WORLD TRADE  
ORGANIZATION   
WT/COMTD/AFT/W/38 
5 November 2012 
 (12-6062) 
Committee on Trade and Development 
Aid for Trade  
 
 
WORKSHOP ON AID FOR TRADE AND INTELLECTUAL PROPERTY 
Background Note by the Secretariat1 
 
I. SUMMARY 
1. This note is intended as a background note to inform discussion at the workshop on Aid for 
Trade and Intellectual Property to be held on 5 November 2012.  It is not an exhaustive analysis; it is 
an initial overview, which is not based on a full su rvey of the extensive literature concerning the 
cluster of issues addressed.  
2. As witnessed by the inclusion of the Agreem ent on Trade-Related Aspects of Intellectual 
Property Rights (the TRIPS Agreement) in the fra mework of the World Trade Organization (WTO), 
Intellectual Property (IP) is a fundamental pillar of the multilateral trading system.  It has the potential 
of influencing innovation, acce ss to knowledge, technological development, competitiveness and 
sustainable development.  Strong complementar ities exist between IP protection and market 
liberalization, technology development policies and competition regimes in attracting FDI.  A well 
designed IP regime can thus play an essential role in economic development. 
3. In particular, the protection and enforcement of IP rights can facilitate the transfer and 
dissemination of technology.  IP can also help capture value in exports from developing and least-
developed country (LDC) Members, particularly in agriculture, floriculture or horticulture products, 
processed foods and products such as handicrafts a nd textiles based on natural and cultural resources.  
Many developing countries have long been users of various forms of IP protection, especially 
trademarks and copyrights.  Some have also begun  to make active use of patents and plant variety 
protection. LDCs, however, account for only 0.5 per cen t of worldwide patent applications and fewer 
than 1 per cent of trademark applications. 
4. A balanced and effectively tailored IP system al so has a critical role to play in achieving the 
Millennium Development Goals (MDGs) that dire ctly impact developing countries and LDCs. New 
technologies covered by IP are relevant in help ing achieve Goal 1 (Eradicate extreme poverty and 
hunger), Goal 7 (Ensure Environmental Sustainability ) and Goal 8 (Develop a global partnership for 
development), from a trade perspective. 
5. The TRIPS Agreement provided for a longer tran sition period for LDCs to apply the bulk of 
TRIPS provisions (developing country Members ha d shorter transition pe riods which have now 
expired).  This period was extended until mid-2013 fo r all LDC Members, and until 2016 with respect 
to TRIPS provisions on the protection of patents, tr ade secrets and test data in the pharmaceutical 
sector.  As part of the coordination process, LD C Members have been asked to identify their 
individual priority needs for technical and financ ial cooperation in order to implement the TRIPS 
                                                      
1 This document has been prepared under the re sponsibility of the WTO Secretariat and without 
prejudice to the positions of Members and to their rights and obligations under the WTO. WT/COMTD/AFT/W/38 
Page 2  
 
