservation8andforesees
various measures forthatpurpose (Article 8).Paragraph (j)ofArticle 8stipulates that,asfaraspossible
andasappropriate, Parties shall"[s]ubject to[their] national legislation, respect, preserve andmaintain
knowledge,innovationsandpracticesofindigenousandlocalcommunitiesembodyingtraditionallifestyles
relevant fortheconservation andsustainable useofbiological diversity andpromote their wider
applicationwiththeapprovalandinvolvementoftheholdersofsuchknowledge,innovationsandpractices
andencourage theequitable sharing ofthebenefits arising from theutilization ofsuchknowledge,
innovations andpractices".
15. Underlying thisprovision istherecognition thatindigenous andlocalcommunities developed
plant andanimal species forvarious purposes, thereby contributing totheworld 'sgenetic resources
andknowledge ofbiological resources. Thus, theirknowledge isseenasserving twomainpurposes:
itprovides scientists withessential information forthesubsequent development ofproducts inthe
agricultural, medicinal andindustrial fields, andplays animportant roleintheconservation ofgenetic
material. TheConvention recognizes, therefore, thatindigenous andlocalcommunities should share
inthebenefits arising from theuseoftheirknowledge, andshould begiven incentives toconserve
those biological resources. Therelationships between IPRsandtheimplementation ofArticle 8(j)have
been theobject ofmuch discussion among Parties totheConvention. Themain questions under
examination bytheParties totheConvention arewhether current IPRsystems should beadapted so
astoprotect andreward traditional andindigenous knowledge, and/or what kindofsuigeneris
approaches oralternative systems ofprotection should beenvisaged.9
(e) Clearing-house mechanism
16. Theclearing-house mechanism wasestablished under Article 18.3oftheConvention inorder
topromote andfacilitate technical andscientific cooperation. Theclearing-house mechanism isaimed,
inparticular, atincreasing information exchanges inallareas relevant totheimplementation ofthe
Convention, including information relating toIPRs.
7Seedoc.WT/CTE/W/44.
8"Insituconservation" isdefined astheconservation ofecosystems andnatural habitats andthemaintenance andrecovery
ofviable populations ofspecies intheirnatural surroundings and,inthecaseofdomesticated orcultivated species, inthe
surroundings where theydeveloped their distinctive properties. Under theBiodiversity Convention, in-situ conservation
iscomplemented by"ex-situ conservation", which isdefined astheconservation ofcomponents ofbiological diversity outside
their natural habitats (Article 9).
9Seeforinstance doc.UNEP/CBD/COP/3/19, -3/22 and-3/23. SeealsoDecisions III/14 andIII/17, reproduced in
doc.WT/CTE/W/44.WT/CTE/W/50
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(f) Relationship withother international agreements
17. Article 22oftheBiodiversity Convention states that"[t]he provisions ofthisConvention shall
notaffect therights andobligations ofanyContracting Party deriving fromanyexisting international
agreement, except where theexercise ofthose rights andobligations would cause aserious damage
orthreat tobiological diversity". Theconcept of"serious damage orthreat tobiological diversity"
hasnotbeendefined yet.
II. THEAGREEMENT ONTRADE-RELATED ASPECTS OFINTELLECTUAL PROPERTY
RIGHTS
A. Introduction
18. TheTRIPS Agreement covers themainareas ofintellectual property: copyrights andrelated
rights, trademarks, geographical indications (including appellation oforigin), industrial designs, patents
(including theprotection ofnewvarieties ofplants), layout-designs (topographies) ofintegrated circuits,
andundisclosed information (including trade secrets). TheAgreement setsminimum IPRstandards
andleaves Members freetodetermine theappropriate method ofimplementing themintheirownlegal
system andpractice (Article 1).Members canimplement more extensive IPRprotection, aslongas
itremains compatible withtheAgreement.
19. Theenforcement provisions oftheTRIPS Agreement (Articles 42to49)require Members
toprovide domestic procedures andremedies sothatrights holders caneffectively enforce theirrights;
theyalsoaimatensuring thatenforcement procedures areapplied insuchamanner astoavoid the
creation ofbarriers tolegitimate tradeandtoprovide safeguards against theirabuse. Article 65provides
developing countries withagrace period, generally offiveyears, toapply theprovisions ofthe
Agreement, andtheleast-developed countries benefit fromalonger grace period, generally ofeleven
years (Article 66).
20. Themainprovisions oftheTRIPS Agreement which havearisen indiscussions ofenvironmental
matters, andmore particularly oftheBiodiversity Convention, arehighlighted below.
B. Provisions oftheTRIPs Agreement Which areRelevant toMatters Raised intheBiodiversity
Convention
(a) Promotion of,access toandtransfer oftechnology10
21. Twoprevious Secretariat notes have discussed thismatter insome detail (WT/CTE/W/8,
paragraphs 49-65 andWT/CTE/W/22). Rather thanrepeat thefulldiscussion inthose documents,
thisnotesummarizes themain points. Readers interested inmore detail should refer totheearlier
documents.
