INVENTIVE ACTIVITY IN THE ASIAN AND THE PAC IFIC REGION

MANILA 1980

Workshop on the Effective Use of the

Industrial Property System for the Benefit of Inventors, Industry and Commerce

in the Asian and the Pacific Region Organized by WI PO with the Cooperation of the Government of the Republic of the Philippines

and of the United Nations Development Programme (UNDP)

(Manila, April 13-23, 1980)

World Intellectual Property Organization

Geneva 1980

WIPO PUBLICATION No. 639 (E)

ISBN 92-805·0028-7

C WJPO 1980

CONTENTS

FOREWORD

Opening speech by Dr . Arpad BOGSCH, Director general, WIPO

Opening speech by Hon . Melecio s . MAGNO , Minister, National Science Development BcaLd of the Philippines

Opening speech by Hon. Felipe Ll . SANTILLAN, Commissioner, Philippine Inventors Commission

Survey of the Industrial Property System in the Asian and the Pacific Region by t-1r . Lakshman KADIRGAMAR

Promoting Creativity and Inventiveness by Mr. Farag MOUSSA

Promoting Creativity and Inventiveness - The Phi l ippine System by Mrs. Soledad ANTIOLA

Assistance and Incentives to Inventors by the Government Sector by Mr . Farag MOUSSA

Agsistance and Incentives to Inventors by the Government Sector -The Philippine Experie~ce by Hon. Felipe Ll. SANTILLAN

Assistance and Incentives to Inventors by the Private Sector by Mr . Enrique ZOBEL

Role of Commerce and Industry in the Development , Pr omotion and Marketing of Inventions and Innovations by Mr . Owe STORAKERS

Role of Commerce and Industry in the Development, Promotion and Marketing of Inventions and Innovations by Mr . Ceferino FOLLOSCO

Role of Commerce and Industry i n t he .Development , Promotion and Marketing of Inventions and I nnovations - Commerce and Inventions by Mr . Vicente VALDEPENAS

Role of Industrial Property Laws in Promoting Indigenous Inventive and Innovative Activity by Mr . Eric BRENNER

5

7- 10

11-12

13- 14

15-4 5

47- 50

51- 58

59- 66

67 - 71

73 - 76

77- 81

83- 87

89- 90

91- 94

4 Contents

Role of Industrial Property Laws in Promoting Indigenous Inventive and Innovative Activity by Mr. Upendra BAXI

Role of Industrial Property Laws in Promoting Indigenous Inventive and Innovative Activity by Mr . Manuel MARZAN

Role of Industrial Property Laws in Promoting Indigenous Inventive and Innovative Activity by Mr . Evener VILLASANTA

International Aspects of the Patent System by Mr . Eric BRENNER

International Aspects of the Patent System by Mr. Armand FABELLA

Use of Patent Documents as a Source of Technological Information by Mr. Raymond ANDARY

Role of Inventors and Inventors ' Societies by Mr. Shoichi INOUYE

Role of Inventors and Inventors ' Societies by Mr . Gonzalo 0. CATAN, Jr .

Report and Recommendations of the Workshop

List of Participants

95-102

103-105

107-110

111- 113

115-117

119-129

131-138

139-142

143-145

147- 153

FOREWORD

The present volume contains the texts of 18 lectures delivered in April, 1980, at a Workshop on the Etfect1ve use of the Industrial Property System for the Benef1t of Inventors, Inaustry ana Commerce 1n the Asian and Paclfic Region . The Workshop was organ1zea by the World I ntellectual Property Organ1zat1on with the cooperat1on ot the Government of the Philippines and of the Un1tea Nations Development Programme (UNDP) . It was held at the Ph1l1ppine Incernat1onal Convention Center in Man1la. This volume also conta i ns the texts of the three opening speeches, the report of the Workshop, 1ncluaing its conclusion~ ana recommenaations, ana the list of participants. One of the recommendations was that the Wor ld Intellectual Property Organ1zation shoula publish 1n a volume the lectures delivered at the Workshop ana a1stribute copies of the volume, as widely as poss1ble, to governmental and non-governmental institut1ons, organizat1ons, societies and associations, Wl th1n ana outsia~ the region, concernea with the encouragement and promotion of 1nventive ana innovative ac t ivity.

The 101 partic1pants 1n the workshop 1ncluaed the representatives of 17 countries (Afghanistan, Bangladesh, Bhutan, China, FiJi, Inaia, Indonesia, Malays1a, Mongol1a, Nepal, Pak1stan, Papua New Gu1nea, Phillppines, Republic af Korea, Sr1 Lanka, Tha1lana, V1et Nam) ana one territory (Hong Kong).

The workshop was organ1zea in conJunction with the Second Festival of Phl.Lippine Inventlons ana the 14th Annual Inventions Contest at which hundreds or patentee F1l1pino inventions ana 1nnovations were exhibited ana JUdged for the award of meaals ana cash prizes, inclua1ng t or the fust time two WIPO medals fo r the: outstanaing invention ana the outstanding Filipino inventor . The Fest1val proviaea a vivia demonstrat1on of how an efficient patent system, such as the one that prevails 1n the Ph1l1ppines, could be used effectively to st1mulate local inventive talent.

One of the bas1c obJectives of WIPO 1s to promote by all means within the competence of WIPO, inventive ana innovative act1vity in developing countries w1th a v1ew co strengthening the1r technological capacities . The Manila Workshop 1s the fust 1n a series ot s1milar meetings which WIPO plans to organ1ze for aeveioping countr1es in a1fferent regions of the world.

Our warmest thanKs are aue to the Government of the Phil i ppines , and to its grac1ous ana hospitaole people, for helping to make the Manila Workshop a truly memorable ana useful event.

Geneva, July 1980 Arpad Bogsch Director Genera l

Worla I ntellectual Property Organization

OPENING SPEECH

delivered by

Dr. Arpad Bogsch Director General

World Intellectual Property Organization (WIPO)

Minister Magno, distinguished delegates from the countries of Asia and the Pacific, ladies and gentlemen,

It gives me great pleasure to be present here today, in Manila, for the open­ing of this Workshop on the Effective Use of the Industrial Property System for the Benefit of Inventors, Industry and Commerce in the Asian and the Pacific Region . As you know, this Workshop has been organized by the World Intellectual Property Organization with the cooperation of the Government of the Republic of the Philippines and of the United Nations Development Programme (UNDP).

To you, Minister Magno, I extend my warm greetings and thanks for your pre­sence on this occasion. It is to your personal initiative that we owe the holding of this Workshop in Manila and the privilege of using all the faci l ities available at the magnificent Philippine International Convention Center which your Government has placed at our disposal . Your Government's cooperation provides yet another vivid example of its support for the United Nations system and its dedication to the advancement of developing countries . We have already received, in these two days, the legendary courtesy and hospitality of the Government and peopl e of the Philippines . Your hardworking officials have spared no effort in their meticulous preparations for this event . And this morning we saw for ourselves , at the Second Festival of Philippine Inventions, the inspiring work being done by the inventors and innovators of your country. They have a record of achievement of which any country could justly be proud. Through you, Minister Magno , I wish to convey to the Government and people of the Philippines, your officials, and to the inventors and innovators of your country, the gratitude of the World Intellectual Property Organization for hosting this gathering of represent atives from 19 countries in Asia and the Pacific .

Through you, Mr . Devarajan, as Resident Representative of the United Nations Development Programme in the Philippines, I would like to convey to the Adminis­trator of t he Programme and to the Regional Bureau for Asia and the Pacific, on beha~f of WIPO and all the countries represented here, our appreciation of the financial and administrative support received from UNDP in the organization of this Workshop . Your own office in Manila, and all the other Regional Representa­tives, have cooperated most efficiently in securing the nominations of partici­pants and making their travel arrangements. In a Region which covers such a large area of the world, it is no small achievement to assemble a nd bring together in one place and on time more than 40 participants from 19 countries. Such effec­tive cooperation, on this and previous occasions, has greatly helped WIPO to dis­charge its responsibility for increasing, among countries in the Region , awareness of the relevance and importance of industrial property to the process of development in the fields of trade and industry .

WIPO deals with the creations of the human intellect in the fields of science, technical inventions, literature and art . The agreement concluded between the United Nations and WIPO--the agreement which made WIPO a Specialized Agency of the Unit ed Nations in 1974--lays emphasis on WIPO ' s role in promoting creative intellec­tual activity, in facilitating the transfer of technology to developing countries and in cooperating with the United Nations in the provision of technical assistance for development in these fields .

8 Dr. Arpad Bogsch

In the General Assembly Declaration on the Establishment of the New Interna­tional Economic Order it is stated that the new Order should be founded , inter alia, on full respect for the following principles: one "giving to the developing countries access to the achievements of modern scienceand technology," two "promoting the transfer of technology" and three "promoting the creation of indi­genous technology for the benefit of the developing countries in forms and in accordance with procedures which are suited to their economies ."

The work of WIPO is concerned with the implementation of all three of these principles .

As far as access to the achievements of modern science and technology is concerned most of what is modern and most of what is real achievement is described in applications for patents of invention and in such. patents. There are almost one million patent applications filed each year in the various countries of t he world. Some of the applications are repetitive because an inventor desiring protection for his inventions must file separately in each country in which he is interested. An application for a patent may be roughly between 10 and 100 pages long and consists of two main parts: a brief and very precise indication of what the claimed inven­tion consists of and a more lengthy explanation, describing the existing background and knowledge on which the invention is based and the difference that the invention will make in that existing background and knowledge.

Patent documents have the advantage of being structurally fairly uniform . Consequently, the reader does not have to adapt himself first to the personal approach and reasoning which, for example, is reflected in articles published in scientific journals. Paten t documents also have the advantage of showing the most recent technological developments, since inventors are in a hurry to file their applications, as otherwise they would lose their prospects of receiving a patent.

To sum up, patent l iterature, because of its recentness, standardization and precision, is an ideal avenue of access to the sources of modern technology. However, the mass of the documents is so enormous that access requires sophisti­cated organization .

Such access is mainly organized by two means, sponsored and constantly per­fected by WIPO . One is what is called the I nternational Patent Classification. This Classification divides technology--mechanics, chamistry , electricity and electronics--into some 52,000 classes or divisions, each of which has a symbol. The symbol or symbols of the class or classes to which the technical invention described in any patent document belongs is indicated , generally, on the patent document itself by the national patent office of the country where the application is filed. Thus the document will be retrievable, according to its subject matter, with the help of the International Patent Classification .

This Classification is based on an international multilateral treaty adminis­tered by WIPO. Experts from the different countries sit together for a total of some three months each year, perfecting it in the light of experience and in the light of what happens in technology : new fields emerge, some become more differ­entiated, relations between certain divisions of technology become mote evident .

It is one of WIPO ' s tasks to facilitate the use of the world's patent litera­ture by developing countries through the use of the International Patent Classifi­cation. This is done by publications and training .

The other means sponsored by WIPO in the field of access to information is the I nternational Patent Documentation Center, a relatively small institution established by the Austrian Government in Vienna on the basis of a contract between that Govern­ment and WIPO.

The said Center stores in computer memory the main bibliographic data of each patent document : the title of the invention, its classification symbol, relevant dates, names and numbers. This computerized data base can then be used for answer­ing many kinds of questions, the two most important being the following. First, one can ask the computer to show all the patent documents which, in the various countries, have been filed for the same invention by--usually but not necessarily-­the same person . Thus, one can obtain information at a glance as to the likelihood

Dr. Arpad Bogsch 9

of the invention being protected in such and such countries. Secondly, one can ask the computer to identify all the patent documents belonging to any given class of the some 52,000 classes of the International Patent classification . Here lies, of course, the main usefulness of the Center for giving to the developing countries access to the achievements of modern technology.

But, naturally, the tools of access do not suffice. The developing country also needs the documents themselves. And, as I have already indicated, their mass is enormous and their number increases by some one million each year.

How does one go about it? One has to establish patent documentation centers. WIPO is helping in the planning and setting up of such centers. The most important project in this field is going on in Rio de Janeiro where the Brazilian National Institute of Industrial Property is building a patent documentation center with the help of WIPO and the UNDP . Paper copies or microfilms of the patent documents are collected in the Brazilian Institute and the staff is trained to make use of them mainly for three different purposes . One is for the purpose of examining the patent ability of any invention for which a Brazilian patent is requested: pat enta­bility depends to a large extent on the question of novelty, namely, whether the claimed invention has already been described by others, earlier ; if so, no patent is to be granted ; this check must be made against the existing patent documenta­tion. The other purpose for which the Brazilian Institute uses patent documenta­tion is to inform Brazilian industry and Brazilian technical research institutes of what is going on in the world of patents in fields of interest to them, particu­larly of interest for research . The third purpose for which the Brazilian Institute uses patent document ation is for controlling contracts concluded by Brazilian firms with foreign firms for the purchase from, or licensing by, such foreign firms of their technology.

Now a word about transfer of technology, as distinguished from access and from creation. As far as WIPO is concerned, t .ransfer of technology, in this limited sense, mainly means transfer of patented technology or technology which finds its expression in know-how. Their transfer, again as far as WIPO is concerned, occurs principally thanks to contracts--licensing contracts .

What can we do to assist developing countries in this field? I think the answer is to help them in building institutions and in training persons with the help of which and whom the developing countries will secure for themselves better conditions for licensing. To put it simply: that they should choose the right thing and that they should not pay more than necessary. In other words: how to shop for technology .

I have already mentioned the use of patent documents in connection with government control of licensing contracts. Another aspect is that of the art of negotiating licensing contracts . Here , WIPO has published a fairly complete guide book on the negotiation of such contracts when they involve industrial property, and we organize training courses on the matter. These are generally regarded by our developing country members as one of the most practical and useful activities of our Organization. Their eyes are opened to the thousand pitfalls that generally accompany such negotiations and that should be avoided .

Final ly, I come to the third subject mentioned in the quoted passage of the Declaration on the Establishment of the New International Economic Order, namely, the promotion of the creation .of indigenous technology for the benefit of develop­ing countries .

Naturally, the institution known under the name of patents is nothing but the principal means of promoting creativity in the field of technology. There are institutions of a similar kind, known as inventors' certificates, innovation diplomas, rewards for rationalization proposals. The incentive, in each case, is double : material and moral; money received as contractual payment or reward, and recognition now and for posterity that something unusual, something springing from the creator's intellect, has been achieved . The promotion of indigenous inventive capacity is one of the permanent objectives of WIPO, and one of the main activities carried out by it in the interest of developing countries .

10 Dr. Arpad Bogsch

WIPO is constantly advising its developing member States how to organize the promotion of local inventive activity , how to provide for the promotion of such activity in their legislation and in their practice, in their industry and research institutions . Model provisions for laws, models for factory and laboratory regula­tions on the subject matter are worked out, achievements in other countries worthy of adaptation and possible emulation are pointed out . WIPO has established a Work­ing Group on Technological Innovation consisting of experts from developed and developing countries to prepare studies on the activities that could be undertaken by industrial property offices to promote innovation, as well as the relations that should be established with other government agencies having responsibility in the same field and the administrative and legislative measures which would assist and develop local inventive and innovative capacity at both the national and enterprise levels . Only last month , Mr. Santill an , the Philippine Commissioner of Inventions, went to Sri Lanka , as a WIPO consultant, to advise the Government of that country on the establishment of an Inventors Commission modelled on the Commiss i on which works so successfu l ly in the Philippines.

The promotion of indigenous inventive capacity is, at least, as the long range aim, perhaps the most important . The necessary brain power is present in every country: it has to be activated and once activated and used , it will be the best guarantee against dependence on foreign sources of technology .

Of course , the number of persons in the world directly involved in the creation of new technology is relatively small . But the num.ber of persons affected in any developing country by local inventive activity is, for the developing country, legion, potentially and indirectly the whole population of that developing country . That is why the matter seems to be important, and that is why I am pleased to be able to speak about the matter today .

Last year , in addition to a meeting held in Pattaya , near Bangkok , Thailand , in which representatives of the 5 ASEAN countries participated, WIPO organi zed two regional meetings for countries in Asia and the Pacific. One was a two-week Se~inar on Technological Information Contained in Patent Documents, organized in cooperation with the Economic and Social Commission for Asia and the Pacific (ESCAP) , the United Nations Conference on Science and Technology for Development :UNCSTD) and the Swedish International Development Authority (SIDA), and held at the head­quarters of ESCAP, in which about 50 representatives of 20 countries participated. The other was a Workshop for Governnent Officials on Licence Agreements and Techno­logy Transfer Arrangements, organized in cooperation with ESCAP and the UNDP, and held at the Regional Centre for Technology Transfer (RCTT) in Bangalore, India, in which about 50 representatives of 18 countries participated .

The third regional meeting, organized by WIPO, relevant to the third principle of the New International Economic Order, to which I referred a while ago , is this Workshop which opens today in Manila . Its purpose is to explore the ways and means by which the industrial property system could be used effectively for the benefi t of inventors , industry and commerce in the Region .

I wish this Workshop every success. I hope it will be interesting and usefu l and that we can go on from here to devise new activities aimed at encouraging and promoting the inventors and innovators of this Region .

OPENING SPEECH

delivered by

Hon. Melecio s. Magno Minister, National Science Development Board

Dr . Arpad Bogsch, Director General of the World Intellectual Property Organi­zation (WIPO), Commissioner Santillan, Deputy Commissioner Adriano, distinguished guests, distinguished participants , ladies and gentlemen,

At the outset, I would like to thank Commissioner Santillan and Deputy Commissioner Adriano for inviting me to participate in this ceremony which offi­cially opens this important Workshop on the Effective Use of the Industrial Prop­erty System for the Benefit of Inventors, Industry and Commerce in the Asian and Pacific Region . This workshop has been organized by WIPO with the cooperat i on of the Philippine Government and the United Nations Development Programme. I would like to thank the officials of WIPO and UNDP for conducting this very important activity here in the Philippines .

There has been a series of dialogues in the Asian region concerning the indus­trial property system, particularly on the legal protection of inventions, innova­tions, and know-how . Earlier, exchanges of views and useful contacts among experts were conducted during the Regional Workshop on the Patent System organized here in Manila two years ago, followed by a discussion during the meeting of the Asean Com­mittee on Science and Technology held in Baguio City from June 20 to 22, 1978.

Another Group of Experts Meeting was held from January 31 to February 5, 1979, in Pattaya, Thailand , where several concrete recommendations were formulated. At this meeting , the experts felt that such contacts and exchanges of views should continue in the framework of what would be called the ASEAN-WIPO Development Coopera­tion Project on Technological Inventions and Innovations and the aim of which would consist in studying and recommending means of (1) encouraging technological inven­tive and innovative activity; (2) modernizing, where necessary, the institutions dealing with the protection of inventions; (3) improving, for the ASEAN countries, conditions for the acquisition of foreign technology protected by patents ; (4) improving the conditions for inventors of the ASEAN region for the protection of their inventions abroad; and (5) promoting development cooperation by WIPO for the benefit of ASEAN countries, in particular, as concerns technological information contained in patent documents and the training of specialists in the field of indus­trial property in general.

We, in the Philippines, are keenly interested in this cooperative endeavor, recognizing the importance of an effective industrial property system in the develop­ment of loca l industries and commerce. It may interest you to know that the Philippines enacted patent legislation in 1947 and by the end of 1978, about 18,000 patents had been issued. The Philippines Patent Law, Republic Act 165, as amended, was further amended by Presidential Decree No. 1263 which took effect on January 14, 1978. The Philippine I nventors ' Incentive Act was amended to provide incentives not only to inventors but also to creators of innovations (utility models) and indus­trial designs . In addition, an Inver.tions Guarantee Fund was established to guarantee the unsecured portion of industrial loans for the exploitation and manufacture of patented Philippine inventions, utility models and industrial designs. These laws indicate our interest in the harnessing of patented inventions and innovations. At this point of time, however, the business sector has not fully exploited workable inventions and innovations recorded in our patent system.

We are, therefore, very happy to sponsor this important workshop aimed at studying the effective use of the industrial property system for the benefit of inventors, industry and commerce. At this stage of rapid scientific and techno­logical growth there is an urgent need for an effective patent system especially

12 Hon. Melecio s. Nagno

for the developing countries in the Asian and Pacific Reg i on . The difference in rates of growth between developing and developed countries has been increasing due to rapid scientific and technological growth of the more weal thy nations . In view of this, the gap between poor and rich nations has been widening . It is accepted that economic growth is brought about by advances in science and technology . It is for this reason that, if we are to improve economic conditions of the less developed countries, there is a need to introduce and utilize advances in science and technology. Introduction of new technologies and scientific discoveries could be hastened through an efficient patent system . This makes this workshop very relevant indeed.

I have no doubt that this workshop will be very fruitful and that the delegates and other participants will benefit from the personal cont acts and exchange of views with e xperts from other countries . Thank you.

OPENING SPEECH

delivered by

Ron. Felipe Ll . Santillan Commissioner, Philippine Inventors Commission

It is my pleasant task this afternoon to extend to all of you, on behalf of 1ny Government, as host of this regional Workshop , as well as on behalf of our Ministries of Science and Technology and Trade, and as the Commissioner of the Philippine Inventors Commission, our warmest greetings and most cordial welcome . We also express our sincere appreciation and thanks to all of you for spending a part of your valuable time in coming to Manila to share with us, at this Workshop, your own expertise so that we may join in a cooperative endeavor towards accelerating the economic and social development of our region, with science, technology and in­vention as the main catalysts.

This regional Workshop has been organized by the World Intellectual Property Organization (WIPO), with the cooperation of the United Nation s Development Pro­gramme (UNDP ) and the Government of the Republic of the Philippines. Its theme is the "Effective Use of the Industrial Property System for the Benefit of Inven­tors, Industry and Commerce in the Asian and Pacific Region . "

Industrial property, the principal subject matter of this Workshop, which is the first of its kind to be held in our Region, is now recognized worldwide as one of the creative ingredients of science and technol ogy, an incentive t o productivity that generates industrial and commercial growth.

In its broad scope, industrial property covers the results of man ' s creative talents and ingenuity (inventions, innovations and industrial designs) transformed into tangible commodities, useful and beneficial to man, which are generators of progress in industry and commerce .

We are grateful to the principal sponsors, WIPO and UNDP, without whose assistance this workshop could not have been hel d here this year, for arranging that the Workshop should coincide with our annual celebration of Philippine Inven­tors Week, one of the incentive functions of the Philippine Inventors Commission. We are happy that this Workshop is one of the three major events of Philippine Inventors Week , 1980 . The other two are the Second Festival of Philippine In.ven­tions and the Annual Invention Contest to select the oustanding inventions, innova­tions , utility models and creative researches . Hopeful ly, the Festival and Contest would be improvements over those held in previous years and would provide a better showcase to our foreign visitors from Asia and the Pacific of the continuing development and progress of invention-based technologies and products, through our Government ' s assistance .

It is encouraging to note that this Workshop ' s emphasis on the need for governments to utilize the industri al property system for the benefit not only of inventors , but also of industry and commerce, shows that the sponsors of the Work­shop had recognized the Philippine experience in implementing its own patenting and invention assistance systems, as a possible model for other countries . We have high hopes that our neighbors, our fellow developing states in the Asia and Pacific region, will establish and develop patenting and invention assistance systems that are suitable for their respective countries and peoples, after which we could estab­lish workable patenting and technology transfer systems for the Region as a whole . I am sure WIPO would be willing to provide us with the appropriate assistance., if reguested,for such a project.

14 Hon. Felipe Ll. Santillan

The rationale for giving assistance and incentives to inventors is the fact that inventions are short-term, result-oriented R & D projects which are forerunners and generators of new or improved products or industrial processes and intermediate technologies. Thus, local inventions provide both adoptive and adaptive develop­ment means for securing the transfer of appropriate technology; such inventions help to accelerate the growth of income-generating small and medium scale indus­tries in the countryside, to increase agro-industrial productivity and self­reliance through stimulating and harnessing local talent and ingenuity and by utilizing to the utmost indigenous raw materials.

The Philippine Inventors Commission assists and services Philippine inventors, technologists and researchers directly, and commerce and industry indirectly. Its R & D functions may be categorized as 20 % exploratory and applied research, 50% experimental engineering and development studies and 30% promotional work.

You will note that our Workshop covers varied complementary aspects, national and international, of the industrial property system. Our foreign and local speakers on the topics for discussion at each session will no doubt provide us with guidelines for the recommendations which we hope to adopt at our final plenary session.

Thank you, and may your stay in our country be both enjoyable and fruitful.

I. INTRODUCTION

SURVEY OF THE INDUSTRIAL PROPERTY SYSTEM IN THE ASIAN AND THE PACIFIC REGION

by

Lakshman Kadirgamar Head, Development Cooperation

Policy Section, WIPO

The World Intellectual Property Organization (WIPO) . WIPO is one of the "Specialized Agencies" of the United Nations system of organizations with head­quarters in Geneva, and an international staff of about 250 officials. It is responsible for promoting creative intellectual activity and for facilitating the transfer of technology to developing countries in order to accelerate their economic, social and cultural development.

The Convention establishing WIPO, which was signed in 1967 and entered in-to force in 1970, provides that its objectives are to promote the protection of intellectual property throughout the world through cooperation among States, and to ensure administrative cooperation among various "Unions" of States, each founded on a multilateral treaty and dealing with legal and administrative aspects of intellectual property. The present membership of WIPO and the Unions is 114 States.

"Intellectual property." This expression covers the legal rights which re­sult from intellectual activity in the industrial, scientific, literary or artistic fields . The main examples are industrial property (patents and other rights in inventions, rights in trademarks and industrial designs, etc.) and copy­right and neighboring rights (chiefly in literary, musical and artistic works, in films, records and broadcasts, etc . ).

countries have laws to protect intellectual property for two main reasons, related to each other. One is to give statutory expression to the moral and economic rights of creators in their creations and of the public in access to those creations, in accordance with the Universal Declaration of Human Rights. The other is to promote, as a deliberate act of government policy, creativity and the dissemination and application of its results, and to encourage fair trading : this contributes to economic and social development. For example, the right to obtain a patent for an invention encourages the investment of money and effort in research and development; the grant of a patent encourages investment in the industrial application of the invention; the official publication of the patent adds to the world's supply of documentary sources of technological infor­mation. Similarly, copyright protection enables even independent authors to be rewarded for their work, and encourages publishers to invest money and effort in bringing the results of that work to the public. Trademark rights protect enterprises against unscrupulous competitors seeking to make profit out of de­ceiving the public. Most intellectual property rights are limited in time and are subject to controls, in the public interest, against their possible abuse.

Intellectual property rights are limited territorially; they exist and can be exercised only within the jurisdiction of the country or countries under whose laws they are granted . But works of the mind cross frontiers with ease, and, in a world of interdependent nations, should be encouraged to do so. Therefore governments have negotiated and adopted multilateral treaties in various fields of intellectual property, each of which establishes a "Union" of countries which agree to grant to nationals of other countries of the Union the same protection as they grant to their own .

The Unions. Some of them provide for a central service to perform adminis­trative functions on behalf of governments, for example the international regis­tration of trademarks or industrial designs . Some establish classification systems, and procedures for improving them and keeping them up to date. Revising these treaties and establishing new ones are tasks which require a constant effort of intergovernmental cooperation and negotiation, supported by a specialized secretariat. WIPO provides the framework and the services for this work.

16 Lakshman Kadirgamar

The activities of WIPO. These are basically of two sorts: substantive or program activities, and administrative activities concerned with the international registration of industrial property rights . Both sorts of activities serve the overall objectives of WIPO, to maintain and increase respect for intellectual property throughout the world, in order to favor industrial and cultural develop­ment by stimulating creative activity and facilitating the transfer of technology and the dissemination of literary and artistic works.

The substantive or program activities of WIPO include organizing and parti­cipating in development cooperation, promoting the wider acceptance of existing treaties, updating--where necessary--such treaties through their revision, con­cluding new treaties, and promoting close, practical intergovernmental coopera­tion in the administration of intellectual property.

Development cooperation within WIPO is aimed at' being useful to developing countries in: training specialists ; creating or modernizing legislation and governmental institutions (including the preparation of Model Laws and direct advice to individual governments); stimulating inventive activity and the transfer of technology ; creating a corps of practitioners; exploiting the tech­nological information contained in patent documents ; and facilitating access to foreign works protected by copyright .

The main activities in intergovernmental cooperation in the administration of intellectual property are concerned with the management of collections of patent documents used for search and reference, and the dissemination of the information which they contain; the maintenance and updating of international classification systems; regional surveys of copyright law administration ; pre­paration of model statutes for authors ' societies . Administrative or registration activities are those required for the receiving and processing of international applications under the Patent Cooperation Treaty or for the international regis­tration of marks or deposit of industrial designs. These activities are financed normally from the fees paid by the applicants, which account for about one-third of the budget of WIPO.

II. SCOPE OF THE SURVEY

The 27 States and one territory (Hong Kong) selected for reference in the present survey, are situated within the geographical scope of the Economic and Social Commission for Asia and the Pacific (ESCAP) which is the regional arm of the United Nations for Asia and the Pacific. The geographical scope of ESCAP extends from Iran in the west to Mongolia in the north, Japan in the north-east and the Cook Islands in the south-east, and includes Australia and New Zealand. All the selected countries, and the territory, are members or associate members (Fiji and Hong Kong) of ESCAP ; all of them fall into the category of so-called developing countries, and all of them have been invited to nominate participants in the Manila Workshop . Some developing countries which are associate members of ESCAP (Brunei, Cook Islands, Gilbert Islands , Solomon Islands, Trust Territory of the Pacific Islands and Tuvalu), in respect of which little or no information is presently available on matters relating to industrial property, and the so­called developed countries which are members of ESCAP (Australia, France, Japan, New Zealand, Netherlands, Soviet Union, United Kingdom and the United States of America) have not been included in the core group of countries of the Asia and Pacific region to which this survey mainly relates .

III. NATIONA.L LAWS OR LEGAL MEASURES RELATING TO INDUSTRIAL PROPERTY

Patents. 11 of the countries surveyed (see Annex I) do not have legisla­tion governing the legal protection of inventions.

In one country (Indonesia) a provisional regulation is in force enabling only the filing of a patent application.

Lakshman Kadirgamar 17

In two countries (Malaysia and Singapore) registration is permitted only in respect of patents granted in the United Kingdom, and in one country (Nauru) only in respect of patents granted in Australia .

In ~ix countries (Bangladesh1 , Burma2

, India, Pakistan, Philippines and Thailand ) the legislation calls for the industrial property administration to make a search of the state of the art (or requires a report thereon to be fur­nished by the applicant) and to make an examination of the claimed invention in the light of that art to ascertain if it is a technological advance and other­wise to determine its entitlement to legal protection (substantive examination) .

In the remaining countries where protection is accorded to inventions , the title of protection--the patent--is granted after a simple checking of the appli­cation to determine whether certain formal requirements have been complied with (formal examination), as for example, as concerns the name, nationality and resi­dence of the applicant, the existence of a description of the invention and an abstract thereof and, where applicable, drawings, as well as the payment of the required fees . Disputes concerning the sufficiency of the invention as a tech­nological advance and other grounds for invalidation are matters exclusively for the courts.

