IP/C/W/675  
 
26 February 2021  
(21-1669) Page: 1/4 
Council for Trade -Related Aspects of  
Intellectual Property Rights  Original: English  
 
 
INTELLECTUAL PROPERTY AND INNOVATION:  
MAKING MSMES COMPETITIVE IN GREEN TECH  
COMMUNICATION FROM AUSTRALIA, CANADA, CHILE, THE EUROPEAN UNION, JAPAN, 
SINGAPORE, SWITZERLAND, THE SEPARATE CUSTOMS TERRITORY OF TAIWAN,  
PENGHU,  KINMEN AND MATSU, THE UNITED KINGDOM AND THE UNITED STATES  
The following communication, dated 25 February 2021, is circulated at the request of the delegation s 
of Australia, Canada, Chile, the European Union, Japan, Singapore, Switzerland, the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu, the United Kingdom and the United States . 
 
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1  INTRODUCTION  
1.  Some of today 's critical global challenges include climate change, biodiversity loss, environmental 
degradation and food security. As a n example, climate change matters to our health and increases 
the risk of infections and pandemics.1 
2.  Several international efforts such as the Sustainable Development Goals (SDGs), the Convention 
on Biological Diversity, the UN Framework Convention on Cli mate Change and the Paris Agreement 
are designed to address these challenges. In this context, the role of Green Technology2 is important 
to provide new alternatives to address these challenges and create opportunities that have 
economic, social, and environmental benefits, as underscored by the framework of the SDGs. Of 
these, several underline the importance of Environmentall y Sound Technologies (ESTs) for the 
accomplishment of the above objectives.  
3.  Micro -, Small and Medium -sized Enterprises (MSMEs) can play a pivotal role in this change 
towards more sustainability. As they provide for more than 50 percent of employment (G20/O ECD, 
2015), they can constitute core engines of innovation and growth. MSMEs working in the green tech 
sector represent key economic actors in the effort towards finding solutions to address the above -
mentioned global challenges. The role of intellectual p roperty rights (IPRs) to enhance the 
competitiveness of MSMEs should be looked at closely. IPRs enhance the dissemination and 
protection of innovations – which is key for MSMEs, including those in the green tech sector (Friesike, 
Jamali, Bader et al, 2009) . This submission presents IPR approaches for making MSMEs more 
competitive in green tech.  
2  INTERNATIONAL  APPROACHES  
4.  MSMEs are confronted with a number of challenges with regard to IPRs, such as perceived high 
costs of protecting their intangible assets, a limited understanding of the IP system and its 
opportunities (Sukarmijan & Sapong, 2014) or a lack of information on the available support by 
 
1 Harvard T .H Chan School of Public Health : https://www.hsph.harvard.edu/c -
change/subtopics/coronavirus -and-climate -change/  (last consulted: 09.01.2021).  
2 Green Technology: "Environmentally sound technolog ies that protect the environment, are less polluting, 
use all resources in a more sustainable manner, recycle more of their wastes and products, and handle residual 
waste in a more acceptable manner than the technologies for which they were substitutes and  that include know -
how, procedures, goods and services, and equipment as well as organizational and managerial procedures " (The 
United Nations Program of Action from Rio, 1992 ). IP/C/W/675  
 
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  experts, universities or public agencies. Accordingly, MSMEs need opportunities for exchanging views  
and gaining  information in order to use the IP system to their advantage including the protection of 
their intangible assets. International organizations, in particular the World Intellectual Property 
Organization (WIPO) and the World Trade Organization (WTO), act as  important sources of 
information regarding IPR systems and legal regimes, and venues through which governments and 
stakeholders can come together to share experiences, lessons learned, and new approaches.   
5.  One important initiative to accelerate the develo pment and dissemination of ESTs is WIPO 
GREEN, a marketplace designed to connect providers and seekers of ESTs. All technologies listed in 
the online database of WIPO GREEN are available for license, collaboration, joint ventures, and sale. 
In addition to establishing a network of various partners, WIPO GREEN contains a database of IP 
experts, supports acceleration projects in different countries and produces briefs and seminars for 
various green tech areas. It is thus particularly valuable for MSMEs, given  that it facilitates the 
diffusion of their technologies and provides information to technology providers and seekers in all 
countries.  
6.  Similarly, the United Nations Framework Convention on Climate Change Technology Mechanism 
('the Mechanism ') and its ope rational branch, the Climate Technology Centre and Network, serve as 
a tool to promote and facilitate collaboration between climate technology stakeholders of developing 
and developed countries. In addition to networking events, the Mechanism constitutes a  direct point 
of contact, providing technical assistance and training to strengthen countries ' capacity to identify 
and adapt technology options. The Mechanism also supports the achievement of the SDGs presented 
in Agenda 2030 by promoting collaborations between various stakeholders in order to stimulate 
climate technology action.    
7.  Furthermore, t here are various patent classification schemes in the green tech sector, such as 
the WIPO International Patent Classification Green Inventory and the European Patent Office (EPO) 
and US Patent and Trademark Office (USPTO) Y02 classification system. The EPO  and the USPTO 
created the Y02 section of the cooperative patent classification (CPC) system. All these schemes 
facilitate searches for patent information related to technologies or applications for mitigation or 
adaptation against climate change. They may  assist MSMEs and patent offices in analyzing the green 
tech innovation landscapes. They can also help policy makers and investors to identify opportunities 
for MSMEs that are innovating in green technologies.  
8.  The international IP registration systems suc h as the Madrid System, also facilitate and lower 
costs for obtaining international IP protection, thereby supporting innovative MSMEs that are active 
in the green tech sector to maintain and enhance their competitiveness.      
9.  The main advantage that the above -mentioned initiatives have in common is their focus on green 
technologies, and their support of the means through which MSMEs can network and obtain IP 
information efficiently. Moreover, many of these services are free of charge and therefore of grea t 
importance to MSMEs, which are often financially constrained and lack the well -established networks 
of larger companies (Sukarmijan & Sapong, 2014). Finally, the international approach promotes 
cooperation across national borders and thus contributes to the exchange of technology and 
information regarding IP.  
3  NATIONAL APPROACHES  
10.  At the national level, public authorities, including IP offices, have several possibilities to foster 
MSMEs in the green tech sector. A conducive regulatory environment could be  achieved through 
various measures, including appropriate IPR protection and implementing sound environmental 
regulations. In the following, a focus is placed on measures that IP offices could take.  
3.1   The key role of IP rights  
11.  IPRs are powerful tools to p rotect and promote ESTs for MSMEs and make them attractive, 
therefore increasing the competitiveness of existing green tech MSMEs. For instance, patents, as 
accelerators of technology diffusion, help potential investors to identify inventors, for example, 
through respective searches on publicly accessible patent information databases. Patents may also 
serve as a door opener to financial resources. This has great relevance, especially for smaller -scale 
innovations, many of which seek to benefit resource -poor communities in developing countries IP/C/W/675  
 
