WORLD TRADE
ORGANIZATIONIP/C/W/388/Add.7
4 February 2003
(03-0703)
Council for Trade-Related Aspects
of Intellectual Property RightsOriginal:  English
IMPLEMENTATION OF ARTICLE 66.2 OF THE TRIPS AGREEMENT:
INFORMATION FROM DEVELOPED COUNTRY MEMBERS
Addendum
UNITED STATES
The present document reproduces the information on the United States’ implementation of
Article 66.2 of the TRIPS Agreement, which has been received from the Permanent Mission of theUnited States by means of a communication dated 18 December 2002.
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At its meeting of 17-19 September 2002, the Council for TRIPS requested developed country
Members to make information available on their implementation of Article 66.2 of the TRIPS
Agreement pursuant to paragraph 11.2 of the Doha Decision on Implementation-Related Issues and
Concerns (WT/MIN(01)/17).
The United States has undertaken to provide information regarding its activities relevant to
Article 66.2 of the Agreement on Trade-Related As pects of Intellectual Property Rights (TRIPS),
namely, the provision of incentives to its domestic enterprises and institutions, to promote and
encourage technology transfer to least-developed country Members (LDCs) in order to enable such
Members to create a sound and viable technological base.  The present document updates the report
provided by the United States in 1999 (IP/C/W/132/Add.1) for consideration of the TRIPS Council.
Summary of Legislation Involving Technology Transfer to Developing Countries
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).IP/C/W/388/Add.7
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Section 2182 :  encourages the use of solar technology in  worldwide housing projects.  The legislation
is unclear if it is explicitly encour aging 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 agricultural
practices.  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).
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 and universities.
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 tec hnology 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 of suitable 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 defines
the functions of the Institute, which include supporting U.S. research on critical developmentproblems, 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 and5423.  The SEED Programme also establishes scholarships to enable students from Poland and
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 demonstration and use of U.S. agricultural equipment and
technology.  The Centres also serve as a repository of technical information.IP/C/W/388/Add.7
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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 of Standards
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 licensing
technology or providing research grants.  This law is not limited to organizations that providetechnology 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 any
of 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.  Seesub-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 projects 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.
African Growth and Opportunity Act (AGOA - Title I of the Trade and Development Act of
2000)
1 -  targets technical assistance to sub-Saharan African countries to promote economic reforms
and development.  Noteworthy sections under AGOA include:  Section 123 of AGOA, which
establishes equity funds through the Overseas Private Investment Corporation in support of projects in
sub-Saharan Africa; Section 126 provides for donation of air traffic control equipment;Section 127 (a) authorizes the United States Agency for International Development (USAID) to
continue to support programs to assist sub-Saharan Africa; and Section 127 (b) declares that
assistance provided through the Development Fund for Africa (established under the Foreign
Assistance Act of 1961) will continue to support pr ograms and activities in sub-Sahara Africa.
Through implementation of AGOA, the USG has responded with a wide range of technical
assistance and trade capacity building programs.  In February 2002, $3.5 million in new grants have
                                                     
1 The text of AGOA is available in the WTO Secretariat for consultation by interested delegations.IP/C/W/388/Add.7
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been designated to help countries in eastern and southern Africa take full advantage of AGOA.  From
1999 to 2001, the United States has provided $192 million in overall trade capacity building
assistance to sub-Saharan Africa.  The following is a description of some of the USG capacity
building and technology transfer programs to implement AGOA:
The Africa Trade and Investment Policy (ATRIP) Program
One of the main vehicles for U.S. trade capacity building efforts in Africa has been USAID’s
Africa Trade and Investment Policy (ATRIP) program. USAID began implementation of the ATRIP
program in 1998 as a multi-year initiative to promote trade and investment policy reforms and
facilitate business linkages between the U.S. and African private sectors.  Between 1998 and 2001, the
interagency ATRIP program funded 115 projects in 31 sub-Saharan African countries, totalling$75 million.
The following are examples of ATRIP programs in 2001-2002:
− ATRIP has funded a series of seminars with sub-Saharan African businesses and government
officials in key AGOA beneficiary countries to assist the companies in developing quality
manufacturing, standardized record keeping systems, and sustainable working relationships
with buyers in the global market.
− In Mali, ATRIP is funding a project that aims to expand markets and increase value for
traditional specialty crops from West Africa. Key African partners are selected from
government agriculture extension services and NGOs, local farmer groups, trade association,and their counterparts in Burkina Faso and Niger. As a direct result of this project and related
efforts, sesame production has increased four-fold since 1998 to approximately 2,000 MT in
2000.