  Agreement.  To date, seven LDC Members have provided such information. Developed country 
Members are requested to provide technical and fina ncial support to LDCs to establish their priority 
needs and to respond to those already identified.  International organizations  have been called upon to 
further intensify their cooperation.  A symposium on the priority needs of LDCs to implement the 
TRIPs Agreement in a manner that responds to domes tic objectives of individual Members was held 
from 31 October to 2 November 2012; this builds on a coordinated series of workshops and studies to 
strengthen the capacity of LDCs to identify prior ities and to establish suitable technical cooperation 
partnerships to respond to their individual priority needs.   
6. Developed country Members and multilateral ins titutions regularly report to the WTO TRIPS 
Council on their IP-related technical and financia l assistance, as well as on incentives provided to 
their industries to transfer technology.  These repor ting mechanisms have disclosed a very wide range 
of programmes and initiatives, captured in extens ive documentation; a current focus is on improving 
accessibility and usefulness of this information fo r policymakers in LDCs and developing countries. 
However, fully tracking IP-related assistance is  problematic as IP-related activities are often 
conducted within broader programm es of trade-related (and often non-trade related) assistance.  
7. One of the recommendations of the Aid-for-Trade (AfT) Task Force Report in 2006 
concerned strengthening the "dema nd side" - in short, ensuring that the demand for AfT assistance is 
expressed, by "mainstreaming" trade into the recipi ent country's development agenda. Implementation 
of the TRIPS Agreement is an area which can a nd does emerge in the mainstreaming process and 
which is then identified as a priority in dialogue with development partners. 
II. WHY IP MATTERS FOR DEVELOPMENT? 
A. T
HE ROLE OF IP IN ENCOURAGING INNOVATION , FDI  AND TECHNOLOGY TRANSFER AND 
DISSEMINATION  
8. As the global economy becomes ever more knowledge-based and closely integrated, respect 
for IP is considered a cornerstone of innovati on, creativity and economic development in many 
countries, although its beneficial impact is rec ognized as depending on a capacity to make effective 
practical use of IP within the wider context of development and trade strategies, as well as ensuring 
that IP systems are balanced and appropriately respon sive to public policy interests.  Firms, small and 
large, constantly innovate to survive and thrive  in the market.  From a growth perspective, 
productivity gains depend in large measure on the abilit y of countries, industries or firms to adopt new 
technologies and production techniques,  particularly those used in countries and firms with higher 
levels of technological development.2  IP policies can have a major influence on this growth process 
and in turn determine innovation, access to  knowledge, competitiveness, and sustainable 
development.  A weak IP  regime is generally a disincentive for further innovation and inflow of 
investments.  On the other hand, excessive IP pr otection can stifle innova tion and dissemination of 
technological innovation, particularly in developing countries.3 Finding the right balance in the IP 
regime is essential.  How this balance is stru ck will often depend very much on the particular 
economic circumstances of a country, and the international framework, such as the TRIPS 
Agreement, gives ample scope for national systems to be tailored and adapted to correspond with the 
specific needs and context of each country. Ideally , the IP regime needs to foster innovation and 
investment and at the same time promote access to knowledge and transfer of technology, while also 
respecting Members' WTO commitments.   
                                                      
2 WIPO, 2011 World Intellectual Property Report: The Changing Face of Innovation , World 
Intellectual Property Organization: Geneva, 2011, p. 25.  
3 Falvey, R., and Foster, N., 'The Role of Intellectual Property Rights in Technology Transfer and 
Economic Growth: Theory and Evidence', UNID O Working Papers: Vienna, 2006, p. vii.  WT/COMTD/AFT/W/38 
 Page 3 
 
 
  9. Some studies have underscored complementaritie s between IP protection and foreign direct 
investment (FDI), particularly when IP policies ar e pursued in conjunction with market liberalization 
and deregulation, technology deve lopment policies and appropriate competition regimes.  In the 
context of developing countries, particularly for those in the early stages of development, technology transfer from foreign high-income economies and th e spillover effects from foreign investment have 
been considered important sources of innovation, si nce most such countries lack the capital and the 
skills to conduct stat e-of-the-art research.
4 The Growth Commission's Report highlights the role that 
FDI can play in bringing familiarity with fo reign production techniques, overseas markets, and 
international supply chains.  These other benefits were weighed as even more important than the 
capital itself in the long run by the Commission.5   
10. Strengthening technology transfer to developing countries and overcoming barriers that affect 
such transfer, in this context, becomes crucial from a development perspective - a topic which the 
Working Group on Trade and Transfer of Technology  is mandated to consider. In a similar vein, 
incentives provided by developed country memb ers under Article 66.2 TRIPS to promote and 
encourage technology transfer to LDCs are subject  to an annual review by the TRIPS Council.  
B. IP, TRADE AND DEVELOPMENT  
11. Trade facilitates the transfer of technological know-how. Four channels have been identified 
through which knowledge produced in one country and transmitted through imports can affect 
productivity and growth in others. Firstly, through the importation of interm ediate and capital goods 
that may enhance the productivity of domestic res ources; secondly, through the cross border learning 
of production methods, product desi gn, organizational structures and market conditions that can result 
in a more efficient allocation of domestic resource s; thirdly, through the imitation of new products; 
and, finally, through the development of new technologies or the imitation of foreign technology.6 
12. Primary commodities comprise 34 per cent of developing country merchandise exports and 
over 73 per cent of LDCs' total merchandise exports.7  LDC exports are concentrated in fuels and 
mining products that account for 63 per cent of pr imary commodity exports. IP can help promote 
value-addition in exports from deve loping and LDC Members, particular ly in agriculture, floriculture 
or horticulture products, products based on traditiona l knowledge and products  that have a specific 
quality, reputation or other characteristic a ttributable to their geographical origin. 
                                                      