In one country (Sri Lanka), substantive examination, which was required under the old law, has been dispensed with under the new law, enacted in 1979, which requires formal examination only.

Trademarks. 20 of the countries surveyed have legislation governing the regis­tration of trademarks. However, no major revision of trademark legislation has taken place in any of these countries in recent years, except in the Republic of Korea (where legislation was last adopted in 1973) and in Sri Lanka (where new legislation was adopted in 1979 as part of the intellectual property code) .

It would appear that in many countries the administration of the trademark law is carried out expeditiously and with a minimum of difficulties . In some countries there is a back-log of applications and insufficient or inadequately trained personnel and there is a need to introduce more rational procedures and operations.

A survey of the national laws and legal measures in the selected countries reveals a need to establish or to modernize industrial property legislation and its supporting administrative infrastructures. In particular, industrial property legislation should be adopted which is more responsive to the tech­nological, industrial and economic objectives of countries. Existing indus­trial property administrations should be modernized, particularly by stream­lining procedures and operations, making available more adequate physical facil­ities, increasing and strengthening staff through the hiring of additional personnel and the training of existing staff in improved procedures and opera­tions and by increasing their knowledge of the function and role which indus­trial property can play in technological, industrial and economic development.

Problems relating to the administration of industrial property laws. In those countries where substantive examination is a requirement of patent legis­lation or where the introduction of such a requirement is envisaged, ways and means will have to be found to carry out that examination:

(a) by engaging a high number of technically qualified personnel (usually with university training in the chemical, mechanicalor electrical fields) to carry out within the national industrial property office or other authority within the country the tasks of searching the state of the art and examining the claimed invention;

1. A revision of patent legislation is in progress. See Annex II .

2. No information is available from Burma on the application of its patent law.

3. Thailand adopted patent legislation for the first time in 1979. See Annex II.

18 Lakshman Kadirgamar

(b) or by engaging a limited number of such personnel and relying upon search and examination reports issued by industrial property offices in other countries within or without the region;

(c) or by entrusting such an Office in another country with those tasks and possibly also other steps in the procedure leading to the grant of the title of protection.

In the first and second cases, a major project in institution building will have to be launched (with a substantial training component and patent documentation bank) either at the national level or, to the extent that a common administration or service or some sort of division of work is feasible, at the sub-regional or regional level. In the third case, some arrangements or links to the major in­dustrial property offices in the region or in other parts of the world would have to be established in order to assure the availability of search and exami­nation reports and other relevant information.

Similarly, in the implementation of trademark legislation, there is a need to consider the extent to which a common administration or a sharing of services to accomplish given tasks may be feasible at the sub-regional or regional level. As a minimum, each of the countries of the region could probably benefit from a service that would provide to participating countries bibliographic data concern­ing the trademarks registered in the other participating countries in the region and of offers and requests for the use of such trademarks.

IV. THE ANNEXES

The annexes provide information on the status of national legislation and the applicability of international treaties in the field of industrial property, the scope and extent of cooperation between WIPO and countries in the region, and also statistics from which it is possible to draw some conc l usions concerning the trends in patent and trademark activity within the region and also in relation to countries outside the region. The material contained in the annexes, although available in a variety of official publications , has been assembled for the first time in its present form with the object of focussing attention on the countries of the region individually and as a group.

Annex I shows that although 17 countries (and a territory) have some form of patent system, only five of them belong to the Paris Union ; and that although 20 countries (and a territory) have trademark legislation, only two belong to an international trademark Union . Membership of WIPO (which does not require member­ship of any of the Unions administered by WIPO) shows a steady increase since the Organization became a Specialized Agency of the United Nations.

Annex II deals with WIPO ' s development cooperation projects within the region in recent years with reference to individual country projects as well as regional and sub- regional activities. The table at the end of this annex gives an indication of the increasing participation of nationals from the region in WIPO traininq courses . There are, however, a number of countries or territories (13 out of 28) which have not yet utilized the opportunities for training provided by these courses.

Two different sets of statistics are combined in Annex III . One set deals with patent applications filed by and patents granted to residents of developing countries in the region in the year 1977; the other with applications filed by and granted to non-residents from countries outside the region. Of the 2,874 patent applications filed by residents in their respective countries, 2,501 appli­cations (87,02%) were accounted for by residents of two countries (India and the Republic of Korea) . The total number of applications filed within the region by non-residents amounted to 8,636. Of this amount 6,799 (78,72%) were filed by non­residents from five countries (Federal Republic of Germany, France, Japan, United Kingdom and the United States of America) out of the 37 countries for which such figures are given .

Lakshman Kadirgamar

Annex IV deals only with patent applications filed by and patents granted to non-residents from developing countries within the region in the year 1977.

19

The level of activity is low . The Philippines received the most such applications (13) and the largest number (18) originated from China.

Annex V, on trademark activity, corresponds to Annex III on patent activity . The number of trademark applications (32,756) filed by residents in their respec­tive countries in the year 1977 is more than eleven tLroes greater than the number of patent applications filed by residents in the same year (without making a precise adjustment for the fact that the figures for Singapore relate to 1972). Nine countries or territories (Hong Kong, India, Indonesia, Iran, Malaysia, Philippines, Republic of Korea, Singapore and Thailand) account for 30,786 (93,98%) of such applications . The total number of trademark applications filed by non­residents from countries outside the region (17,641) is almost half the number filed by residents. Out of this total, 13,181 applications (74,71%) are, again, accounted for by non-residents from five countries (Federal Republic of Germany, France, Japan, United Kingdom and the United States of America) out of the 37 countries for which such figures are given .

Annex VI deals only with trademark applications filed by and registrations granted to non-residents from countries within the region. The level of activity is higher than for patents. Indonesia (381) and Malaysia (359) received the most such applications, and by far the largest number originated from Hong Kong (476), Singapore (366) and China (115) .

Annex VII sets out the number of patent applications (5,526) filed in 1978 by residents in 66 developing countries in different regions of the world. 2,662 of such applicat~ons (48,17%) were filed by lu countries in tne Asian and Pacific region. Two countries alone (India and the Republic of Korea) accounted for 2,313 (86,88%) of these applications. These two countries, together with Argentina (1,574), provided 3,887 (70,34%) of the 5,526 applications filed in those 66 countries.

20 Lakshrnan Kadirgamar

ANNEX I

I NTERNATIONAL TREATIES! NATIONAL LEGISLATION

WIP02 PARIS2 BERNE2 OTHER2 PATENTS TRADEMARKS

Afghanistan Trade Mark s Law , 1960 (effective 1964)

Bangladesh Patents and Trade Marks Designs Act, 1911 Act, 1940

Bhutan

Bu rma Patents and Designs Act , 1911

China 1980 Regulations on the Verification of Trademarks, 1963 , and Implementing Rules , 1963

Dem . Kampuchea

Dem . People ' s 1974 Rep . of Korea

Fiji

Hong Kong

India

Indonesia

Iran

Lao People ' s Dem . Rep .

Malaysia

1972 1971 Phonograms, Patents Ordinance, Trademarks 1973 1879-1945 Or dinance , 1933

Rome, 1972

O. K. Patents Trademarks Ordinance , 1932 Ordinance, 195 4

(effective 1955)

1975 1928 Phonograms, Patents Act, 1970 Trade and Merchan-1975 (effective 1972) dise Marks Act,

1958-1970

1979 1950 Hague, 1950 Provisional Patent Trade Mark Law , Regulati on , 1953 1961

1959 Law on the Registration of Trade Marks and Patents, 1931

See Footnote 3 See Footnote 3

1. WIPO : Convention Establishino the lqor.Ld lnte!.Lect:ual Property uroan1-zatio~967 ; Paris : Paris Convention for the Protection of Industrial Property , 1883, as revisea;--Berne : Berne Convention for the Protection of Literary and Artistic Works, 1886, as revised; Phonograms : Convention for the Protection of Producers of Phonograms Against Unauthorized Duplication of Their Phonograms , 1971 ; Rome : International Convention for the Protection of Performers , Producers of Phonograms and Broadcasting Organizations, 1961 ; Haque : Union for the Interna­tional Deposit of Industrial Designs (Hague Onion), 1925, as revised ; Madrid I : Madrid Agreement for the Repression of False or Deceptive Indications of Source on Goods, 1891, as revised; Madrid II: Onion for the International Re~istration of Marks (Madrid Union), 1891, as revised .

2 . The years mentioned in each column are those in which the coun try acceded to or ratified the rreaty concerned .

3. Malaya: Registration of O. K. Patents (Amendments) Ordinance , 1951 (amended in 1956 and 1957) ; Trade Marks Ordinance, 1950 . Sabah : Registration of U.K. Patents Ordinance, 1937 (amended in 1956); Trade Marks Ordinance, 1947 . Sarawak : Patents Ordinance , 1927 ; Trade Marks Ordinance, 1957 .

WIPO DEVELOP-MENT COOPERA-TION PROJECTS

See Annex II

See Annex Il

See Annex I :

See Arm ex I

See Annex

See Annex

Maldives

Mongolia

Nauru

Nepal

Pakistan

?apua New Guinea

>hilippines

tep. of Korea

amoa

ingapore

ci Lanka

1ai1and

mga

et Nam5

Lakshman Kadirgamar

INTERNATIONAL TREATIES! NATIONAL LEGISLATION

WIPo2 PARIS2 BERNE2 OTHER2 PATENTS TRADEMARKS

1979

See Footnote 4 See Footnote 4

Patent, Design and Trademark Act, 1965

1977 1948 Patents and Cesigns Trade Marks Act, Act, 1911 (amended 1940 (effective up to 1954) from 1948)

Trade Marks Act, 1978

1965 1951 Act 1-1o . 165 of 1947 Act ·~o . 166 of 1947 (amended up t o 1968) (amended up to 1968)

1979 Patent Act, Trade Marks Act, 1961-1973 1949-1973

Patents Act, 1972 Trade Marks Act, 1972

Registration of U. K. Trade Marks Patents Ordinance Ordinance, 1937-1955; Patents 1938-1947 (Compulsory Licens-in g) Act, 1968 (not yet effective)

1978 1952 1959 Madrid I I Code of Intellectual Property Act, 1979 1952

1931 Patent Act, 1979 Trade Mark Act,l931 (amended, 1961)

Registration of Trade Marks Act,

1939

1975 1956 Hague, 1956 Madrid I,

1956 Madrid II,

1956

l. WIPO : Convent ion Fstablishino the l·'orld I ntel l ectual l' ronert y Orqani ­zatio~967 ; Paris: Paris Convention for the Protection of Industrial Property, 1883, as revise~erne: Berne Convention for the Protect ion of Literary and Artistic Works, 1886, as revised; Phonograms: Convention f o r t he Protection of Producers of Phonograms Against Unauthori zed Duplication of Their Phonograms, 1971; Rome: International Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organizat ions, 1961; Hague: Union for the Interna­tional Deposit of Industrial Designs (Hague Union), 1925, as revised; Madrid I: Madrid Agreement for the Repression of False or Deceptive Ind ications of Source on Goods, 1891, as revised; Madrid II: Union for the I nternational Registration of Marks (Madrid Union), 1891, as revised. 2.

The years mentioned i n each column are those in which the country acceded to or ratified the t reaty concerned. 4.

Patents granted i n Australia are e ffective i n Nauru, if registered there by application made within three years f r om t he date of issue in Australia. Trade mark registrations in Australia automaticall y extend to Nauru. 5 · The situation of Viet Nam i n respect of i nternat ional t r ea t ies is under examination .

21

WIPO DEVELOP-MENT COOPERA-TION PROJECTS

See Annex II

See Annex II

See Annex II

See Annex II

See Annex II

See Annex II

22 Lakshman Kadirgamar

ANNEX II

WIPO DEVELOPMENT COOPERATION PROJECTS IN ASIA AND THE PACIFIC

(1977-1980)

I. Assistance to States

Bangladesh

At the request of the Government a WIPO mission went to Dacca in 1979 to discuss the reorganization of the Patent Office and the Trade Marks Registry . At the conclusion of the mission, a report was sent to, and approved by, the competent authorities. Draft legislation on patents and trademarks was also prepared by WIPO and submitted to the competent authorities . Discussions on the draft patent law have already taken place in Geneva with an expert of the Government of Bangladesh, and discussions on the draft trademark law are expected to take place in the course of 1980.

Bhutan

The Government of Bhutan has begun drafting new trademark l egislation. On a request from the Government, received in February 1980, WIPO furnished to the competent authorities information on national and international trademark legis­lation, including model laws and other materials.

China

Discussions are proceeding between WIPO and the competent authorities of the Government of China concerning the assistance to be given to China in the prepa­ration and implementation of its plans to establish a patent system and a patent office to administer such a system. Training courses on industrial property subjects (licensing and patent information) were held in China in 1979, and fur­ther training courses are scheduled for 1980.

Democratic People ' s Republic of Korea

At the request of the Government, a WIPO mission went to Pyongyang in October, 1979, to discuss the assistance WIPO could render to the country in view of the intended modernization of its patent information and related services . As a follow- up to this mission and a visit of two Government officials to Geneva in January 1980, WIPO has undertaken to assist the country in obtaining the neces­sary funds and contributions in kind from UNDP and other sources, in particular from individual countries. During the first quarter of 1980, two WIPO consultants visited the country in order to study in depth the present situation and make proposals for the modernization of the existing services. Furthermore, nationals of the country will receive WIPO training fellowships, and WIPO will assist in the acquisition of the documents required for the intended expansion of the patent documentation collection as well as the necessary equipment to facilitat e the modernization of the existing services.

Indonesia

At the request of the Government, a WIPO consultant visited the country in November and December, 1979, to study, and advise on, means to ensure adequate legal protection for Indonesian industrial designs .

Malaysia

On a request received in February, 1980, WIPO will advise the appropriate authorities on the question whether there is a need to establish a Patent Office in Malaysia .

Lakshman Kadirgamar

Mongolia

The competent authorities have requested WIPO ' s assistance in industrial property matters including the modernization of existing services and the pre­paration of accessions to the Paris Convention on the Protection of Industrial Property and the Madrid Agreement (Marks) . Preliminary assistance comprising training fellowships and a consultant mission to Ulan Bator is under preparation .

Nepal

23

The Government has requested that the services of an expert be made available to study, and make recommendations on revising and improving, the existing laws and regulations concerning patents, designs and trademarks ; to suggest scientific methods of documenting patents, trademarks and other intellectual property rights ; and to suggest what international assistance is needed, and could be arranged, in this field . A preliminary WIPO mission went to Kathmandu in March, 1980.

Republic of Korea

Following the mission of WIPO experts to the country, in October 1978, to discuss the envisaged modernization of the industrial property system and the possibilities of assistance for such modernization, various forms of action were taken in 1979 . Initial action consisted of the preparation, by WIPO, of complete draft laws on patents, utility models, industrial designs and trademarks. Consul­tations with the competent authorities took place on these drafts through written comments as well as discussions held in Geneva in 1979 and resulted in appropriate draft legislation being submitted by the Government to Parliament in the later part of 1979, adapting as a first step the industrial property legislation to the Paris Convention for the Protection of Industrial Property. Further legislative assistance will be provided in 1980 and thereafter to the competent authorities for the envisaged further and more substantial revision of the industrial property legislation to adapt it to international treaties administered by WIPO . As a first step, the patent law will be revised in order to allow the implementation of the Patent Cooperation Treaty in the country in the near future.

First drafts for a five year plan of action for the modernization of the industrial property system and the required financial assistance for that moder­nization process were considered. Early in 1980 this plan of action, consisting of a small UNDP financial preparatory project for 1980, a project for the preli­minary phase for 1980 and 1981 and the main UNDP financed project for 1982 to 1984 will be further discussed and finalized.

Sri Lanka

A new code of intellectual property law (covering patents, marks, designs and copyright), based on a draft prepared by WIPO in consultation with the Government of Sri Lanka, was adopted by the Parliament of Sri Lanka in May 1979. It is the first example of a country taking a global approach in preparing legis­lation covering all fields of intellectual property and enacting such legislation simultaneously . The preparation of the draft code and all the subsidiary draft regulations and administrative procedures for its implementation represented a major task for WIPO and gave i t the possibilit y of usin~ i t s specia l i sts i n all i ts fields of competence for cooperation with a developing country which required new legislation designed to promote its development objectives in the field of intel­lectual property. The draft code is based on the WIPO Model Laws for Developing Countries. Draft regulations and forms under the new Code, covering patents, marks and designs, have likewise been prepared by WIPO and finalized at consulta­tions in Colombo in August and September 1979. The new texts are in force since January 1980.

The assistance provided by WIPO to this country for the modernization of its industrial property system is being continued through advisory services in the practical implementation of the new legislation, provided by consultants assigned by WIPO to Colombo with financial resources made available by the Swedish Inter­national Development Authority (SIDA) and with the technical cooperation of the British and Swedish Patent Offices.

24 Lakshman ~adirgamar

At the request of the Government an expert (the Commissioner, Philippine Inventors Commission) was sent to Colombo, as a WIPO consultant in February and March, 1980, to advise the Government on the establishment of the Sri Lanka Inventors Commission, a new government sponsored institution created by the Sri Lanka Inventors Incentives Act which was enacted by the Parliament of Sri Lanka in August, 1979. The new institution is modelled on the Philippine Inventors Commission, and is intended to promote, by all available means, local inventions and innovations. The Act provides for local inventors, innovators and creative researchers to receive financial and technical assistance, a wide variety of incentives and ~ewards, legal assistance in securing patents under the new Code and help in marketing their products locally and abroad.

Thailand

A new Patent Act was enacted in Thailand for the first time in 1979. A WIPO expert mission, composed of two staff members and consultants from the industrial property offices of Canada, Sweden and the United States of America, carried out in April 1979, at the request of the Government, extensive discussions on the implementation of the new patent law and presented a report with detailed recommen­dations on the next steps to be taken, particularly as regards the preparation of regulations, forms and a manual of office procedures and directives to give effect to the new law. The mission report was approved by the Government of Thailand in June 1979 . As a follow-up of the recommendations made by the expert mission, drafts of the regulations, forms and chapters of the manual were prepared by WIPO in cooperation with the industrial property offices which participated in the April 1979 expert mission and were discussed by a WIPO official with Govern­ment authorities in Thailand during July and October 1979.

As a follow up, WIPO is assisting the competent authority in the establishment of the necessary administrative infrastructures . During 1979, six members of the staff of the Thai Patents Division underwent training on matters relating to patents, industrial designs and other aspects of industrial property. Financial support for that training was provided by WIPO, the European Patent Office, the United Kingdom Patent Office, the Centre d ' etudes internationales de la propriete industrielle (CEIPI) and by the Canadian International Development Authority (CIDA). CIDA also bore the financial expenses of an expert from the Canadian Patent Office who provided advice and training in Thailand for a period of two months in October and November 1979. Assistance for training and expert services in 1980 will also be furnished by CIDA. Under arrangements being made with the Australian Patent Office, search reports on the state-of-the-art of technology relevant to appli­cations filed by Thai nationals and reports on the examination of such applications will be furnished free of charge by the Australian Patent Office to the Thai Patent Division.

Socialist Republic of Viet Nam

At the request of the competent authorities, a WIPO mission went to Hanoi in January, 1980, in order to negotiate with the State Committee on Science and Technology the express continuation of the membership of this country in the various Unions administered by WIPO. These negotiations also included a program of possible WIPO assistance to VietNam. Such assistance will relate, in particular, to the modernization of the Department for Inventions and Rationalization and the establish­ment of a National Patent Information Centre and will be undertaken mainly in the form of training personnel and providing state-of-the-art searches, documentation and equipment. These negotiations will continue with a government delegation which is expected to visit WIPO headquarters in the first half of 1980. Assistance in preparing the necessary legislative measures is envisaged.

II . Meetings (regional, sub-regional and national)

Regional

Bangkok, Thailand November, 1973

WIPO convened, under the auspices of the Government of Thailand, an Industrial Property Seminar, at the head­quarters of the United Nations Economic Commission for Asia and the Far East (ECAFE) in Bangkok . The following eleven States were represented: Bangladesh, India, Indonesia, Iran, Khmer Republic, Malaysia, Philippines, Republic of Korea, Republic of Viet Nam, Sri Lanka and Thailand.

Colombo, Sri Lanka February, 1977

Bangkok, Thailand January, 1979

Lakshman Kadirgamar 25

A Regional Meeting on Industrial Property was orga­nized by WIPO with the assistance of the Government of Sri Lanka in Colombo . The following nine States were represented: Afghanistan, Bangladesh, Indonesia, Malaysia, Nepal, Pakistan, Philippines, Sri Lanka and Thailand. The subjects of discussion were WIPO and its activities for developing countries, questions relating to patents, questions relating to trademarks and questions relating to the role of industrial property {including know-how and licensing) in the transfer of technology.

WIPO's World Symposium on the Importance of the Patent System to Developing Countries, organized by WIPO with the cooperat~on of the Government of Sri Lanka, took place right after the Regional Meeting. Some 200 persons participated in the Symposium from the following 38 countries: Afghanistan, Australia, Austria, Bangladesh, Belgium, Cameroon, Canada, Denmark, France, Germany {Federal Republic of), Greece, Hong Kong, Hungary, India, Indonesia, Iran, Israel, Italy, Japan, Malaysia, Nepal, Netherlands, Nicaragua, Pakistan, Philippines, Portugal, South Africa, Soviet Union, Spain, Sri Lanka, Sweden, Switzerland, Thailand, Turkey, United Kingdom, United States of America, Venezuela, Zambia. Twenty-four lectures were given by nationals of seven Asian develop-ing countries and ten industrialized countries. The lecturers were ministers, senior government officials and businessmen . One of the important and rather unusua l fea­tures of the Symposium consisted in the fact that most of the lecturers from the highly industrialized countries were officers of so- called multinational corporations, whereas most of the lecturers from the developing countries were government officers in charge of industrial planning and foreign investment . The lectures dealt with questions concerning the transfer of technology and the role of indus­trial property in such transfer; they were followed by a general discussion . A collection of the lectures was published by WIPO in July 1977.

In January 1979, WIPO organized, with the financial support of the Swedish International Development Authority {SIDA) and in cooperation with the United Nations Confe­rence on Science and Technology for Development {UNCSTD) and the United Nations Economic and Social Commission for Asia and the Pacific {ESCAP) , a Seminar on Technological Information Contained in Patent Documents, held in Bangkok . The following sixteen Governments nominated participants : Afghanistan, Bangladesh, Burma, China, Fiji, India, Indonesia, Malaysia, Mongolia, Nepal, Pakistan, Philippines, Republic of Korea, Sri Lanka, Thailand, Western samoa . Australia, Japan and the United States of America, and the United Nations Development Programme {UNDP), sent observers.

The Seminar was organized as part of the preparatory phase of the UNCSTD, and dealt with the role of patent in­formation in the transfer of technology, the technological and information needs of the Asian and Pacific region, international cooperation in the field of patent informa­tion, the value of patent documents as a source of techno­logical information and means of access to that information, the IPC, etc.

The participants discussed eight main subjects and agreed on a number of conclusions, including the recog­nition of the fact that training based upon the interna­tional exchange of information and experience was a key element in the modernization and strengthening of scientific and patent information sources, the wish that particular attention be paid to the needs of users of patent information and the opinion according to which training of the users of the patent information services was as important as the training of the providers of such services .

26

Bangalore, India September, 1979

Manila, Philippines April, 1980

Sub-regional

Jakarta, Indonesia December, 1977

Lakshman Kadirgamar

A Workshop for Government Officials on Industrial Property Licenses and Technology Transfer Arrangements was organized by WIPO in association with the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) and with the cooperation of the United Nations Development Programme (UNDP) at the ESCAP Regional Centre for Technology Transfer (RCTT) in Bangalore (India) in September 1979. Forty-two government officials from the following 19 countries participated in the Workshop: Afghanistan, Bangladesh, Bhutan, China, Democratic People's Republic of Korea, Fiji, India, Indonesia, Iran, Malaysia, Nepal, Pakistan, Papua New Guinea , Philippines, Republic of Korea, Samoa, Sri Lanka, Thailand, Viet Nam. In addition, representatives of ESCAP, UNDP and RCTT attended the meeting .

The purposes of the Workshop were to advise the participants how to identify legal problems which are likely to arise in the negotiation and preparation of industrial property licenses and technology transfer agreements, to increase their awareness of existing commercial practices, and to indicate the possible solu­tions, and to promote among the participants the exchange of information and sharing of experience concerning such legal problems, practices and solutions. The discussions were primarily based on the WIPO Licensing Guide for Developing Countries and a series of background documents prepared by WIPO.

The participants concluded that the Workshop had been very valuable as an opportunity to exchange experience, to have the benefit of consultations with a number of experts, to develop an awareness of the problems arising in the nego­tiation and preparation of license agreements, the difficul ­ties encountered and possible solutions, and to improve their skills . They expressed the desire that similar work­shops on a regional, sub-regional and national basis be organized, which could be devoted also to an in-depth treatment of license agreements in given industrial sectors, and could include simulated negotiations and drafting of license agreements, with the participation of not only government officials but also representatives of industry and related professions. Consideration should also be given to the possibility of making experts available to countries, at their request, to assist them on special problems connected with the negotiation of license agreements.

In April 1980, WIPO will organize in cooperation with the Government of the Philippines and of the United Nations Development Programme (UNDP) in Manila, a Workshop on the Effective Use of the Industrial Property System for the Benefit of Inventors, Industry and Commerce in the Asian and the Pacific Region. Twenty-eight countries have been invited to nominate participants.

A Meeting Among the Countries of the Association of South-East Asian Nations (ASEAN) on the Role of Industrial Property in Technological and Economic Development was organized jointly by WIPO and the Government of Indonesia in Jakarta. The following five States were represented: Indonesia, Malaysia, Philippines, Singapore and Thailand. A total of 55 persons took part in the Meeting .

The subjects of discussion were WIPO and its activi­ties for developing countries, arrangements in the field of industrial property for the promotion of innovative capacity , questions relating to the subjects of industrial

Pattaya, Thailand February , 1979

Kuala Lumpur, Malaysia June, 1980

National

Seoul, Republic of Korea

October, 1978

Seoul, Republic of Korea

March/April, 1979

Bangalore, India September , 1979

Shanghai, China October/November, 1979

Lakshman Kadirgamar 27

property, questions relating to industrial property licenses and technology transfer agreements appropriate to the needs of developing countries, documentation and information related to industrial property and the trans­fer of technology, and industrial property and the tech­nological and economic aspects of development in the countries of the ASEAN region. Papers were prepared and presented by WIPO on the first five topics whereas papers were presented by Governments on the sixth topic. The Meeting agreed that the exchange of views on the matters referred to above had been fruitful and urged WIPO to consider organizing similar meetings in the near future to follow up the Jakarta meeting.

In February 1979 WIPO organized jointly with the National Research Council and the Department of Commercial Registration of the Government of Thailand a Meeting of a Group of Experts on the Legal Protection of Inventions, Innovations and Know-How in the Countries of the ASEAN Region, in Pattaya, Thailand. The Governments of the five countries of the Association of South East Asian Nations (ASEAN) designated the experts. The Group, after an extensive discussion and exchange of information, recommen­ded a framework for continuation in the future of similar contacts and exchanges of views.

In June 1980, WIPO will organize jointly with the Coordinating Council for Industrial Technology Transfer of Malaysia and with the cooperation of the Canadian International Development Agency (CIDA) in Kuala Lumpur a workshop on Industrial Property Licenses and Technology Transfer Arrangements for the benefit of participants from Indonesia, Malaysia, Philippines, Singapore and Thailand (countries members of ASEAN) .

An Industrial Property Seminar was organized by the Patent Office of the Republic of Korea and WIPO at Seoul in October, 1978. About 200 persons attended the Seminar. Lectures were given by officials of the Patent Office of that country, experts from the United Kingdom and the United States of America and a staff member of WIPO .

In March and April 1979, WIPO organized a Training Course on the Use of the International Patent Classifi­cation (IPC) , with the cooperation of the Japanese Patent Office, at the Patent Office of the Republic of Korea in Seoul . The Course was d~signed as an introduction to the use of the IPC for the examiners of the Korean Patent Office.

Immediately before the Workshop for Government Officials on Industrial Property Licenses and Technology Transfer Arrangements which was held in Bangalore, as indicated above, a discussion on the same topic was organized by WIPO, also in Bangalore, for Government officials and representatives of commerce and industry of the State of Karnataka, India.

A Seminar on Industrial Property Licenses and .Techno­logy Transfer Arrangements was organized by WIPO on the invitation of the State Science and Technology Commission of the People's Republic of China in Shanghai in October/ November 1979 . The Seminar was attended by over 100 staff

28

Beij inq, China November, 1979

Lakshman Kadirgamar

members of gove rnment ministries, commissions and departments responsible for various sectors of industry, trade or commerce , and managers and advisers of nat~onal export and import corporations and other state production and distribution enterprises .

A Seminar on Patent Information and the International Patent Classification (IPC) was organized by WIPO on the invitation of the State Science and Technology Commission of the People ' s Republic of China in No"ember 1979 . The Sem.L.nar was attended by a large number .. r per;:;ons from the science and technology community .

III . Fellowships and Training Courses

Apart from group training on specific subjects such as patent information and license agreements imparted to nationals of countries in Asia and the Pacific through the meetings, seminars and workshops referred to above , a number of government officials responsible or likely to be responsible for the administration of industrial property laws have undergone training at major industrial property offices in other parts of the world. In the last fiv e years this number has in­creased from 5 in 1974 to 26 (from 11 countries) in 1979, as indicated in the table below . Such training not only provides government officials with practical know­ledge of the day to day operations of industrial property administrations but also increases their awareness of the role which industrial property plays in t he tech­nological and economic development of other (especial ly developed) countries, and hence contributes to their understanding of how the industrial property system can operate for the benefit of their own countries .