− The Corporate Council on Africa received a second grant to continue its ATRIP-funded West
Africa International Business Linkages (WAIBL) program. WAIBL aims to facilitate
business linkages between the United States and West Africa and to serve as a practical
vehicle for U.S. and African companies seeking to conduct trade transactions through the
provisions in AGOA.
− In conjunction with the Small Business Admini stration’s Export Trade Assistant Partnership
program, the U.S.-based Constituency for Africa is using ATRIP funds to increase the
involvement of small and medium-sized U.S. businesses in trade and investment activity with
African countries.
Other USAID Initiatives
USAID’s  trade capacity building initiative, Trade for African Development and Enterprise
(TRADE) enables African countries and businesses to develop their export trade.  Three regional
Hubs for Global Competitiveness will provide the overall coordination of the initiative.  The first Hub
will be located in Botswana.  Others are planned for Kenya and either Mali or Ghana.  Each Hub will
have a cadre of technical experts who will provide technical support on trade and investment for
countries in the region and design a trade capacity-building strategy.
The USAID Leland Initiative and the Fede ral Communications Commission (FCC) are
collaborating on a telecommunications policy strengthening program.  The program strengthens
associations of African regulators; uses experts from the FCC and state level regulatory bodies to helpIP/C/W/388/Add.7
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U.S. and African university programs on effective regulation; and provides technical assistance to
regulators, in more than twenty countries.
USAID is also supporting the Integrated Fram ework for Trade-Related Technical Assistance
(IF) in sub-Saharan Africa in a variety of ways, including by contributing to the IF Trust Fund, by
partnering with the World Bank to carry out IF diagnostic work in Mali, and by assisting Mozambique
to mainstream trade into its broader development agenda.
The Global Technology Network (GTN), funded  by USAID and the State Department, works
in Africa to increase private sector linkages between African and American firms.  GTN-Africa also
links companies on a regional level.  From April 2001 to April 2002, GTN facilitated over thirty
deals, a record number, including a deal valued at over $50 million.  GTN offers a valuable service toU.S. companies interested in trading with Africa.   GTN also sponsors business development missions
for African businesses, encouraging partnerships with U.S. firms.  USAID’s field offices and regional
centers in sub-Saharan Africa have integrated AGOA into their programs and are dedicating specific
resources for providing continuing assistance to sub-Saharan African.
Environmental Initiatives
The Environmental Protection Agency (EPA) is assisting South Africa to develop national
and provincial environmental capacity.  Activities include community-based solid waste management
programs in target townships, support for commun ity-based environmental organizations, training on
environmental impact assessments and environmental management for the mining sector.
The National Oceanic and Atmospheric Administration (NOAA) of the Department of
Commerce has implemented a number of projects involving African countries, including:
− The GLOBE Program (www.globe.gov) is a school- based international sc ience and education
program. Students at GLOBE schools, including 15 in sub-Saharan Africa, take a core set of
environmental measurements that have been selected by the world science community as
providing useful data for their research.
− Global Climate Change: NOAA also has conducted scientific exchanges with various
organizations in sub-Saharan Africa to advance marine research.
− African Process for the Development and Protection of the Coastal and Marine Environment
with Côte d'Ivoire, Ghana, Kenya, Mozambique, Nigeria, Seychelles, and South Africa:  Thisprogram assists sub-Saharan African countries in achieving sustainable management of their
coastal and marine environmental resources.
− Cooperative Air Sampling Network with Namibi a and the Seychelles:  The network is an
international effort which includes regular discrete samples from the four NOAA Climate
Modelling and Diagnostics Laboratory baseline observatories, cooperative fixed sites, and
commercial ships.
− World Area Forecast System with Niger and South Africa:  This program has installed
meteorological workstation and communicat ions systems in Niger and South Africa.
− African Center of Meteorological Applications for Development:  This program helps
improve early warning capability and the development of better applications for use inagricultural production, food security issues, water resources management, and public health
and safety.IP/C/W/388/Add.7
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Transportation and Communication Infrastructure Development
The Department of Transportation (DOT) has been continuing a broad range of initiatives to
support infrastructure development in sub-Saharan Africa.  In 2002, projects include:
− Nigeria Transportation Project: DOT has formulated a program of technical assistance and
training to support Nigeria's efforts to improve its transportation system.  With $4.3 million infunds from USAID, DOT is implementing a project involving aviation safety and security,
assistance in privatizing port services, port training, and technical assistance to develop an
oversight system.  Implementation efforts have involved visits of two aviation teams, one
oversight team, and a maritime team (port privatization).  The efforts have been successful,
resulting in the lifting of the aviation security ban in December 1999, the signing of an open
skies agreement, and a Memoranda of Cooperation with Nigeria's Aviation andTransportation Ministries in August 2000.  In January 2001, DOT approved the South Africa
Airways/Nigeria code-share flight from Nige ria to New York.  This resumption of direct
service is a major development, as there has not been direct service since 1992.