4 WIPO, 2011 World Intellectual Property Report: The Changing Face of Innovation , World 
Intellectual Property Organization: Geneva, 2011, p. 26. 
5 Commission on Growth and Development, The Growth Report: Strategies for Sustained Growth and 
Inclusive Development , The World Bank: Washington, 2008, p. 42. 
6 Coe, D. T., Helpman, E., and Hoffmaister, A. W., 'North-South R&D Spillovers', The Economic 
Journal , 107, 1997, pp. 134-149. 
7 WTO, Market Access for Products and Services of Export Interest to Least-Developed Countries , 
WT/COMTD/LDC/W/56, October 2012, p.11. WT/COMTD/AFT/W/38 
Page 4  
 
   
 
 
13. The links between IPR, trade and development are, however, not straightforward.  Some 
analysts have cast doubt on linkages between IP pr otection, trade flows and development, citing the 
historically weak IPR protection accorded to some  sectors, notably chemicals and pharmaceuticals,  
until fairly recently in order to promote learni ng through imitation.  As the UK IPR Commission 
Report noted, "Very high standards of protection may be  in the public interest in developed countries 
with highly sophisticated scientific and technological  infrastructures […], but this does not mean the 
same standards are appropriate  in all developing countries".
8 Further research work is therefore 
needed to objectively assess the interface  between IP, trade and development. 
 
                                                      
8 Report of the Commission on Intellectual Property Rights, Integrating Intellectual Property Rights 
and Development Policy , IPR Commission: London, September 2002, at Introduction. Text Box 1: Low returns to producers and exporters in LDCs due to non-use of IP rights 
 
The diagram below represents the producer and export shares of retail prices for gourmet quality vanilla pods in Uganda.  
Most income accrues to wholesale or retail agents. Through IP value capture strategies, more of the income could be 
retained by moving up the value chain (through business strategies such as branding).  
Source: Light Years IP, http://www.lightyearsip.net/downloads/Caribbean%20booklet%2044%20final.pdf  
 
 
Caribbean Intellectual Property (I P) Value Capture Export Strategy   WT/COMTD/AFT/W/38 
 Page 5 
 
 
  C. USE OF IP BY DEVELOPING COUNTRIES AND LDC S 
14. According to WIPO, low-income countries (LICs)9 account for less than 0.5 per cent of total 
patent applications, worldwide in 2010. Low middle-income countries and Upper middle-income 
countries account for 3 per cent and 26.3 per cent, r espectively.  The trend is similar in trademark 
applications, as LICs have a worldwide share of 1 per cent, while Low middle-income and 
Upper middle-income countries have 10.4 and 40.3 per cent.  In terms of regions, Africa has the 
lowest applications for all forms of IP. Asia, on th e other hand, has the highest rate of application, 
with China the fastest growing applicant for IP in recent years.   
Table 1: IP Applications by Geographical Region, 2010 
 
