WIPO GENERAL ASSEMBLIES 2005 - BETTER THAN

UNCLAS SECTION 01 OF 03 GENEVA 002653

SIPDIS

COMMERCE FOR USPTO PAUL SALMON; STATE FOR EB/TPP/IPE, IO/T

E.O. 12958: N/A
TAGS: IO KIPR WIPO
SUBJECT: WIPO GENERAL ASSEMBLIES 2005 - BETTER THAN
EXPECTED OUTCOME



1. Summary: The meetings of the Assemblies of Member
States of the World Intellectual Property Organization
(WIPO),held in Geneva from September 26 to October 5, 2005,
ended with better-than-expected results. Member States
strengthened accountability and oversight within the
organization, thus advancing U.S. goals for UN reform. The
Assemblies also established a constructive framework in which
to assess how to further integrate a development dimension in
WIPO,s work to advance the Millennium Development Goals.
Finally, in decisions on a future broadcasting treaty and a
work program for the Standing Committee on Patents, Member
States affirmed their commitment to further progress in
WIPO,s core competencies. Highlights on important agenda
items are provided below. End Summary.

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Budget
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2. The Assembly adopted a balanced, results-based budget for
the first time in several years. The budget includes no fee
increases and no change in member contributions. The budget
includes funds to proceed with the acquisition of a
commercial loan for 114 million Swiss francs for the
construction of a new building adjacent to the current
property and for the engagement of an external management
firm to direct the project. This was deemed necessary due to
the problems experienced during the remodeling of the former
WMO building that led to a doubling of the cost. The rate of
staff growth was also slowed, with just 10 new permanent
positions being added in each year in the 2006-2007 biennium.
Following a desk-to-desk review of the organization
adjustments to the budget may be sought in 2006. The
Assembly affirmed that adjustments could also be made to
reflect any program decisions that result from discussions of
development issues.

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Reform/Oversight
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3. Reflecting the resolve for UN reform expressed at the
2005 UN World Summit, member states took two decisions to
strengthen accountability and oversight and improve internal
management and transparency at WIPO: adopting an Internal
Audit Charter and approving the creation of an Audit
Committee. The Audit Committee (composed of seven member
state representatives and two representatives with audit
experience) will have major oversight powers and
responsibilities and will oversee construction of the new
building and the desk-to-desk audit recommended by the UN
Joint Inspection Unit (JIU). Other JIU recommendations to
improve good governance and member state oversight of WIPO
included discontinuing direct recruitment and personal
promotions, limiting the Director General,s ability to
transfer funds between programs and hiring external
management for the construction project.


4. A debate ensued when the EU, the U.S., the Eastern
European countries, among others, supported amending the
proposed decision to merely "note" the JIU's report and
instead require the Director General to take immediate action
on the JIU recommendations. Unfortunately, opposition by
Middle Eastern and African countries resulted in a weakened
text to refer such recommendations to the Program and Budget
Committee. This effectively delayed their implementation a
full year, since they would need to be approved by the 2006
General Assemblies. The U.S. made clear in its intervention
following that item that, despite this, we expect concrete
actions in the coming year. The Assembly amended the Staff
regulations to require disclosure of activities that
represent a conflict of interest for employees and strengthen
financial disclosure requirements, thus establishing a
stronger ethics standard for staff. The Deputy Director
General announced that WIPO had engaged independent auditors
selected by the Swiss government to fully investigate the
allegations of fraud and mismanagement that had surfaced
during the last year. (Mission comment: we learned after
the meeting that the Geneva office of Ernst & Young is
conducting the investigation. End comment.)