− Safe Skies for Africa Initiative: promotes sustainable improvements in aviation safety and
security in Africa and to create the environment necessary to foster the growth of aviation
services between Africa and the United States.
− DOT is also working with the World Bank in its efforts to assist the nations of Africa to
improve aviation safety and security on a regional basis.  Senegal is the initial country for thiseffort. With the assistance of World Bank funding, DOT has completed a safety and security
survey of that country's aviation sector and is now in the process of planning to implement the
recommendations of the survey team.
The U.S. Government has sent teams to conduct surveys of the aviation needs of several sub-
Saharan African countries and is assisting them in developing work plans to improve their aviation
infrastructure.  The U.S. continues to work with other African countries outside of this group, through
FAA technical assistance and training programs.
The U.S. Trade and Development Agency (TDA) has worked extensively in all major
economic sectors – including rail and port, telecommunications, aviation, environmental and power
generation – to assist sub-Saharan Africa prepare for the benefits of AGOA. TDA has workedextensively to implement a number of transportation related initiatives and projects, these activities
include:
− TDA and the Department of Transportation have brought officials of some of the Safe Skies
countries to the United States to develop work plans based on surveys of their aviation
sectors. The officials of these countries also visit U.S. airports and aviation facilities and meetwith vendors and contractors of aviation-related services. Under this initiative, TDA has
supported orientation visits with key decision-makers from Kenya, Tanzania, Namibia, and
Cape Verde.
− SADC Air Traffic Management and CNS/ATM Transition Plan: TDA has committed
$600,000 for a major cost-shared feasibility project for upgrading regional air trafficmanagement through the Transportation Commi ssion of the Southern Africa Development
Community.  The feasibility study will provide a roadmap for the region to move from aterrestrial-based airspace management system to a space-based system.  When fullyIP/C/W/388/Add.7
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implemented, it will offer total airspace coverage, allowing the member countries to collect
greater overflight fees, thereby increasing revenues.
− East Africa Transport: TDA has launched a Definitional Mission on modernization of the
Kenyan, Ugandan and Mozambican rail-to-port cargo transport operations, which involves
assessing improvements to transport operations across borders.
− TDA provided grants to fund the expansion of the Entebbe Airport in Uganda, the Luanda
International Airport in Angola and the La Mercy Airport in South Africa to improve
passenger and cargo facilities to better take advantage of AGOA export opportunities.
− TDA provided technical assistance to the Airports Company South Africa related to the
development of noise analysis standards and specifications for the procurement of equipment
for flight monitoring systems.
− TDA is currently reviewing a technical assistance opportunity with the Cameroon Civil
Aviation Authority to assist in the arrangement of a new concession agreement focusing onobtaining capital investment from private investors.
− TDA provided a grant for a feasibility study for the modernization and expansion of the
Bamako-Senon Airport.
The U.S. Government has been implementing programs to provide training, technical
assistance, and technology transfer to sub-Saharan African countries in order to assist them in
strengthening their transportation infrastructure.  Such programs include:
− The Federal Highway Administration (FHWA) has established a technology exchange center
in South Africa and Tanzania for local officials to select technologies that meet their specific
needs in building and maintaining their roads.  The center provides a venue to promote U.S.
highway technology, to develop linkages between U.S. and South African private sectors, and
to train specialists from both countries, who can learn from the technology and expertise of
their counterparts.
− The Federal Transit Administration (FTA) is working in South Africa to establish training
programs in urban and inter-urban passenger transport.  FTA also plans to work with SouthAfrica's Department of Transportation to develop a series of regional coordinated
transportation systems through providing training, technical assistance, and professional
exchanges.
− The Federal Railroad Administration (FRA) has also become involved in technology sharing
programs in Africa.  FRA is providing on-site advisory teams and technical assistanceprograms for the Southern Africa Rail Association. FRA also plans to assist African railroads
in obtaining an automatic rail freight car identification and fleet management system.