Geographical region Trademark Patent Industrial 
Design Utility  
Model 
Asia 2,295,128 1,015,270 547,261 438,692 
North America 501,545 525,675 34,201 - 
Europe 1,988,648 343,736 60,961 52,279 
Latin America & the Caribbean 532,713 50,747 13,040 3,276 
Oceania 140,065 31,536 7,161 1,465 
Africa 129,608 12,174 4,969 88 
 
Source: WIPO Statistics Database, May 2012 
 
15. Among LDCs, Bangladesh is a consis tent user of the patent and trademark systems, with 342 
patent and 10,231 trademark applications in 2010. Madagascar is the leading LDC in Africa 
concerning consistent uses of some forms of IP , with 4,864 trademark and 286 industrial design 
applications in 2010.  However, in most low-inco me countries, trademark applications are typically 
filed by non-residents, except in Bangladesh, where resident applications for trademark were 77 per 
cent in 2010.10 Copyright and related rights, for which na tional statistics are not generally collected 
(since they do not depend on registration), can be of  particular importance for the creative and cultural 
industries in low income countries, concerning, fo r instance, musicians and other performers, and 
designers.  
16. Over the last decade, the use of the IP system  has grown to unprecedented levels. At the same 
time, there has been a shift in the IP landscape with new countries emerging as important players and 
greater emphasis placed on international protection of  inventions.  However, this shift is becoming 
pronounced only in large emerging economies wit hout a noticeable increase in the share of 
low-income countries.  The share of LICs in worldw ide patent applications has remained stagnant at 
0.1 per cent and has decreased in worldwide trademar k applications from 1.3 per cent to 0.8 per cent, 
between 1995 and 2009.11  
D. IP AND THE MILLENNIUM DEVELOPMENT GOALS  
17. Balanced and effective use of the IP system has an important role in helping achieve the 
MDGs, particularly, Goal 1 (Eradicate extreme pove rty and hunger), Goal 7 (Ensure Environmental 
Sustainability) and Goal 8 (Develop a global partne rship for development), from a trade perspective. 
                                                      
9 Low-income countries (LICs) as defined by the World Bank, available at: 
data.worldbank.org/about/country-classifications/country- and-lending-groups.  It is different than the UN 
definition of LDCs, and includes most LDCs besides a few non-LDC economies. 
10 WIPO, World Intellectual Property Indicators: 2011 , World Intellectual Property Organization: 
Geneva, May 2012. 
11 WIPO, 2011 World Intellectual Property Report: The Changing Face of Innovation , World 
Intellectual Property Organization, 2011, pp.52-58. WT/COMTD/AFT/W/38 
Page 6  
 
