IP/C/W/650  
 
31 January 2019  
(19-0581) Page: 1/3 
Council for Trade -Related Aspects of  
Intellectual Property Rights  Original: English  
 
INTELLECTUAL PROPERT Y AND INNOVATION:  
SUMMARY ON THE 2018 THEME —THE SOCIETAL V ALUE OF IP IN THE NE W ECONOMY  
COMMUNICATION FROM AUSTRALIA; CANADA; CHILE; THE EUROPEAN UNION; 
HONG  KONG,  CHINA; JAPAN; THE REPUBLIC OF KORE A; SINGAPORE; SWITZERLA ND; 
THE SEPARATE  CUSTOMS TERRITORY OF TAIWAN, PENGHU, KI NMEN AND MATSU; AND THE 
UNITED  STATES  OF AMERICA  
The following communication, dated 30 January  2019, is circulated at the request of Australia; 
Canada; Chile; The European Union; Hong Kong, China; Japan; the Republic of Korea; Singapore; 
Switzerland; The  Separate Customs Territory of Taiwan, Penghu, Kinmen And Matsu; and the 
United  States  of America . 
 
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1.  The WTO TRIPS Council discussed the topic of "The Societal Value of IP in the New Economy " 
throughout 2018. This paper highlights examples raised and reiterates the important impact of IP 
on innovation and consequently economic growth; the lives of our citizens; and the development of 
new businesses in our economies.   
1.1  IP-Intensive Industries and  their Economic Impact on Society  
2.  Recent data collected nationally, regionally and internationally have shown how intellectual 
property rights (IPRs) contribute to employment, gross domestic product (GDP), licensing revenue 
and trade. Several WTO Members provided empirical data from reports and case studies, including 
updated report and firm -level data from the EU Intellectual Property Office; updates to the report of 
the United States Department of Commerce; a 2014 report by the Canadian Department of 
Innovation, Science and Economic Development report and a 2017 IP Canada Report; a 2010 study 
on the Economic Contribution of the Copyright -Based Industries in Colombia (sponsored by the 
World Intellectual Property Organization (WIPO) and the Government of Co lombia ); and a 2017 
WIPO regional economic study on the Use of Intellectual Property in Central America and the 
Dominican Republic.   
3.  Discussion also centred  on the broad range of IP -intensive industries that use and rely on IPRs 
more intensively than the industry average. Members described the impact on sectors ranging from 
roadwork infrastructure, the watch industry, information technology, climate change mitigation 
technologies, space technologies and core copyright industries, including digital content,  and those 
sectors that contribute to the production and marketing of copyrighted works. Members highlighted 
government resources available to support their IP -intensive industries and new IP businesses, 
including micro, small and medium -sized enterprises (MSMEs), focusing on local needs as well as 
identifying ongoing and future studies to improve their respective innovation landscapes, export 
strategies and IP policies.  
1.2  IP and Improving Lives  
4.  Society has benefitted greatly from the innovation of game -chang ing technology and the greater 
availability of creative works, notably in education and training, the creative sector, and in the fields 
of transportation, goods delivery and agricultural and environmental monitoring systems.  
Intellectual property plays a  critical role in incentivizing the development of new technologies and IP/C/W/650  
 
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  creative endeavours  that contribute to improving the quality of our lives. Creative solutions prosper 
if inventors are able to commercialize their inventions in a predictable and stabl e legal environment.   
5.  For instance, Members noted that patent, regulatory data and trade secret protection provide 
innovative risk takers with the confidence needed to devote what may be years and millions of 
dollars into an endeavour  that may or may not produce a return on investment. Trademarks are 
often the first form of IP and the one most used to communicate the commercialization of a 
product/service and the protection of a firm 's brand to consumers and competitors. Copyright can 
serve as an engine fo r creativity, cultural and cross border cultural exchange.  
6.  Members conveyed inspiring stories of how innovators and creators, including in partnership with 
governments, have used IP tools to address global challenges, which have contributed to 
technologic al and creative progress for the benefit of humanity. Members highlighted advancements 
in the areas of: education/training and digital applications for the visually impaired; creative works 
program mes to facilitate cross -border exchanges and cross -cultural  awareness; healthcare products 
to provide faster diagnosis and better treatments; digital healthcare solutions to reform healthcare 
services; agricultural technology to help farmers harvest double yields; technology development 
projects either applied or developed in countries in need of assistance; and the use of electric and 
digital sources in the transportation, environment and machine manufacturing sectors. Also 
highlighted were efforts to improve IP systems awareness and accessibility to help a wider range of 
people harness the power of IP.  
7.  Lastly, Members highlighted government and private sector/non -profit initiatives to promote 
exchanges and business opportunities so that the benefits of IP are shared between and applied to 
people who need them.  
1.3  Intellectual Property and New Business  
8.  For start -ups and new businesses, IPR can often help determine whether a firm survives and 
thrives. Members highlighted the need to create the necessary conditions for SMEs and start -ups to 
succeed by protecting trade secrets, patents, trademarks, designs and copyrights. Links between 
export performance and firms that rely on IPR were raised. Members noted that SMEs use IP assets 
to secure financing to launch their business, scale up capital investments, boost marketing  and sales, 
and further increase revenue through licensing arrangements. Some commented on the significant 
positive economic effects these start -ups and new businesses have had on their economies.  
9.  Members also noted the need to increase IP awareness among  SMEs, to help them address 
administrative and financial concerns with respect to IP protection. Members highlighted dedicated 
program mes and initiatives by government institutions, academia and the private sector to provide 
counselling  to start ups and ne w businesses to protect their IP, develop partnerships and realize 
international opportunities.  
10.  At the Friends of IP and Innovation -sponsored side -event on the margins of the November 2018 
TRIPS Council meeting, Members heard directly from four speakers o n the incentivizing role of IP in 
the areas of economic growth and development as catalyst for new business, and its societal 
benefits. The speakers featured the following key messages:  
a. The WIPO Chief Economist discussed the findings in the 2017 WIPO repo rt on "Intangible 
Capital in Global Value Chains ", stating that intangibles account for one -third of global 
production, which is twice the share of tangible capital. He stated that IP is an important 
precondition for innovation to take place and to take of f; 
b. An economist/academic research expert from the University of the West Indies discussed 
the role of IP for developing country start -ups, stating that developing countries need to 
take greater advantage of capturing the value of IP in commodity products a s opposed to 
just the commodity itself and to create digital platforms that address their cultural and 
content needs ; and  
c. Two scientists turned entrepreneurs discussed the supportive role of IP systems, IP offices 
and non -governmental entities played in their research and development efforts, securing IP/C/W/650  
 
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  financing, fostering partnerships in countries, and bringing to market cutt ing-edge 
innovations to eradicate the Ebola virus and detect the Malaria virus.   
11.  All four of the presentations illustrated how IP is used as a tool to motivate invention and 
creation, often building new technologies to the benefit of mankind.  
12.  Overall, the  IP and Innovation discussions held during the three meetings of the TRIPS Council 
in 2018 provided an engaging and detailed cross -regional overview of WTO Members ' national and 
international IP policies, initiatives and case studies in developing and deve loped countr y Members  
alike. The discussions also provide d a useful reference for future legal, regulatory, and policy 
developments.   
 
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