Source: EURLEX
Language: en
Format: md

**Council of the**
**European Union**

**Interinstitutional File:**

**2020/0052(NLE)**

**PROPOSAL**

**Brussels, 7 April 2020**
**(OR. en)**

**7229/20**

**PI 25**
**AGRI 109**

From: Secretary-General of the European Commission,
signed by Mr Jordi AYET PUIGARNAU, Director

date of receipt: 6 April 2020

To: Mr Jeppe TRANHOLM-MIKKELSEN, Secretary-General of the Council of
the European Union

No. Cion doc.: COM(2020) 136 final

Subject: Proposal for a COUNCIL DECISION on the position to be taken on behalf
of the European Union in the Assembly of the Lisbon Union

Delegations will find attached document COM(2020) 136 final.

Encl.: COM(2020) 136 final

7229/20 BM/AF/gb
### ECOMP.3.A EN

EUROPEAN

COMMISSION

Brussels, 6.4.2020
COM(2020) 136 final

2020/0052 (NLE)

Proposal for a

**COUNCIL DECISION**

**on the position to be taken on behalf of the European Union in the Assembly of the**

**Lisbon Union**

# **EN EN**

**EXPLANATORY MEMORANDUM**

**1.** **S** **UBJECT MATTER OF THE PROPOSAL**

This proposal concerns the decision establishing the position to be taken on the Union's behalf
in the annual Assembly of the Lisbon Union of the World Intellectual Property Organization
(WIPO), in particular in connection with the envisaged adoption of a decision on special
contributions of the Contracting Parties pursuant to Article 24(2)(v) of the Geneva Act of the
Lisbon Agreement on Appellations of Origin and Geographical Indications.

**2.** **C** **ONTEXT OF THE PROPOSAL**

**2.1.** **The Geneva Act of the Lisbon Agreement on Appellations of Origin and**
**Geographical Indications**

The Geneva Act of the Lisbon Agreement on Appellations of Origin and Geographical
Indications of 2015 (‘the Agreement’) aims to offer comprehensive and effective international
protection for the names of origin-based quality products. It updates and enhances the existing
international registration system protecting names that identify the geographic origin of
products: the Lisbon Agreement for the Protection of Appellations of Origin and their
International Registration of 1958. The Agreement entered into force on 26 February 2020.

The European Union is a party to the Agreement [1] .

**2.2.** **The Assembly of the Lisbon Union**

The Lisbon Union is a Special Union administrated by WIPO. It is composed of the
Contracting Parties to the Geneva Act of the Lisbon Agreement on Appellations of Origin and
Geographical Indications (the “Geneva Act”) and the States party to the Lisbon Agreement of
1958 for the Protection of Appellations of Origin and their International Registration or to the
1967 Act (the Lisbon Agreement as revised at Stockholm on July 14, 1967). The Assembly of
the Lisbon Union meets annually in the context of the WIPO General Assembly. Its tasks are
set out in Article 22 (2) of the Geneva Act. In particular, it has the following tasks: It deals
with all matters concerning the maintenance and development of the Special Union and the
implementation of the Geneva Act. It amends the Regulations establishing the details for
carrying out the Geneva Act. It adopts the financial Regulations of the Special Union and
amendments of the Articles of the Geneva Act on the Assembly of the Special Union (Article
22), the International Bureau of WIPO (Article 23), and on Finances (Article 24) as well as on
the amendment procedure for these Articles (Article 27). Regarding finances more
specifically, it may decide on whether and to which extent receipts from the sources of
income of the Special Union do not suffice to cover the expenses, entailing the obligation of
Contracting Parties to pay special contributions pursuant to Article 24 (2) (v) of the Geneva
Act. The present Commission proposal only concerns decisions pursuant to Article 24 (2) (v)
of the Geneva Act. The Assembly shall endeavour to take its decisions by consensus. Where a
decision cannot be arrived at by consensus, the matter at issue shall be decided by voting. In
such a case, each Contracting Party that is a State shall have one vote and shall vote only in its
own name; and any Contracting Party that is an intergovernmental organization may vote, in
place of its member States, with a number of votes equal to the number of its member States
which are party to this Act. Article 4 paragraph 2 of Council Decision (EU) 2019/1754 of 7
October 2019 on the accession of the European Union to the Geneva Act stipulates that the

1 Council Decision (EU) 2019/1754 of 7 October 2019 on the accession of the European Union to the
Geneva Act of the Lisbon Agreement on Appellations of Origin and Geographical Indications, OJ L
271/2019, p. 12-14.

