Prior to the Copenhagen meeting on developing a new framework for climate-change policy there were
sharp differences between the positions of developed and developing countries regarding the role of
intellectual property rights (IPRs) in fostering international technology transfer (ITT). Expanding effective
ITT is central to meeting needs for acquiring and adapting environmentally sound technologies (ESTs) in
poor nations. Policymakers in developed economies generally view IPRs, particularly patents and trade
secrets, as positive and critical inducements to ITT, while those in developing countries often describe
them as sources of market power that impede access to new technology. This report reviews the economic
logic of these positions and reviews available empirical evidence.
The relationships among IPRs, innovation, ITT and local adaptation are complex and neither of the basic
views described captures them well. Policy should be based on a more nuanced view. In that regard, to date
there is little systematic evidence that patents and other IPRs restrict access to ESTs, which largely exist in
sectors based on mature technologies in which there are numerous substitutes among global competitors.
This situation may change as new technologies based on biotechnologies and synthetic fuels, which are
likely to be more dependent on patent protection, become more prominent. At present, however, there is
little evidence to support significant limitations on the issuance and use of IPRs in this area. In particular, it
is unlikely that an international agreement on a compulsory licensing regime could achieve significant ITT
benefits, while it may raise considerable costs.
However, there may be scope for beneficial differentiation in patent rights, which is the primary subject of
the report. Among these elements include ex ante extensions of patent terms tied to licensing
commitments, expedited patent examinations in ESTs, investments in patent transparency and landscaping
efforts, and facilitation of voluntary patent pools. The report argues that such changes are unlikely to
achieve significant gains in innovation and ITT unless they are accompanied by broader policy approaches,
including publicly financed fiscal supports for local technology needs and adaptation. Perhaps most
important are finding means to raise the global costs of using carbon-based energy resources and
improving the climate for investments in poor countries.