Afghanistan

Bangl adesh

Fiji

I ndia

Indonesia

Iran

Malaysia

Nepal

Pakistan

Phi l ippines

Republic of Korea

Democratic People ' s Republic of Korea

Samoa

Sri Lanka

Thailand

TOTAL

Distribution of WIPO training courses among countries

in Asia and the Pacific

1974 1975 1976 1977

1

2 3

1 1

1

1 1 1 1

2

1

2

1 2

1 1 1 4

1 1 5

1 1 2 1

1 1 2

5 (5) 1 (1) 7 (7) 14 ( 9) 17

() Number of count ries benefiting

1978 1979 Total

1 2

2 7

1 3

1 2

2 6

2

1

2

2 5

2 9

5 12

2 2

1 1

5

7 11

(7) 26 (11) 70

Lakshrnan Kadirgamar 29

ANNEX III

PATENT APPLICATIONS FILED BY AND PATENTS GRANTED IN 1977* TO RESIDENTS IN , AND NON- RESIDENTS FROM COUNTRIES OUTSIDE, THE ASIA AND PACIFIC REGION, BROKEN DOWN ACCORDING TO THE COUNTRY OF ORIGIN**

NON- RESIDENTS*** RESIDENTS

AR l\U AT BS BE BR BG CA

Afghanistan

Bangladesh 27 - - - - 2 - - -11 - - - - - - - -

Bhutan

Burma

China

Dem . Kampuchea

Dem . People ' s Rep. of Korea

Fiji 1 - 6 - - - - - -1 - 4 - - - - - -

Hong Kong 25 - 11 9 - 8 1 - 14 27 - 6 10 - 8 1 - 15

I ndia 1,324 1 23 19 6 6 3 7 14 433 1 23 13 11 21 1 3 30

Indonesia 2 - 8 2 - 1 1 - 3 - - - - - - - - -

Iran 132 - 8 8 - 13 4 2 8 51 1 9 20 - 17 2 2 19

Lao People ' s Dem . Rep .

Malaysia - - - - - - - - -5 - 9 1 - - - - 1

Maldives

Mongolia

Nauru

Nepal 1 1

Pakistan 20 - 4 2 1 5 - 1 1 11 - 2 1 1 8 - - 4

Papua New Guinea

Philippines 127 - 19 4 - 16 - - 19 90 - 14 1 - 3 - - 28

Rep . of Korea 1 , 177 1 10 - - 10 - - 13 104 - - - - 1 - - -

Samoa - - - - - - - - -- - - - - - - - -

Singapore 2 - 10 6 - 3 - - 4 2 - 10 6 - 3 - - 4

Sri Lanka 36 - - - 2 - - - 1 2 - - - - - - - -

Thailand

Tonga

Socialist Rep . of Viet Nam

TOTAL 2 , 874 2 99 so 9 64 9 10 77 738 2 77 52 12 61 4 5 101

* The figures contained in this annex are extracted from Industrial Property Statistics , published by the Worl d Intellectual Property Organization (WIPO) , and relate t o the year 1977 (the latest year for which such figures have been published) except in the cases of India (1976) and Singapore (1972) . In this annex a dash means zero . Wherever WIPO has not received the relevant information , the spaces are left blank.

** In each column of this annex the first figure represents the number of applications fil ed and the second figure represents the number of patents granted .

*** The two- letter code used in this annex to designate certain countries is explained on page 5 .

30 Lakshman Kadirgamar

NON-RESIDENTS

cs OK FI FR DO DE GR HU IE

Afghanistan

Bangladesh - - - 12 - 9 - - -- - - 6 - 9 - 4 -

Bhutan

Burma

China

Dem . Kampuchea

Dem . People's Rep. of Korea

Fiji - - - l - - - - 1 - - - 3 - - - - 1

Hong Kong 1 2 - 27 - 52 - 1 1 1 2 - 26 - 50 - 1 l

India 2 17 10 126 5 251 2 37 -28 8 1 190 10 274 2 48 -

Indonesia - - - 43 - 37 1 - -- - - - - - - - -

Iran - 6 4 169 - 297 1 6 3 2 9 3 203 - 294 1 6 2

Lao People's Dem. Rep.

Malaysia - - - - - - - - -- 5 - 17 6 20 - - 1

Maldives

Mongolia

Nauru

Nepal

Pakistan - 2 - 31 35 35 - 3 1 - 4 - 18 - 62 - 1 -

Papua New Guinea

Philippines - 5 2 49 - 128 3 3 -- 3 1 37 - 62 1 1 -

Rep. of Korea - 4 - 64 - 199 - - -- - - 1 - 48 - - -Samoa - - - - - - - - -

- - - - - - - - -Singapore - 2 - 4 - 19 4 - -

- 2 - 4 - 18 4 - -Sri Lanka - 1 - 7 6 4 - - -

- - - - 4 2 - - -Thailand

Tonga

Socialist Rep . of Viet Nam

TOTAL 3 39 16 533 46 1 , 031 11 50 6 31 33 5 505 20 839 8 61 5

31

NON-RESIDENTS

IL IT JP LI LU MX NL NZ NO PA

Afghanistan

Bangladesh - 5 3 - - - 1 - - 3 - 10 5 - - - 2 - - 6

Bhutan

Burma

China

Dern. Kampuchea

Dern. People ' s Rep . of Korea

Fiji - - - - - - - - - l - - - - - - l - - -

Hong Kong - 8 lll 2 - - 9 - 1 4 1 8 103 2 - - 11 2 1 4

India 1 66 67 2 5 2 34 - 6 5 3 108 121 4 2 2 55 l 8 8

Indonesia - 15 63 - - - 13 1 - -- - - - - - - - - -

Iran 12 86 61 5 5 l 61 2 9 13 11 110 73 9 4 5 57 4 8 12

Lao People ' s Dern. Rep.

Malaysia - - - - - - - - - -l 7 58 l - - ll 1 - -

Maldives

Mongolia

Nauru

~epal

Pakistan - l4 10 2 - - 25 - 2 5 - 13 10 3 - 2 5 - 3 3

'apua New Guinea

?hilippines 2 29 137 - - 1 5 1 8 -3 23 96 2 3 4 26 1 l 2

~ep. of Korea - 29 870 - - - 40 - 6 7 - 6 - - - - 5 - - l

:arnoa - - - - - - - 2 - -- - - - - - - 2 - -

ingapore - 2 60 l - - 13 1 - 1 - 2 60 1 - - 13 1 - 1

ri Lanka - 1 4 - - - 4 1 - l - - - - - - - - - -

hail and

onga

ocialist Rep . of Viet Narn

TOTAL 15 255 1,386 12 10 4 205 8 32 40 19 287 526 22 9 13 186 12 21 37

32 Lakshman Kadirgama r

NON-RESIDENTS OTHER TOTAL TOTAL

COON- NON- RESIDENTS

PL RO ZA su ES SE CH GB us YU TRIES RESI- PLUS NON-DENTS RESIDENTS

Afghanistan

Bangladesh - - - - - - 5 17 33 - 1 91 118 - - - - 1 - 9 16 23 1 - 92 103

Bhutan

Burma

China

Dem . Kamp uchea

Dem . People ' s 37 37 37 Rep . of Korea 21 21 21

Fiji - - - - - - - 2 6 - - 17 18 - - - - - - - 3 4 - - 16 17

Hong Kong - - 1 - 1 3 54 111 189 - 5 626 651 - - - - 1 3 56 100 193 - 5 611 638

I ndia 5 1 6 62 11 29 89 269 571 - 9 1 , 769 3,093 3 6 6 66 7 25 89 245 624 3 12 2 , 06 2 2 ,4 95

Indones ia - - 1 - 3 6 8 50 137 - 4 397 399 - - - - - - - - - - - - -

Iran 4 - 12 9 10 29 81 142 611 - 5 1,687 1 , 819 3 - l3 8 l3 25 99 173 822 - 7 2, 0 46 2 097

Lao Peopl e ' s Dero . Rep .

Malaysia - - - - - - - - - - - - -- - - - - 1 23 75 81 - 6 325 330

Maldives

Mongolia

Nauru

Nepal 1 1

Pakistan 2 1 - 2 4 5 35 7 6 148 - 2 454 474 1 - - 3 2 - 29 33 79 - 1 288 299

Papu a New Guinea

Philippines - - 3 - 7 10 59 71 55 4 - 12 1,147 1,274 - - 2 - - 4 60 55 52 7 - 9 969 1 059

Rep. of Korea - - 2 - 5 21 54 84 532 - 11 1 , 962 3 , 139 - - - - - - 32 12 64 - - 170 27 4

Samoa - - - - - - - 1 - - - 3 3 - - - - - - - 1 - - - 3 3

Singapore - - - - - 3 18 62 146 - 5 364 366 - - - - - 3 18 61 1 41 - 5 357 359

Sri Lanka 4 - - - - 1 6 16 21 - 2 82 118 - - - - - - 8 9 9 - - 32 34

Thailand

Tonga

Socialist Rep . of Viet Nam

TOTAL 15 2 25 73 41 107 409 901 2,948 - 93 8,636 11 , 510 7 6 21 77 24 61 423 783 2,567 4 66 6 , 992 7, 73 0

Lakshman Kadirgamar

Two-Letter Code for Countries

AR - Argentina AU - Australia AT - Austria BS - Bahamas BE - Belgium BR - Brazil BG - Bulgaria CA - Canada CS - Czechoslovakia DK - Denmark FI - Finland FR - France DD - German Democratic Republic DE -Germany, Federal Republic of GR - Greece HU - Hungary IE - Ireland IL - Israel IT - Italy JP - Japan LI - Liechtenstein LU - Luxembourg MX - Mexico NL - Netherlands NZ - New Zealand NO - Norway PA - Panama PL - Poland RO - Romania ZA - South Africa SU - Soviet Union ES - Spain SE - sweden CH - Switzerland GB - United Kingdom US - United States of America YU - Yugoslavia

33

34 Lakshrnan Kadirgamar

ANNEX IV

PATENT APPLICATIONS FILED BY AND PATENTS GRANTED TO NON-RESIDENTS FROM COUNTRIES WITHIN THE ASIA AND PACIFIC REGION IN 1977*, BROKEN DOWN ACCORDING TO THE COUNTRY OF ORIGIN**

TOTAL CN HK IN IR KR MY SG

Afghanistan

Bangladesh 2 - 1 1 - - - -1 - - 1 - - - -

Bhutan

Burma

China

Dem. Kampuchea

Dem. People's Rep . of Korea

Fiji

Hong Kong 1 - - 1 - - - -- - - - - - - -

India

Indonesia 1 - - - 1 - - -- - - - - - - -

Iran 3 - 2 - - 1 - -4 - 1 1 - 2 - -

Lao People's Dem. Rep.

Malaysia - - - - - - - -4 - 2 - - - - 2

Maldives

Mongolia

Nauru

Nepal

Pakistan 1 - - - 1 - - -- - - - - - - -

Papua New Guinea

Philippines 13 8 3 2 - - - -6 2 1 - - - 2 1

Rep. of Korea 11 10 1 - - - - -- - - - - - - -

Samoa

Singapore 1 - - 1 - - - -1 - - 1 - - - -

Sri Lanka 2 - 1 - - - - 1 1 - - 1 - - - -

Thailand

Tonga

Socialist Rep. of Viet Nam

TOTAL 35 18 8 5 2 1 - 1 17 2 4 4 - 2 2 3

* The figures contained in this annex are extracted from the files of the International Bureau of WIPO, and relate to the year 1977 (except in the case of Singapore, 1972) which is the year for which figures have been given in the annexes. In this annex a dash means zero. Wherever WIPO has not received the relevant information, the spaces are left blank.

** The two-letter code used in this annex to designate certain countries is explained on page 2. In each column of this annex the first figure represents the number of applications filed and the second figure represents the number of patents granted.

Lakshrnan Kadirgarnar

Two-Letter Code for Countries

CN - China

HK - Hong Kong

IN - India

IR - Iran

KR - Republic of Korea

MY - Malaysia

SG - Singapore

35

36 Lakshman Kadirgamar

ANNEX V

TRADEMARKS APPLICATIONS FILED BY AND REGISTRATIONS GRANTED IN 1977* TO RESIDENTS IN, AND NON-RESIDENTS FROM COUNTRIES OUTSIDE, THE ASIA AND PACIFIC REGION ,

BROKEN DOWN ACCORDING TO THE COUNTRY OF ORIGIN* *

NON-RESIDENTS** * RESIDENTS

AR AU AT BS BE BR BG CA cs OK

Afghanistan

Bangladesh 515 - 1 - 3 - - - - 9 1 74 - 4 - 17 6 1 - 7 16 8

Bhutan

Burma

China

Dem . Kampuchea

Dem . People ' s Rep. of Korea

Fiji 45 - 40 - - - - - - - 3 19 - 25 - - - - - - - -

Hong Kong 1,302 6 91 4 15 10 4 - 18 2 8 466 - 30 2 22 11 - - 12 - 10

India 9,680 - 19 - - - - - 5 - -3,326 - 7 3 9 11 - - 5 8 4

Indonesia 4,302 - 60 4 - 5 5 - 1 4 7 6 , 128 - 53 2 - 12 1 1 8 1 15

Iran 1 , 224 3 3 19 - 4 6 - 7 3 24 549 3 14 13 1 5 3 - 13 3 15

Lao People's 4 - - - - - - - - 19 -Dem. Rep. 4 - - - - - - - - 19 -

Malaysia 1,687 1 82 8 7 11 2 - 4 1 7 461 - 51 2 16 8 - - 7 - 4

Maldives

Mongolia

Nauru

Nepal 124 - - - - - - - - - -92 - - - - 1 - - - - -

Pakistan 776 1 17 2 - 7 - - 2 4 2 390 - 9 1 - 2 - 2 3 17 1

Papua N. Guinea

Philippines 1 , 797 - 27 1 - - 3 - 7 2 7 746 - 10 2 1 - - - 3 - 3

Rep. of Korea 6,381 - 7 4 - 47 - - 5 - 3 2,508 - 3 6 - 4 - - 23 - 3

Samoa - - 10 - - - - - - - -1 - 6 - - - - - 2 3 -

Singapore 1,105 - 141 4 16 1 - - 18 - 29 383 - 37 1 9 10 - - 14 3 10

Sri Lanka 476 - 2 - 1 - - - - - -41 - 3 - - 1 - - 3 - 1

Thailand 3 , 338 2 - 44 - 7 4 - 5 2 67 1,815 - 2 21 - 7 1 - - 2 4

Tonqa

Socialist Rep . of Viet Nam

TOTAL 32,756 13 500 90 42 92 24 - 72 46 158 17 , 003 3 254 53 75 78 6 3 100 72 78

FI

--

--2 ----1

2 1

----

----

l l

----------

5 3

* The figures contained in this annex are extracted from Industrial Property Statistics, published b~ the World Intellectual Property Organization (WIPO} , and relate to the year 1977 (the latest year f or which such figures have been published } except in the cases of the Lao People ' s Democratic Republic (19" and Singapore (1972} . In this annex a dash means zero. Wherever WIPO has not received the relevant information, the spaces are left blank.

** In each column of this annex the first figure represents the number of applications filed and the second figure represents the number of registrations granted .

*** The two- letter code used in this annex to designate certain countries is explained on page 5.

Lakshman Kadirgamar 37

NON- RESIDENTS

FR DO DE GR HU IE IL IT JP LI

Afghanistan

Bangladesh 10 - 35 - - - - 9 38 -45 - 190 - 3 10 - 8 116 4

Bhutan

Burma

China

Fi ji 22 - 2 - - - 2 4 43 -5 - 3 - - - - - 2 4 -

Hong Kong 185 - 176 - - 6 - 61 296 27 114 1 105 - - 2 - 45 195 5

India 68 - 158 - 4 - - 32 38 -55 - 120 1 1 3 - 37 83 -

I ndones ia 132 1 202 - - 2 - 23 253 3 163 4 294 7 4 1 - 4 9 93 4

I ran 181 3 243 4 1 5 6 7l 137 4 195 - 236 4 3 2 7 65 1 09 5

Lao People ' s 16 - 0 - - - - 1 4 -Dem . Rep. 1 6 - 6 - - - - 1 4 -

Ma l aysia 88 11 199 - - 1 1 29 179 12 71 2 115 - - - - 16 145 1

Maldives

Mongolia

Nauru

Nepal - - - - - - - - - -1 - 1 - - - - - 8 -

Pak ista n 51 - so 1 4 2 - 24 42 -48 - 97 1 3 3 - 22 75 -

Papua N. Guinea

Philippines 70 - 108 - - 1 - l3 1 43 3 48 - 74 - - 1 1 15 110 3

Rep . of Kore a 140 - 300 - 35 872 68 - 139 3 25 253

Samoa 1 - - - - - - 1 10 -1 - 15 - - 10 - 1 19 -

Singapor e 74 - 163 - - 1 12 18 302 11 36 1 94 - 1 - 1 28 178 4

Sri Lanka 11 - 19 1 3 - - 19 40 -3 2 17 - - - - 5 35 -

Thailand 59 - 222 - 2 1 - 25 233 2 71 - 135 - 3 - 8 28 336 2

Tonga

Socialist Rep . of Viet Nam

TOTAL 1 , 108 15 1 , 883 6 14 19 21 365 2 , 630 62 940 10 1 , 641 16 18 32 17 3 45 1 , 783 28

38 Lakshman Kadirgamar

NON-RESIDENTS

LU MX t<L NZ NO PA PL RO ZA su ES

Afghanistan

nangladesh - - 5 - - - - - - - 1 - - 38 2 3 8 - - - - -

Bhutan

Burma

China

Fiji - - 3 12 - - 6 7

Hong Kong - - 52 4 9 14 1 - 4 - 33 2 - 27 5 2 15 1 - 9 - 14

India - - 30 - 4 1 - 21 1 24

I ndones ia - - 48 1 1 2 - - - - 17 - 4 85 3 7 4 - - - - 21

Iran 1 - 35 - 2 2 1 - 1 1 25 3 - 42 - 1 - 2 - 4 1 29

Lao People ' s Dern . Rep . - 1 - - - - - - - - -- 1 - - - - - - - - -

Mal aysia - l 29 5 l 1 5 - - - 4 - - 13 3 2 5 l - - - 3

Maldives

Mongolia

Naur u

Nepal - - - - - - - - - - -- - - - - - - - - - -

Pakistan - - 20 2 - 13 - l - - 22 - - 2 - l - - - - - 4

Papua New Guinea

Philippines - - 17 2 - - - 1 - - 25 - - 9 2 - - - - l - 10

Rep . of Korea - - 29 - l 39 - - - - 13 - - 1 0 - l 9 - - - - 8

Samoa - - - B - - - - - - 1 - - 35 30 - - - - - - -

Singapore - - 24 6 l 15 - - 3 - 6 - - 16 1 l 5 - - 2 - 2

Sri Lanka - - 26 - - 8 - - - - -- - 5 - - 1 - - - - l

Thailand - J. 28 - l 2 2 - - - 13 - 4 25 1 3 5 2 - 1 - B

Tonqa

Sociali st Rep . of Viet Nam

TOTAL l 3 346 40 16 96 9 2 8 l 164 6 9 334 54 21 52 6 - 17 2 124

Lakshman Kadirgamar 39

NON -RESIDENTS OTHER

TOTAL TOTAL

COUN-NON- RESIDENTS

SE CH GB us YU TRIES REST- PLUS NON-DENTS RESIDENTS

Afghanistan

Bangladesh - 14 79 81 - 16 302 817 11 99 636 487 - 5 1,724 1 , 798

Bhutan

Burma

China

Fiji 2 8 115 59 - 13 328 373 - 2 17 23 - 1 113 132

Hong :Kong 5 84 311 735 - 90 2,253 3,555 20 78 281 443 - 62 1,513 1,979

India 12 38 113 200 - - 721 10 , 401 20 81 121 256 - 6 878 4,204

Indonesia 9 62 156 441 - 398 1,837 6 , 139 21 130 356 814 - 231 2,389 8 , 517

Iran 12 124 206 4 25 2 22 1 , 585 2 , 809 20 113 216 4 53 - 31 1,612 2,161

Lao People ' s Dem . Rep . - 2 7 11 - 1 68 72 - 2 7 11 - 1 68 72

Malaysia 13 42 294 463 1 360 1 , 862 3 , 549 14 38 175 345 - 144 1 , 181 1 , 642

Maldives

Mongol i a

Nauru

Nepal - - - - - - - 124 - 2 7 27 - - 47 139

Pakistan 10 44 145 248 - 9 723 1,499 5 47 56 210 - 21 630 1 , 020

Papua New Guinea

Philippines 2 63 153 538 - 27 1,214 3,011 6 29 58 263 - 13 663 1 ,4 09

Rep. of Korea 20 131 221 784 - 24 2 , 675 9 , 056 24 180 287 275 - 15 1,336 3 , 844

Samoa - - 20 13 - 8 72 72 2 28 113 28 - 6 299 300

Singapore 8 87 273 481 - 232 1,926 3 , 031 4 40 169 296 - 84 1,047 1, 430

Sri Lanka !:) 17 80 105 - 12 34 9 825 - 8 20 31 - 1 137 178

Thailand 8 83 236 567 1 109 1 , 726 5 , 064 20 114 248 505 - 102 1,658 3,473

Tonga

Socialist Rep . of Viet Nam

·-

TOTAL 106 799 2,409 5 , 151 4 1 , 321 17,641 50,397 167 991 2,767 4 , 467 - 723 15,295 32,298

40 Lakshman Kadirg amar

Two- Letter Code for Countries

AR - Argentina AU - Aust ralia AT - Austria BS - Bahamas BE - Belgium BR - Brazil BG - Bulgaria CA - Canada cs - Czechoslovakia DK - Denmark FI - Finland FR - France DO - German Democratic Republic DE - Germany, Federal Republic of GR - Greece HU - Hungary IE - Ireland IL - Israel IT - Italy JP - Japan LI - Liechtenstein LU - Luxembourg MX - t-1exico NL - Netherlands NZ - New zealand NO - Norway PA - Panama PL - Poland RO - Romania ZA - South Africa su - Soviet Union ES - Spain SE - Sweden CH - Switzerland GB - United Kingdom us - United States of YU - Yugoslavia

America

Lakshman Kadirgamar 41

ANNEX VI

TRADEMARK APPLICATIONS FILED BY AND REGISTRATIONS GRANTED TO NON-RESIDENTS FROM COUNTRIES WITHIN THE ASIA AND PACIFIC REGION IN 1977*, BROKEN DO\VN ACCORDING TO THE COUNTRY OF ORIGIN**

'fOTAL CN FJ HK TN ID IR KR LA MY PK PH SG LK TH

Afqhanistan 16 4 - - - - - 2 - - 10 - - - -Bangladesh

5 - - - - - - - - - 5 - - - -

Bhutan

Burma

China

Dem . Kampuchea

Dem . People's Rep . of Korea

Fiji 12 1 - 2 3 - - 2 - - - - 4 - -1 1 - - - - - - - - - - - - -

Bong Kong 62 1 - - - l 1 1 - 6 - 7 40 - 5 43 1 - - 1 1 - 5 - 2 - 1 24 - 8

- - - - - - - - - - - - - - -India 4 1 - 1 1 - - - - - 1 - - - -

Indonesia 381 - - 298 3 - - 1 - 3 - 1 50 - 25 215 - - 59 4 - - 5 - 28 - - 99 2 18

26 9 - 5 10 - - 2 - - - - - - -Iran

28 8 - 9 7 - - 4 - - - - - - -Lao People 's 1 - - - - - - - - - - - - - 1 Dem. Republic 1 - - - - - - - - - - - - - 1

359 1 0 - 69 4 3 - 5 - - - - 247 - 21 Malaysia

137 24 - 32 2 - - - - - - - 70 1 8

Maldives

Mongolia

Nauru - - - - - - - - - - - - - - -Nepal 9 - - - 9 - - - - - - - - - -

13 2 - 4 5 - - 2 - - - - - - -Pakistan 21 15 4 - - - - 2· - -- - - - -

Papua New Guinea

24 3 - 15 - - - - - - - - 6 - -Philippines 12 1 - 5 4 - - - - 1 - - 1 - -

Republic of 28 4 22 - - - - - - - - 2 - -Korea 19 - 18 - - 1 - - - - - - - -Samoa 8 - 3 3 - - - 2 - - - - - - -

6 - - 6 - - - - - - - - - - -Singapore 60 - - 49 11 - - - - - - - - - -

36 - - 23 13 - - - - - - - - - -Sri Lanka 11 - - 2 3 - - 2 - - - - 4 - -

- - - - - - - - - - - - - - -

110 81 - 7 1 - - - 1 6 - 1 13 - -Thailand 96 77 - - 6 - - - - 1 - - 12 - -

Tonga

Socialist Rep. of Viet-Nam

TOTAL 1111 115 3 476 40 4 1 19 1 15 10 9 366 - 52 633 127 - 157 46 1 1 15 - 32 5 1 209 3 36

* The figures contained in this Annex are extracted from the files of the International Bureau of WIPO, and relate t o the year 1977 (except in the case of Singapore, 1972) whi ch is the year for which figures have been given in the Annexes . In this Annex a dash means zero . Wherever WIPO has not received the relevant information, the spaces are left blank .

** The two-letter code used in this Annex to designate certain countries is explained on page 2 . In each column of this Annex the first figure represents the number of applications filed and the second figure represents the number of patents granted.

42 Lakshman Kadirgamar

Two- Letter Code for Countries

CN China

FJ pj_ji

HK Hong Kong

IN India

ID Indonesia

IR Iran

KR Republic of Korea

LA Lao People's Democratic Republic

MY Malaysia

PK Pakistan

PH Philippines

SG Singapore

LK Sri Lanka

TH Thailand

Lakshman Kadirgamar 43

ANNEX VII

NUMBER OF PATENT APPLICATIONS FILED IN 1978 IN DEVELOPING COUNTRIES BY RESIDENTS

Country* Member Not ~!ember ("SE" shows that l<.w o f Paris of Paris Re- registration

requires substantive Union Union System examination)

Al geria 7

Argentina SE 1,574

BANGLADESH 27

Bahamas 4**

Bahrain 0

Barbados 4**

Bolivia 28

Burundi 0

Chile SE 132

Colombia SE 55

Costa Rica 27

Cyprus 0

Democratic Yemen 0**

Dominican Republic No data

Ecuador 27**

Egypt 77

El Sal vador 21

FIJI 3

Ghana 0

Guatemala 41 **

Haiti 9

Honduras 11

INDIA SE 1,324**

INDONESIA 9

IRAN 114

Iraq 28

Jamaica 10

Jordan 2**

Kenya 0

Lebanon SE No data

44 Lakshman Kadirgamar

Country* Member Not Member ("SE" shows that law

of Paris of Paris Re- registration

requires substantive Union Union System

examination)

Liberia SE 0

Libyan Arab Jamahiriya No data

Madagascar No data

MALAYSIA 0 **

to!alawi SE 1

Mauritius 3

Mexico SE 407

Morocco 23

NEPAL l

Nicaragua No data

Nigeria 6

OAPI 18

PAKISTAN SE 31

Panama 9

Peru 19

PHILIPPINES SE 129

REPUBLIC OF KOREA 989

Rwanda 0

SAMOA 0

Seychelles 0

Sierra Leone 0

SINGAPORE 2

Somalia 2

SRI LANKA SE 33**

Suriname 0

Swaziland 0

Syrian Aral> Republic 7

Trinidad and Tobago 4

Tanzania (Republic of) 0

Tunisia 5

Lakshman Kadirgarnar 45

Country* Member Not Member ("SE " shows that law

of Paris of Paris Re-registration

requires substantive Union Union System

examination)

Uganda 0

Uruguay 45

Venezuela 194

SOCIALIST REPUBLIC No data OF VIET-NAM

Zaire 3

Zambia SE 1

Total 3,579 1,938 9

* Countries in Asia and the Pacific are indicated i n capital letters .

** No figures available yet for 1978. Corresponding figures for 1976 or 1977 are given .

PROMOTING CREATIVITY AND INVENTIVENESS

by

Farag Moussa Head, External Relations Section , WIPO

P.relimiPary Questions and Summary

This discussion paper is intended to provoke comments and debate on what I consider as an introduction to one of the main items and objectives of the Workshop.

How do I understand "creativity and inventiveness" in the framework of this Workshop? On the one hand, it concerns only technological achievements (not other forms of human creativity), but on the other hand, such technological creations are not limited to inventions.

Technological innovation, or as I may sometimes call it here, simply ''innovation", is the term that I will be using in this respect . This term is used in a generic sense to cover all forms of technological achievements, whether they be technological creations or adaptation of existing technology, whether they are very simple gadgets of our daily life or sophisticated inventions of our nuclear age. In other words innovation covers here three concepts which have a special meaning in industrial property terminology , namely invention, innovation and rationalization, as well as a fourth concept, that of adaptation of technology.

In industrial property terminology, the term "invention" usually means a solution to a technological problem which is patentable because it is not only new but also involves an inventive step. On the other hand "innovation" usually means in industrial property terminology a solution to a technological problem which was not previously used in the enterprise itself even if it existed in other enter­prises and which need not necessarily involve an inventive step, while the term "rationalization" has more or less the same meaning but is used mainly in the Socia­list countr1es, and it may in addition cover solutions of a non-technical nature such as improvements in working procedures. On the other hand, the term "adaptation" does not have a specialized sense in the field of industrial property ; it usually means the modification of a known technology for new purposes or for a working environment which is different in respect of raw materials , labor skills and costs, climate, scale of production, available related technology, etc .

How do I understand the other part of the title of this subject, namely promotion? By promotion is meant any activity intended to stimulate innovation and encourage present and potential innovators. This term also covers any support action in favor of innovation. Activities designed to facilitate the implementing of innovation (marketing, exploitation) are also comprised in promotion.

I shall examine the subject of "Promoting Creativity and Inventiveness" in two Parts:

I The Problem : Why is it Necessary to Promote Creativity and Inventiveness in Developing Countries?

II The Basic Solution : What are the General Conditions for Creating a Favorable Climate to Promote and Encourage Technological Creativity in Developing Countries?

48 Farag Moussa

PART I

THE PROBLEM: WHY IS IT NECESSARY TO PROMOTE CREATIVITY AND INVENTIVENESS

IN DEVELOPING COUNTRIES?

"Our future lies in ideas, not in oil" is a correct saying you hear today in the Western countries. The same thought is expressed in a lively way in a recent French pop-song.

Why is it wrong to focus attention only or mainly on transfer of technclogy? It is true that the development of any country in the world--whether it be a developed or a developing country--depends on foreign and local technology; both are necessary and, to a large extent, complementary. However, I have noticed that in many developing countries the accent is often put on the transfer of techno­logy , or if you prefer on the acquisition of foreign technology. Fortunatel y, this erroneous trend has diminished during the past few years and developing countries are trying more and more to upgrade the other aspect of the problem of development, namely, indigenous technology based on local creative activity which of course includes the adaptation of foreign technology. We in WIPO have also placed emphasis on strengthening national capabilities in developing countries for the creation and adaptation of technology suitable to their needs, and, therefore, on innovative activity.

The present situation in developing countries is dramatic and needs to be changed. If we consider only inventions, we are forced to admit that hardly any (1 to 5 %) of the annual 350,000 inventions created in the different parts of the world originate from developing countries, although they represent 75 % of the world population.

However, does this mean that nationals from developing countries just cannot create? I am convinced of the contrary :

(i) the figures which I have mentioned are limited to the inventions patented in the developing countries by nationals of these countries . One should add the inventions which (for several reasons) have not been patented and the other technological innovations, particularly at the enterprise level ;

(ii) there are a great number of scientists from developing countries engaged in research activity in developed countries and who have participated actively in the creative process of technology in these developed countries . Many are famous inventors. Here we touch on the problem of the so- called "brain drain" from developing countries.