# EN 1 EN

Union shall vote in the Assembly of the Special Union and the Member States which have
ratified or acceded to the Geneva Act shall not exercise their right to vote.

**2.3.** **The envisaged act of the Assembly of the Lisbon Union**

During its annual meetings in the framework of the WIPO General Assembly, the Assembly
of the Lisbon Union may adopt decisions regarding the extent to which receipts from the
sources of income of the Special Union do not suffice to cover the expenses, entailing the
obligation of Contracting Parties to pay special contributions pursuant to Article 24 (2) (v) of
the Geneva Act (‘the envisaged act’).

The purpose of the envisaged act is to constitute a basis for the payment of special
contributions by the Contracting Parties of the Geneva Act to be able to cover the expenses of
the Special Union.

The envisaged act will become binding on the parties in accordance with Article 24 (2) (v) of
the Agreement, which provides: ‘(2) [Sources of Financing of the Budget] The income of the
Special Union shall be derived from the following sources:[...] (v) special contributions of the
Contracting Parties or any alternative source derived from the Contracting Parties or
beneficiaries, or both, if and to the extent to which receipts from the sources indicated in
items (i) to (iv) do not suffice to cover the expenses, as decided by the Assembly.’.

**3.** **P** **OSITION TO BE TAKEN ON THE** **U** **NION** **'** **S BEHALF**

The proposed position is to join a potential consensus on a decision of the Assembly of the
Lisbon Union regarding the extent to which receipts from the sources of income indicated in
items (i) to (iv) of Article 24 (2) of the Geneva Act do not suffice to cover the expenses. In
that case, the income of the Lisbon Union shall be derived to that extent by special
contributions of the Contracting Parties or any alternative source derived from the Contracting
Parties or beneficiaries, or both.

The proposed Council decision would enable the EU, within the means available for that
purpose from the annual budget of the Union, to join the consensus regarding a decision by
the Assembly pursuant to Article 24 (2) (v) of the Geneva Act.

The EU budget for 2020 provides for 1 million € under budget line 05.06.01 as EU
contribution to the functioning of the Lisbon Union in WIPO (the World Intellectual property
Organisation) on the basis of the Geneva Act of the Lisbon Agreement on Appellations of
Origin and Geographical Indications. The EU should be able to join a consensus on a decision
of the Assembly of the Lisbon Union pursuant to Article 24 (2) (v) of the Geneva Act. Such a
decision is needed for the Union to be able to make the payment in accordance with the basic
act providing the legal basis for the implementation of the expenditure entered in the budget [2] .
This basic act provides as follows: “If the income from the Special Union is derived in
accordance with point (v) of Article 24(2) of the Geneva Act, the Union may make a special
contribution within the means available for that purpose from the annual budget of the
Union.”

2 Article 14 (Special financial contribution) of Regulation (EU) 2019/1753 of the European Parliament
and of the Council of 23 October 2019 on the action of the Union following its accession to the Geneva
Act of the Lisbon Agreement on Appellations of Origin and Geographical Indications

# EN 2 EN

**4.** **L** **EGAL BASIS**

**4.1.** **Procedural legal basis**

_4.1.1._ _Principles_

Article 218(9) of the Treaty on the Functioning of the European Union (TFEU) provides for
decisions establishing ‘ _the positions to be adopted on the Union’s behalf in a body set up by_
_an agreement, when that body is called upon to adopt acts having legal effects, with the_
_exception of acts supplementing or amending the institutional framework of the agreement_ .’

The concept of ‘ _acts having legal effects_ ’ includes acts that have legal effects by virtue of the
rules of international law governing the body in question. It also includes instruments that do
not have a binding effect under international law, but that are ‘ _capable of decisively_
’ [3]
_influencing the content of the legislation adopted by the EU legislature_ .

_4.1.2._ _Application to the present case_

The Assembly of the Lisbon Union is a body set up by an agreement, namely the Geneva Act.

The act that the Assembly of the Lisbon Union is called upon to adopt constitutes an act
having legal effects. The envisaged act will be binding under international law in accordance
with Article 24 (2) (v) of the Geneva Act.

The envisaged act does not supplement or amend the institutional framework of the
Agreement.

Therefore, the procedural legal basis for the proposed decision is Article 218(9) TFEU.