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  (WIPO, 2020). Trade secret protection provides MSMEs, among other things, with an alternative to 
patent protection is often a MSME 's IP protection of choice in the early stages of an innovative 
process. Trade secrets, l ess formal  than patents, can offer a form of protection for MSMEs ' key 
commercial and technical information, providing them with a competitive advantage, and helping 
them to innovate in the area of green technology; such informal protection has both its a dvantages 
and disadvantages, of course. MSMEs can also use IPRs to differentiate themselves from non -green 
competitors in order to build a reputation and brand recognition in their markets. Consequently, the 
strengthening of IPRs such as trademarks and des igns can help companies to communicate with 
consumers, and are therefore important tools to enhance the development, commercialization and 
uptake of clean technology (Resai, 2012).  
3.2   Possible actions by IP offices  
12.  There are several ways for IP offices to a ssist MSMEs in making the best use of IPRs.  
• IP offices can provide basic guidance and assistance on various IPR aspects. By 
preparing reader -friendly IP material, including patent and trademark basics, 
examination overviews, information on patent searching  and resources on legal 
assistance that could be used by inventors and businesses in the green tech sector, 
individual questions and needs may be met.  
• IP offices may provide support in the form of assisting applicants with patent searches, 
landscape analy ses and also facilitate free legal assistance.  
• Specifically with a view to promoting ESTs, IP offices could consider accelerated patent 
examination procedures for such green tech patent applications. This process shortens 
the time between application and g rant, enabling MSMEs to attain financial support 
more quickly.  
• Customized workshops, seminars, or awards for the best green tech inventions may 
also help to make MSMEs that are involved in the green tech sector more aware of the 
benefits that the IP syste m may hold for them.  
4  CONCLUSION  
13.  There are various ways in which MSMEs can make use of the IP system to become more 
competitive in the field of green tech, ranging from taking advantage of international and regional 
IP application and registration mechanism s, international platforms for sharing information and 
opportunities for partnership and collaboration, to national solutions such as fast -track patenting or 
even on -demand support facilitated by IP offices. Through these efforts, progress towards more 
sustainable technologies can be accelerated, in turn fostering innovation and providing opportunities 
for cooperation in the green technology sector. Finally, initiatives of international organizations, such 
as WIPO 's World IP Day 2020 dedicated to "Innovatio n for a Green Future, " encourage both public 
and private stakeholders, including MSMEs, to play an active role in achieving the SDGs and in 
addressing global challenges such as climate change.    
5  GUIDING QUESTIONS  
a. What are the Members ' experiences with int ernational platforms such as WIPO GREEN?  
b. How can MSMEs develop a sound IP strategy in the green technology sector?  
c. What forms of IP -related measures taken by Members have proven useful for the support 
of green tech MSMEs in their financing/commercializati on strategy and which ones have 
not?  
d. How can the awareness of green tech MSMEs be raised regarding the benefits of IP for 
their business activity?  IP/C/W/675  
 
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  e. According to the experience of Members, what are the main challenges for green tech 
MSMEs to share their technology with enterprises, including across all levels of economic 
development?  
f. What experiences have Members gained with fast -tracking patent applications in the 
green -technology sector?  
g. According to the experience of Members, which sectors in green -tech need the most 
support and/or can benefit the most from IPRs?   
h. Are there other ways in which the IP offices can enhance the attractiveness of the use of 
IP rights by MSMEs in the green technology sector?  
Cited References  
Friesike, S.; Jamali, N.; Bader, M.; Ziegler, N.; Hafezi, N.; Iorno, N. & Schreiner, E. (2009), "SME-
IP 3rd Repor t: Case Studies on SMEs and Intellectual Property in Switzerland ", Swiss Institute of 
Intellectual Property . 
G20/OECD (2015), "High-Level Principles on SME Financing ", https://www.oecd.org/finance/G20 -
OECD -High-Level-Principles -on-SME-Financing.pdf , (last consulted: 08.01.21).  
Resai, D. (2012), "From Trademarks to Brands ", http://scholarship.law.ufl .edu/flr/vol64/iss4/5 , 
(last consulted: 08.01.21).  
Sukarmijan, S.; Sapong, O. (2014), "The Importance of Intellectual Property for SMEs; Challenges 
and Moving Forward ", UMK Procedia . 
WIPO (2020), "World Intellectual Property Day 2020 – Innovation for a Gre en Future ", World 
Intellectual Property Day 2020: Innovation for a Green Future (wipo.int)  (last consulted: 08.01.21).  
 
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