Even if the overall situation is still far from ideal, I am nevertheless con­vinced that there is great creative potential in developing countries that could be harnessed and brought to fruition in a very short time if certain steps were t aken .

The advantages would be many and of great interest to the country as a whole . Indeed, technological development--which is the final result of creativity and inventiveness - -is beneficial to so many parts of society . For instance :

(i) the enterprise will obtain greater profits by lower costs and increased sales;

(ii) the workers may find more employment (innovation can be conducive to employment), can obtain higher salaries, may work under better security and cleaner environmental conditions;

(iii) the consumers will obtain new products, and hopefully of better quality, at lower prices, etc.

PROMOTING CREATIVITY AND INVENTIVENESS

by

Farag Moussa Head, External Relations Section, WIPO

Preliminary Questions and Summary

This discussion paper is intended to provoke comments and debate on what I consider as an introduction to one of the main items and objectives of the Workshop .

How do I understand "creativity and inventiveness" in the framework of this Workshop? On the one hand, it concerns only technological achievements (not other forms of human creativity), but on the other hand, such technological creations are not limited to inventions.

Technological innovation, or as I may sometimes call it here, simply "innovation", is the term that I will be using in this respect. This term is used in a generic sense to cover all forms of technological achievements, whether they be technological creations or adaptation of existing technology, whether they are very simple gadgets of our daily life or sophisticated inventions of our nuclear age. In other words innovation covers here three concepts which have a special meaning in industrial property terminology, namely invention, innovation and rationalization, as well as a fourth concept, that of adaptation of technology.

In industrial property terminology , the term "invention" usually means a solution to a technological problem which is patentable because it is not only new but also involves an inventive step. On the other hand "innovation" usually means in industrial property terminology a solution to a technological problem which was not previously used in the enterprise itself even if it existed in other enter­prises and which need not necessarily involve an inventive step, while the term "rationalization" has more or less the same meaning but is used mainly in the Socia­list countries, and it may in addition cover solutions of a non-technical nature such as improvements in working procedures. On the other hand , the term "adaptation" does not have a specialized sense in the field of industrial property; it usually means the modification of a known technology for new purposes or for a working environment which is different in respect of raw materials, labor skills and costs, climate, scale of production, available related technology, etc .

How do I understand the other part of the title of this subject, namely promotion? By promotion is meant any activity intended to stimulate innovation and encourage present and potential innovators . This term a l so covers any support action in favor of innovation . Activities designed to facilitate the implementing of innovation (marketing, exploitation) are also comprised in promotion.

I shall examine the subject of "Promoting Creativity and Inventiveness " in two Parts:

I The Problem : Whyis it Necessary to Promote Creativity and Inventiveness in Devel oping Countries?

II The Basic Solution: What are the General Conditions for Creating a Favorable Climate to Promote and Encourage Technological Creativity in Developing Countries?

48 Farag Moussa

PART I

THE PROBLEM: WHY IS IT NECESSARY TO PROMOTE CREATIVITY AND INVEN'I'IVENESS

IN DEVELOPING COUNTRIES?

"Our future lies in ideas, not in oil" is a correct saying you hear today in the Western countries . The same thought is expressed in a lively way in a recent French pop-song.

Why is it wrong to focus attention only or mainly on transfer of technclogy? It is true that the development of any country in the world--whether it be a developed or a developing country--depends on foreign and local technology ; both are necessary and, to a large extent, complementary. However, I have noticed that in many developing countries the accent is often put on the transfer of techno­logy, or if you prefer on the acquisition of foreign technology. Fortunately, this erroneous trend has diminished during the past few years and developing countries are trying more and more to upgrade the other aspect of the problem of development, namely , indigenous technology based on local creative activity which of course includes the adaptation of foreign technology. We in WIPO have also placed emphasis on strengthening national capabilities in developing countries for the creation and adaptation of technology suitable to their needs, and , therefore, on innovative activity.

The present situation in developing countries is dramatic and needs to be changed. If we consider only inventions, we are forced to admit that hardly any (1 to 5 %) of the annual 350,000 inventions created in the different parts of the world originate from developing countries, although they represent 75 % of the world population .

However, does this mean that nationals from developing countries just cannot create? I am convinced of the contrary:

(i) the figures which I have mentioned are limited to the inventions patented in the developing countries by nationals of these countries. One should add the inventions which (for several reasons) have not been patented a nd the other technological innovations, particularly at the enterprise level ;

(ii) there are a great number of scientists from developing countries engaged in research activity in developed countries and who have participated actively in the creative process of technology in these developed cou n t ries . Many are famous inventors. Here we touch on the problem of the so- cal l ed "brain drain" from developing countries.

Even if the overall situation is still far from ideal, I am nevertheless con­vinced that there is great creative potential in developing countries that could be harnessed and brought to fruition in a very short time if certain steps were taken .

The advantages would be many and of great interest to the country as a whole. Indeed, technological development--which is the final result of creativity and inventiveness--is beneficial to so many parts of society. For instance:

(i) the enterprise will obtain greater profits by lower costs and increased sales;

(ii) the workers may find more employment (innovation can be conducive to employment), can obtain higher salaries, may work under better security and cleaner environmental conditions;

(iii) the consumers will obtain new products, and hopefully of better quality, at lower prices, etc.

Farag Moussa

PART II

THE BASIC SOLUTION: WHAT ARE THE GENERAL CONDITIONS FOR CREATING A FAVORABLE CLIMATE TO PROMOTE

AND ENCOURAGE TECHNOLOGICAL CREATIVITY IN DEVELOPING COUNTRIES?

49

In this paper, I shall limit myself to this basic question and to its answer . Many other problems and solutions will be discussed in several other papers presented at the Workshop in the framework of this and other topics, including a second paper by myself.

A preliminary remark. In my personal view, the accent ~·· developing countries should be placed not on the inventors (who are known to be few) but on the innovators in general and more particularly on the future and potential innovators .

A basic condition is to increase the technological awareness of the youth and the public at large. Extending access to education and raising its level throughout the population is a must, as it gives an opportunity for a greater number of capabilities to appear and to be developed . However, this is not a sufficent condition. What is more important is that educational systems should be oriented in such a way as to stimulate creativity in general and technolo­gical creativity in particular. Therefore, it is not sufficient that more emphasis be placed on the teaching of scientific disciplines, it is necessary that this teaching, as well as the teaching of all disciplines, be based on the discovery of knowledge and the development of critical attitudes rather than on the more passive absorption of knowledge, as is often the case in developing countries .

On the other hand, the technological awareness of the young generation and t he public at large must be continuously developed. Among the measures used by a number of countries I can mention the following: the publication of a greater number of books to popularize science; the adoption of radio and television programs on science and technology; the creation of technology museums in different parts of the country; the establishment of science and technology clubs for youth; the organization amongst students of exhibitions and competitions related to science and technology followed by awards and prizes, etc .

Another important condition to create a favorable climate for innovation is that government authorities should have confidence in the abilities of their nationals . Unfortunately, this is generally not the case in developing countries . Moreover, these authorities often consider that the process of technological creation is the exclusive preserve of developed countries, and that developing countries should copy or simply import complete solutions from the developed countries . A similar attitude is adopted by the technical people and bodies responsible for taking decisions as to where to contract for the different kinds of work involved in a project . They also tend to turn to experts or enterprises from developed countries . At both levels--governmental and technical--the reasons advanced are often related to efficiency: foreign enterprises, they say, afford a better guarantee of success. These people will praise the advantages of transfer of technology but few will speak of the negative aspects of such transfer and certain of its unwanted side-effects. What is important here after all is the final result of the attitudes I just mentioned. Nationals , even if they are highly creative, do not have access to important problems of scientific or technological nature in their own country. They are no more than spectators. They just watch foreign enterprises set up their machines. What happens to those people? Either they stay in the same environment and become perfect bureaucrats, or they emigrate to countries where they have a chance to use their creativity .

How can one create a more favorable climate for innovation in developing countries? I think that we must first remove what I bluntly call inferiority complex, which many of us suffer from. We must rule out any idea of the capacity of some and the inaptitude of others. Science and technology are not, as some are inclined to think, the prerogative of the West or of the developed countries

50 Farag Moussa

in general. History shows that many of the greatest discoveries were made by the Chinese, the Arabs, the Indians and other ancient civilizations . It is essential for the people in the developing countries to hear about the contributions which were made in the past by their nationals to the development of technology. They should also be aware of the efforts which are being made at present in that field in their own country, however negligible they may seem, not to mention the important role played by inventors and innovators from developing countries working in Europe and in the U. S.A . The national inventors should be rewarded and encouraged and their names should be publicized so that they be known to the public at large . All over the world pop and folk singers as well as big stars in football and in other sports are considered as national idols, while inventors are very much ignored . Nevertheless, in developed countries the inventors get at least some glory i .n their own small way . The trouble with the developing countries is that the gap is even broader to the extent that the inventors get no publicity at all, or hardly any .

Once again I must insist on the necessity of encc~raging financiall y and morally any creative effort however small it is . Small inventions are often misunderstood and even despised. This is a negative attitude which is particu­larly destructive at the present stage of the technological development in the developing countries. History shows that the origin of brilliant ideas is often the modest innovation. Daily life proves that many larger inventions are ina­dequate without the assistance of small inventions . For example , the extraordi­nary development of innovation in Japan cannot be separated from the thousands and thousands of gadgets which have flourished in that country .

But in the final analysis the question is how to help potential innovators to conduct their research. One of the most efficient methods adopted in some countries is the following. The Government encourages and finances what is often called a major project, that is to say a project that aims to solve an important problem which is specific to the country ' s conditions and needs . such a project galvanizes the minds and efforts of a maximum number of potential innovators in the country , particularly researchers , and applies them to the same problem. It also encourages the development of the technical and innovative capacities of many other people (assistants, etc.) who work with them on the same project.

To make a long story short, there should be a general policy to promote local innovations . Arrangements for the promotion of innovation commonly provide the innovator with, on the one hand, rewards for his achievement , such as: (i) recog­nition of authorship (ii) legal rights, (iii) money , (iv) opportunities to be associated with the development and exploitation of his innovation, and to make new professional contacts, in his own country or abroad . On the other hand, arrangements for the promotion of innovation provide the innovator with such forms of support as : (i) advice and training, (ii) working or research facilities , (iii) access to technological information, and (iv) assistance in protecting and exploiting his innovation, such as assistance in patenting , or introductions to potential licenses or investors.

Such problems will certainly be discussed in detail in the next two sessions when we wili examine the subject of "Assistance and Incentives to Inventors by the Government and the Private Sectors". The discussion will be pursued in the frame­work of the two sessions on the "Role of Industrial Property Laws in Promoting Indigenous Inventive and Innovative Activity" and to a certain e xtent on the occasion of the last session of the WorkshoR which will be centered on the "Role of Inventors ' Societies" . Again this discussion paper was intended to be a sort of introduction to the subject and I have tried to focus attention not on inventors and inventions, but on innovations and innovators in general and more particularly on future and potential innovators.

PROMOTING CREATIVITY AND INVENTIVENESS

by

Dr . Soledad L . Antiola Director

Science Foundation of the Phil ippines

It is an honor and privilege to have been given the opportunity to share with you the knowledge and experiences of our Philippine System in encouraging the cultivation of the capabilities for creativity, inventiveness and innovativeness among our people . The aim of this workshop, I understand, is the promotion of creative intellectual activity and the facilitation of transfer to developing countries of technology related to industrial property . The workshop should , therefore, be able to bring into clear perspective the concepts and policies , as well as national programs, strategies and systems for promoting the applica­tion of science and technology towards a unified approach of the societal and industrial development of the region.

This paper evolves on the basic concept that : promoting the development of the capabilities for creativity and inventiveness is the essence of science­technology promotion for development.

I venture to start this paper with the premise that we, here present, accept this concept as our point of entry into the elucidation of the workshop theme. Given this concept as a frame of reference , I would like to venture suggesting further concept No . 2 that : promoting the development of capabilities for intel­lectual creativity and technological innovativeness takes due accoun t of the overall picture of the development needs of the area, in general, and the individual circumstances and experiences, including the socio-cultural orienta­tions, of each group or country in the region . Acceptance of these two concepts is imperative because of changing values towards development, as is happening especiall y here in the Philippines. Rationalizing the concepts , Philippine planners have seen to it that our development program thrusts demand a corres­ponding implicit redefinition of technological packages, and hence a continuing assessment of our educational concerns.

When we speak of promoting the development of the capabilities for creativity1

and inventiveness,2 our mind readily brings up certain vital questions the answers to which may well clarify the issues and strategies of national development ; indeed the development of Third World countries in the Asian and Pacific region . Why do we need to develop a program for the formation of capabilities for creativity and inventiveness? How do we proceed in promoting the development of these capabilities? In the context of development, these questions must perforce relate to the complex of factors that bring about change and growth. In fact, creativity is popularly defined on the basis of ecological factors affecting and facilitating or inhibiting intellectual growth and creative experience in context . This conditions makes possible the identification of the network that channels the thrusts for development .

1creativity is the series of behavioral reactions and therefore processes of becoming sensitive to problems, deficieP-cies, gaps in knowledge, missing elements , disharmonies, etc ., identifying the difficulty, searching for solutions, making guesses or formulating hypotheses and finally getting the desired results and communicating them (To.rrance 62). When spelled out in particulars or when operation­alized , creativity results in a "generalized constellation of intellectual abilities, personality variables and problem-solving traits" (Ausubel 63) .

2Inventiveness refers to the capacity to imagine, conceive and produce something or a process. In an article entitled "The Art and Science of Inventing", Gilbert Kivenson writes that inventiveness can be taught. According to him, people can learn certain techniques that will stimulate their thinking and ability to solve problems. It is simply a matter of identifying the problems, listing down the attributes of each and generalizing ideas which can be formulated into practical solutions .

52 Dr. Soledad L . Antiola

Why Do We Need a Deliberate Program on Creativity and Inventiveness

A review of the Philippine pattern of creative and inventive achievements in relation to development goals deserves special consideration . First, acquiring the relevant perspectives is not anymore the sole prerogative of the designated official planners . The Filipino youth have now arrogated unto themselves the responsibility of also undertaking analysis of such scenarios . Thus, youth involvement in significant national undertakings is not only recognized and sought after but also considered crucial to national survival . Second, in setting policy guidelines for creative pursuits the Philippine planners have not lost sight of pressing constraints which may shift from chronic to critical if unheeded. These are: (1) the rapid socio-cultural adjustments accompanying the unabated increase o f population; (2) the extraneous pressures accompanying the surge of technological packages claiming instant improvement in the conditions of our people .l (3) the state of the physical environment whose evident deterioration has resulted from our economies and industrial activities.2

We acceptthatgrowth now relies heavily on the propelling force of Science and Technology . Unexpectedly, man ' s works have created problems that he hardly can now cope up with. And so, we in the developing countries are awakening to stark reali­ties of the dangers of unregulated, undirected technological advancement. We, in this region, must intelligently re- examine our options .

Our President and Prime Minister Ferdinand E. Marcos put this aptly in this manner:

"We are all in need of a redefinition of what we want development to achieve , what development strategies to pursue, what new life styles to evo l ve . The world is waking up to the failure of the old systems and development models, where material wealth alone was equated with the good life, and the power of wealth was used to perpetuate selfish interest .

"Failure in the development efforts of underdeveloped societies were explained away by a lack of financial resources, or the absence of political will, or the inadequacy of technological capability . But this famil i ar analysis conceals the fact that it derives from a particular concept of development and a development model that are tied to Western experiences, and that sustain the present system of in­equality in the global family of nations . "3

In our struggle to develop our respective countries and provide the desired quality of life of our respective peoples, we need the talents that would insure the satisfaction of our development imperatives . And when I say talents , I mean none other than our very own native talents, the indigenous ta lents that only we and we alone shoul d tap and develop towards the leadership as demanded in our regional development .

1 "AID agencies are changing their methods to avoid undermining the economies of the countries they are trying to help ... This bout of soul - searching is a coup for the London-based International Institute for Environment and Development . The institute, worried about what AID prograrrswere doing to Third Worl d countries set out to convince the highest spenders to change their ways ... Brian Johnson, Senior Fellow of the Institute in charge of the project, says : ' AID has done and is doing a great deal of damage in a good cause. Third World countries are heading for a crisis and some projects are accelerating it , ... " OBSERVER - Times Journal 17 March 1980.

2Antiola, Soledad L. "Finding Directions for Public Understanding of Science and Technology on Environmental Issues." Proceedings. Seminar-Workshop on Science and Environment . Philaas. 27-29 October 1979 Manila .

3Marcos, Ferdinand E . "Our Vision of Human Settlements," The Philippine Quarterly, June 1976 , Vol. 8, No . 2 , p . 4.

Dr. Soledad L. Antiola 53

Based from our experience, therefore, we in the Philippines, have endeavored to inject humanism in development. Development, to us, is development of man and for man in his totality within his holistic environment. Thus, we have sought the application of Science and Technology in so far as they are relevant to our particular conditions , our nature as a people, and our national problems and needs. Too , in our development efforts we have sought to make Science and Technology a living part, a vitalizing ingredient in our daily social and cultural milieu.

I am inclined to believe that Technology not Science, is selective of the social medium which it must harmonize with ; and when it does, it imposes certain constraints. One will tend to exert influence upon the other until both struck a micro-environment where incongruencies operate the least. This leaves the macro­environment unfortunately, to absorb the brunt of its non-concern . The affected social medium, if alert enough will certainly resent if not push away and reject the unwanted technology. What is obviously undesired is the insistence and forcible penetration. We have witnessed the concomittant social , cultural, political as well as environmental upheavals and the resultant undermining of our economies caused by the stealthy entry of multinationals. On the other hand , i f only we keep in mind all the time that Science is the redeeming comptemt of Technology, then we, in this part of the world can still hope to resolve the morass we are steeped in. We can have the assurance that the tools and apparatuses of technoscience shall inescapably belong and be a part of our society, because they shall have become the society's industrial property.

At this point, allow me to be emphatic about the indigenous resource which is, no other than the nation's manpower starting from the tender age when it can compre­hend. During the era before Science and Technology acquired an accelerated pace , the responsibility of inculcating the virtues of creativeness and inventiveness in the youth resided in formal education . It was then relatively simple. Likewise, the carry over to the home and the community was an implied outcome .

But alas, the continuously over-loading of the school program starting a decade or two ago has betrayed symptoms of critical malfunctioning of the system itself . The organizational structure of formal education being in conformity with the tenets of bureaucrary has strengthened its regimentation . Deprived of the needed flexibility, the educational program cannot anymore be that effective in teaching the youth to cope with the continuing rise in transience, novelty and diversity of scientific knowledge and technological modules. Then , too, the condition is aggra­vated by the rapid onset of their obsolescence.

If the youth are to continue and they have to, with the ascribed role of being the delivery medium for Science and Technology, their skills, attitudes, and capabilities for creativeness and inventiveness must be re-strengthened . What they urgently need is a vitalizing of their dissipated skills and capabilities for human communication, social integration, self-discipline and future-mindedness .

The Schumacherian approach to development has begun to revolutionalize our thinking in many circles in terms of how we might work to package technology workablP and r.ompatible ~ith our devolopment requirements . l Manuel S. Alba, one of the country ' s leading economists, le.ans back to his spectrum of Scienc<:! and Technology Research and Development whenever he elucidates on his concept of a national science policy. His spectrum has sectors starting with research, then development, then production, distribution ~nd lastly u~1llzation. It is in the last sector, utilization, of the spectrum where the people are affected most. It is at this point when Technology packaqes as introduced are either accepted , rejected or adapted. It is therefore at this point where the masses of the population should be made literate about Science and Technology.

1Alba , Manuel s . "Imperatives of Science and Technology in Societal Transforma­tion", A Paper delivered at the Expert Group Meeting on "Science and Society" organized by the Science Foundation of the Philippines and the Society for the Advancement of Research at Los Banos, Laguna, June 28-29, 1978.

54 Dr. Soledad L. Antiola

The school must not anymore be expected to undertake the total responsibility of education. The national planners realizing this, mandated the Science Foundation of the Philippines (SFP) in 1952 to undertake the responsibility of mobilizing its efforts and remedying the lag . It was also at about this time when Unesco (Paris) announced its philosophy of life-long education and that in-school education and out-of-school education must be given equal access to benefit from a nation's resources. With this premise, SFP proceeded and planned out its program of Out-of-School Science Education (OSSE); and thus, the Philippine Scheme.

How Do We Promote Creativity

The Five-Year Philippine Development Plan, 1978-1982, which has provisions for continuity into a Ten-Year Development Plan, 1978 - 1987, spells out a development framew0rk whose goals and policies lay stress on a strategy for growth and human resources development in which Science and Technology play a major role. 'iloe policy for Science and Technology is stated thus:

"The development and wide-scale application of Science and Technology will be promoted especially in the fields of research, local inventions and adaptations (underscoring mine) . Technology transferred from developed countries will be adapted to the needs of domestic development. Priority will be given to the dissemination and commercialization of scientific research results."!

We have just had the insight that formal education has diminished in its influence and effectiveness as the delivery system in the rounded inculcation of capabilities for inventiveness and creativeness in the youth. Their mentors --the teachers-- have faithfully undertaken their mission to serve as the medium for communicating with the youth. But like the system itself, they too need revitalizing at this period of time.2

The youth group has continued to be the focus of SFP efforts . There are several reasons for this: Firstly, the youth are supposed to be in school. The Science and Technology information they acquire in the classroom is the basis for continuing their acquisition of knowledge, capabilities and skills outside the school. Secondly, their free time of approximately 12 % of their 24 hours a day may readily be spent in their involvement and active participation in OSSE. Thirdly, being in the plastic stage of their development, coupled with their overflowing energy and love for adventure, they are easy to recruit into homogenous situational groupings. Fourthly, in this era of unprecedented societal transformation, the youth must be properly and adequately equipped for their future role of adulthood and leadership.

The Philippine System

The Philippine experience points to the fact that there is no substitute for encouraging and developing creativity in the early age of youth . Hence, through its out-of-school education strategies SFP endeavors to expose the Filipino youth to the theories and processes of technoscience. As these youths join science clubs they learn the scientific method of observation and investigation. They undergo actual experiences in scientific research a nd invention; they under­take investigatory projects and enter these pro7Acts in s~ienre coropetitions.

1Five-Year Philippine Development Plan, 1978-1982, pp. 1-11.

2Antiola, Soledad L . "The Need to Professionalize Out- of-School Science Education," Asian Regional Seminar. The Promotion of Public Understanding of Science and Technology. Unesco 25 September-2 October 1972 . Manila, pp. 81-85.

Dr . Soledad L. Antiola 55

In the scheme of pLOm0ting the development of the capabilities for creativity and inventiveness, the Filipino youth are identified altogether in Youth Science Clubs. Located in school or in barangays all over the country are some 2,244 affiliated and 1, 745 non-affiliated science clubs with membership of 92,559 and 94,528 respectively. The SFP target is to recruit within the science club fold at least one-half of the total Philippine youth population of 9 million. The other half is left to be reached by the other discipline : arts and humanities. The target within the 10-year time frame (1970-1980) of organizing and vitalizing at least 100,000 science clubs at 30-50 youths per science club has not been reached though. Only the Science Clubs that are actively functioning are recognized. This recognition has served as an incentive to the science club members. If they are granted affiliation with the science club movement 's national coordinating body --the Philippine Society of Yough Science Clubs (PSYSC)-­it means that they are active . An affiliation means that they are extended benefits in the form of sponsorship of their participation in numerous Science Club activities on the national level . To become one of the President's Top OutstandingYoungScientists (TOYS) has become their aspiration.

A science club is the organizational unit in the PSYSC communications network. Science Club terminals located in each of the SFP regional centers serve as the coordinating points of the regional Science Clubs c hapters

Proclamation No . 1895 declaring September every year since 1979 as Science Club Month is a clear manifestation of the concern of no less than His Excellency, President Ferdinand E . Marcos for youth development towards Science and Technology1 . The proclamation has strengthened the network ; it also has served as a recycling loop in the Science Clubs projects.

Communication coordinated by PSYSC flows up and down through the organizational network locally, regionally and nationally; and to and fro along a particular level. Points of contact are strategically located throughout the country . This well­defined communications structure of the science clubs is what I believe, gives strength to the science clubs .

SFP has developed tools which the science club members use in their investiga­tory projects. In the process of using these tools , the science club members unconsciously internalize the qualities characteristic of creativeness and inven­tiveness. The more they use a Science Club tool or tools , the keener the desired behavioral qualities become manifest and the deeper the creative and inventive personality gets actualized .

Through the guidance of their respective science club advisers the tools are regularly used after school hours . With the use of these tools, an alert science club adviser easily discerns their behavioral development through the experiences undergone by committed science club members. By means of investigatory studies, their members easily go through the series of experiences manifesting the personality characteristics, namely: awareness , interest, understanding, accep­tance and application . During their conduct of investigatory activities, the science club members simultaneously receive scientific orientations .

What are these science club tools by the way? Ordinarily , a tool is an implement or a devise for doing something or undertaking a purpose. In the science club lingo, the tools are the Science Fair, Science Quiz, Science Camp, Science Journal ism and Environmental Watching. A series of Science Fairs--horizontal or vertical-- or Science Quizzes, etc .. becomes the delivery vehicle in the Science Club communications system.

A science guiz is a brain game on applications of scientific laws and theories to the solution of everyday problems or of development project as they relate to local situations . With this tool, Science Club Members develop their mental alertness, analysis ability and deciskon-mak~ng capability .

1Presidential Proclamation Number 1895. Declaring September of Every Year as Science Club Month. Manila, 4 September 1979.

56 Dr . Soledad L. Antiola

A science camp which is a learning situation in scientific research and developmental activities, enables science club member- participants with the help of specialists in the field, to assess actual conditions of a community , identify its problems, its resources and available manpower, and then come up with research proposals on the community ' s development .

Science Journalism develops the science club members' writing talents for communication and information work . Some science club regional chapters have their own science Newsletters published regu~arly to cater to the information needs of their members, their communities or regions. Some industrial concerns sponsor the printing of these newsletters.

Environmental Watching aims to expose Science Club members to environmental problems and issues. They monitor such environmental situations to agencies or entities concerned . This results in forging linkage projects with the agency or entity concerned. Such project requires a time stretch which ends with the conservation, improvement or retention of the natural situation required.

The Out-of-School Science Education Laboratory (OSSEL) is a community social laboratory where science learning activities are geared towards economic productiv­ity. OSSEL also is the major research base for the SFP program. Its focus is on how techno-science can become a way of life among identified sectors .

The OSSEL science club members are mostly school leavers . On the other hand, the science club members who participate in the vertical Science fairs and Science quizzes are school youth ranging from the lower through middle level, to the early uppe r level of education . The science camp participants are gtuerally both in­school and out- of-school club members.

A tool becomes more meaningful if used in a series. The organizational network comprising science club chapters throughout the country, makes possible the series. For examples, there is the vertical series of science fairs fr0~ local, provincial to regional, to national level . A complete series has a time frame of one year. The series repeats itself from year to year. The horizontal series is still being developed by the Science Foundation of the Philippines (SFP) through its social laboratories, the Out-of-School Science Education Laboratories.

The number of Science Club members who participate in the yearly series - local, regional to national - tapers off and culminates in the identification and selection of Ten (10) Outstanding Young Scientists (TOYS) . These Ten Outstanding Young Scientists are acclaimed through Presidential Awards. From hereon, various entities come in to take over. So that what is an output of the SFP program becomes an input of for examples, the Philippine Inventors Commission (PIC), the Society for the Advancement of Research (SAR), or the universities that link with SFP, and in the near future, the Tuklasang Agham ng Pilipinas (TAP) or Philippine Science and Technology Museum (PSTM) . l At this point, SFP takes pleasure in offering to the sponsors and participants of this workshop the facilities of TAP (PSTM) to be the showcase for industrial property for the region.

S U M M A R Y

Through the NSDB-SFP Out- of-School Science Education Program we have succeeded in evolving a system and appropriate schemes for developing the capabilities for creativity and inventiveness now widely used in our country. The system has been designed to enable our youths, especially the science-inclined, to internalize the quality of creativeness. The Filipino youth is continually given the environ­ment for developing the attitude of mental alertness and cri~1cal th inking hand in hand with the acquisition of skills for innovativeness .

1 Indeed, I take pride in saying that of the products of our youth science fairs, a number have found their way into the Festival of Philippine Inventions, competing with professionals for national honors . In 1979, during the first Festival of Philippine Inventors, at least 40 science fair projects were presented

, in ' the competitions. One of the science club members, Peter Paul Calderon of the U~iversity of the Philippines Rural High School, in Laguna , garnered one of the PIC major awards for his project en~itled "Slide Rule for Preparing Insecticide/ Pesticide Mixture" .

Dr. Soledad L. Antiola 57

So, in ~ his educatio na l t e c hno logy package , t he r a w materia l s are t he youth­science club members; the finished products are the science club members whose orientation towards Science and Technology has become internalized, using as their means their investigatory projects and the science club tools. The workers or welders of the tools are the science club advisers. The assembly line is the science club organizational network . The management is the PSYSC jointly with SFP.

Youth science activities are a combination of l earning and communicating. The system takes on the nature of a theoretical communication process in which the message, PUSTE, is transmitted by the science clubs through a channel, the science club national organizational network, and is sent to the targeted receivers located in the science club terminals. The feedback, the quality of which is determined through OSSEL researches, constitutes the Science and Technology orientation and societal changes resulting f rom the peoplesexposure to the science club activities, part~~· . l arly the pe rso na li t y i ndicat i o ns f o r creat ivi t y and inventiveness.

Philippine Offerings

It may have been noted at this point that the Philippine System in science­technology promotion which subsumes the development of capabilities of creativity and inventiveness geared towards development can very well serve as a model. NSDB/SFP offers it gladly to the sponsors and the Asian and Pacific countries.

Also NSDB/SFP reiterates offering with pride the facilities of the Tuklasang Agharn ng Pilipinas (TAP) as a show window for the region ' s industrial property .

It took the program a good 10-15 years before NSDB/SFP could proudly say that the Philippine System has acquired the much~needed institutionalization. The extended time-frame was caused by one big drawback - the lack of well-trained committed science promoters or science club advisers who are agents of development in this case . This kind of training went hand-in-hand with the program development . NSDB/SFP gives you this third offering, i.e., its training facilities, expertise and model for training science club advisers.

ASSISTANCE AND INCENTIVES TO INVENTORS BY THE GOVERNHENT SECTOR

by

Farag Moussa Head, External Relations Section, l<HPO

Preliminary Remarks and Summary

This discussion paper will try to focus attention on certain general aspects of the problem only, while the next paper , prepared by Mr . Santillan, will deal more particularly with t he Philippine experience .

Although the general title of these two discussion papers concerns "Assis­tance and IncenrivP.s to Inventors ," the term inventor will be u nderstood to in ­clude all technological innovators . Otherwise , in several developing countries, such assistance and incentives will be limited to a handful of persons. Moreover, I will also include potential innovators .