**4.2.** **Substantive legal basis**

_4.2.1._ _Principles_

The substantive legal basis for a decision under Article 218(9) TFEU depends primarily on
the objective and content of the envisaged act in respect of which a position is taken on the
Union's behalf. If the envisaged act pursues two aims or has two components and if one of
those aims or components is identifiable as the main one, whereas the other is merely
incidental, the decision under Article 218(9) TFEU must be founded on a single substantive
legal basis, namely that required by the main or predominant aim or component.

_4.2.2._ _Application to the present case_

The main objective and content of the envisaged act relate to the common commercial policy.

Therefore, the substantive legal basis of the proposed decision is Article 207 TFUE.

**4.3.** **Conclusion**

The legal basis of the proposed decision should be Article 207 TFUE, in conjunction with
Article 218(9) TFEU.

3 Judgment of the Court of Justice of 7 October 2014, Germany v Council, C-399/12,
ECLI:EU:C:2014:2258, paragraphs 61 to 64.

# EN 3 EN

2020/0052 (NLE)

Proposal for a

**COUNCIL DECISION**

**on the position to be taken on behalf of the European Union in the Assembly of the**

**Lisbon Union**

**THE COUNCIL OF THE EUROPEAN UNION,**

Having regard to the Treaty on the Functioning of the European Union, and in particular
Article 207, in conjunction with Article 218(9) thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1) The European Union acceded to the Geneva Act of the Lisbon Agreement on
Appellations of Origin and Geographical Indications (‘the Agreement’) by Council
Decision (EU) 2019/1754 of 7 October 2019 [1] . The Agreement entered into force on
26 February 2020.

(2) Pursuant to Article 22 (2) (a) (i) of the Agreement, the Assembly of the Lisbon Union
may adopt decisions concerning the maintenance and development of the Special
Union and the implementation of the Agreement.

(3) The Assembly of the Lisbon Union, in its annual meeting during the WIPO General
Assembly on 21-29 September 2020, may adopt a decision on whether and to which
extent receipts from the sources of income of the Special Union do not suffice to cover
the expenses, entailing the obligation of Contracting Parties to pay special
contributions pursuant to Article 24 (2) (v) of the Agreement.

(4) It is appropriate to establish the position to be taken on the Union's behalf in the
Assembly of the Lisbon Union in that meeting, as the decision will be binding on the
Union.

(5) The Union should be able to join a consensus on a decision of the Assembly of the
Lisbon Union pursuant to Article 24 (2) (v) of the Agreement within the budgetary
resources available. Such a decision is needed for the Union to be able to make the
payment in accordance with Article 14 of Regulation (EU) 2019/1753 of the European
Parliament and of the Council [2] .

HAS ADOPTED THIS DECISION:

_Article 1_

The position to be taken on the Union's behalf in the meeting of the Assembly of the Lisbon
Union during the WIPO General Assembly on 21-29 September 2020 as regards a special

1 OJ L 271, 24.10.2019, p. 12.
2 Regulation (EU) 2019/1753 of the European Parliament and of the Council of 23 October 2019 on the
action of the Union following its accession to the Geneva Act of the Lisbon Agreement on Appellations
of Origin and Geographical Indications (OJ L 271, 24.10. 2019, p. 1).

# EN 4 EN

contribution pursuant to Article 24 (2) (v) of the Geneva Act of the Lisbon Agreement on
Appellations of Origin and Geographical Indications shall be the following:

The Union may join a consensus regarding a decision as to which extent receipts from the
sources of income of the Special Union do not suffice to cover the expenses, entailing the
obligation of Contracting Parties to pay special contributions pursuant to Article 24 (2) (v) of
the Geneva Act. The maximum Union special contribution for 2020 shall not exceed the
appropriations provided for in the general budget.

_Article 2_

This Decision is addressed to the Commission.