10Thefollowing observations areuseful tokeep inmind when discussing access toandtransfer oftechnology (see
WT/CTE/W/8, para. 56):
- Most technology isinthepublic domain either because protection wasnever sought inthefirstplace orbecause
anyterm ofprotection granted hasexpired;
- When technology, whether patented ornot,isinthecontrol ofagovernment, thatgovernment isofcourse free
totransfer itonconcessional terms ifitsowished;
- There isnothing intheTRIPS Agreement thatwould prevent agovernment oraninternational financial mechanism
from providing financial assistance toenable thevoluntary transfer ofprivately-held technology onconcessional
terms.WT/CTE/W/50
Page6
22. Inbothdocuments itisstressed thatanimportant aspect tobearinmind istheroleofIPRs
inpromoting thegeneration ofnewtechnology. Technology canonlybetransferred afteritshasbeen
created. Thisfunction oftheTRIPS Agreement isrecognized inArticle 7,which states that"[t]he
protection andenforcement ofintellectual property rights should contribute tothepromotion of
technological innovation andtothetransfer anddissemination oftechnology, tothemutual advantage
ofproducers andusers oftechnological knowledge andinamanner conducive tosocial andeconomic
welfare, andtoabalance ofrights andobligations".
23. These papers alsopoint outthatthepublic policy rationale forsystems ofprotection for
intellectual property liesinstriking abalance between theproducers andusers oftechnology which
provides incentives forthegeneration ofnewtechnology. Where technology iseasily copiable,
intellectual property protection maymean thatuserswillhavetoobtain authorization foritsuse,usually
inreturn foraconsideration, when otherwise itcould beusedfreely. However, much technology
isnoteasytocopyanditseffective userequires thecooperation ofthepersons whohavedeveloped
it.Inthesesituations, thelikelihood ofsuchtechnology being transferred onreasonable terms orbeing
made available atallisgreater where adequate intellectual property protection isprovided. Thereasons
forthisaresetoutinparagraphs 20-22 ofdocument WT/CTE/W/22.
24. Inaddition, itshould berecalled thatabasic purpose ofthepatents system istoencourage
generators ofnewtechnology tomake thattechnology public rather thankeepitsecret. Hence, the
TRIPS Agreement requires applicants forapatent todisclose their inventions. Thisdisclosure
requirement, asembodied inArticle 29oftheTRIPS Agreement, andtheexceptions topatent rights
fornon-commercialexperimentaluse,aspermittedunderthe"limitedexceptions"provisionsofArticle30
oftheTRIPS Agreement, aredesigned tomaximize thedegree towhich knowledge ofnewtechnology
becomes publicly available andcanbeimmediately used asaninput intofurther technological
development and,aftertheexpiry ofthepatent, fallsintothepublic domain. These aspects arediscussed
inparagraphs 57-59 ofdocument WT/CTE/W/8.
25. Tensions canarise between theobjectives oftechnology innovations andthetransfer of
technology, inparticular where therightholder abuses hisrights. Withtheaimofsecuring theobjectives
ofArticle7,theTRIPSAgreementcontainsanumberofprovisions,inparticularoncompulsorylicensing
andcontrolofanti-competitivepractices,toestablishanappropriatebalancebetweenthesetwoobjectives,
andthusbetween theinterests ofproducers andusers oftechnological knowledge. These provisions,
principally Articles 8,31and40,arediscussed inparagraphs 61-65 ofdocument WT/CTE/W/8.
26. Itshould alsobenoted thattheTRIPS Agreement doesnotstand inthewayofgovernments
providing incentives forthetransfer oftechnology, forexample through amechanism thatprovides
financial assistance. Moreover, Article 66.2oftheTRIPS Agreement requires that"[d]eveloped country
Members shallprovide incentives toenterprises andinstitutions intheirterritories forthepurpose of
promoting andencouraging technology transfer toleast-developed country Members inorder toenable
them tocreate asound andviable technological base".
(b) Technology thatmayadversely affect theenvironment
27. TheTRIPS Agreement doesnotprevent Members fromrestricting research anddevelopment
in,oruseof,technology thatmayadversely affect theenvironment. Forinstance, apatent grants its
owner therighttoprevent others fromusing thepatented invention, butdoesnotguarantee thepatent
owner therights toexploit thetechnology inquestion.
28. Article 8.1states that“Members may, informulating oramending theirlawsandregulations,
adopt measures necessary toprotect public health andnutrition, andtopromote thepublic interest inWT/CTE/W/50
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sectors ofvitalimportance totheirsocio-economic andtechnological development, provided thatsuch
measures areconsistent withtheprovisions ofthisAgreement ”.