Here I will consider the legal and institutional aspects of the problem . and they will natur~llv be viewed mainly in the international perspective . On the other hand , ~VIPO being an intergovernmen tal organization , this paper will concern more the government sector than the private sector.

I shall examine this subject in three Parts :

I How Patent Law ~nd the Legal Framework in General Can Encourage the Promotion of Innovation in Developing Countries

II Why and How Industrial Prooerty Offices and Other Governmen t Insritn­tions Should be Involved in the Promotion of Innovation

III How WIPO is Dealing with the Promotion of Innovation in Oevelooing Countries

PART I

HOloJ PATENT LAW AND THE LEGAL FRA~~WORK TN GENERAL CAN ENCOURAGE THE

PROt-lOTION OF INNOVATION IN DEVELOPING COUNTRIES

In my first paper, I mentioned in passing that full recognition of authorship and legal rights should bP en~urPd to inventors and other innovators . I mean that an adequate legal framework to promote and secure activities conducive to invention and innovation is essential .

Inventions

A fundamental question arises at the outset : is the grant of a patent a sufficient incentive for innovators? In my view . the answer is yes in respect of inventions, but often onl v to a certa i.n extent ; and no when vJe are faced with other forms of technological innovation . Let us consider these two main points in detail.

Everyone agrees that the grant of a patent is an excellent incentive in as much as the national inventor is rewarded morally and materially in t-he following manner: on the one hand, his authorship of the invention is recognized through the grant of the patent, in which he has the right to be named; on the other hand, his patent creates a legal situation in which his invention can normally only be

60 Farag Moussa

exploited--that means made, imported, sold or used--with his authorization during the period of protection, which is generally 15 to 20 years . However, all this is insufficient. Why? I shall examine three cases: the employee inventor, the independent inventor and the author of small inventions.

The present laws often do not cover the inventions made by employees. These constitute the majority of inventions or potential inventions (however few they are) created today in developing countries following the growth of industrialization and the development of research centers in these countries. The usefulness of employees' inventions is also growing, because inventions created in the course of normal work operations have a greater likelihood of being developed and utilized, since they are more often the kind of technical inventions which are capable of solving speci­fic problems faced by the enterprise. To encourage both investment in research and innovative activity, developing countries should adopt either in the patent law itself or in other laws, provisions on employees' inventions which regulate the relations between the employer and the employee who has made an invention in the course of his work.

Now what about the independent inventor, who could also be called the freelance or amateur because he works on an invention on his own or even as a hobby? In developing countries some have not even the financial means to file a patent appli­cation, while others may neither have the possibility of bringing into being their invention nor the opportunity, of course, of commercializing it. The monopoly created by the patent system becomes, therefore, nothing more than a wishful think­ing. Can the patent law assist in this respect? To a certain extent certainly. For instance, the patent law of Iraq includes provisions which assist national inventors by subsidizing the cost of patent applications in appropriate cases and by granting financial rewards to the national authors of inventions of particular interest. Similar i .ncentives (exemption from the payment of fees) exist in the patent law of Austria to assist inventors who do not earn much money and more recently (1977) indirectly to nationals in the case of energy saving inventions .

It seems, however, that most of the countries--whether they be developed or develop~ng--have established apart from the patent law (which normally should afford equal rights to nationals and foreigners) the legal framework which would effectively assist national inventors and particularly those who are independent inventors . In this connection, I have been very much impressed by the "Philippine Inventors Incentives Act," which was adopted in 1964 already. This Act created the Philippine Inventors Commission, under the National Science Development Board, for the purpose of giving a very wide range of technical, financial and legal assistance to inventors in the Philippines, so as to promote and encourage Philippine inventions and their manufacture .

If we now consider the case of the so-caller:l "small inventions," we have to admit that generally the patent is not the appropriate incentive, for the simple reason that under most laws such inventions are not considered as truly patent­able. However, we all know that in developing countries, indigenously created technology may often be at the level which does not reach that of a patentable invention. What is then the solution? Instead of easing the conditions for grant­ing patents, other forms of protection have been introduced in some laws to stimu­late inventions of lesser inventiveness or importance . These other forms of protection are sometimes called "utility certificates." Compared with patents, utility certificates are protected for a shorter period, and the filing fee and annual fee applicable to them are lower. This is another way of assisting national innovations, as most authors of "small inventions" would in fact be nationals. I myself could even imagine a system, similar to the one adopted for the "Inventors Certificate" in the socialist countries, which would exempt such inventions from all fees.

Other Innovations

Having completed our consideration of the patent as an incentive to local inventors, we shall now examine the legal framework which could promote innovations in the strict sense of the term. Indeed, in every society with a minimum of indus­trial development, but particularly in societies with big industries, we find in­novators, who in the enterprise they work for, propose improvements, in particular new solutions to existing problems in the enterprise itself . In developing coun­tries such innovators are normally nationals of those countries. Thus, stimula­tion of innovations at the enterprise level helps to increase the technological capabilities of national personnel in factories and indirectly in the country as a whole. What are the methods adopted in this respect?

Farag Moussa 61

In market economy countries a method used in many ente rprises is the so-called "suggestion schemes." The concept of suggestion schemes is a matt er dealt with primarily between employees and employers . In order to stimulate creativity of employees, the enterprises set up a reward system. Employees are rewarded for their ideas which improve the efficiency of the employer ' s business : save time, material or money , reduce or avoid costs of production,· improve product quali t y or reliability, improve safety , security or customer services, increase production , or create a new method or design . Sugge stion schemes can be particularly important in mass production industries, where even a small reduction of the cost o f each unit produced may lead to large savings.

In a typical suggestion scheme, when the empl oyer enterprise makes use of the suggestion, the suggester is entitled to a remuneration in the amount of usually 10% of the first year ' s tangible actual net savings in material and labor. Where the savings are intangible in nature, so that they cannot actually be valued in the same way , the rewdrd is made taking into account t he improvement o f q ua lity or reli abili ty , customer service, s ecurity and safety. Where, before the e xpira­tion of the fifth year from the grant of the award , additional net material and ldbu.L. .;a;,·.:r~y-3 excec"' -=~~sc c !: .. ..,,. <=;-~ .. }'~'!'" ' " .,,. ,;,.,_,., thP c::nqcrPster is entitled to further remuneration in proportion to the difference .

A similar system exists in the socia l ist countries which is called Rationaliza­tion proposals . Rationalization certificates are granted in addition to a number of material and moral rights and privileges. One of the main differences with the suggestion schemes in market economy countries is that rationalization proposals are regulated by law and not by the enterprises individually.

If similar systems, or a combination of those two systems , were developed and general i zed in the Third Wor l d , particularly in the more i ndustrialized amongst them, innovations of direct interest to ent erprises within the countries would be stimulated and local innovators- -workers and engineers--would increase in number a n d qual ity.

PART II

WHY AND HOW INDUSTRIAL PROPERTY OFFICES AND OTHER GOVERNMENT INSTITUTIONS SHOULD BE INVOLVED IN THE PROMOTI ON OF INNOVATI ON

Industrial Property Offices

It is evident that industrial property offices have an important role to play in the process of innovation and a major responsibility in the implementation of any national policy aiming at encouraging and stimulati ng innovative activity . After all are they not the competent government administration concerned with patents and other similar forms of industrial property protection?

However, in many developing countries industrial property offices do not fulfillsatisfactorily this function . They are mere registration administrations . And, because of the present level of inventiveness in deve l oping countries, this low l evel func t ion is for 95 % directed to foreigners living in other countries . Even when some industrial property offices do examine patents as to substance they still are addressing themselves to the same 95 % o£ foreigners ! Not only can they hardly contribute to e ncouraging creativity in the country, but on the con ­trary , they sometimes also discourage by their pettiness the efforts made by their local inventors . To improve the situation, the kind of activity which has to be undertaken is , to a great extent, of a promotional and public information nature, a dynamic activity directed towards, and in favor of, nationals . Bureau­crats should open themselves to communication with thei r local innovators.

The more interested industrial property officials become in national inno­vators , the more they will get involved in development problems and policies . Only then will the government authorities of their country consider industrial property offices as effective instruments of national policy for science and technology and therefore upgrade them to their appropriate level in the general administration framework .

62 Farag Moussa

What should and can industrial property offices do for that purpose? Let us consider their role in relation to each of these three aspects of the problem: the general innovative climate, the assistance to be rendered to innovators and the legal framework . But there is a preliminary step that should be taken first and which I would like to develop now .

Industrial property offices should become the government administration where exact and complete information on the subject should be found. Whenever I visit industrial property offices in developing countries, I am always amazed to see that I can find the list and addresses of patent agents in the country, but hardly any information related to local inventors or of interest to them. I suggest the following :

(i) industrial property offices should establish directories or at least lists, of national inventors, including information on their inventions, as well as lists of national institutions dealing with the promotion of innovation . Other l ists could be prepared mentioning for instance persons who could be of assistance in promotional activity, such as certain journalists and university professors ;

(ii) industrial property offices should compile the information available on innovation in large enterprises in the country, such as the types of incentives adopted by them and the names of the innovators, etc.;

(iii) industrial property offices should try to obtain information on national inventors working in foreign countries .

Let us now consider how industrial property offices can contribute to the creation of a favorable innovative climate in the country. These a r e a few practical and simple suggestions .

(i) Industrial property offices should publicize the achievements of their national inventors and innovators to the public. For that purpose all possible techniques should be used and in particular the press. A simple way would be to provide the local journals with the relevant information, which often is just sleeping in the office files. Another method would be to assist in organizing a series of television programs in order to introduce national inventors and inno­vators to a larger public . There is no question that everybody will be delighted ; the T.V. , the innovator, the public and of course, the bureaucrat responsible for this challenging idea .

{ii) Industrial property offices should propose to Government authorities that prizes and other rewards be offered to national inventors and innovators.

{iii) Some industrial property offices could organize lectures on industrial property in general and on the different steps that could be taken t o encourage and stimulate the process of innovation at the national level, if necessary with the assistance of such outside experts as university professors . Those lectures could be given in technical institutes and university faculties , as well as to such different interested circles like engineer associations .

If we now consider the assistance that industrial property offices should render to national innovators, we see that there is a basic and e lementa ry principle which is often neglected: t his is to say a positive attitude on the part of qovernment officials towards the i nnovations of their fellow- citizen s , however simple their ideas may seem. I ndustrial Property offices should also prepare and publish guides for the applicants in the form o f broc hur es and offer to individual inventors direct aid on how to present a patent application . Furthermore, some l arge industrial property offices should assist actively those nationals engaged directly in innovative activity in helping them to obtain use­ful and relevant technological information contained in the patent documents . This could be done with the help of international cooperation.

Industrial Property offices have also another very important and fundamental function, namely that of being at the service of national industry and research centres . Several Industrial Property offices in developing countries who already have amongst their staff several if not many engineers, could with some five engineers amongst this staff, create a unit which would have a double function:

Farag Moussa

(i) one at the national level to find out what are the real technical problems in the national industry, so as to offer alternative ways in finding possible solutions in patents;

63

(ii) the other function being to locate relevant patent documents, parti­cularly at the international level, and obtain copies at the cheapest cost. In this respect, WIPO offers state-of-the-art search reports free of charge, assists developing countries in obtaining collections of patent documents and trains personnel of industrial property offices or other government administrations in such activities.

Last but not least, industrial property offices should promote the adoption of relevant laws at the national level and guidelines for suggestion schemes at the enterprise level.

Other I nstitutions

Some of the activities I just mentioned could also possibly be carried out by other governmental or autonomous agencies. Industrial property offices should encourage the creation of such agencies and offer them their cooperation. Why? Because the main aim of these agencies is to encourage and promote the development, exploitation and to some extent the commercialization of indigenous innovations by providing the inventor and innovator with the relevant support, which often cannot-­from a legal point of view--be provided by industrial property offices.

The kind of legal, technical and financial assistance which one of these agencies, namely, the Philippine Inventors Commission, renders to local inventors, will be given to you by Commissioner Santillan himself. May I just note with satis­faction that in addition to reward and support functions, that Philippine agency is engaged in the promotion of technological awareness and creativity among its people, including the youth.

Government agencies in some countries (Australia, Denmark, Ghana, Japan, Netherlands, Republic of Korea, Senegal) concentrate their innovation support on research and development of products and processes for small and large-scale indus­tries (including projects representing all links in the innovation chain, but, in some cases, excluding expenses for initial production and marketing). In other countries (Austria, India), these agencies add patenting to their research and development functions. They advise and give financial assistance to inventors/ innovators who are not in a position to bear the cost of patenting . Government institutions in the Philippines and some other countries (Finland, France, Republic of Korea, United Kingdom) go the whole way and assist in furthering the commercial expl oitation of the results of inventions and innovations.

In my view, the problem in developing countries is not so much who should do what, but what should and can be done. It is also a serious and urgent problem, which must be tackled in a spirit of cooperation and coordination among all con­cerned, whether governmental or not.

PART III

HOW WIPO IS DEALING WITH THE PROMOTION OF INNOVATION IN DEVELOPING COUNTRIES

It is only natural that WIPO should be involved in activities related to the promotion and encouragement of technological innovation, particularly in develop­ing countries.

In the Agreement signed in 1974 between WIPO and the United Nations when WIPO became a specialized agency of the UN, WIPO was recognized as being respon­sible "for promoting creative intellectual activity and for facilitating the transfer of technology related to industrial property to the developing countries in order to accelerate economic, social and cultural development ... ". You will have noted that promotion of creative activity is mentioned here before transfer of technology.

64 Farag Moussa

Article l of t he Organizati ona l Ru les o f the WIPO Perma nent Progra m for Development Cooperation Related to Industrial Property mentions that the said program will promote in favor of developing countries "innovative and inventive activity in developing countries with a view to strengthening their technological capacities."

* * *

I shall now summarize the recent development in WIPO's activities in favor of innovation, particularly in developing countries.

With regard to the legal framework the following three points are to be noted:

(i) The new WIPO Model Law for Inventions and Know-How takes care in the framework of patentable inventions, of employees' inventions (Article 120, Part I of the Model Law, which has been published) .

(ii) The same text of the Model Law does not introduce any special provisions in favor of local and modest inventions, such as the reduction of taxes . It does not regulate either the case of so-called small inventions . However, utility certificates for such small inventions have been introduced in the different regional model laws for developing countries and prepared with the assistance or under the auspices of WIPO . The first mention of these certificates was made in the 1972 Model Law on Inventions for Arab States. The 1978 Model Law for English­Speaking African Countries even mentions them in its full title: Model Law for English-Speaking African Countries on Patents, Utility Certificates and Innovations.

(iii) Now, there has been an even more striking development in the field of innovations in enterprises which are not patentable. I mean innovations which do not fulfillthe conditions of "absolute novelty," but still are considered as ful­filling the condition of "relative novelty" in the framework of their particular enterprise. Here the new WIPO Model Law on Inventions and Know-How may introduce provisions in favor of such innovations in a Chapter which is still in the form of a draft . A new term is even employed in the present draft text, namely, that of technovations . Why this new term? Probably to avoid confusion between such inno­vations and the term "innovation" in its generic sense as used by me all through this paper.

A second development in WIPO's activities during recent years concerns the efforts of the Organization to promote and facilitate access to patent documents and patent literature, which are an important source of technological informa­tion . This information will be of assistance to inventors in general, and innovators in developing countries in particular.

A third and more recent development in WIPO's activities relates to the WIPO Working Group on Technological Innovation . This Working Group began to meet once a year in 1978 to exchange views on WIPO's present and f uture activities in the field o f technological innovation. The Working Gro up has discussed three studies during its last two meetings: the first one on the different arrangements for the promotion of innovation, the second on institutions concerned with innovation, and the third on environmental conditions which promote innovation . The Working Group adopted a number of recommendations addressed to governments and to WIPO. These recommendations are the basis of WIPO's activities.

I shall therefore give a brief account of the activities which have already been initiated:

(i) In the field of training, the WIPO program now includes cou rses on innova­tion for industrial property o f ficers, as well as training and courses in industrial property matters for the officials who work in other institutions dealing with technological innovation.

Farag Moussa 65

(ii) In the field of promotion of the general innovative climate, WIPO has undertaken the publication of studies of direct relevance to innovation . The first such study by Mr. Soto-Krebs of Chile is entitled "Some Ideas on Creativity," and has been published in the form of a brochure in English , French, Spanish and Arabic. WIPO has also initiated, in 1979, a policy of presenting awards to inventors and innovators in general, particularly from developing countries. Medals and diplomas are offered by WIPO at different international and national exhibitions, such as during the present Philippine Inventors Week, (the WIPO International Gold Medal for the Outstanding Invention and the WIPO Gold Medal for the Outstanding Filipino Inventor) .

(iii) With regard to the institutions which deal with the promotion of inno­vation in the different countries of the world, WIPO is making new efforts of a dual nature. First, in£ormation is being compiled with a view to the preparation of a Directory of Inventors Associations and another more general Directory of Institutions . This work will be a useful tool in the devel opment of WIPO's future activities. It will also help the development of cooperation among developing countries, as well as between developing countries and developed countries . Second, a study is being undertaken by WIPO. This study which I am preparing myself will analyse a number of different institutional arrangements, and will include general guidelines for possible schemes or institutions dealing with technological innovation.

(iv) The next meeting of the Working Group on Technological Innovation will examine , in addition to the study on institutions which I have just mentioned, another study on a very interesting subject, namely, the problems encountered by inventors.

I. Introduction

ASSISTANCE AND INCENTIVES TO INVENTORS BY THE GOVERNMENT - THE PHILIPPINE EXPERIENCE

by

Hon . Felipe Ll . Santillan Commissioner , Philippine Inventors Commission

The Philippine Government, through the National Science Development Board {NSDB} and its organic and attached agencies, provides policies, plans, programs and assistance for the advancement of science, technology and invention and their integrated applications in priority development areas for the social and economic progress of the country .

One of the R & D sectors given priority under the industrial research area is the development and promotion of inventions, innovations and creative researches.

The invention development sector is the main functional area undertaken by the Philippine Inventors Commission {PIC) , one of the organic technical agencies of the NSDB .

II. The Philippine Patent system

The fostering of invention is a constitutional mandate. Our Constitution provides that: "The State shall promote scientific research and invention . Arts and letters shall be under its patronage. The exclusive right to writing and inventions shall be secured to authors and inventors for a limited period".

In consonance with these provisions of the Constitution, Republic Act No . 2067, otherwise known as the "Science Act of 1958", which created the National Science Development Board (NSDB), provides that: "It is hereby declared to be the policy of the State to promote scientific and technoloqical research and development, , foster invention , and utilize scientific knowledge as an effective instrument for the promotion of national progress" .

Within the framework of the constitutional mandate, Republic Act No . 165 of 1947, better known as the "Patent Law of the Philippines" and patterned after the u.s. Patent Law, created the Philippines Patent Office {PPO) with the authority for the granting of patents.

A Philippine patent is a grant for a limited monopoly issued by the Philippine Government giving an inventor the right to exclude all others from making, using or selling his invention within the Philippines for the duration of the patent. Letters Patent may be applied for and granted on any of the following three categories: {1) invention, (2) utility model {innovation} or (3) industrial design; if it meets the three elements of patentability, namely : (1) novelty , (2} utility and (3) workability.

III. The Need for Government Assistance and Incentives

The inventive ingenuity and innovative talent of the Filipino has not been duly recognized and given direct assistance and incentive from the government up to 1960. Although the Philippines Patent Law has been in effect since 1948, very few Filipino inventors, innovators and creative researchers were then fami­liar with, or interested in patenting matters . There was no specific government

68 Hen. Felipe Ll. Santillan

office which could give them di1~ct or indirect assistance ~n developing the1r creative ideas into pa~~~cable products - through technical presentation, fabrication of experimental working models , helping them obtain letters patent and providing the necessary legal, technical and financial assistance to protect, perfect, produce, promote and market their patented inventions . Another drawback was that local inventors during the 1950's and 1960 ' s work as individuals and were not organized as a national group .

Most of th~ Filipino inventors lack either adequate technical backgrc:--Jnd or money, generally both, so that their creative iaeas remain only on paper or as secret dreams , never developed or improved. While some have known the important inventions in other parts of the world, they did not have the know-how of patent­ing their ideas nor the means and facilities to produce working or prototype models . Local inventors were not so keen in having their creative ideas patented or developed, because most of them lack the technical know-how and guidance and, especially the financial means. Many were frustrated, thus abandoning what might have been useful and profitable inventions which could be potential forerunners of small and medium scale industries . There were also those who were victimized by unscrupulous financiers, local and foreign .

The existence then of the Philippines Patent Office (PPO) was of no direct significance to them. This is because the PPO could not give them any consultant services or direct assistance - technical, legal, financ ial, etc. as this is prohibited by law. What the PPO has done is to determine whether the patent applications submitted are in order and whether the alleged inventions are patentable or not on the basis of the papers submitted . The PPO therefore acts as the sole "judge" to grant or deny letters patent. What was lacking then was a sort of "prosecutor" or "patent counselor" who will supply the assistance needed by the inventor in order that his patent application could be prepared according to legal and technical requirements, and a "patent engineer" who will research and develop his idea into a working model, fabricated and improved to make it patentable, at no initial cost to the inventor-applicant.

The above was the problem which lead t o the organi?atio~ of the Filipino Inventors society (PIS) in 1961. Aware that inventions or innovations are major contributions to agricultural and industrial growth in the country , Philippine inventors also recognized that need for the government to provide them subsidy and incentives in order to generate more interest and creative productivity from among the inventive sector of our economy . They felt the need for proper recognition.

The PIS, with the cooperation of some science-conscious members of Congress (1961-1964 ) and other scientific researchers and science administrators initiated the move to have a law enacted which could provide a government agency which could help local inventors.

Our policy-makers in Congress recognized that with the growing number of inventors and small and medium scale industries , and the need for increasing production of import substitutes, as well as exportable finished or semi­processed products (instead of the traditional raw materials), it was i mperative for the government to grant incentives and direct assistance not only to inventors but also to allied pioneering producers to better exploit our natural resources.

TV. The Philippine Inventors Incentives Act - Assistance and Incent ives to Philippine Inventors

The result was the enactment of Republic Act No. 3850, otherwise known as the "Philippine Inventors Incentives Act" on April 13, 1964. This Act created the Philippine Inventors Commission under the supervision of the National Science Development Board (NSDB) for the purpose of giving technical, financ ial and legal assistance to inventors in the Philippines .

Han . Felipe Ll. Santillan

Under this Act, as amended by Presidencial Decree No. 1423, June 1978, the functions, powers and duties of the Commission are summarized as follows:

(a) to give technical assistance to inventors by examining their submitted inventions to determine their patentability and by helping them prepare patent applications locally and/or abroad;

69

(b) to grant financial aid to inventors, utility model makers or industrial designers, to enable them to develop, perfect and produce their inventions, utility models or industrial designs duly patented or those which are pending patent , ~ to pilot plant scale which could demons~rate their operability and industrial application;

(c) to render legal assistance to inventors by representing them in filing their patent applications locally and/or abroad and in protecting their secured patents from infringement;

(d) to recommend to government lending institutions inventions that are beneficial to our country for long-term loans to enable inventors to manufacture their inventions, with only their letters patent as collateral;

(e) to help inventors find markets for their inventions locally and abroad ;

(f) to encourage Philippine inventors to make known their inventions by giving annually sizeable cash awards and medals, known as the "Presidential Awards for Inventions" to patented inventions in the Philippines ; (through annual Inventors Week celebration) ;

(g) to establish and maintain a public research laboratory and experimental station where authorized inventors and researchers may avail themselves of its faci l ities and services for carrying out or perfecting their approved inventions and researches ;

(h) to promote and encourage inventiveness among our people by inducing them to submit new and useful ideas, researches or gadgets that may solve the problems of our country through annual "Creative Research Contest" with cash prizes and medals, known as the "Presidential Awards for Creative Researches" ; (through Inventors Week celebration) ;

(i) to publish and disseminate information about inventions, researches and science in general ;

(j) to hold regular monthly sessions for the exchange of ideas among inventors ;

(k) to help Philippine inventors join international competitions on inventions and researches ; and

(1) to organize creative societies in schools, colleges and universities to promote and encourage creativeness among our youth.

Other incentives to Philippine Inventors under the Act as amended in 1978 are as follows :

(1) The creation of an "Invention Guarantee Fund" (IGF) of six mi:Llion pesos deposited with the Development Bank of the Philippines (DBP) to be used to guarantee the unsecured portion of industrial loans for exploitation and manufac­ture of any patented Filipino invention, utility model or industrial design.

(2) All donations and grants to the Commission shall be tax- exempt and deductable in full from the donor ' s income tax returns when evidenced by a certi­ficate duly issued by the Commissioner of Inventions.

70 Hon. Felipe Ll. Santillan

(3) To promote and encourage the manufacture of local inventions, utilit:,· models or industrial designs, their manufacture shall be exempted from taxes, license fees and permit fees, except custom duties and charges from imports, during the first five years from the date of the first sale (not the date of grant of the letters patent) . Provided that their manufacture is carried out by the inventor himself or by a partnership or a corporation , as a small/medium scale industry with capitalization not exceeding four million pesos (not fifty thousand pesos) and provided further that the manufacturer is a Filipino citizen or an enterprise at least sixty percent of the capital is owned by Filipino citizens .

(4) At least fifty percent of the annual appropriation shall be used to grant aid to inventors to enable them to develop, perfect and produce their patented inventions or those with pending patents, and at least ten percent of the balance shall be used for the awards of the Commission to encourage the patenting of inventions and promote science consciousness among our people .

(5) When the Pate·nt Law was amended in 1978 by P. D. No. 1263 , all the fees were doubled but at the instance of the PIC, a provision was inserted which reads :

"The Philippine Inventors Commission shall be exempted from paying the above fees but only with respect to applications filed by it on behalf of indTget1t inventors".

V. The Philippine Inventors Commission - Its Integrated Program of Assistance and Incentives to Invention Promotion and Development

The Philippine Inventors Commission (PIC) was formally organized and inau­gurated on October 29, 1965 to implement the Philippine Inventors Incentives Act, by extending technical, financial, legal, research, development, fabrication , promotional, marketing and other forms of assistance and incentives to Phi l ippine inventors, innovators and creative researchers under the modern concept of "contractual research" backed up by "aid through self-help" .

The rationale for g~v~ng assistance and incentives to Philippine inventors is the fact that inventions are short-term, result-oriented R & D projects which are forerunners/generators of new or improved products and/or industrial processes and intermediate technologies, and which provides both adoptive and adaptive development engines for appropriate technology transfers necessary to accelerate the growth of job and income-generating small and medium scale regional industr i es on the countrysides . . . .. to increase agro-industrial productivity and self­reliance through stimulating and harnessing Filipino talent a nd ingenuity and utilizing to the utmost indigenous raw materials.

The PIC, thus assists and services inventors, technologists and researchers directly and trade and industry indirectly ; its R & D functions may be cate­gorized as 20% exploratory/applied research; 50% experimental and development studies ; and 30% promotional work.

The PIC is considered a multi-disciplinary agency, because its functional objectives and activities cover nearly all fields of science and technology and the types and applications of inventions cut across nearly all industries .

Some of the national (NSDB and NEDA) development goals of relevance to the PIC work program/activities involve planned development projects in such priority areas as Agriculture and natural resources (food production and processing) ; Engineering and industry, including energy and power resources/conservation , pollution and waste recycling technology; Health and nutrition; Housing ; Intermediate technology transfer leading to dispersal of job-generating small and medium scale industries and to more equitable distribution of ~ncome/ wealth; and Techn~cal manpower development.

The PIC implements the following programs/projects as an integrated approach to invention assistance and incentives:

Hon. Felipe Ll. Santillan

1 . Development of Creativen~ss and Inventiveness among our people. especially the youth .

2. Publication and Dissemination of Creativeness, Inventiveness and Science Information.

3 . Invention Research and Patentability Studies.

4 . Display, Promotion and Marketing of Philippine Inventions.

5. Assistance to Local Fabrication of Philippine Inventions.

6. Techno-Economic Studies of Philippine Inventions to Make Local Patents Bankable or Commercially Viable .

71

As of March 30, 1980, a total of 4,083 applications (400 average yearly) have been filed for PIC assistance, representing about 2,000 inventors. seventy percent of such cases have been processed and duly assisted .

The above program/projects are being updated in the 5-year Development Plan (1980-1984) designed along the national budget thrust which emphasizes the need for a long-term outlook for "laying the foundations for the solution of future needs" in accordance with national program and policies . Appropriate linkages are being developed with other government agencies and private industrial­commercial sectors concerned with invention, promotion and utilization .

Among these national goals and policies of relevance to PIC programs/ projects are:

(a) generation of increasing number of gainful employment opportunities , especially in the rural areas and of greater self- reliance in the production/ supply of important commodities including food and energy resources ;

(b) establishment of labor-intensive regional , cottage, small and medium scale industries to help improve the living standards of the poor and reduce income disparities ; and

(c) development of adaptive and/or indigenous (appropriate/intermediate technologies) taking into account local resources including manpower.

The bulk of inventions being assisted/developed by PIC are practical, applied, industry- oriented development projects with shorter lead time, between research and development . Indeed, the development , uses and applications of inventions cut across many disciplines and sectors of the economy, but the main direction of PIC invention research and development work is geared to the industrial/manufacturing and agri-business sectors.

With these incentives offered by the PIC , ultimately, our goal is to assist deserving inventors and creative thinkers put up their initial industry tax- free as small-scale manufacturers of their patented inventions in order to make them independent and contented families with their venture partners/capitalists with a stronger feeling and sense of belonging to their government . This will ini­tiate the dispersal of small industries and generate employment in the rural areas, thus, avoid crowding the slums in our urban centers. In turn , this will generate a mass market essential for the equitable diffusion of wealth . In short, the PIC helps inventors to better help themselves .

ASSISTANCE AND INCENTIVES TO INVENTORS BY THE PRIVATE SECTOR

by

Enrique Zobel President, Filipinas Foundation

Unknown to many, the group of companies and the foundation I head have kept in touch with many individual inventors. An unwritten policy in our group is to keep a very open mind towards inventors . Our reason for this posture is : if we patiently "wade through" a hundred inventions brought to us, we may find ten interesting ideas and, among these ten, there may be one immediately useful project . That one project makes the time and effort used very much worth our while.

The private sector in the developed countries of North America, Europe and Japan has had a long history of assistance and incentive-giving to inventors . In these countrie,s, there are numerous "in-house" research and development divi­sions and many privately-funded research institutions under the patronage of business firms, philantropic organizations and wealthy individuals. I do not intend to elaborate on these on-going efforts. What I plan to explore is the assistance and incentives which can be given to inventors in poor, developing countries .

For this reason, I would like to define "developing countries" as "territories where so many people chase around so few resources". Even underpopulated develop­ing countries fall under this definition whenever their resources, or the resour­ces needed to develop these resources, are not enough to go around to satisfy everyone.