Done at Brussels,

_For the Council_

_The President_

# EN 5 EN

**FINANCIAL STATEMENT**

|FINANCIAL STATEMENT|Col2|Col3|Fin Stat/2020/LK/GH/pl/1406340<br>agri.ddg3.a.2(2020)1398840|Col5|
|---|---|---|---|---|
|**FINANCIAL STATEMENT**<br>|**FINANCIAL STATEMENT**<br>|**FINANCIAL STATEMENT**<br>|_6.22.2020_|_6.22.2020_|
|**FINANCIAL STATEMENT**<br>|**FINANCIAL STATEMENT**<br>|**FINANCIAL STATEMENT**<br>|DATE: 24/02/2020|DATE: 24/02/2020|
|1.<br>BUDGET HEADING:<br>Chapter 05 06 INTERNATIONAL ASPECTS OF ‘AGRICULTURE<br>AND RURAL DEVELOPMENT’ POLICY AREA <br>05 06 01 International agricultural agreements<br>APPROPRIATIONS:<br> <br>B2020:EUR 6.300.000|1.<br>BUDGET HEADING:<br>Chapter 05 06 INTERNATIONAL ASPECTS OF ‘AGRICULTURE<br>AND RURAL DEVELOPMENT’ POLICY AREA <br>05 06 01 International agricultural agreements<br>APPROPRIATIONS:<br> <br>B2020:EUR 6.300.000|1.<br>BUDGET HEADING:<br>Chapter 05 06 INTERNATIONAL ASPECTS OF ‘AGRICULTURE<br>AND RURAL DEVELOPMENT’ POLICY AREA <br>05 06 01 International agricultural agreements<br>APPROPRIATIONS:<br> <br>B2020:EUR 6.300.000|1.<br>BUDGET HEADING:<br>Chapter 05 06 INTERNATIONAL ASPECTS OF ‘AGRICULTURE<br>AND RURAL DEVELOPMENT’ POLICY AREA <br>05 06 01 International agricultural agreements<br>APPROPRIATIONS:<br> <br>B2020:EUR 6.300.000|1.<br>BUDGET HEADING:<br>Chapter 05 06 INTERNATIONAL ASPECTS OF ‘AGRICULTURE<br>AND RURAL DEVELOPMENT’ POLICY AREA <br>05 06 01 International agricultural agreements<br>APPROPRIATIONS:<br> <br>B2020:EUR 6.300.000|
|2.<br>TITLE:<br>Proposal for a Council Decision on the position to be taken on behalf of the European<br>Union in the annual Assembly of the Lisbon Union of the World Intellectual Property<br>Organization<br>|2.<br>TITLE:<br>Proposal for a Council Decision on the position to be taken on behalf of the European<br>Union in the annual Assembly of the Lisbon Union of the World Intellectual Property<br>Organization<br>|2.<br>TITLE:<br>Proposal for a Council Decision on the position to be taken on behalf of the European<br>Union in the annual Assembly of the Lisbon Union of the World Intellectual Property<br>Organization<br>|2.<br>TITLE:<br>Proposal for a Council Decision on the position to be taken on behalf of the European<br>Union in the annual Assembly of the Lisbon Union of the World Intellectual Property<br>Organization<br>|2.<br>TITLE:<br>Proposal for a Council Decision on the position to be taken on behalf of the European<br>Union in the annual Assembly of the Lisbon Union of the World Intellectual Property<br>Organization<br>|
|3.<br>LEGAL BASIS: The legal basis for this proposal is Article 207, in conjunction with<br>Article 218(9), of the Treaty on the Functioning of the European Union.|3.<br>LEGAL BASIS: The legal basis for this proposal is Article 207, in conjunction with<br>Article 218(9), of the Treaty on the Functioning of the European Union.|3.<br>LEGAL BASIS: The legal basis for this proposal is Article 207, in conjunction with<br>Article 218(9), of the Treaty on the Functioning of the European Union.|3.<br>LEGAL BASIS: The legal basis for this proposal is Article 207, in conjunction with<br>Article 218(9), of the Treaty on the Functioning of the European Union.|3.<br>LEGAL BASIS: The legal basis for this proposal is Article 207, in conjunction with<br>Article 218(9), of the Treaty on the Functioning of the European Union.|
|4.<br>AIMS:<br>To constitute a basis for the payment of special contributions to be able to cover the<br>expenses of the Special Union.<br>|4.<br>AIMS:<br>To constitute a basis for the payment of special contributions to be able to cover the<br>expenses of the Special Union.<br>|4.<br>AIMS:<br>To constitute a basis for the payment of special contributions to be able to cover the<br>expenses of the Special Union.<br>|4.<br>AIMS:<br>To constitute a basis for the payment of special contributions to be able to cover the<br>expenses of the Special Union.<br>|4.<br>AIMS:<br>To constitute a basis for the payment of special contributions to be able to cover the<br>expenses of the Special Union.<br>|