  (a) Under MDG 1, strategic use of the IP system can help achieve innovation and productivity 
gains in the agriculture sector, including thr ough technology partners hips and technology 
diffusion. IP can also be used as a public  policy tool to address food security issues by 
improving access to relevant technologies and crop varieties.  The TRIPS Agreement provides 
developing and LDC Members with flexibiliti es for implementing its provisions in a way 
consistent with their agriculture and food securi ty objectives.  Moreover, IP, through greater 
value creation, can enhance the competitiv eness of domestic enterprises and export of 
products from developing countries and LDCs.  The employment gains and job creation 
through product diversification and IP value captu re is expected to he lp eradicate poverty as 
SMEs integrate with the global value chain.
12   
(b) Under MDG 7, environmentally sound technologies can play a significant role in addressing a 
variety of environmental concerns, such as t hose relating to climate change, the loss of 
biodiversity, desertification and hazardous wastes, to name a few. The IP system, as a mechanism to promote innovation and creativ ity and to facilitate the transfer and 
dissemination of technology, contributes to the search for solutions to a number of global 
challenges in the environmental field.  Speci fically, many intergovernmental organizations, 
including the WIPO and UNFCC, are working closely to foster a better understanding of the policy issues around IP to mitigate the effects of Climate Change.
13 
(c) MDG 8 addresses a range of different issues and targets that seek global cooperation on 
development.  Through the TRIPS Agreement, th e global community recognized IP as one of 
the three pillars of the multilateral trading system. The IP system can promote economic, 
social and cultural development in developi ng countries and LDC members. The WTO, in 
close collaboration with WIPO, and other UN ag encies, has been mandated by the global 
community to intensify its capacity-build ing assistance for LDCs and to support these 
countries in improving competitiveness of th eir enterprises through regular access to new 
technologies.14 
III. WTO AND THE TRIPS AGREEMENT 
A. A BRIEF OVERVIEW OF DEVELOPMENTS IN THE TRIPS  AGREEMENT  
18. The TRIPS Agreement is part of the "single undertaking" that resulted from the Uruguay 
Round of trade negotiations.  It is a minimum standa rds agreement, which allows Members to provide 
more extensive protection of intellectual property if they so wish provided that this is done in a 
TRIPS-consistent manner.  Members are also left  free to determine the appropriate method of 
implementing the provisions of the Agreement within their own legal system and practice. 
19. The Doha Ministerial Declaration stressed the importance of implementing and interpreting 
the TRIPS Agreement in a manner supportive of publ ic health (through the 2001 Doha Declaration on 
the TRIPS Agreement and Public Health). The D eclaration also instructed the TRIPS Council to 
examine, inter alia , the relationship between the TRIPS Agreement and the Convention on Biological 
Diversity, the protection of traditi onal knowledge and folklore, and ot her new developments raised by 
Members pursuant to Article 71.1, by fully taking into account the development dimension. As 
                                                      
12 WIPO, http://www.wipo.in t/ip-development/en/agenda/millenni um_goals/millennium_goal_1.html , 
accessed on 11 October 2012. 
13 Pugatch, M.P., Dr., 'Intellectual Property and the Transfer of Environmentally Sound Technologies', 
Global Challenges Report , WIPO. Accessed from: 
http://www.wip o.int/export/sites/www/globalchallenges/ en/pdf/global_challenges_report.pdf , on 11 October, 
2012. 
14 WIPO, http://www.wipo.in t/ip-development/en/agenda/millenni um_goals/millennium_goal_8.html , 
accessed on 15 October, 2012.  WT/COMTD/AFT/W/38 
 Page 7 
 
 
  regards geographical indications, the negotiation of a multilateral register for wines and spirits was 
agreed, and it was noted that issues related to th e extension of the higher level of protection under 
Article 23 of the TRIPS Agreement would be addressed in the TRIPS Council. 
20. Developing countries, in particular, see technol ogy transfer as essential.  This goal is 
addressed by a number of TRIPS provision.  In its  preamble, the TRIPS Agreement thus explicitly 
recognizes the underlying public policy objectives for the protection of IP, referring, in particular, to 
developmental and technological objectives.  Furthe rmore, the Agreement sets as its objectives the 
promotion of technological innovation and the tran sfer and dissemination of technology. More 
specifically, Article 66.2 of the TRIPS Agreemen t requires developed countries' governments to 
provide incentives for their companies to transfer te chnology to LDCs so that they can create a sound 
and viable technological basis.  Based on a TR IPS Council decision of 2002, a monitoring mechanism 
has been put in place under which annual reports by developed country members on their actions are 
reviewed by the TRIPS Council.15 
B. S&D  PROVISIONS AND LDC- SPECIFIC FLEXIBILITIES BUILT IN THE TRIPS  AGREEMENT  
21. The negotiators of the TRIPS Agreement recogni zed the particular concerns and needs of 
LDCs for maximum flexibility in implementing laws  and regulations domestically. The objective was 
to enable them to create a sound and viable t echnological base. In terms of flexibilities, developing 
countries were given until 1 January  2001 to apply the TRIPS Agreem ent, whereas LDCs had initially 
until 1 January 2006. A TRIPS Council Decision of  2005 (the 2005 Decision) further extended the 
transition period to implement the TRIPS Agreement to 1 July 2013, with the possibility of further 
extension.16 A further flexibility has been given to LDC Members regarding the protection of patents 
and test data with respect to pharmaceutical pr oducts, for which the transition period has been 
extended until January 2016.17 
22. In its 2005 Decision, the TRIPS Council called on LDCs to identify their priority needs for 
technical and financial assistance. The purpose is to assist them in taking the necessary steps to 
implement the TRIPS Agreement in a manner that  responds to their developmental and other 
domestic policy objectives. Wider initiatives to support these countries include the Aid for Trade 
Initiative (AfT) and the Enhanced Integrated Framework (EIF).18 They also provide potential avenues 
for an intensified, coordinated effort to respond to individual priority needs that LDCs identify 
specially relating to TRIPS.  So far, the Counc il has received submissions from seven LDC Members 
on their needs assessment.19 
IV. AID FOR TRADE AND IP 
A. AFT ACTIVITIES  AND IP-RELATED ASSISTANCE – BUNDLING WITH BIGGER PROJECTS  
23. One of the recommendations of the Aid-for-Trade (AfT) Task Force Report in 2006 
concerned strengthening the "dema nd side" - in short, ensuring that the demand for AfT assistance is 
expressed.20 Given that this demand is predicated on country-ownership and country-driven 
approaches, the Task Force placed the onus on governm ents to fully "mainstream" trade into their 
development strategies.  Through this process of mainstreaming, AfT assistance priorities are 
                                                      