The inventors in these countries are usually one among many other groups vying for the use of resources. The private business sector is another group competing for the same small pool of resources. Government is still another large and important user of resources . And it is clear that whenever these thre~ groups (and many more besides them) compete for anything, the weaker sector nor­mally loses out--unless the weak groups form alliances with stronger partners. I am sorry to say that the inventors usually lose out to government and business and end up with little or no share in a developing society ' s resources, probably because inventors have so few allies .

This situation is understandable. Governments are usually basis of a platform--a list of projects they plan to carry out . whenever people vote for a government, these people are already countries' resources for definite uses.

elected on the In this way,

earmarking their

Nhenever private business firms turn in profits and continue to operate, they have the people's implicit approval of the use they make of part of the nation ' s resources . That so many inventors in developing countries continue to struggle for their existence is an indication of, at best, the people's lack of knowledge, or at worst, indifference, about what inventors can contribute to society.

It is not very surprising, then, that neither government nor private business has really paid too much attention to the plight of inventors: while it is true that tokens o f appreciation--like medals and citations are awarded to inventors, most developing societies usually treat them with "benign neglect". Inventors share the same fate as artists and writers : they are left alone, until they really achieve something great, at which point, they get the funding. But without funds, they cannot really be expected to accomplish much.

74 Enrique Zobel

This is very much like a "chicken and egg" situation and to get out of it, some spadework is needed.

First of all, I feel that something has to be done about the inventors' image. It is unfortunate that many look at inventors as "crackpots". Legitimate inventors themselves complain about some inventors who give their profession this harmful reputation .

I think national recognition and awards have gone part of the way to remedy this. Inventors have become respectable. But I alsofeelthat something else has to be done.

I see the need to provide inventors with scientific training. I do not mean a college or a postgraduate course, but a crash program which will equip them with the basics of science in as short a time as possible.

It cannot be denied that, if a curriculum directly related to the inventor's interests is established, few of these inventors will refuse that opportunity . And this training will certainly help change the faulty image of inventors.

This training expense, I believe, is a perfectly justifiable use of the country's resources . It can easily fall within any government's educational objectives. It may also be attractive for the private sector, especially when the sciences taught are directly related to its lines of business.

Scientific training of inventors can minimize the risks of business firms which, otherwise, may consider inventions a high-loss venture.

There is another possible benefit from this approach. It may help to focus the interests of inventors. Too o'ften, the same inventor may one day be working with chemicals and the next day, he may be tinkering with me·chanical designs. It is possible that, at the root of this situation, is a lack of scientific disci­pline to pursue a project persistently, to its logical conclusion.

In conceiving this training program, we must realize that we will be dealing with adults, who may have families to support. They cannot be expected to take time out from income-generating jobs, to train themselves . Therefore, this train­ing program must include a program of financial support for dependents, to permit inventors to concentrate.

Training programs sponsored by business also expose businessmen to the potentials and capabilities of inventors and help bridge the gap between them. Besides this, the bias of academicians can also be minimized, once these professors and researchers work more closely with inventors, within a training program .

The second area which should be looked into concerns a statement I made earlier. I refer to the alliance which weak groups normally form to improve their chances, whenever they are competing for a country's resources.

I have tried to analyse some sources of the "weakness" of the inventors as a sector in society . I have mentioned the first: they have an "image problem". The second is : they are "loners"--few get together to work on one project and the usual pattern is each one is "doing his own thing".

In fact, inventors with real talents may be too occupied with their work that they ignore the need to dialogue with other people, other groups in society.

A third source of weakness is this: they have no concept of costs and benefits; they do not usually price their inputs--including time--and compare these to quantifiable benefits . The result is they usually spend a lot of time and effort without any idea of the project ' s returns to them or to a sponsor .

Enrique Zobel 75

Whi l e I cannot speak for the public sector or for the entire private sector, I wi l l try to point out some areas where an alliance, a closer link between inventors and private business may develop .

I purposely chose to limit my comments to a section of the private sector, because I am aware that, in developing countries , we should distinguish between foreign multinationals operating domestically and local business concerns without foreign owners . Foreign multinationals operate "under license" from a home base. Equipment , production processes , even raw materials come from another country, and product research and development are done elsewhere. In these cases , native inventors a r e better off dealing with the main office, rather than the locally­based company . The main office even appears to choose which inventions will be applied, and where. In our own country , from 1963- 1975 , it is surprising that 79% of all patents were issued to foreigners and only 21% to Filipinos--figures which could be explained by the activity of foreign companies here and their decision to introduce products or processes here .

In this speech, I will refer to local business concerns , "native" to the country in which they operate . One area of specific interest to them ~s "appro­priate technology ". Inventors are in a posit i on to recommend local processes and equipment which minimize dependence on foreign technology and lower production costs . They may look i nto the use of easily available raw materials, discover new uses for old products or discover new products from well - known materia l s and so on . The objective is to create a market advantage for the output of domestic firms .

The inventor ' s dealings with reputable business conc erns will , hopefully, als o teach him to be cost- consciou s and cost- effective--thereby helping solve one of the weakness es noted earlier . In fact , it is only when an invention is viewed from thi s angle that it can real ly create a market advantage for any business firm.

Inventions , in this light , can also become an effective tool for national economic development . But we need inventions which are relevant , which can withstand scrutiny, and which can be accepted, worldwide .

I can think of a few specific examples which may be of interest to Philippine businesses . Considering the geography of the country, one would already expect a highly developed system of water transportation which could ease the pressure to build roads . This area , however, has been left behind up t o now .

Of our t r aditional exports, metals constitute a high percentage- -but we have still not developed relatively inexpensive ways of processing them locally. By contrast China has experimented with backyard smelting--with admittedly limited success so far . Our sugar and logs are still e x ported in raw form . Is there any way of refining sugar much more cheaply than by using existing processes?

We are told that there is a smaller prospect of selling logs in finished form like plywood, etc . But have we really developed a method of producing plywood cheaply? How many medicines have been derived from locally grovm medicinal plants and herbs by our pharmaceutical firms?

I ask these questions because I feel that if exports can be produced more cheaply, using local materials and ingenuity, there will bea great market for them even .if we tack on other costs .

In the domestic scene, think of the contributions these types of products could make to the lowering of prices .

We have long realized our heavy dependence on imported oil . But ~.orhy have we not looked earlier into engine designs suitable for local, tropical use, alternative fuel sources, and vehicles which can withstand poor road conditions?

76 Enrique Zobel

One reason for this slow reaction time, I believe, is the fact that business­men left alone, will only think of "managerial ways" to increase profits: raise immediate income or lower immediate costs . The key words are "managerial" and "immediate" . It is up to people like inventors and engineers to show them the importance of "technical" ways of improving profits in the long run. But unless business and inventors can work together, this may not be forthcoming.

Another reason is that only a few private firms engage in research and devel­opement . Part of the explanation for this is already given: many local firms work "under license" and depend on a foreign main office for research and development . But I think the heavier reason is that as long as profits are still made, there will be little pressure to go into the trouble and expense of engaging in research and development . Only now when the oil squeeze is beginning to hurt everyone is there some urgency to look for technical, as contrasted to managerial ways of improving production .

I feel that the times are suitable for the emergence of serious inventors in developing societies . Let it be known that the private sector is on the verge of acknowledging their need for inventions and it may soon be willing to help out . But like all businessmen, we want to minimize our risks by suggesting that inven­tors be given a solid, though brief, training in related sciences; that inventors weed out from among their circle those who in their judgement are spoiling their image ; that inventors direct their efforts to certain areas of interest to business; and that inventors adopt a habit of a "cost-effective" thinking.

For our part, we are willing to spend time and money to explore the offered by inventors--but you will undertand that we are after results. the discipline which will be required of inventors by business will help more comfortable alliance between these two groups.

potentials Perhaps, create a

You may wish to start with simple things like packaging of products to improve either their saleability or shelf life . You may wish to begin with more serious concerns like new products or processes or new energy sources . The point is--business needs to be confident about just how capable local inventors are, before we even part with the first peso. But, if you overcome this initial doubt, there will surely be more from where the first peso came.

ROLE OF COMMERCE AND INDUSTRY IN THE DEVELOPMENT , PROMOTION AND MARKETING

OF INVENTIONS AND INNOVATIONS

by

Owe Storakers Vice-President of the Swedish National Development Co .

I have been asked to describe the role of commerce and industry in the development, promotion and marketing of inventions and innovations . In my presentation I will, of course, describe the situation mainly in Sweden but I think that these problems are of a more general nature and that they are applicable even in other parts of the world.

Before starting to describe the role of commerce and industry I would like to begin by giving you a short background information about the Swedish National Development Company and the Swedish State Company Ltd . , our parent company. I will also touch on how the Swedish Government supports private inventors.

The Swedish National Development Co . was formed in 1968 as part of the Government program at that time aiming at increased Government support to tech­nical research and industrial development work. Since 1976 we are a fully owned subsidiary of the State Company Group. Today we have three main tasks . The first one is to function as a central development resource within the State Company . We are thus to search for and supply new products and business ideas to the State Company Group and to perform the development commissions given us by the State Company Management . Our second task is to search for and develop new products, methods and systems of community- oriented character . This task is the original one of the Swedish National Development Co . and is in the main financed by the Government . The third task imposed on us by the Governemnt is to function as a channel for the deve l opment of innovations suppl ied primarily by minor companies and individual inventors .

I think that the work performed within our company and our relation to the State Company very good will represent the problems when it comes to the industry's role in the devel opment and marketing of new inventions and innovations.

The Swedish State Company, Statsforetag AB, is one of the country's largest industrial groups with a turnover of some 2,000 million dollars half of which comes from exports. It has about 45,000 employees in Sweden and abroad. Statsforetag AB was created by the Swedish Government in 1970 as the parent company of some twenty companies which had previously reported to eight different government departments . The activities of Statsforetag range across the basic industry and other sectors of economy including mining, steel, engineering, pulp and paper, chemicals, consumer products and services. A number of these companies are the largest in their respective branches in Sweden. The group produces about 5 % of Sweden ' s total industrial output. The companies in the Statsforetag Group operate on the same terms as and in full competition with the private sector and they are expected to make profits. However, the Government has added a number of special obligations to Stasforetag's normal commercial objectives, in particular to strengthen Sweden ' s staple industries to help maintain and expand regional employment and to promote industrial democracy .

STU (National Swedish Board for Technical Development) has the main responsi­bility for supporting private inventors in Sweden. This is done by giving advice and financial support as well as involvment in technology marketing .

78 Owe Storakers

It is STU's task to encourage technical development and to promote techn.ical research . Some of its programmes are tailored in particular for development projects and within this scope advice and financial support are provided at the initial project stage. Thus STU covers the area from the basic idea to the stage when the development has reached a working system of prototype . Pilot production, investment in production equipment and marketing to the end user are not funded by STU . The financing of these latter stages are provided by other organizations such as Regional Development Funds, The Swedish Investment Bank or commercial banks.

Financial project support provided by STU is given as a grant or loan and shall be used for development, demonstration and evaluation of ideas behind new products, methods and processes. It is STU ' s task to finance risk-bearing projects and STU is also providing the means for projects in areas where diffe­rences in profitability exist between the national economy and short-term business economics. Examples of such areas are: aids to disabled persons, environmental conservation and factory safety equipment . Financial support may be given with conditional repayment, meaning that STU will demand a refund, should a project turn out a success . For projects conducted by companies STU normally provide only half the project cost. Private inventors and small firms are normally provided with 100 % of the project cost. The support to private inventors is a small but important part of the innovation policy in Sweden.

In order to describe the role of industry in the exploitation of the new inventions and innovations I think it could be of interest to present our company's role in the Statsforetag Group, where we have certain function to act as the channel and to coordinate new inventions coming from outside and which could be introduced and exploited somewhere in the Statsforetag Group . To start with I think it is very important that there is a close interaction between the inventors and the potential exploitation side which in this case is represented by the industry . As I previously mentioned STU has as one of its tasks to act as a channel for such inventions . STU has a very broad contact surface with private inventors, smaller and medium sized companies, universities, technical institutions of various kinds with the aim to stimulate the inflow of new inventions for the industries belonging to the group. This has led to an inflow of ideas, project proposals to our company of around two hundred proposals each year of various quality which we take care of and evaluate. As we have a very good knowledge of the competence and the interests of the companies belonging to tre Statsforetag Group we can easily check if an innovation will be of interest for some of the companies in the Group. As we have a long experience in this field when it comes to the evaluation of new products and ideas we can after the first evaluation say if we think that tre idea is worth to study further in detail or if we should return it back to the inventor. If we find an idea interesting we normally enter a simple option agreement with the inventor in which we have agreed how to continue the project if the continued tech­nical and commercial evaluations give a positive result . The main objective of the evaluation is to judge if the product is feasible both from the technical and commercial points of view and jf we can find a suitable company to exploit the product .

The role of the industry in this case is of course to supply experience and know-how from production and marketing of similar products and also to be able to give financial support in the various stages of development before it is ready to be introduced on the market. The time required for the development of a new product is very often longer than you planned from the beginning and the costs to carry the idea to a finished product is almost always higher than originally estimated.

I would like to mention one other type of activity which we are performing within our group and which I think describes the role of industry in the exploi­tation of inventions in a good manner.

In Sweden we have certain areas where the unemployment situation is very unfavourable and where the industry to some extent is being reorganized. For example we have in the northern part of Sweden some companies in our group produc­ing textile products of various kinds. These product areas have met severe compe­tition from abroad during the last years, expecially from many Asian countries. This has led to very large profitability problems for these companies and Stasfo­retag has got the responsibility to try to reorganize these companies.

Owe Storakers 79

In this case the object has been to find replacement production in commu­nities where the State Company textilegroup has for structural reasons reduced its operation or liquidated production units. In this effort we have concen­trated on four population centers in northern Sweden which we have subjected to selective search activities. As a result of our central position in the State Company Group and also in other ways, as I have earlier mentioned, we are frequently approached by people offering business propositions by innovators, minor companies, and project-holders. In this capacity we have been in position to engage in and place cert?in of these projects in population centres subject to our selective search and have until now been able to form five new companies during the past year, the total employment effect being about 150 individuals within approximately 6 months after start of production in the companies concerned. I n this, our company has participated all the way from finding the ideas, processing them, bringing forth the business operation plans, negotiating with exploiting parties and project-holders and seeing the projects through to full realization. The outcome for three of these centres is that their occupational problems today are solved to the extent that all previously employed textile industry personnel have been given other jobs in these new companies . This work has been carried on in close cooperation with the regional development funds, one of the primary objectives of which is to develop business and industry within the region concerned .

Our company has thus played a very important role here as a development company within a large industrial conglomerate when it comes to the development and promotion of new products to be introduced to the industry.

New inventions and innovations can also be presented as licensing objects. In this area our company has been involved during many years and I would like to give a few aspects and give some comments on our experience in this field .

The Swedish t-1.inistry of Industry has corro:nissioned us to look for new products and licenses primarily in Japan and the United States for small and medium sized companies, preferably located in low-occupation regions . The Ministry ' s interest thus displayed in the pursuance of such activities goes back to the extensive restructing to which Swedish staple industries have been sub­jected during recent years and which in many cases have negatively influenced employment in different regions. The objective has thus been in search for such products as may be expected in a comparatively short time to have favourable effects on employment. The licensing propositions received from companies in the United States and in Japan have been evaluated in Sweden both from technical as well as marketing aspects, a primary objective having been to judge the product ' s market potential in Scandinavia. Here is once again a very important rol e that the industry can have in the promotion, evaluation and marketing of licesning proposals of various kinds. We must remember that the licensing proposals available are often based on new inventions and innovations . Wit hin the scope of the project we have from our side delivered well over hundred license offers to interested companies and we have so far received an interest from about 20 % of the companies approached. The goal should be that 1-2 % of the presented proposals shall lead to license agreements.

I want to go on to comment briefly on the problems a .nd experiences we have obtained in searching and negotiating Jicenses and products. To begin with, it is of major importance that when searching for new products and licenses you make it fully clear what requirements apply to the products you actually want to find, in respect of technological level, degree finished, complexity, marketing resources, developntent resources, etc . and that the product suit the company in question . A search for products can be quite meaningless if you do not already from the start try t.o define these factors. In order to make a reliable evaluation of product offers you need technical as well as commercial competence . It is something which the industry can offer and here is a situation where it is very important that the industry plays an active role . For my own part I am prepared to name the market­related and commercial analysis as being of highest importance belonging to the initial stage. You can frequently obtain product propositions which are technically highly interesting but for various reasons impossible to sell. Sometimes this is because one tries to sell a more sophisticated product than the market needs and is

80 Owe Storakers

prepared to pay for. Another problem which can be very hard to judge is when a product is ready for introduction. Often the case may be that a product has already been launched in the market, for instance in the United States, and you find it interesting, but then it appears that the Scandinavian market is for one reason or another not ready to accept it.

We have in Sweden noticed an increasing interest on the part of the swedi~~ Government authorities in respect of the search, development, promotion and marketing of new products, inventions and licenses. Furthermore, the Ministry of Industry has also recently started an operation concerning import of technology and these activities will probably be directed towards supplying in longer pers­pective new technology and innovations to Sweden in areas where Sweden is judged to have a competitive potential.

There is one other role of industry which I should like to comment on . we have since many years had close contacts with universities, technical institutions etc. from which we have received a lot of interesting ideas and project proposals . The problem in this case can many times be that the idea is in a very early stage of development and that extensive financial resources will be necessary to develop the product to a commercialized item. I can mention some examples from my company where we have taken care of inventions from such institutions and where we have already launched the product on the market . For example we have developed a dust indicator which can measure the dust content in ventilating air in order to be able to recirculate t he ventilating air which is of interest both from the environ­mental and energy point of view.

Another project is an electric stimulation equipment which prevents incon­tinence. This idea has been internally created and we have run t his project over four years with financial support from the Swedish Board for Technical Development . The development work has been done together with one university and one hospital. This device is mainly used by women suffering from involuntary incontinence . This project is now commercialized and the marketing of the product has already started through a Swedish company, specialized in this field. Here is once again a very important role for the industry having the opportunity to take care of ideas and products from the universities.

Another approach that we have used in order to stimulate innovations and inventors is that we have run a contest within the Statsforetag Group where all employed in the various companies of the group were invited to present their inventions or innovat~ons and there was stipul ated a sum of 100,000 $ to be distributed among those who could present the most interesting and promising inno­vations. Here a jury analysed the incoming proposals, around 400, both from technical, commercial and marketing points of view. We think that such a contest can have a very positive psychological effect on the innovative climate of the group and that such an activity can stimulate to an increased interest in the fields of new inventions .

I will go over to the role of commerce in the development, promotion and marketing of jnventions and would like to inform you about how we have organized these matters within the Statsforetag Group. One of the companies in the Stast­foretag Group is a trading company having the responsibility to buy and sell products of various kinds in Sweden and abroad . When it comes to the exploitation of new inventions it is very important to find the right marketing channels and this trading company can in many cases be a very useful marketing channel for such inventions which have been developed within our group and which have no other natural way to be sold . You can say that it is sometimes much easier to find somebody who can take care of the production of a new item than it is to find some­body who can take care of the marketing. Ne think that the combination of having both a development organization as ours and a trading company can be a very efficient tool when it comes to the exploitation of new innovations .

Such a company can also have a very good knowledge of the market demands in various sectors and they can also be used for evaluation purposes when somebody wants an idea evaluated specially from the marketing point of view . This company has also been heavily involved in the marketing of new products coming from these reorganized companies in northern Sweden, which I mentioned earlier about.

Owe Storakers

At last I will try to make a summary of the more important roles of commerce and industry in the exploitation of inventions . I would like to stress that the commerce and industry can supply primarily experience and know-how in the fields

81

of development work and prototype work, product adjustments, marketing and produc­tion. Furthermore the industry has financial and personal resources to take care of new products and to carry them through the different stages of development . In order to get a good result it is important to have a good cooperation between inno­vators and the industry and that you find the efficient ways how to cooperate.

Sometimes this is a difficult task because private inventors can have another approach how to develop their own invention and this can lead to cooperation problems . A simple agreement between the inventor and the exploiting company is therefore a very useful instrument in order to avoid such problems.

It is also very important for an innovator to seek and find financial support when it comes to the problem of carrying a project idea the whole way from the product idea to a finished product . Another aspect is that it is of importance that inventions already from the beginning get the right direction, especially from the market ing point of view, in the various development phases.

I hope that this presentation has given you at least some practical aspects on how the industry and commerce can play an active and important role in the exploitation of inventions and innovations .

ROLE OF COMMERCE AND INDUSTRY IN THE DEVELOPMENT, PROMOTION AND MARKETING

OF INVENTIONS AND INNOVATIONS

by

Cerefino L. Follosco Director, Philippine Chamber of Commerce and Industry

I wish to express to you, on behalf of the Philippine Chamber of Commerce and Industry, our appreciation for having been invited to be one of the represen­tatives of the private sector in this prestigious workshop organized by the World Intellectual Property Organization (WIPO) with the cooperation of the Government of the Republic of the Philippines and of the United Nations Development Programme (UNDP).

This workshop is significant in the sense that it provides the opportunity for the representatives of government and private sector to discuss with and share the benefit of hearing views on "The Effective Use of the Industrial Property System for the Benefit of Inventors, Industry and Commerce in the Asian and Pacific Region".

The topic assigned to me is "The Role of Commerce and Industry in the Devel­opment, Promotion and Marketing of Inventions and Innovations" . There are other speakers assigned to discuss the same subject. So, I thought that, perhaps, the organizers of this workshop would like me to tackle the role of the Philippine Chamber of Commerce and Industry in the promotion and marketing of inventions and innovations with the hope that our Philippine experience can be of help to other developing countries .

At present, I must admit that the PCCI, being a new organization and is still at its organization stage, has not been deeply involved in so far as this subject is concerned although the Chamber's share in the promotion of science and techno­logy in this country has been included in its list of priorities. It might interest you to know a little background of how the PCCI came about. The Philippine Chamber of Commerce and Industry is the product of the merger in 1978 between the Chamber of Commerce of the Philippines, founded in 1903, and the Philippine Chamber of Industries organized in 1950. It is an organization composed of business units representing entrepreneurial activity, commerce, manufacturing and processing industries, services and business associations. The PCCI is the fruit of what President and Prime Minister Ferdinand E . Marcos proposed as tbe "single voice organization of the entire private sector" during the 3rd National Business Conference in 1977 wherein he clearly spelled out that "private enterprise" is a partner of the government. Thus, the President, on December 7, 1978 issued Letter of Instructions No. 780 recognizing the PCCI as the single voice and official representative of the private business sector in its relationship with the govern­ment. It likewise serves as the recognized representative of the private sector in international business forums .

We foster the expectation that at the end of this workshop, we will be able to gain the necessary inputs that will serve as guidelines in our country ' s overall development goals and objectives.

Development Goals and Objectives

Our country's Long-Term and Five Year Development Plans provides for a two­pronged strategy for development : 1) attainment of a dynamically-balanced economy, particularly through increased agricultural and industrial production, trade diver­sification and rationalization, application of science and technology and proper mangement of environment; and 2) fuller and more efficient utilization of human and natural resources in nation-building. The target is to achieve a modern Philippine economy in the year 2000 with a progressive industrial sector as a solid foundation.

84 Cerefino L. Follosco

Modern industry for the Philippines is expected to raise the productivity of the labor force and increase national output and income. Why we chose the path to industrialization is obvious. With the rapid increase in our population, the ratio of our resources to population has been diminishing . We can no longer depend on agriculture alone as our hope for meeting the rising expectations of our people. By the end of this century, it is expected that our labor force will double and therefore there is a need to create new job opportunities which industrialization can only provide .

The World Bank Country Economic Report on the Philippines estimated that "an investment strategy is required that will produce at least 75,000 new jobs a year in industry by the mid-1980s . Also necessary are larger investments to expand the capacity of traditional and non-traditional industrial exports . These are minimum goals, and any shortfa l l could have dangerous repercussions, such as a rise in unemployment, or more underemployment in both urban and rural areas, with attendant social unrest".

The Export Thrust

In this situation therefore, the promotion of exports other than the tradi­tional ones is imperative. In fact export promotion has been one of the highest priority in our national development program since the export sector is expected to provide the full stimulus required for the achievement of our goals in economic growth .

we have achieved much improvement in the field of export. Although we still have to contend with 2 major problems, namely: 1) the difficulty of penetrating markets firmly held by enterprises that have built up research departments for continous improvements of products and rationalization of production and organized marketing facilities through which they kept aware of their customers needs and how these are changing ; 2) shortage of efficient managerial and labor personnel 1 lack of capital and business acumen so frequently associated with advanced tech­niques1 and a lack of experience in standardization and product quality control.

Traditionally , we export most of our products to the developed countries. We are, however, developing other markets now. Our aim is to reach a certain level by which our export earnings must be able to pay the increasing bill on our imports. In the Development Plans, therefore, exports earnings are targeted to increase by an average of 23.8 percent from 1978 to 1982 and by 14.6 percent between 1983 and 1987.

It must be pointed out, however, that to enable us to have a larger share of the export market, it is imperative that we keep pace with scientific and techno­logical advances of our trading partners . For, as studies on South Asia would indicate 1 "the deterioration of the trading position of the South Asian countries since soon after World War II is thus in large part due to scientific and techno­logical advances in developed countries which have made possible the rapid rise in agricultural production, the substantial reduction in the use of raw materials imported from South Asia for industrial production and the substitution of synthetic products for imported raw materials ...

It is frequently added that a high rate of technological progress in South Asian countries will require more advanced research facilities than were needed in the Western countries in the early phases of their industrialization ; and also higher levels of education generally and more rational and enterprising attitudes particularly among administrators and business entrepreneurs . "*

Technology in Industry

Technology as applied in industry need not go through the slow and long process of experimentation in as much as productive technology is available for the borrowing. The transfer of technology takes place in the form of purchase

* Gunnar Myrrdal, Asian Drama Vol. 1, pp. 698-699

Cerefino L . Fol losco

of scienti fic and technological literature , patents, licenses and techniques ; exchange of technical information, movement of scientists and engineers, impor­tat ion of products embodying new technology, direct foreign investment, technical aid, and joint international research and development programs.

The transfer of technology across national boundaries provides a short- cut

85

in the development of industry . However, this transfer is confronted with sev~ral restr ictions and does not mean a constant f l ow of technology from one contry to another . Thus , consideration must be made on the level of knowledge and capacity of both the donor a nd recipient country . In importing technology , theref ore, this must be adopted to our conditions .

However, importing technol ogy is just one alternative . What is more important is for a country to become self- reliant . And the Philippines is aspiring t o achieve self- reliance through appropriate technology . A technology is appropriate if it suits the immediate needs of the country and the people and whose development is highly beneficial to the local social and cultural environ­ment. Whenever possible, it uses indigenous materials and domestic know- how. Filipinos , generally , are known for their inherent ski l ls in developing or i nnovating technologies . From an innovative Filipino mind carne forth the now worl d - famous jeepney . What was left of the heaps of junk ; surplus American jeeps, the ingenious Filipino molded, cut , and molded some parts . Out of these was born the Filipino jeepney to provide the transport needS of thepeople. I might add that the so- called low- cost Asian Uitility Vehicle was developed by multinationals in the Philippines . A Filipino engineer who had the fascination for space s huttle went to the United States and worked at the National Aeronautics and Space Administration . He was responsible for designi ng the moon vehicle that was u sed by American Astronauts to explore the moon ' s surface . The mighty-mite jeep- grader being imported from Japan for our public works is also a Filipino invention. These are just some manifestation s of Filipino ingenuity. Within our midst are a lot of Filipino inventors and technologists . They have innovative ideas that can be tapped for technology development . But often times, they don ' t get appr eciated, much more encouraged . I a m sure some of you are faced with similar situations in your countries .

Problems of I nventors

As we all know , an invention goes t hrough several s t ages before it reaches the customer : idea-technical drawing - prototype 1 - testing and refinement -prototype 2 - testing and refinement (if end of prototypes) - working model (and table model for patenting) - testing and refinement - commercial model adjusted to economy of scale - market test - refinement - commercial production - sales -post- sales - product improvement . Through all these stages, inventors encounter a lot of problems among which are as follows , as pointed out in a study made by the Technology Resource Center of the Philippines :

1 . Lack of Adequate Information - Due to poor information, some investors repeat t he same product or process which has already been done by others. Inven­tors are faced with inadequate technical hel p frc.n the government as they do not know how and where to avail of the government ' s research and development facili ­ties . If they do , they usually find the R & D Centers not sufficient and not adequately equipped . The private sector cannot provide an alternative because the R & D facilities of industries are designed more to support packaged tachno­l ogies from abroad . Due to lack of information, inventors go through problems which have already been solved by others.

2 . Financing Pr oblem - In the case of financing, the inventor depends on his own resources of the help of his family and friends . If he is lucky, his financial resources will see him through up to a working model . Any further refinement would now depend on additional funding from an outside source which could not find due to lack of the necessary know- how. Usually , the inventors have no opt ion but to sell the working model which is not ideal as this working model might stil l have some technical bugs .

86 Cerefino L. Follosco

3. Production and Marketing Problem - The production and marketing stages pose a greater problem; that of syndicating financial, production and marketing groups around the invention . Individual financiers prefer to work with a foreign technology which might be more expensive but is already tested and accepted by the market. In the case of banks, traditional lending practices do not support inventors. From a banking point of view, it is risky to put money in an idea or an unknown product. On the part of inventors, they do not have funds for fea&l­bility studies. Neither do they have the needed collateral to obtain loans from the bank.

4. Stiff Competition - Needless to say, local inventions face stiff compe­tition from foreign products. While enjoying extensive resources for product development and improvement, foreign products may not necessarily be better than l ocal counterparts. However, the brand acceptability and enormous resources in producing and marketing brands give the foreign productsan edge over local counter­parts . Since the market structure is dominated by multinational corporations, these big companies can always dominate and dictate consumer taste in their favor .

5. Lack of Government Support - Not withstanding government efforts to help inventors , even the government unknowingly becomes an obstacle to inventors . Government purchase of inventors ' products could have been a major boost . Yet, purchasing regulations tend to work against inventors, for instance, government agencies require a certain level of capitalization, production l evel and past sales service. How many inventors woul d have ~ 50,000 capitalization? How many could supply 100 units? How many could provide after sales service?

6 . Colonial Mentality of Filipinos - One of the biggest problems is the Filipinos ' preference for foreign products . We have gone a long way in indus­trialization with a full range of products form cars, drugs, agricultural machi­neries, construction materials, boat-building, electrical supplies, appliances, garments, shoes to cosmetics . On the production side , we are marching towards se l f - re l iance. But on the consumption side , we are going the other way with an incorrigible colonial mentality. Consequently, we continue to patronize foreign products which have local counterpartsand are exported, i . e., shoes, handbags, garments, electrical parts, fire extinguishers, gas-saving devices, agricultural implements, construction materials, automotive parts, buses, tiles, etc. This colonial mentality exacts a toll on local inventions . Government agencies and farmers continue to purchase expensive Japanese brand-hand tractors even when local counterparts are available at half the price.