|5.<br>FINANCIAL IMPLICATIONS|12 MONTH<br>PERIOD<br> <br>(EUR)|CURRENT<br>FINANCIAL<br>YEAR 2020<br>(EUR)|CURRENT<br>FINANCIAL<br>YEAR 2020<br>(EUR)|FOLLOWING<br>FINANCIAL<br>YEAR 2021<br>(EUR)|
|5.0<br>EXPENDITURE<br>- <br>CHARGED TO THE EU BUDGET<br>(REFUNDS/INTERVENTIONS)<br>- <br>NATIONAL AUTHORITIES<br>- <br>OTHER|1 million|1 million|1 million|1 million|
|5.1<br>REVENUE<br>- <br>OWN RESOURCES OF THE EU<br>(LEVIES/CUSTOMS DUTIES)<br>- <br>NATIONAL|||||
|<br> <br>5.0.1 ESTIMATED EXPENDITURE<br>5.1.1 ESTIMATED REVENUE|||||
|<br> <br>5.0.1 ESTIMATED EXPENDITURE<br>5.1.1 ESTIMATED REVENUE|<br>|<br>|<br>||
|5.2<br>METHOD OF CALCULATION:|5.2<br>METHOD OF CALCULATION:|5.2<br>METHOD OF CALCULATION:|5.2<br>METHOD OF CALCULATION:|5.2<br>METHOD OF CALCULATION:|
|6.0<br>CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE<br>RELEVANT CHAPTER OF THE CURRENT BUDGET?<br>YES|6.0<br>CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE<br>RELEVANT CHAPTER OF THE CURRENT BUDGET?<br>YES|6.0<br>CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE<br>RELEVANT CHAPTER OF THE CURRENT BUDGET?<br>YES|6.0<br>CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE<br>RELEVANT CHAPTER OF THE CURRENT BUDGET?<br>YES|6.0<br>CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE<br>RELEVANT CHAPTER OF THE CURRENT BUDGET?<br>YES|
|6.1<br>CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF<br>THE CURRENT BUDGET?<br>~~YES NO~~|6.1<br>CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF<br>THE CURRENT BUDGET?<br>~~YES NO~~|6.1<br>CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF<br>THE CURRENT BUDGET?<br>~~YES NO~~|6.1<br>CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF<br>THE CURRENT BUDGET?<br>~~YES NO~~|6.1<br>CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF<br>THE CURRENT BUDGET?<br>~~YES NO~~|
|6.2<br>WILL A SUPPLEMENTARY BUDGET BE NECESSARY?<br>    NO|6.2<br>WILL A SUPPLEMENTARY BUDGET BE NECESSARY?<br>    NO|6.2<br>WILL A SUPPLEMENTARY BUDGET BE NECESSARY?<br>    NO|6.2<br>WILL A SUPPLEMENTARY BUDGET BE NECESSARY?<br>    NO|6.2<br>WILL A SUPPLEMENTARY BUDGET BE NECESSARY?<br>    NO|
|6.3<br>WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS?<br>YES|6.3<br>WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS?<br>YES|6.3<br>WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS?<br>YES|6.3<br>WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS?<br>YES|6.3<br>WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS?<br>YES|
|The Union may make a special contribution pursuant to Article 24(2)(v) of the Geneva Act<br>within the means available for this purpose in the annual budget of the Union. In 2020, an<br>amount of EUR 1 million is allocated to budget line 05 06 01 for this purpose.|The Union may make a special contribution pursuant to Article 24(2)(v) of the Geneva Act<br>within the means available for this purpose in the annual budget of the Union. In 2020, an<br>amount of EUR 1 million is allocated to budget line 05 06 01 for this purpose.|The Union may make a special contribution pursuant to Article 24(2)(v) of the Geneva Act<br>within the means available for this purpose in the annual budget of the Union. In 2020, an<br>amount of EUR 1 million is allocated to budget line 05 06 01 for this purpose.|The Union may make a special contribution pursuant to Article 24(2)(v) of the Geneva Act<br>within the means available for this purpose in the annual budget of the Union. In 2020, an<br>amount of EUR 1 million is allocated to budget line 05 06 01 for this purpose.|The Union may make a special contribution pursuant to Article 24(2)(v) of the Geneva Act<br>within the means available for this purpose in the annual budget of the Union. In 2020, an<br>amount of EUR 1 million is allocated to budget line 05 06 01 for this purpose.|

# EN 6 EN