15 WTO document IP/C/28. 
16 WTO document IP/C/40. 
17 WTO document IP/C/25. 
18 For further information on how those multilateral mechanisms relate to technical assistance in the 
field of IP see WTO document IP/C/W/544. 
19 For further information on the LDC needs asse ssment process see the dedicated webpage at: 
http://www.wto.org/english/tr atop_e/trips_e/ldc_e.htm .  
20 WT/AFT/1. WT/COMTD/AFT/W/38 
Page 8  
 
  reflected as part of the dialogue between the gove rnment and development partners. Implementation 
of the TRIPS Agreement is an area which can a nd does emerge in the mainstreaming process and 
which is then identified as a priority in di alogue with development partners.      
24. Following the six categories established by th e AfT Task Force, assistance activities in 
support of trade-related IP are typically recorded  in the category of support to trade policy and 
regulation.   However, assistance within this cate gory is not disaggregated by donors reporting to the 
OECD's Creditor Reporting System (CRS).
21 Hence a multi-million dollar project providing trade 
capacity building assistance may cover IP-related i ssues.  However, the assistance will fall under the 
broader category and IP elements may only be high lighted in the description provided by the funding 
agency.  Furthermore, IP-related activities may al so be listed under other br oader categories of AfT 
assistance, including trade development and building productive capacity, or in other categories of 
official development assistance not captured by AfT monitoring e.g. medical research or biodiversity. 
25. Of particular relevance for the delivery of AfT assistance to LDCs is the EIF.  The EIF is an 
AfT delivery mechanism for LDCs that assists LD Cs to mainstream trade into their national 
development strategies and to tackle their supply -side constraints to trade.  The programme is 
currently helping 48 poorest countries worldw ide, supported by a multi-donor trust fund, the EIF 
Trust Fund, with contributions from 23 donors.  Thr ough the Tier 1 and Tier 2 funds of the EIF, LDCs 
may seek assistance to help mainstream their IP n eeds into their Diagnostic Trade Integration Studies 
or national development strategies as well as seek support for specific IP-related projects.   
26. A note prepared by the Secretariat in the c ontext of the process of assessing LDC Members' 
individual priority needs to implement the TRIPS Agreement compiled further information on how 
the existing multilateral mechanisms (e.g. the AfT a nd the EIF) and the expertise and funds available 
for trade-related technical assistance could be made use of to assist LDC members.22 
27. One specific source of information on IP activities is the WTO Global Trade-related 
Technical Assistance Database (GTA D).  GTAD reports trade-related technical assistance activities, 
including IP.23  Some 114 entries for trade-related IP activities can be found on the GTAD for the 
years 2009-2012 (only partial data is available fo r 2012). Assistance is reported by WTO, WIPO and 
UNCTAD.  
28. Examples of AfT assistance in the field of IP  emerged from the case stories submitted for the 
Third Global Review of Aid for Trade.  Various case stories submitted dealt with IP-related issues, either directly such as those submitted by WIPO or  as part of broader programmes of assistance (e.g. 
EU Multilateral Trade Assistance Project III in Viet Nam).
24 
                                                      