Possible Areas where the PCCI can be of Assistance

In line with our country's program of self- reliance, there is, indeed, an urgent need to promote appropriate Filipino technologies and explain their significance. Among the areas where we feel our Chamber can extend assistance in conjunction with the activities of government institutions such as the Phi l ippine Inventors Commission, the National Science Development Board, the Technology Resource Center, the Ministry of Industry, and others are as follows :

1 . Research and Development - The PCCI should have a more effective coordi­nation and cooperation with Research and Development institutions, more often, R & D results are not commercialized because of its lack of economic and market­ing feasibility. With representatives of Commerce and Industry playing an active role in this area, acceptability of R & D results will be easier . Furthermore, PCCI should encourage more R & D efforts among its members.

2. Development of Design and Engineering Services - One of the many problems of inventors is the lack of design and engineering capability. Even government R & D lack of this facility . Private enterprises should be encouraged to be set up .

3 . Need for Linkages - As previously mentioned, inventions go through various stages from the drawing stage to commercialization. The linkages among various groups such as R & D institutions, Engineering services organizations, Industry & Trade have to be strengthened. There should be no problem where all these functions are done by a single corporation . However, this is not always possible, hence PCCI can assist in undertaking the role of providing such a linkage.

Cerefino L. Follosco 87

4. Marketing of Inventions - PCCI can assist in the marketing of inventions by seeking possible inventors and sponsors of local inventions/innovations. Along this line, meetings between inventors and potential users or investors can be arranged. In addition, it can participate in the exhibition of Philippine inventions.

5 . Information Campaign - The PCCI, in cooperation with government agencies c·oncerned, shall disseminate relevant information pertaining to local inventions and innovations to the entire private business community in the country through circulars, publications and other means. The PCCI shall actively participate in the promotion of greater public awareness and the utilization of technologies appropriate to the country, particularly those of local origin.

6 . Dissemination of Filipino Technologies - The PCCI shall gather and maintain a pool of Filipino technologies from all possible sources for dissemi­nation to its members with an appeal for their patronage and support. By maintaining a pool of technologies, the Chamber can readily provide information f .rom inquiries, both local and abroad.

7. Assistance in the Exportation of Filipino Technologies -The Chamber regularly receives direct inquiries regarding trade and investment opportunities from abroad and immediately relay them to its members and other interested parties. By having a pool of technologies available in its office, the Chamber can parti­cipate in the promotion of our local technologies in the world market by way of directly providing information to foreign inquiries. Likewise, the Chamber entertains from time to time, foreign trade and investment, missions and , perhaps, this could be another avenue by which we can promote our local technologies .

8. Assistance in Making Industrial Plants Facilities Available for Research and Development - The Chamber shall make arrangements with its members to have their plant facilities available to technologies and inventors for the latter's actual research and observation similar to the in-plant or apprenticeship training that the Chamber, through its members, has been providing to students and graduates o£ vocational or technician schools and colleges.

Innovations

In closing, I should like to emphasize the Chamber's willingness to do its share in the development, promotion and marketing of inventions and innovations . The points I have enumerated are just some of the areas wherein we feel we could participate in this undertaking . The Philippine Chamber of Commerce and Industry opens its facilities to whatever assistance it can render within the limits of its capability and join the government in its overall efforts towards self-reliance .

ROLE OF COMMERCE AND INDUSTRY IN THE DEVELOPMENT, PROMOTION AND MARKETING OF INVENTIONS AND

!~~OVATIONS - COMMERCE AND INVENTIONS

by

Dr. Vicente B. Valdepenas, Jr. Deputy Minister for Trade, Philippines

Ladies and gentlemen : It is a pleasure to be with you today to talk about commerce and inventions. The relationship between economic development and tech­nical change is fairly well known to most of us. It is a lesson one learns out of economic history and like all truly history and like all truly historical tendencies, it repeats its inexorable logic in every contemporary case of fairly rapid economic growth in many parts of what has come to be labelled these days as the Third World. It is very much in evidence in the sustained growth of South Korea since 1963, India since the late 1950s, Mexico the latter part of the 1960s and Brazil since 1967 . The lesson, of course, has always been most visible in the continued economic prosperity of such developed communities as the United States of America, Great Britain, Japan and West Germany since 1945.

However, lest the familiarity of this economic relationship tend to dull our continuing appreciations of it, it is probably useful at this point to recall to our minds the human processes that underlie the vital interaction between economic growth and technological developments. In the process, it will be possible for us also to locate the unique relationship that commerce has in the whole effort of getting any community to an effective use of inventions or industrial property . In the social experiences of rapidly growing communities, the transition from scientific ideation to its eventual socialization and mass adoption by entire communities is often the result of a happy convergence of five fairly identifiable human processes. One is the development or pure science, the second is its conver­sion to an invention, the third is its transformation into an innovation, the fourth is the financiation of the innovation, and finally its mass acceptance or adoption by the entire community. Al though this chain of events need not follow any parti­lar sequence, they have to happen together in the right proportion in any given community at any given period if technical change is to become the pacemaker of economic growth that it ought to be . In fact, the relative rates of growth of different economic communities depend on their individual abilities to manage the convergence of these events . Economic communities that have more capacity to get all these events happening together in the proper proportions are frequently also the most rapidly growing communities that we have come to know in modern times . This is certainly the evidence we have in the case of Great Britain during the 1860s or the so-called Industrial Revolution, the case of the United States up to 1940, and the case of Japan after 1945 .

What this implies then is the need for the right social effort in effecting the successful transition from scientific ideation to its mass utilization by the whole society. The fact that some communities are fairly developed and others fairly underdeveloped indicates that the evocation and organization of such a social effort is something that cannot be taken for granted . It will not emerge automatically or mechanically as some kind of sui generis, or spontaneous genera­tion . It takes deliberate effort to evince it, to organize it, to make it work. In short , it requires certain institutional arrangements for its proper develop­ment . Otherwise, it becomes a matter of happenstance, without really fructifying in the cumulative expansion of the level and the range of livelihoods of peoples which we have come to associate these days with economic growth. The evocation of such a social effort is fortunately susceptible to human management. Let us begin, for example, with scientific ideation or the pursuit of the pure sciences. Their growth is within humanly manageable proportions, even as one can differen­tiate between major and minor contributions. An inventory of all these contribu­tions can be kept, properly recorded as to their specific areas of concern, national origin, and time horizons. By focusing on the ~ajor watersheds in the evolution of scientific ideation, certain paradigms emerge which indicate to us the necessary and appropriate climate for the most effective generation of pure sciences or basic research. Another social measure in this whole direction is the science budget that our legislatures manage every year. It is also possible these days to appraise the social impact of major scientific contributions and predict the time horizons they require for their commercialization in a given community or groups of economic communities .

90 Dr . Vicente B. Valdepetias, Jr .

The human management of inventions, which disclose operational methods of creating something new, begins with their patentability . Here economic communi­ties differ in their jurisprudences . Depending on how they arise in any given communal system of human relationships, such laws either inhibit or promote the growth of inventions. In the United States, for example , processes that courts describe for one reason or another as fundamental natural laws are not patentable and on this type of j urisprudence, the well-known work of Irving Langmuir of General Electric on high vacuum was not given a patent, even by the us Supreme Court, although Langmuir won a Nobel Prize for it nonetheless. Later, of course, Langmuir was given a patent for his work on the gas-filled lamp.

The introduction of an invention commercially as a new or improved product or process, which today we associate with innovation , is likewise susceptible of human management. This requires certain human qualities which can be acquired or learned under the necessary and appropriate social environment and upbringing, for example, sustained ability to manage obstacles, fear or disasters, a gift for selecting the right people to work with, and the capacity for maintaining the confidence of the sources of finance. Institutionally , a track record of new and established firms could be installed and monitored for innovations they have managed to generate within their industries over certain time horizons .

This brings us to a consideration of the financiation of innovations . One way of getting an idea of the magnitude and the quality of financing innovations is a record of the new firms that are organized every year and the volumes of capital investment they represent. In general, there is a positive correlation between the rate of innovations in any given economic community and the rate of construction of new industrial plants, out of which new products or processes get commercially introduced to a community of mass consumers or users.

The ability of a community to accept innovations partly depends on the efficacy of commercial activities. Mass acceptance or adoption of new products or processes is frequently a matter of their marketing. In marketing such products or processes, one must go through the whole cycle of commerce itself, from market research to trade information, to marketing advisory services on product adaptation and development, product standards, design and quality control as well as product costing, pricing, packaging and product servicing, and finally to a steady process of imaginative sales promotion. The effectiveness of any sales promotion depends on the quality of sales or commercial representa­tion for the new product or process as well as the scale of promotional efforts undertaken.

I . I n troduction

ROLE OF INDUSTRIAL PROPERTY LAWS IN PROMOTING INDIGENOUS INVENTIVE

AND INNOVATIVE ACTIVITY

by

Edward J. Brenner Patent Attorney, Washington ,

and former US Commissioner of Patents

Indust rial property laws have been utilized for centuries to encourage individuals and organizations to engage in inventive and innovative activities . The benefits of such activities flow to both the inventors and innovators as well as to the public in general .

In t his paper, the following distinction is made between invention on the one hand and innovation on the other hand. The term "invention" wil l be u s ed a s meaning the process of conceiving the particular invention involved and t he term " innovation " will be used as meaning the process of bringing the invention from conception to the market place .

The industrial property laws involved in this paper include those for patents , u t i l ity models and trademarks .

I I . Patents a nd Utility Models in General

Patent systems originated in Europe several centuries ago as a means of encouraging manufacturers to disclose their secret processes a nd machines to t h e public so that others might have an opportunity to utiliz e these processes and machines in the future and to improve upon them. The patent grant was the mecha­nism used by governments to accomplish this desired end .

Under the patent grant the inventor or his assignee was granted the right to exclude others from using his invent ion for a l imited period of year s in e xchange for pub l ishing a description of his invention for the information of the public. Thus, patent copies that one can buy to study are actually copies of part of the patent grant, namely, the written description and the accompanying drawings t hat disclose how to make and use the invention .

Under most patent laws, a patent is granted only if the invention is new , useful and unobvious to a person skilled in the art . Thus , the patent gr ant does not deprive the public of any right it had before . In other words , valid patents may not be granted to cover products or processes that were known befor e , or are obvious modifications of what was known before .

Also , after a limited number of years , the patent grant e xpires and the invention becomes a part of the public domain with the right of t he public to f r eely make and use the invention . In this way, the progress of usefu l arts i s continued as time goes by.

While some may look on a patent system as a "monopoly" or anti- competitive system , it actually is very much to the contrary . More particularly , a paten t system provides a powerful system of competition in the research and development of new products and processes . In fact, in some socialist countries patent systems have been established to create competition between various state-owned enterprises. So far as the criticism of its being a monopoly goes , it is to be noted that a patent is no more a "monopoly" than one has with respect to the ownership of one's home, car, etc . , which are accomplished as a result of one's work efforts. In fact, a patent provide s one with a lesser right in the sense t hat the right to exclude others from us ing the patented invention l asts for only a limited number of years.

92 Edward J. Brenner

It is also to be noted that a patented product must compete in the market place with other patented and unpatented products. In order to compete effecti­vely, a new patented product must offer the public a better value than existing products, that is, the product must be either a new product or a higher-quality and/or less expensive product than its competitors'.

Patent protection is particularly important for an individual inventor or a small company that must compete with large companies . Without adequate patent protection, the individual inventor or small business would be unable to justify the risk of trying to develop and market a new invention with the result that venture capital would probably not be available to finance such an undertaking. Larger companies also benefit in the same way from patent protection, but in many cases patent rights are not so crucial as in the case of smaller organi­zations or individuals .

Patent protection is also important in the case of an individual inventor who wishes to submit an invention of his to a company to determine whether the company would be interested in buying the invention. Normally, companies (for good reason on their part} will accept an outside invention for evaluation only on the basis that the inventor agrees to rely solely on his patent rights for his protection. In the United States of America the Patent Office has adopted a Disclosure Document Program under which an inventor may have his invention disclosure "recorded" to establish an official record of his invention as of the date of submission to the Patent Office. However, the inventor is warned that the Disclosure Document Program does not afford him protection equivalent to that of a properly filed patent application.

III. Incentives for Inventing and Innovating

The great American President, Abraham Lincoln, once sai.d that the patent system provides the fuel of interest to the fire of genius. Thus, without the patent grant there would be no doubt that the level of invention and innovation would be carried out at a greatly reduced level since one of the major incen­tives, the prospect of a monetary reward, would be missing .

This conclusion is true whether the situation involves a lone, independent inventor or a large research-oriented organization. The cost of inventing and innovating is constantly increasing for several reasons. One reason is that the complexity of technology is increasing. A second reason is the impact of increas­ing government regulations relating to safety, the environment and various eco­nomic and social matters.

The act of inventing is an individual activity; only individuals can conceive inventions, not an organization. However, usually it is an organization, large or small, that does the innovating, that is, the development and testing of the invention, the construction of manufacturing facilities and the establishment of a marketing program.

All of this effort requires money. In addition, each invention involves a risk and uncertainty. First, there is the uncertainty as to whether a desired invention actually can be made. Even if such an invention is made, there is the risk in bringing the invention into the marketplace. For example, the product may not be successfully developed; a satisfactory manufacturing process may not be found, or consumers may not purchase the product at a price or volume which would be profitable.

Without a patent system, one's competitors could simply sit by and await the sucessful marketing of one ' s invention and then simply enter the marketplace with the identical product. To make matters worse, this pirating competitor would be able to undercut the price of one's product because this competitor did not have to bear any of the expense of developj.ng the product, its manufacture and its market, not to mention the cost of covering one ' s commercially unsuccessful inventions.

Edward J. Brenner 93

Without patent protection, it seems clear that the inventor and innovator could not continue in business against his pirating competitor. At the least, he could not justify the expenditure of time, effort and funds for invention and innovation, to the basic detriment of the public that would be deprived in the future of new, improved and/or less expensive products in the future which are the fruits of invention and innovation.

Patents also serve as a primary basis for technology transfer by means of licensing patent rights and, in many cases, know-how. The existence of a patent facilitates the licensing of know-how because a patent right is a better-defined intellectual property right than is normally the case where know-how is transferred by itself. Also, in the case of the United States of America there are tax advan ­tages and savings if patent rights are sold or exclusively licensed as part of technology transfer.

IV. The Role Of The Patent Office

The Patent Office has the responsibility of examining patent applications and granting patents if the applications meet the requirements for patent of the patent laws. The examination may include the examination for formalities as well as the examination for novelty and unobviousness . In the latter case, it is necessary for the Patent Office to maintain search files of prior patents and pubJ.ications and to employ technically trained examiners.

In some countries, the patent system provides for opposition or revocation proceedings in which a competitor or other member of the public can contest the grant of a patent. Normally, the opposition will be based on prior art that was not previously considered by the Patent Office examiner . In the United States of America, the Congress is presently considering passing a patent re-examination bill which would provide that a patent could be re-examined at any time during its life upon request of the patentee or a third party with the result that the patent might be confirmed, modified or cancelled.

The Patent Office is also responsible for "publishing" the patent grant so as to disclose the invention to the public to enable any person skilled in the art to make and use the invention after the patent grant has expired . Publication may take the form of printing of the patents to make copies available to the public or of simply making the patented files available to the public for inspection.

The Patent Office may also maintain copies of domestic patents, as well as foreign patents and technical publications, avai l able to the public for review and study. Such public search files arepreferablymade available in classified form, that is, arranged by technical category.

A Patent •'ffice may also make available to the public general information relating to the patent system and procedures for p~tenting. Generally, however, the Patent Office does not offer technical or legal assistance to inventors because this could present a conflict of interest with respect to their government role of granting patents. Thus, normally governmental assistance to inventors and inno­vators is made available through other government agencies.

V. Independent Inventors And EmployeG Inventors

In many countries, the majority of inventors are employed by organizations such as private enterprises, the government and universities, and are thus referred to as employed inventors . However, although lesser in number, the contributions of independent inventors and small companies are very important and many of the most important inventions have been made by such inventors. For example, in the United States of America, it has been found that small firms produced about 24 times as many major innovations as large firms and nearly four times as many as medium­sized firms per research and development dollar expended, but less than 4% of total federal government expenditures on R&D went to small firms, according to a recent paper prepared for the White House Conference on Small Business.

94 Edward J. Brenner

In most cases, patents on inventions made by employed inventors are assigned to their employers who have paid for the research and development of the inven­tion and who will incur the risks of the innovation process of bringing such inventions to the marketplace. Compensation for such employed inventors varies from a nominal amount for each patent obtained to substantial compensation , including in a few cases a royalty or share of the profits realized from success ­ful inventions . This subject is relatively controversial and there are strong , persuasive arguments made on both sides.

VI . Patent Rights From Government-Funded Research And Development

I n some countries, the government through use of the taxpayers ' money funds research in government university and/or private company laboratories . This research may be directed to governmental activities relating to defense, s p ace , health, safety, the environment, etc.

There is usually a controversy as to the disposition of patent rights covering inventions made from government-sponsored research . Some claim that "if the government paid for it, the inventions and patents thereon should be made freely available to the public . " However , experience in the United States of America with tens of thousands of government-held patents i ndicates that very, very few of these patent s find their way to the marketplace for the benefit of the consumer . As a result, a bill presently in Congress would give the owner­ship of such patent rights to universities or small businesses , but at the present time for political reasons probably, not to medium or big business .

VII . Trademarks

Trademark systems provide protection for one ' s special identifyin g mark used in the course of one ' s business . The system thus protects the businessman from others ' pirating his trademark while at the same time protects the public by an assurance that products they buy with such a trademark are, in fact , produced by the businessman that owns such trademark . In this way, the public is protected from purchasing inferior goods produced by someone other than the legal owner of the trademark .

In view of the fact that a trademark indicates a particular source of t he goods (e . g . , a particular company), the trademark owner must be careful to main­tain this understanding on the part of the public since, if he permits his trade­mark to become "generic", he can lose his valuable trademark (e . g ., in the case of aspirin, linoleum, cellophane, etc . ). (In some countries, a requirement for obtaining a trademark is that the applicant actually must use the trademark in his business, or at least that he intends to use the trademark in the near futu re) .

I

ROLE OF INDUSTRIAL PROPERTY LAWS IN PROMOTING INDIGENOUS INVENTIVE

AND INNOVATIVE ACTIVITY

by

Upendra Baxi Professor, Faculty of Law,

Delhi University

In exploring the relation between the regime of industrial property l aw and the promotion and protection of the human and social creativity, we must begin with recalling the fact that this law is only an aspect or domain of organized social decisions genrally called the "law". The law is not just a normative system . It is also a behavioural and institutional system. Besides, the law constitutes a cultural system as well. The culture of the law often conditions the behaviour of the law and the lawmen (judges, lawyers, jurists and legislators).

One distinctive feature of the culture of the law is that it is often preemi­nently conservative, favouring continuity in social ordering rather than discon­tinuity and change. But the contexts of development in the Third World demand a legal culture which would assist a swift structural transformation of the society. If the inherited/adopted/indigenized legal culture of a developing society turns out to be basically conservative, even the normative changes in the l aw become difficult to attain. Even when these are attained, the behaviour of the law through interpretation and implementation often deflects the direction, and decelerat es the pace, of the desired change.

The general theme concerning the "nature" of the law and its role in social development cannot obviously be pursued here. But it should be sufficient to not e the paradox. The preeminently non-innovative legal culture has still to provide for the promotion of inventiveness, innovation and creativity in social and techno­logical spheres through regimes of intellectual and industrial property. Should it be a matter of surprise if the law, with such culture, achieves this result in ways neither anticipated nor desired?

Of course, when we talk about legal cultures, we talk in terms of more or less, not of all or nothing. Every legal culture is responsive to some kinds of innovation ; but the rate and direction and also the spread areas of innovations all vary. And so do the historical conditions and forces which prompt these . For example, the common law took a long and circuitous route before it arrived at a satisfactory regime of compensation for injuries suffered by employees in the course of employment, although it was a forerunner, through Magna Carta and the poor law, of a general model of basic political rights . The English law, in our own field through the all important proviso to section 1 of the Statute of Monopolies, 1624, gave rise to some conceptions of patent which still dominate the field. On the other hand, many European countries were slow in adopting patent protection. For example, Switzerland resisted it for a long period before it adop­ted the system of industrial property in June 1888 and the Netherlands adopted the system in 1817, abrogated it in 1869 only to restore it later . Today , quite a few developing countries have no law protecting or regulating industrial property. These examples underscore the theme that conflicting material interests along with conflict over values comprising "development" often reinforce and sustain the non- innovative tendencies in the law.

Even today, we find that most legal systems, including those of the develop­ing countries, do not affirm a basic human right to creativity and inventiveness. It is assumed typically that fundamental rights to freedom of speech and expression and the right to acquire, hold and dispose of property necessarily entail recogni­tion of human creativity and inventiveness. But the right to freedom of speech

96 Upendra Baxi

and expression is in essence a politica.l right ; and the right to property is in essence an immunity against confiscation or expropriation by the State. Neither set of rights protects necessarily the right of men to invent and create and innovate . There is naturally no duty, constitutional or legal, on t he state to foster or support creativity and inventiveness .

Consequently, the law relating to industrial property does not command public attention as do other issues of constitutional law and politics . Creati­vity , inventiveness and innovation ought to be among the paramount concerns in a developing society, of the entire body politic . Instead , congealed in the technical categories of the law of industrial property , creativity and inven­tiveness tend to become the sectoral concern of professional groups whose material interests ultimately modulate the shape of the law and its administration . This is revealed in the manner in which reform of industrial property laws progresses in some developing countries .

For example, the Indian Patents and Designs Act 1911 which replaced a legal regime originating in 1856 , was so high on the agenda of law reform priorities that the government set up a committee to recommend changes in the patent law in 1948, soon upon independence. Its interim report recommending some changes was enacted into law in 1950. But its final report made soon thereafter emerged as a Bill in 1953, a bill which was allowed to lapse as a "result of heavy criticism from abroad". Another Committee was appointed in 1957: it reported in 1959 . But a draft bill was proposed only in 1963 . The Joint Select Committee of Parlia· ment considered the bill in late 1965 and a majority report, favouring the bill, was submitted in late 1966. The bill was vigorously opposed by the Association of Chambers of Commerce, the Federation of Indian Chambers of Commerce and Industry and the Organization of Pharmaceutical Producers in India. Pre ssur e was exerted at home and abroad: warnings emanated from developed countries , and their embassies, that "India would face a serious setback in foreign investment if the bill was not altered" . The bill introduced in 1965 departed in many respects from the 1963 bill, particularly making some concessions to foreign and domestic business interests. Despite this, the opposition to the bill continued and the bill lapsed yet again . It was reintroduced in August 1967 . The Indian Patents Act was finally enacted on 19 September 1970.

It took independent India twenty long years to revise i ts patent law and make it consistent with her developmental needs, interests and values . Why did it take so much time when the national government attached to its reform such high priority? Conversely, why did the new law suddenly emerge in late 1970? The fascinating story of it all is narrated by Stanely Kochanek (1974 : 308- 18). But for the present purposes it is sufficient to note with him that the "most critical factor seemed to be the appearance of the bill at a time of crisis, when the public uproar over the high prices of drugs quickly offset years of industry lobbying. The drug industry had lost the public sympathy it had tried to create" (p. 317, emphasis added; ~also EPW, 1970: 1585) .

In other words, as long as the reform of patent law remained a dialogue among the political, business and legislative elites, it became a sectoral concern instead of being a popular , concern . And when it assumed the latter form, in the Indian experience it was more in the shape of consumer protest and indignation rather than in terms of interests and values of innovat ion , inventiveness and creativity. So long as industrial property law remains enmeshed in the framework of business and industry alone, amelioration will also have to be sought in terms of that framework through consumer justice process . But then one would like to think of placing the entire framework of industrial property law in a wider social setting stressing the worth and value of human creativity and innovativeness . Is this at all possible?

It is not, so long as the legislator, the judge and the administrator are no· mandated to assist the promotion and sustenance of social milieux which will fulf citizen ' s and society ' s creative potential. Rather, they are typically assigned responsibility to facilitate and regulate such creative and inventive activity

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as occurs in a society. Industrial property law in general becomes a resource for some inventors to protect rights, and regulate relations arising from their inven­tive activities. At its best, it is a responsive, facilitative and regulatory law . But it is not a law which actively concerns itself with promotion of the inventive activity nor a law which monitors other laws having impact on the conditions which affect such activity. And this is but natural in legal systems which are preemi­nently responsive and managerial, rather than proactive and entreprenurial.

Hence, if we are to seriously examine the role of industrial property as an instrumentality to foster innovation, inventiveness and creativity, we have {sooner or later) to confront the question: how shall we make the legal culture more innovative? What kind of legal systems will make lawmen themselves share commitment to social creativity and innovation in their domains of work, so that they can in turn assist creativity and inventiveness in other domains : be it arts, science and technology? But in our search for redirection of the law of industrial property we at the same time cannot obviously wait for transformation of the whole legal system or cultures. This then is the not too insignificant challenge confronting the would-be creators of the New Order of Industrial Property {NOIP) .

II

What, from the perspective of this workshop, are the criteria of a good industrial property system? Two elementary propositions have to be reiterated at the outset. The first is that a legal regime for the protection of industrial property is necessary for developing societies . The second is that the nature of such regime will be conditioned not just by history but also by developmental goals and models espoused. It is said often, for example, that "where socialistic forms are adopted in underdeveloped countries issues relating to industrial property are largely irrelevant" (O ' Brien, 1976: 391). This, of course, is not empirically true; socialist countries, at many stages of development, have been and are as much concerned to provide some legal regime for the protection and promotion of inventive and creative activities {see, ~· Horvath, 1979) .

Of course, the nature of the economy will affect, and even determine, the status and role of industrial property in a developing society. A liberal market economy, a centrally planned socialist economy or the more familiar (in the "Third World") variant of a "mixed economy" will favour different conceptions and methods for promoting and protecting industrial property. This by itself would tend to show that some form of legal framework for industrial property is considered generally necessary,regardless of the ideologies or models of societal development.

The alternative to a system of industrial property law is simply an ad hoc decision process concerning inventive and creative activities. Even critics of the existing international system of patent protection under the Paris Union, and of WIPO, find themselves saying, sometime or other, that some legal framework for promotion and protection of industrial property is necessary for developing societies. For example, while Professor Peter O'Brien complains that the Paris Convention is merely an "outcome of underlying economic and political forces which have moulded the world economy and into a shape convenient to them" and WIPO is no more than a "full time pressure group" which acts "to propagate the message" of dominant economic interests, he himself acknowledges (in a case study of Ethiopia in mid 1972) that the lack of a suitable patent law can undoubtedly be an anti-developmental factor (1976: 581). His reasons for this conclusion are that ad hoc administrative procedures led to a situation of exploitation by dominant interests. For example, there was in Ethiopia no time limit for the life of patents, protection was granted in an ad hoc manner to "virtually every item", neither "novelty" nor "contribution tofurthering national objectives" appeared to guide the grant of patent protection and that there was no way of determining whether "a registered patent or trademark had been utilized" or was used "for preventing non-utilization for long periods " . The message of Professor O'Brien' sanalysis is not dissimilar to WIPO's continuing efforts to promote an understanding of the importance of the industrial property law in developing countries and to persuade them to accept for consideration its proposed Model

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Law on Inventions pending a revision of the Paris Convention, now on the anvil. In this sense, WIPO is a salutary "pressure group" for developing countries to devise apposite legal frameworks for protection and promotion of industrial property as an aspect of whatever models of development these countries espouse .

Of course, controversies arise when we move from this starting point to the search for a good regime of intellectual property law for the developing countries. I would say that one hallmark of a good law would be that it provides a framework of inducement and protection for the indigenous innovator. This may mean many things . But one meaning on which there o ught to be universal agreement is that such law must make inventions within the country and by its own nationals paten­table. Even this is, unfortunately, not the case everywhere . For example , the Malayasian Patent Legislation provides that only those patents which are regis­tered in the United Kingdom will be revalidated and protected in Malaysia. Clearly, such a legislation cannot assist development and exploitation of national creativity and inventiveness, except perhaps in a marginal manner.

From the standpoint of fostering inventiveness and creativity, a regime for industrial property law will endeavour to ensure that inventions enjoying legal protection are actually put to work in the country. We all know that in every country not all patentable inventions are necessarily patented; and not all patented inventions are actually put into operation . We also know generally the reasons for this latter phenomenon. Many factors intervene to make patents fallow. Some of these relate to the nature of particular inventions themselves ; others relate to the conditions and possibilities of commercial exploitation of patented inventions . Many others relate to practices in trade and business which foster the use of the patent device to ensure that the patented inventions are not worked by rivals for a certain period. We also know that as in 1972 the "developed market economy countries owned about 95.6 percent of patents granted to foreigners whereas the developing countries owned about two thirds of one percent", and that even the nationals of these countries hold no more than one percent of the stock of patents registered in their own countries, whereas as much as 95 percent of patents are held by foreign corporations . It seems also tolerably certain that " the use in production of patents held by foreigners in developing countries could hardly be above 5 or 10 percent of the total" . The non-use of foreign owned patents "must ... be connected with business interests and commercial strategies maximizing the profits of the foreign patent owners", which are manifestly unrelated to any requirements of development of the host countries . (United Nations, 1975 : 39-40).

We must, of course, be careful in dealing with gross data. It may mislead (Sanjay Lall 1976 : 1) . But for the present purposes we may still be able to say that a good regime of industrial property is one which requires that the patentee may not wilfully prevent exploitation of the patent if local production is both technologically and economically feasible . It may be that the law provides not just negative sanctions (as, for example, compulsory licensing, licensing of rights or limited expropriation by the State of patented product for public use) but a lso rewards and incentives in t his regard. It may also be that such laws especially if they rely only on negative coercive sanctions may encounter diffi­culties in real life implementation . But the capital point to be emphasized here is that patent laws and policies in developing countries must explicitly tackle these problems as an aspect of furthering indigenous inventiveness and creativity .

A third criterion of a good industrial property law system in developing countries is that it ought to ensure increasingly greater percentage of national registration for patents . If a purpose of patent legislation is protection and promotion of inventiveness and creativity, it is material to ask whose inventive­ness and creativity are actually being protected by a national patent legislation. Clearly, in the present situation in most developing countries scientific inven­tiveness and creativity protected through their laws is that of the R & 0 expertise of the more developed societies and transnational corporations. But attainment of this objective may require considerable transformation of structures of industrial property law and administration .