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Broadcasters Treaty
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5. After lengthy wrangling, the General Assembly adopted
language providing for the convening of a Diplomatic
Conference on the Protection of the Rights of Broadcasting
Organizations. The provision calls for two meetings of the
Standing Committee on Copyright and Related Rights (SCCR) to
be held before the next General Assembly. The purpose of
these meetings is to aim to agree, and to finalize a draft
treaty so that the 2006 General Assembly can convene a
Diplomatic Conference in December 2006 or at an appropriate
time in 2007. The U.S. believes that this language reflects
the broad consensus among developed and the vast majority of
developing countries in the General Assembly that the
convening of a Diplomatic Conference is appropriate and
timely. Although discussions at the two SCCRs will focus on
the second revised consolidated text (SCCR/12/2 Rev.2) and
the working paper on webcasting (SCCR/12/5 Prov.),in
introducing this provision in the Plenary Session, the
Chairman made it clear that this procedure followed normal
WIPO procedures and did not preclude members from making
proposals to modify the present Chairman's Second revised
Consolidated text or the working paper. The two SCCR
Meetings will provide an effective means to finalize a text
so that the 2006 General Assembly will be able to fulfill its
mandate to convene a Diplomatic Conference.
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Genetic Resources, Traditional Knowledge
and Folklore (IGC)
--------------


6. With very little discussion, the WIPO General Assembly
decided to extend the current mandate of the IGC for the
2006-2007 biennium. This mandate is sufficiently broad so
that no outcome is excluded, including the possible
development of an international instrument or instruments.
Considerable progress has been made in IGC discussions on
these issues. The U.S., however, believes that there cannot
be a one-size-fits-all approach to the protection of genetic
resources, traditional knowledge and folklore. While policy
objectives and core principals may form the basis of some
type of instrument(s) in the future (e.g., guidelines,
recommendations, etc.),the U.S. underscored that it is still
premature to consider treaty language at this time.

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IP and Development
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7. After considerable discussion and informal consultations,
the General Assembly decided to enhance the development
dimension in WIPO,s work by establishing a provisional
committee to accelerate and complete discussions on proposals
relating to a WIPO development agenda. This provisional
committee, which will effectively replace the Permanent
Committee on Cooperation for Development Relating to
Intellectual Property (PCIPD) during its existence, will meet
in 2 one-week sessions and report to the 2006 General
Assembly with recommendations, if any. This decision will
help WIPO members continue discussions on IP and development,
launched at the 2005 General Assembly by a proposal of Brazil
and Argentina, in a more structured and effective manner. By
having one-week sessions, rather than 3-day meetings, the
provisional committee is more likely to attract the
participation of capitol-based experts who can engage in an
in-depth, factual examination of all proposals that have
emerged to date. Furthermore, the General Assembly decision
imposes a deadline for new proposals as the first day of the
first session of the provisional committee. This will ensure
that these discussions will not be dragged on interminably,
but rather will focus on a finite number of proposals before
it. The work of the provisional committee will not prejudice
the provision of WIPO technical assistance or the activities
of other WIPO bodies in discussing matters relevant to
development.

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Substantive Patent Law Harmonization
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8. After extended discussion and informal consultations, the
General Assembly decided upon a process designed to move
discussions on substantive patent law harmonization forward.
The decision provides that:

--An informal open forum will be held in the first quarter of
2006 on all issues that have been raised in the draft of the
SPLT or that Member States wish to include in the draft SPLT.
The forum will be of three-days duration. The various
issues will be discussed with contributions from speakers
reflecting a balance of geographical representation and
perspectives, and technical expertise. Member States may
submit proposals for issues and speakers for the forum until
November 15, 2005. The Chair of the WIPO General Assembly
will conduct consultations on the draft program with all
interested Member States. The Director General will publish
the final program in January 2006.

--A three-day informal session of the SCP will be held soon
after in Geneva to agree on a work program for the next
session of the SCP, taking into account the discussions of
the open forum. WIPO will, in the measure possible, provide
financial assistance to facilitate the participation of
developing countries.

--A five-day ordinary session of the SCP will be held to
commence work on the work program of the SCP agreed at the
informal session of the SCP.

--WIPO General Assembly in September 2006 will consider the
progress made with a view to determining a work plan for the
following year.
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Further Information
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9. All of the documents prepared by the Secretariat for the
2005 WIPO Assemblies meetings are available on the website of
WIPO at www.wipo.int. The final reports of these meetings
should be posted there soon. For further information, please
contact Candy Green, Acting Director of the Office of
Intellectual Property Enforcement (EB/TPP/IPE) at (202)
647-3985 or by email at greenc@state.gov.
Moley