21 OECD Aid for Trade data is available on-line at:  
http://www.oecd.org/document/21/0,3343,en_2649_34665_43230357_1_1_1_1,00.html  
22 WTO document IP/C/W/544. 
23 WTO GTAD is available online at: http://gtad.wto.org   
24 Case story is available online at:  http://www.oecd.org/aidfortrade/47462174.pdf    WT/COMTD/AFT/W/38 
 Page 9 
 
 
   
 
29. For the Third Global Review on Aid for Trade, WIPO provided information on its IP 
Advantage database that chronicles the intellectual property (IP) experiences of inventors, creators, 
entrepreneurs and researchers from across the globe.25  A case story from WIPO discussed the Lao 
Brewery Co. Ltd (LBC), which created a distinct  market for its product, "Beerlao", through a 
combination of trademarks, branding and research an d development. Beerlao, besides a 99 per cent of 
the beer market share in Lao PDR, has become on e of the most successful export products from the 
country and is currently sold through the distri butors in more than 10 countries including China, 
Germany and Thailand.26  A further case story discussed how IP  protection and commercialisation of 
'Maruline' from the marula tree has transformed the liv es of tens of thousands of rural producers, their 
families and communities in Namibia.  Capitalizing on the organic nature of marula oil for natural or 
herbal cosmetics, companies such  as Aldivia have worked with c ooperatives and used IP to create a 
product with international reach.27  
V. CHALLENGES:  MATCHING DEMAND WITH SUPPLY 
A. EVIDENCE FROM THE LDC  PRIORITY NEEDS ASSESSMENTS ON IP; WHAT ARE THE AREAS 
THAT REQUIRE INTERVENTION ? 
30. Seven LDCs have submitted their priority needs assessment for technical and financial 
cooperation to the TRIPS Council.28  Based on the submissions, the following priority needs emerge: 
(a) Development of an IP policy : For many LDCs that inherited a colonial-era set of intellectual 
law and rules, formulation of a coherent IP polic y is of utmost importance.  There is often a 
lack of effective coordination among the gove rnment departments, IP institutions and 
enforcing agencies due to the absen ce of an IP policy. (IP/C/W/546) 
(b) Training for policymakers on IPR concepts, TRIPS and international IPR conventions : 
Capacity building in IP issues is still a major bo ttleneck in many LDCs that leads to delay in 
the implementation of the TRIPS Agreement. This includes training in TRIPS rights and obligations, flexibilities, safeguards and exceptions  applicable to LDCs.  (IP/C/W/548/Add.1) 
                                                      
25 WIPO IP Advantage is  available online at: http://www.wipo.int/ipadvantage/en/   
26 Case story is available online at: http://www.oecd.org/aidfortrade/47764757.pdf   
27 Case story is available online at: http://www.oecd.org/aidfortrade/47764748.pdf   
28 Available at http://www.wto.org/english/tratop_e/trips_e/ldc_e.htm   Text Box 2:  Potential for Triangular Co-operati on in the Use of IP: SECO, Viet Nam and Lao PDR 
 
Swiss IP cooperation combines traditi onal trade policy support with the streng thening of supply-side capacity by 
promoting the use of IPRs as a means to attract technology and investment in order to increase competitiveness. This 
two pronged approach addresses both a reinforcement of the lega l and institutional side and encourages the use of IPRs 
by right holders. 
 