− The Research and Special Programs Administration (RSPA) is offering technical assistance to
African countries in the areas of hazardous materials transportation safety and safe transport
of goods by pipeline.  Such assistance would have several important benefits, including
increased safety, harmonization of transportation regulations with international requirements,
and greater market access for U.S. businesses.  In addition, RSPA is exchanging information
on transportation research and development projects with African countries in an effort to
enhance the cost effectiveness of research programs.IP/C/W/388/Add.7
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Communications Infrastructure
The USAID Leland Initiative is the leading component of the U.S. Government's effort to
bring the benefits of the information revolution to th e people of Africa.  Under the initiative, experts
have installed high-speed national Internet gateways in 11 countries (Mali, Mozambique, Madagascar,
Malawi, Eritrea, Uganda, Rwanda, Guinea, Côte d'Iv oire, Ghana, and Benin) and connected scores of
user institutions.  Leland initiative trainers have trained more than 1,500 user institutions.
The Department of Commerce has developed a free information technology (IT) and
e-commerce software tool to help businesses, particularly in developing countries, to assess their IT
usage and plan future projects. The tool was created to help stimulate demand for U.S. IT products
and services in developing country markets.
The U.S. Trade and Development Agency (TDA) has also provided technical assistance and
training in support of U.S. and African policy objectives to improve the communications
infrastructure in Africa. Some of the projects include the following:
− Nigeria Spectrum Management: TDA provided a grant to the Nigerian Communications
Commission (NCC) for technical support and a fe asibility study to determine how Nigeria can
most effectively manage the frequency spectrum to expand wireless telecommunications
access. NCC is currently implementing the recommendations of the study.
− Mauritius Ports Authority IT Implementation Plan:  TDA provided a technical assistance grant
to the Mauritius Ports Authority (MPA) to develop a detailed implementation plan for the
modernization and expansion of MPA’s information technology network and systems.  Thegoal is to more thoroughly integrate MPA’s electronic processing and automated management
platforms.  Successful implementation of the assistance will allow for better processing of
both imports and exports from Mauritius.
Energy Infrastructure Development
The U.S. Department of Energy (DOE), has played a leading role in the work of the Climate
Technology Initiative, a cooperative effort of the Organization for Economic Cooperation and
Development/International Energy Agency countries, in part by funding technical support to
developing country parties for needs assessments, as the initial phase of the technology transfer
process.  These needs assessments identify technologies that are useful in the climate change effort, aswell as addressing important economic development priorities of the developing country partner.
DOE is sponsoring technical support for such activities in Mauritius, South Africa, Ghana and
Nigeria.
In Mauritius, an agreement has been reached with the Mauritius Sugar Authority to undertake
a $500,000 system-wide assessment of bagasse and technology improvement options to increase the
efficiency of bagasse generation in Mauritius.  In South Africa, a USAID-funded project is promotingsolar water heaters (SWH) and is being implemented by DOE’s National Renewable Energy
Laboratory.  The project seeks to raise low- and middle-income consumers' investment in SWH
technology and to displace the less desirable paraffin (kerosene) and coal.  In Ghana, initial
technology priorities were developed for the energy and solid waste disposal sectors.  These priorities
include a wide range of end-use energy efficiency technologies, solar and biomass energy for ruralapplications, and landfill methane capture technologies.
As a result of a Memorandum of Understanding between DOE, contributing a $100,000 grant,
and the Overseas Private Investment Corporation, contributing a $300,000 loan, a Village Sun Ovens
project is being implemented near Kampala, Uganda.  This project will provide an environmentallyIP/C/W/388/Add.7
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friendly solar option for cooking, displace the practice of burning firewood for fuel, and reduce
deforestation.
The USAID regional mission in West Africa is collaborating with ECOWAS on the formation
of the West Africa Power Pool (WAPP).  USAID assistance to WAPP is geared toward datacollection and analysis of future investment needs, with the use of a generation and transmission
planning model; logistical support for the ECOWAS/WAPP Project Implementation Committee
(PIC); selected training in the U.S. and workshops in West Africa (on subjects such as lessons learned
from the Southern African Power Pool); and studies and technical assistance from short and/or long-
term.
The U.S. Trade and Development Agency (TDA) also funds energy infrastructure
development.
TDA has recently signed several grant agreements to undertake feasibility studies in support
of this initiative. Some examples of TDA’s energy-related projects include:
− Djibouti Assal Geothermal Power Project:  TDA provided funding for the development of
geothermal energy production in Djibouti.
− Kenya Power Transmission Projects:  TDA provided a grant to the Kenya Power and Lighting
Company to contract with a U.S. contractor to examine four priority transmission projects thatwill assist delivery of power to the rural areas of Kenya.
− South Africa Power Generation Project:  U.S. Trade Representative Robert Zoellick signed an
agreement on behalf of TDA to fund most of a nearly $900,000 feasibility study for a newpower plant in South Africa.
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