29. Article27.2enablesaMembertoexcludefrompatentabilityinventionswhoseusewouldseriously
prejudice theenvironment. Thisprovision reads asfollows: "Members mayexclude frompatentability
inventions, theprevention within theirterritory ofthecommercial exploitation ofwhich isnecessary
toprotect ordre public ormorality, including toprotect human, animal orplant lifeorhealth orto
avoid serious prejudice totheenvironment, provided thatsuchexclusion isnotmade merely because
theexploitation isprohibited bytheirlaw".11
(c) Patentability ofgenetic material andlifeforms
30. Thepatentability ofgenetic material andlifeforms hasbeencontroversial. Itisdirectly linked
tobiotechnology anditspossible effects onbiodiversity.
31. Article 27.1establishes thecriteria forpatentability: tobepatentable, aninvention must be
new, itmust involve aninventive step,itmust becapable ofindustrial application. Acountry can
thusrefuse apatent forbiological orgenetic material which hasbeenmerely discovered orwhose use
isalready known.
32. Moreover, Article 27.3(b) allows Members toexclude frompatentability: "...(b)plants and
animals other thanmicro-organisms, andessentially biological processes fortheproduction ofplants
oranimals otherthannon-biological andmicro-biological processes. However, Members shallprovide
fortheprotection ofplant varieties either bypatents orbyaneffective suigeneris system orbyany
combination thereof. Theprovisions ofthissubparagraph shallbereviewed fouryears afterthedate
ofentry intoforce oftheWTO Agreement".
33. Article27.3(b)istheonlyprovisionoftheTRIPSAgreementexplicitlyreferringtotheprotection
ofplant varieties. Itstipulates thatnewplants varieties donotneedtobeprotected bypatent, but
Members whochoose toexclude themfrompatent protection arerequired toprovide foran"effective
suigeneris system", i.e.aneffective special formofprotection. Suigeneris protection gives Members
moreflexibilitytoadapttoparticularcircumstancesarisingfromthetechnicalcharacteristicsofinventions
inthefieldofplantvarieties, suchasnovelty anddisclosure. Most countries whohaveopted forspecial
systems ofprotection havejoined theInternational Union fortheProtection ofNewVarieties ofPlants
(UPOV) andapply theminimum standards ofprotection contained intheInternational Conventions
fortheProtectionofNewVarietiesofPlants.However,sincetheTRIPsAgreementdoesnotspecifically
refertotheUPOV Conventions, countries havebeenleftgreater flexibility inmeeting theirobligations
inthisarea, thanwould havebeenentailed byaspecific reference toUPOV.12
34. Aninvention meeting thecriteria forpatentability andnotfalling within Article 27.3(b) may
stillberefused apatent under Article 27.2ifitisoffensive toordre public ormorality, including to
human, animal orplant lifeorhealth ortoavoid serious prejudice totheenvironment (seeabove
para. 28).
11Also relevant inthiscontext isArticle 39.3ontheprotection ofundisclosed testofother datasubmitted inorder to
obtain marketing approval forpharmaceutical andagricultural products which utilize newchemical entities.
12Formore details, seedoc.WT/CTE/W/8, Annex 1.WT/CTE/W/50
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(d) Traditional andindigenous knowledge
35. Asmentioned above (seeabove para. 15),traditional andindigenous knowledge serves two
main purposes: itprovides scientists withessential information forthesubsequent development of
products intheagricultural, medicinal andindustrial fields, andplays animportant roleinthe
conservation ofgenetic material.
36. Astotherecognitionoftheintellectualcontributionmadebyindigenouspeoplesandcommunities
through theirtraditional knowledge andpractices tothedevelopment ofnewproducts, thequestion
ofnewforms ofprotection wasnotraised during theTRIPs negotiations.
37. Regarding theroleplayed bythese countries andcommunities intheconservation ofgenetic
resources, theTRIPs Agreement doesnotaddress thequestion oftheparticipation ofthese countries
andcommunities inthebenefits arising from theuseofthegenetic resources theyhaveconserved.
However, nothing intheTRIPs Agreement stands inthewayofcontractual arrangements between
countries andcompanies seeking tousegenetic resources fromthose countries, public transfers offunds
oranyother mechanism compatible withitsprovisions.13
(e) Council forTRIPs
38. Under Article 63,Members arerequired tonotify theCouncil forTRIPs ofthelawsand
regulations pertaining totheavailability, scope, acquisition, enforcement andprevention oftheabuse
ofIPRs. Thisobligation maybewaived ifconsultations withWIPO ontheestablishment ofacommon
register containing these national measures aresuccessful.
39. Pursuant toArticle 68,theTRIPs Council monitors theoperation oftheAgreement andaffords
Members theopportunity ofconsulting onmatters relating tothetrade-related aspects ofintellectual
property rights. Incarrying outitsfunctions, it"may consult withandseekinformation from any
source itdeems appropriate".
13Seedoc.WT/CTE/W/8, p.23.