The cooperation with Viet Nam comprised the following three steps:  i) contribution to a WTO-compliant legal and 
institutional framework for IPRs in Viet Nam; ii) support to th e Government's efforts to bring IP into the daily life of 
people by promoting the use of IPRs at universities, geographi cal indications for Viet namese products and the 
protection of Viet Nam's traditional knowledge (TK) a nd folklore; iii) expansion of the outreach of the 
Swiss-Vietnamese coopera tion by transferring IP expertise to  Lao PDR (triangular cooperation). 
 
The expansion of the IP co-operation between Switzerland a nd Viet Nam to include Lao PD R proved to be successful 
with lessons for further such collaboration. Cooperation between developed and more a dvanced developing/emerging 
economies to provide technical assistance to LDCs is an innovative form of tria ngular cooperation, which contributes to 
the strengthening of South-South/regional cooperation among the developing world a nd allows for capitalizing on 
specific expertise of more advanced middle-income countries to de liver technical assistance to LDCs.  
http://www.oecd.org/aidfort rade/capacitybuilding.htm 
 WT/COMTD/AFT/W/38 
Page 10  
 
  (c) Use of IP for business, creativity, innovation and technology transfer : Many LDCs want to 
encourage R&D and innovation through their IP policy to move up the value chain. Further, improving business education and awareness about IP for SMEs targeting the creative 
industries (copyright and related rights), as well as the agricultural (plant varieties, 
trademarks, geographical indications) and manufacturing sector (patents and trademarks) is 
considered to be essential. (IP/C/W/548/Add.1), (IP/C/W/510) 
(d) Protection of biodiversity, traditional knowledge, plant varieties and plant genetic materials : 
Many LDCs are endowed with rich natural a nd cultural resources.  Identification of the 
potential economic value of these resources and the establishment of a legal framework for 
the protection of genetic resour ces, traditional knowledge and folklore that ensures benefit 
sharing have been submitted as priority needs. (IP/C/W/552), (IP/C/W/548/Add.1)  
(e) Tailor-made technical assistance :  Tanzania makes the case that donors should ensure advice 
on legal and policy reform to LDCs in re lation to the implementation of the TRIPS 
Agreement that fully takes into account the possible options and flexibilities to accommodate 
each LDCs individual policy objectives.  To ensure that national IPR reform processes are 
effectively linked to related areas of developm ent policy, and that stakeholders participate 
effectively in these reform processes, donors and providers of IP-related technical assistance 
should be mindful of the need to build the capacity of local institutions to carry out policy research and dialogue with these stakeholders, in  addition to providing international expert 
and legal advice. (IP/C/W/552) 
B. L
EARNING FROM MEMBERS ' EXPERIENCES : SUBMISSIONS MADE TO THE TRIPS  COUNCIL BY 
DEVELOPED COUNTRY MEMBERS AND INTER -GOVERNMENTAL ORGANIZATIONS29 
31. Article 67 of the TRIPS Agreement refers to the provision, on request and on mutually agreed 
terms and conditions, of technical and financ ial cooperation in favour of developing and 
least-developed country Members.  Further, the 2005 Decision of the TRIPS Council asked the developed country members to provide technical an d financial cooperation to respond to individual 
priority needs identified by LDCs.   
VI. CONCLUSION 
32. Aid for Trade can play a catalytic role in supporting the ability of developing countries, in 
particular LDCs, to put in place a balanced IP regime that responds to their developmental and 
technological objectives and that supports innovation, investments and trade.  Of critical importance 
in this regard, is that both partner countries and th eir development partners mainstream IP in their 
trade-related assistance needs and activities. 
__________  
                                                      
29 For further information on the technical and financial cooperation programmes provided by 
developed country Members and intergovernmental organizations see the dedicated webpage at: 
http://www.wto.org/english/tr atop_e/trips_e/intel9_e.htm