Upendra Baxi 99

Fourth, a good patent system in a developing country will also have as its objective the rectification of another kind of imbalance : the imbalance between big companies on the one hand and on the other between small firms (usually defined in empirical literature as having about 200 employees) and the individual inventor. Such imbalance is noteworthy even in the developed countries. A few studies (for example By Firestone 1971; Mansfeld, 1969; Freeman 197 1 and Jewkes et. al, 1969;) have shown that in a variety of technological contexts the "big" or"medium" firms, having more manpower and R & D outlays , hold increa­singly large numbers of patents compared with their smaller counterparts. In England, the Freeman study commissioned by the Bolton Committee, found that the small firms contributed as much as ten percent of the total inventions in the period under study. This reflected "more than double their contribution to R & D expenditure, although less than their share of scientific manpower, and less than half their share of employment and net output" . It has been concluded, on the basis of empirical studies, that although "the share of small firms in output and employment has been falling, their share in innovation has been fairly steady, or rising slightly" (Taylor & Silberston, 1973: 317). We have, as far as I know, no parallel studies for the developing countries, an item which should be high on the programschrift of research on the sociology of the industrial property law .

Exactly the same observation has to be made concerning the role of the indi­v idual inventor in developing societies. We just do not know how far this notional beneficiary of the law promoting and protecting invention is the real beneficiary. It is no doubt largely true that, in late twentieth century, the resources available to the individual inventor are far less than usually entailed in worthwhile technological innovation. The process of invention has to be followed by "expenditure on development" of innovation and "then by innovatory expenditure" (Taylor & Silberston, 1973 : 315) and the self-employed inventors, particularly in developing countries but by no means only there, may not often be able to systematically pursue technological innovation successfully. But this is ultimately an assumption. Individual inventors may be quite important in some fields than in others; and their situation may vary not just from country to country but even within the country among its different regions, in different periods of time and in different technological areas . What assistance is afforded by the industrial property system to such individual inventors? Certainly, it appears true to say of patent systems in general (though this observation was made in the British contexts) that the "assistance given by the patent system to the exploitation of small men's inventions may be something of an illusion on the whole" . Of course, an bccasional windfall to such an inventor may result from the patent protection. But, on the whole, this only means that "we should look upon the Comptroller of the Patent Office less as a man who issues lottery tickets to the small inventor and more as the Chief constable of his professional police force" (Taylor & Silberston, 1973 : 328) . I nsofar as our search for a New Order of Industrial Property (NOIP) altogether excludes the focus on the individual inventor, patent systems will be exposed to the indictment that their principal purpose is to secure "progress" (whatever this may mean) rather than to foster inventiveness and creativity .

The problem of the individual inventor has figured preeminently in another context in recent English literature on the patent law . From the standpoint of the present seminar, but also from that of the NOIP, this is an issue of considerable significance especially for the developing countries where techno­logical research under the state auspices is pursued alongside such research by corporations and operative multinationals. The question here generally is: should an employee, engaged specifically for research and development work by an agency, be given the ownership (or related rights) of the invention or should it vest with the organization on the ground that it has arisen as a result of the work assigned to him, a work for which he is specifically remunerated? It is interesting to note the differences between legal cultures of continental Europe on the one hand and the "common law cultures" on the other. Among the European countries, Hungary began to respect the notion of "employee's invention" by its Patents Act of 1895 and a large number of European countries, including socialist ones, have explicit recognition of employee's entitlements . But as late as 1970 the Banks Committee on English Patent Law Revision found it undesi­rable, (being persuaded by industry that the idea would add to the cost of R & D) to change the position at common law, leaving the matter to the regime of contractual relations between employer and employee; and as late as 1975,

100 Upendra Baxi

the Moss Bill, affording the employee inventor certain rights, was successfully opposed in the United States Congress as an interference with the freedom of contract. In the United States, where the Constitution itself directs the Congress to "secure to Inventors the Exclusive Right to their .. . Discoveries" (Article 1, paragraph 8, sub-clause 8), the argument is still seriously made that so long as the "patent system provides the investment for management to encourage its employees to invest, what has been lost? Even without the constitutional underpinnings, similar questions, betraying a technocratic rather than social conception of the role of industrial property law, are likely to be heard in developing countries as well. It is, therefore, important to quote a rejoinder:

"The answer is that the Constitution does not provide that General Motors shall have the power to promote progress by encouraging invention but that the Congress shall. The individual's right to the Government's grant of a patent upon meeting certain requi ­rement . . . has been superseded by a programme whereby the General Motors in its sole discretion .. . may award a bonus. No wonder the fervour and the zeal to invent have given way to nine-to-five drudgery" (Sutton & Williams, 1975: 10, emphasis added).

Even the British in their 1977 Patents Act in adopting the notion of the employee's invention, seem to have realized that "all is not well with a legal system which views inventions as simply another factory product" (Cornish, 1970: 80). Another way of stressing the importance of this concept is to say that the notion of "employee's invention" is a "moral acknowledgement" of the fact, often not obvious to management experts, that the "research work is carried out by human beings" (Horvath, 1977: 180, emphasis added).

It is not claimed that this normative innovation is unproblematic. No innovation worth the name is. But it is importa.nt to know that its problema­ticity (in the sense of devising legal and administrative systems) is aggravated by a technocratic, managerial, investment and profit oriented view of the objec­tives of patent and industrial property law. Lawmen in developing countries should resist such a view, given the fact that precisely such a view has led not just to disincentive to local talent and aptitude for technological inno­vation but even to expropriation of it. From this standpoint, the notion of "technovation" in Part V of the WIPO Model Law for Developing Countries on Inventions deserves most careful attention. "Technovation" is defined widely (to go beyond "employees' inventions") as "a solution to a specific problem in the field of technology, proposed by an employee of an enterprise . . . for the use by that enterprise, and which relates to the activities of that enter-prise but which, at the date of the proposal, has not been used or actively considered for use by that enterprise" (Article 501) . The commentary to this article commends this notion as a stimulus to "local creativity, ... aiding the industrial and technological development" of developing countries (WIPO, 1979) .

III

The question at the end of all this is: in what other, and novel , ways can the regime of industrial property law serve the cause of promotion of indigenous innovation and inventiveness? One thinks immediately in this regard of govern­mental and non-governmental efforts . The latter are, to my mind, as important, if not more, than the former . The lack of systematic information on both counts limits the range of one ' s grasp; but it has to be said that even the most typical non-governmental efforts symbolized through associations of inventors is only slenderly present in the region. Inventors associations exist, on the present information , only in India, the Philippines and the Republic of Korea. The Indian Forum of Industrial Technologists, founded in 1970, was founded by Salunke Jagrup, an electrical engineer, with assistance from the Poena Chamber of Commerce and a state government corporation. The aims and activities of this group appear confined to assistance of all kinds--exchange of information, increase in contacts, pooling of resources and encouragement of "young entre­preneurs to break new technological ground". But the principal activity of the

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Forum appears to be study of technological developments in the developed countries and testing and adoptions of these in Indian conditions. While this is worthwhile, its scope in terms of concerns as well as its geographical scope - is restricted . What is clearly needed is a large number of associations in many diverse fields of inventiveness and innovation, which focus more specifically on the development of indigenous talent for technological development suited to countries' needs. One would also want a federation of these associations at a national level with a political voice: that is consultative status in relation to future developments in the realm of industrial property legislation. Clearly, greater sociological research is needed in mapping out the number and concerns of s~ch associations within each country of the region. It would be interesting to know, for example, why associations get formed in certain technological sectors, what factors contribute to their viability or disintegration (as the case may be) , and what influence, if any, they have on routine and non-routine policy making concerned with the regime of industrial property.

At the governmental level, already, there is some evidence of concern in the region on this score. The Philippines Inventor ' s Incentives Act (Republic Act 3850, 1964) is a noteworthy venture in this direction. The Philippines Inventor ' s Commission, acting to further the purposes of the Act , endeavours to provide legal, financial and technical assistance to inventors. In India, the National Research Development Corporation, established as early as 1954, has, among its specific objectives, "promotion, development and exploitation of indigenous innovations , processes and know-how from all sources in the country, with a view to achieve self-reliance" and "fostering the spirit of inventivity among the people of India especially independent workers, artisans and technicians".

These endeavours deserve scientific evaluation. For example , it appears that the share of Indian applications of Indian origin for patentable inventions is on the increase. The latest information (contained in the Fourth Annual Report of the Controller of Patents, Designs and Trademarks) is that in year 1975-76, Indian applications formed 39 percent of the total patent applications . Are the activities of the NRDC a causal factor in this development? Similarly, one would want to learn more about the differential impact of governmental programmes at promoting inventiveness and innovativeness in various parts or regions of the country. To take the Indian situation again as an illustration, we find that the largest number of patent applications originate from fourteen out of twenty-two Indian States and five Union territories . Of the fourteen States, little over fifty percent originate from Maharastra, Delhi and West Bengal. Factors such as concentration of industry and business as well as of government sponsored R & D work may partly explain the preeminence of these two states and the union territory of Delhi. But this illustrative profile raises a more general point for the developing countries within the region: and it is that, unless carefully planned, the spread effect of public initiatives at prompting indigenous innovations is likely to be limited to certain areas or parts of the country which are already more developed than others. In such a case, governmental effort at promotion of indigenous inventiveness must necessarily aim at the relatively less developed areas within the country itself.

We might also include in the range of governmental effort systems of public recognition of indigenous inventors, systems of remuneration for outstanding contributions, and systems of communication of innovations through the public media and other means . All these exist,. no doubt, in some degree or the other in some developing countries of the region (e . g. the Philippines and India). They too need systematic sociological analysis and periodic evaluation . Clearly, the use of public media (which in the c3se of many developing countries means electronic media controlled and operated exclusively by the state) is, in the long run, the most effective way of disseminating knowledge concerning science and technology and the crucial role of indigenous innovators in that process. But it is a safe bet to say that a content analysis will disclose its low priority in programming in electronic media . Private media (namely newspapers and perio­dicals), which have a relatively limited reach, follow suit. To cite just one example, it was recently reported through all newspapers in India that a dis­tinguished Indian scientist (Dr. Yashpal of the Space Research Centre at Aherndabad) had received the coveted Marconi award. No attempt was made to explain to the reading public the nature of achievements and inventions which

102 Upendra Baxi

this honour thus recognized! The media, both governmental and p r ivate , tends i n its daily operations to foster "the two cultures" which Sir C . P . Snow not too long ago castigated as baneful . Only concerted intelligencia effort can assist the creation of a social milieu in which people become active participants in the dissemination of scientific knowledge, and hopefully in t he creation of it . Some recent attempts at People's Science Movements in India are a welcome step in this direction . One hopes such efforts will grow and mature in the region in the course of time.

What is thus involved in the promotion of indigenous innovation and inven­tiveness is not merely greater legal literacy (that is, greater awareness of the law relating to inventions, marks, designs and know-how) but also greater scienti­fic and technological literacy. Obviously, a reorganization o f industrial pr operty administration help considerably in the attainment of both these goals .

But in the final analysis creativity, inventiveness and innovativeness depend, as Max Weber remarked, on people's capacity to be astonished . The sense of wonder, astonishment, is the first precondition for innovation. If major institutions of society--the electronic media , the press, the schools and universities--prevent or inhibit this spirit of creative enquiry, the scope of indigenous innovation may dwindle to minor proportions . In t hat sens e the demand for a redirection of the order of industrial property becomes also a demand for a creative social order itself . At the very least, it provides a starting point for rethinking models of development .

Cornish, W.R.

REFERENCES

"Employee ' s Inventions" in Patents Act, 1977 (1978) 79 (Mary Vitoria ed.)

Economic and "Restricted Patents and Drug Industry" 5 Economic and Political Weekly : Political Weekly 1585 (1970)

Firestone, D. J .

Freeman, c.

Horvath, G.

Economic Implications of Patents (197 1 )

The Role of Small Firms in Innovation in the United Kingdom (1971)

"The Importance of Patents for Developing Countries and Developing a National Pharmaceutical Industry" in The World Symposium on The Importance of the Patent system to Developing Countries 1975 (Colombo, WIPO, 1977)

Jewkes, J . , D. Sawers, & R. Stillerman The Sources of Innovation (2ed ., 1969)

Kochanek , S.A.

Lall, S .

Mansfeld, E.

O' Brien, P .

O' Brien, P . & R. Faruqui

Sutton J.N. & c . U . \>1illiams

Business and Politics in India (1974)

"The Patent System and Transfer of Technology to Less Developed Countries" 10 J . World Trade Law 1 (1976)

Industrial Research and Technological Innovation: An Econometric Analysis (1969)

"Industrial Property in the Third World " 11 Eco . & Pol. Weekly 388 (1976)

"Industrial Property in a Poor Country : The case of Ethi opia" 10 J. World Trade Law 581 (1976)

"Employed Inventors: The Case for the Moss Bill" 17 IDEA 7 {1975)

Taylor, C. T . & The Economic Impact of the Patent System (1973) Z.A. Silberston

United Nations The Role of the Patent System in the Transfer of Technol ogy to Developing Countries (1975: TD/B/A.C . ll/19/Rev . l)

WIPO Model Law For Developing Countries on Inventions (1979 ; PC/18/VII/

ROLE OF INDUSTRIAL PROPERTY LA~'i'S IN PROMOTING INDIGENOUS INVENTIVE AND

INNOVATIVE ACTIVITIES

by

Manuel B. Marzan Assistant Director of Patents

Philippines

Many factors may be considered as having contributed to the technological and industrial progress of the developed nations, but the one factor which could be considered as having in large measure brought about said progress is the sus­tained high degree of innovative and inventive activities taking place in said countries. And the people in these countries who are engaged in these creative endeavors could not be said to be merely motivated by the shear desire to inno­vate or invent but are spurred by the expectation of realizing handsome returns from their efforts and investments. The realization of this expectation is assured by the operation of industrial property laws in those countries .

In the Philippines, the role of industrial property laws could be better appreciated by going over the history of said laws in this country.

Spanish Era

The idea of a right to one's intellectual and industrial property had been initially introduced in the Philippines during the Spanish regime which started in the later part of the 15th century and lasted until the end of the 18th century . The recognition of industrial property rights was defined in the Spanish Civil Code in force in Spain, Cuba, Puerto Rico and the Philippines under the heading on Intellectual Propertyl which provides, among others, as follows :

"Article 428. The author of any literary scientific or artistic work has the right to profit by it and dispose it at his will."

"Article 429. The law of intellectual property determines the person to wham such right belongs, the manner of exercising it, and the period of its duration. In cases not provided for nor determined by such special law, the general rules about ownership established by these codes shall govern ."

Enacted by a Royal Decree in July 1889, the Spanish Civil Code served as the basis of civil law in the Philippine~ It originated from the constitutional Cortes of Cadiz of 1811 . It is not ~nown whether subsequent laws relating to intellectual property were passed. No definitive system of granting the privileges to intellectual prnperty and iP<'lu st• ial property owr.~rs .LS on record. However, there was information referring to certain recurring monopolistic privileges in the Philippines during the Spanish period.

In the early 15th century encomiendas or large tracts of land were granted to discoverers but this royal privilege was abused and finally abolished . There was a royal monopoly in playing cards, established by Gomez Perez Dasmarinas2 in 1591. These monopolistic privileges seem to be parallel to those of the royal prerogatives practi~ed in Europe but it could not be ascertain~d whether this led to the development of protection through a patent system.

1

2

Clifford s . Walter, the Civil Code in Spain and Spanish America (Washington , 1900), p. 206.

Emma Helen Blair and James Alexander Robertson, The Philippine Islands (Cleveland, Ohio, Arthur H. Clark, 1903-1909), XXIV, p . 192.

104 Manuel B. Marzan

If ever the Spanish Civil Code did institute intellectual and industrial property laws during the period in question, it is hardly possible to determine the number of patents issued during that period. But the report of the Philippine Commission in 1901 at the early part of the American regime in the Philippines reveals that about 300 Spanish patents, 202 trademarks and 152 Spanish copyrights were filed with the Bureau of Patents, Copyright and Trademarks3. There were no records as to whether any of these patents were issued to Indios, as residents of the Philippine Islands were then called, and so it could not be ascertained then how the industrial property laws or a semblance of it, had affected indigenous innovative and inventive activities during the period. There are historical records, however, which mention of a Filipino by the name of Panday Pira who was given due recognition by the Spanish authorities in 1571 for his exceptional talents in the casting of artillery.

American Period

The treaty of Paris concluded by the United States and Spain in 1898 ceded the Philippines to the former and provided for, among others, the continuation of the protection of intellectual property enjoyed under the Spanish Government . Article 13 of this pact of peace provided that:

"The rights of property secured by copyrights and patents, acquired by the Spaniards in the Islands of CUba, and in Porto Rico, and at the time of exchange of ratification of this treaty, shall continue to be respected . Spanish scientific, literary and artistic works, not subersive of public order into such territories in question, shall continue to be admitted free of duty into such territories for the period of ten years, to be reckoned from the date of exchange of ratification of the treaty . "

In the early period of the American occupation of the Philippines covering the years 1898 to 1901 patents were administered in the form of circulars and general orders of the Military Government. Circular 12, the first circular affecting both patents and trademarks issued on April 11, 1899, provided that owners of patents issued by the United States Patent Office were afforded the same protection in the Philippines and other ceded territories. Circular 21, issued June 1, 1899, provided the furnishing of such patents in the United States Patent Office . General Order 24 dated June 6, 1899, put into shape the adminis­trative set-up for a Patent Office in the Philippines . It established the Office of Patents, Copyrights and Trademarks under the charge of an American official by the name of George P . Ahern4.

various changes in the administrative structure dealing with patents took place during the assumption of the American Civil Administration from 1901 to 1909. Act No . 222 provided for the organization of a Department of Interior and placed u nder its executive control is the Bureau of Patents, Copyrights and Trademarks effective September 6, 1901. Later, Act No. 744 placed the bureau under the immediate supervision of the Chief of the Bureau of Archives to the executive control of the Secretary of Public Instruction on April 18, 1902. With the Reorganization Act of 1905, the bureau was abolished and made Division of Archives , Patents and Trademarks5. On February 10, 1913, Act No . 2235 was passed which granted for the first time rights for all persons residing in the Philippines. It was stipulated that applications for patents were to be filed at the United States Patent Office in Washington, D. C . and if granted letters patents, the certified copy should be filed in the Philippines Bureau of Commerce .

In view of the limited dissemination of the laws regarding intellectual and industrial property rights, and the frequent changes in the office implemen t ing said laws due to the transitory nature of the government at that time, the effect of the industrial property laws on the indigenuus lnnovative and inventive acti ­vities could not be discerned.

3

4

u. s . Philippine commission. 1904), Pat . 1, p. 348.

Report of the Civil Governor, 1960-1903 (Washington ,

10 u.s. Philippine Commission . Pt. 1, p . 541 .

Third Annual Report 1902 (Washington, 1903),

Manuel B. Marzan 105

Philippines Patent Office

Even before the grant of Philippine Independence on July 4, 1946, the Filipino leaders were already aware of the importance of science and technology in the economic progress of the country so that when they drafted the first Philippine Constitution in 1935 they included a provision which was to become the fundamental basis of patent laws in the country and which reads as follows:

"Article XIV. Sec . 4. The state shall promote scientific research and invention . Arts and letters shall be under its patronage. The exclusive right to writings and inventions shall be secured tn authors and inventors for a limited period . "

In the pursuance of this constitutional mandate, the Philippine Congress on June 20, 1947, passed Republic Act No. 165 which called for the establishment of the Philippines Patent Office, the main function of which is to regulate the issuance of patents for inventions and industrial designs. Immediately fo llowing the passage of Republic Act No. 165, another industrial property law (Republic Act No. 166) was also passed, giving additional function to the Patent Office-­that of regulating the registration of trademarks, trade names and service marks and other marks of ownership.

The Patent Law was later amended to include the granting of patent to utility models.

It is only from the period of the passage of the Philippine Patent Law to the present that an assessment could be made of the role of industrial property laws in promoting the indigenous innovative and inventive activities .

The operation of the local industrial property laws have furnished a strong motivating force to those engaged in innovations and inventions. Cognizant of the protection to be enjoyed under the said laws, the local innovators and inventors have been spurred to greater activity. Before, the innovative and inventive acti­vities were mainly confined to the Metropolitan area. After the passage of the local industria l property laws, these activities have gradually expanded and now one would not be surprised to note patents being issued to applicants coming from practically all parts of the country.

The accelerated influx of foreign technology due to the adoption of indus­trial property laws has aroused among the local innovators and inventors, a feel­ing of awareness of the technological deficiencies in the country and to the suitability of imported technology. With this feeling of awareness, the local innovators and inventors have begun to scrutinize incoming foreign technology, sort out those which are not appropriate, and pick out those suitable for the local needs and conditions. This aroused feeling of awareness to the suitability of foreign technology is most apparent in the agricultural industry which is the main industry in the Philippines. In the agricultural industry, particularly in rice farming, imported hand tractors, threshers, driers and othe1.· agricultural implements were before widely used all over the country . Most of these , however, have rather complicated construction, such that these agricultural machines and implements could not be efficiently maintained by the users who have inadequate technical training or background . And so, after dominating the field for less than a decade, these agricultural machines and implements were slowly and steadily being replaced with the innovated versions and the inventions of the local inven­tors .

In the Philippine experience, the adoption of industrial property laws did not only provide mere motivation. It may be said that the adoption actually hurled a challenge to the local innovators and inventors to come up with more innovations and inventions. And, judging from the accelerated pace of the inven­tive activities going on in the country, it could be assumed that the Filipino inventors have accepted that challenge.

Hopefully, then, given more time and sufficient encouragement and support from the Government and the private sector, the Filipino inventors may yet prove to be equal to this challenge.

ROLE OF INDUSTRIAL PROPERTY LAWS IN PROMOTING INDIGENOUS INVENTIVE

AND INNOVATIVE ACTIVITY

by

Evenir J. Villasanta President. Patent Attorneys'

Association of the Philippines

Mr. Chairman, distinguished representatives of the World Intellectual Property Organization (WIPO) and the United Nations Development Programme (UNDP) , distinguished delegates, fellow participants, my friends .

First. of all, allow me to express my apFreciation and gratitude for the honor and privilege given to me and the Association I represent, the Patent Attorneys Association of the Philippines (PAAP) to address this distinguished gathering, and to be able to participate in the d iscussion and exchanges of ideas in the field of science and technology. Permit me to also extend the appreciation and gratitude of the Asian Patent Attorneys Association (APAA) , of which the PAAP is the Phil ippine National Group, for having been invited to this forum as observers. It is our hope that WIPO will continue to do us the honor and privilege to participate in future Workshop and Conferences of this nature. For it is the objective of our Associa­tions which are composed not only of Patent Attorneys and Patent agents but also institutions and industrial establishments in the Philippines and throughout Asia , to exchange infonmation concerning industrial and intellectual property, establish and maintain close contacts with various governmental, intergovernmental and non­governmental organizations related to industrial or intellectual property and participate in meetings to be held by such organizations; make investigations , studies, plans and proposals \oli th a view to assisting the improvement and coordina­tion of international and domestic laws and regulations concerning industrial and intellectual property.

On our part. Mr . Chairman, we would like to assure WIPO and the distinguished delegates from the different countries that we in the APAA and the PAAP shall always endeavor to share with you our experiences however of little worth it may be.

The subject assigned to me is difficult and important as well . In fact, WIPO assigned four speakers on the subject. Unfortunately, I am the last to speak on the subject. My first impression, therefore, was as one speaker did in one gather­ing after so many speakers have spoken on one subject for four hours, to just stand and say, "Thank you ladies and gentlemen for giving me the honor to close the speeches and terminate the discussion on the subject."

It is indeed difficult to have an extensive discussion on the role of indus­trial property laws in promoting indigenous, inventive and innovative activities . In the first place, the term "industrial property laws" has no established definition. In the countries of Asia, "industrial property laws" have various connotations . In Austria, industrial property laws refer to the Patent Law, the Design Law and the Trademark Law . In Hong Kong, Korea, Malaysia, New Zealand the Philippines , indus­trial property laws include the patent law , the design law, the trademark law and the copyrjght law . There is also what is known as design copyright in Hong Kong, I understand. On the other hand, industrial property law in Indonesia refers only to trademark law . For, as of this moment, Indonesia has a yet no patent , model or industrial design laws.

The role of industrial property laws, therefore, would vary according to what laws and regulations are at present being enforced in each country .

108 Evenir J . Villasanta

My task becomes doubly difficult if we consider the definition of "indigenous." Webster defines this term as "originating or developing or produced naturally in a particular land or region or environment." It also means "of, or relating 1 or designed for native"; inborn, innate, inherent ." The example given is, a type of behavior that is indigenous to human beings. The inborn, innate, inherent , inventive characteristics of a person would, therefore, again vary in each land, region or environment as would innovation as a solution to a technological problem of a particular enterprise . Consider further the diversity existing among developed and developing countries on the level of development and resource and one can discern the enormous work required to be able to have an intelligent comprehensive paper on the subject.

In view of this, and since the three previous distinguished speakers in their illuminating papers have already covered the salient aspects of the subject matter, allow me, Mr. Chairman, to limit myself to the discussion of the role of industrial property laws in promoting indigenous, inventive and innovative activities in the Philippines . May I say, however, that in the case of the Philippine experience, the promotion of "indigenous inventive and innovative activities" was stimulated not only by the industrial property laws but also by the enactment of complemen­tary legislation on the development and encouragement of science and technology , foreign investments and other measures to ensure a favorable climate for econanic development in the country.

The Philippines is fortunate because the foundation of the i ntellectual and industrial property is enshrined in the fundamental law of the land , the Constitu­tion of the Philippines. The Constitution of the Philippines of 1935 provides that :

"The state shall promote scientific research and invention . Arts and letters shall be under its patronage. The exclusive rights to writings and invention shall be secured to authors and inventors for a limited period ."

The 1973 constitution not only secured to inventors the exclusive rights to his inventions but also obligated the State to promote scientific research and inven­tion. Under the new Constitution " the advancement of science and technology shall have priority in the national development."

Comformably with the provisions of the Constitution, the Philippines Patent Law and the Trademark Law were enacted in 1947 . The enactment of the Patent Law and t he Trddemark Law was significant because for the first time the Philippines has established the main legal instruments regulating the industrial property system and at the same time created its own independent patent system .

The Philippines patent law, like patent laws of other countries, granted to persons who invented a new and useful machine, manufactured product or substance, process, or an improvement of the foregoing, the exclusive right to make, use and sell the patented machine, article or product, and to use the patented process for the purpose of industry or commerce throughout the territory of the Philippines for a period of seventeen (17) years. To encourage further research on a patented invention, the same law provides that the making or using of a patented invention when not conducted for profit and solely for research or experiment shall not constitute infringement. The Philippine trademark law, on the other hand , provides that the owner of a trademark, trade name or service mark who usesthe same to distinguish his merchandise, business or service from the merchandise , business or services of others may register his trademark, trade name or service . The owner­ship or possession of the trademark shall be recognized and protected in the same manner and to the same extent as are other property rights for a period of twenty years . The certificate of Registration of a trademark is renewable for another twenty years provided an Affidavit of Use is filed on the 5th, lOth and 15th anniversaries of its issuance and provided the registration is not cancelled in accordance with the provisions of the law .

The passage of the two laws was followed by the enactment of complementa~y laws directed to promote interest in science and technology.

On June 20, 1952, the President of the Philippines approved Republic Act No . 770 creating a public corporation to be known as the Science Foundation of the Philippines . The purpose of the corporation were to initiate , promote, stimu­late, solicit, encourage and support basic and applied scientific research in the

Evenir J . Villasanta 109

mathemat ical, physical, biological, medical, engineering and other sciences by means of grants, loans and other forms of assistance to qualified persons and institutions applying for the same; to award scholarships and graduate fellowshipsin the mathe­matical, physical, biological, medical, engineering and other sciences ; to fos ter interchange of scientific information among scientists here and abroad ; to aid in the establishment of adequate scientific laboratories and to encourage , protect and aid in the organization of science clubs and societies in the schools and colleges in the Philippines.

After three years of operation, the President of the Philippines through the recommendation of the Chairman of the Science Foundation of the Philippines, among others, created the Science Advisory Council through Executive Order No . 141 on December 8, 1955 . It is said that the activities of the Science Advisory committee resulted in the creation of a Committee for the Scientific Advancement of the Philippine Senate and the creation of the National Science Board in 1958 . This National Science Board became the predecessor of th€ National Science Development Board which has now been converted into a Ministry with the head thereof having the same rank, status and qualifications of a Minister and a Member of the Cabinet . The enactment of Republic Act 2087 which is also known as the "Science Act of 1958 ," intensified scientific and technological research and development because the said law created the National Institute of Science and Technology, integrated and co­ordinated in the Industrial Research Center, Agricultural Research Center , and Medical Research Center and Biological Research Center and other existing govern­ment research agencies and instrumentalities, among them, the Philippine Inventors Commission. The establishment of the Philippine Inventors Commission (PIC) gave the local inventors added fuel to their "indigenru s inventive and innovative activities." For the first time, they were afforded assistance from the very start of the development of their invention, to the production of a prototype , and the commercialization of the products.

The Technology Research Center (TRC) was thereafter created to serve as the repository and clearing house of all scientific and technological data in the Philippines .

The effects of the implementation of the foregoing legislations , as observed correctly by Dr. Soledad Antiola, Director of the Science Foundation of the Phi l ippines, helped in the development of the Filipino native talents. Allow me to quote from her paper,

"Based from our experience, therefore, we in the Philippines , have endeavored to inject humanism in development . Development, to us, is development of man and for man in his totallity within his holistic environment . Thus, we have sought the application of science and technology in so far as they are rele­vant to our particular conditions, our nature as a people, and our national problems and needs. Too, in our development efforts we have sought to make science and technology a living part, a vitalizing ingredient in our daily social and cultural millieu."

The enactment of laws, such as the Investments Incentives Act, attracted foreign companies and establishments to organize and join with Filipino capital ists in the development of the different industries in accordance with the priorities established by the Government. To supervise and oversee the activities of foreign investors, the Board of Investments was created. At the same time, an Export In­centives Act was passed in 1970 which granted incentives and exemptions to regis­tered export producers , export traders, and export traders in the forms of tax exemptions, reduced income tax, etc .

Because of the demands of development, the President of the Philippines , through the recommendation, I understand, of the National Economic Development Authority (NEDA) issued Presidential Decree No. 1201 on September 26, 1977 , creat­ing the Philippine Institute for Development Studies (PIDS). This entity was organized as a non-stock, non-profit government research institution . I understand , this body "will tap and encourage through research funding activities, the existing RESERVOIR or research resources in the Philippine Acamedic Community to become pro­ductive in research lines considered to be of high priority, without drawing them away from the academic and research institutions where they are based . " The insti­tute is under the able management of a Board of Trustees headed by Minister of Economic Planning, Or . Gerardo P. Sicat, and its President, Dr. Feologo L. Pante, Jr. From its 1979 Report, it would appear that the institute has been engaged in :

"1. Identifying and priorityzing research studies needed in plan and policy fornu lation ;

110 Evenir J. Villasanta

2. Making arrangements for research to be conducted by research institutions and individuals;

3. Maintaining contact with local and foreign research institutions; and

4. Disseminating and discussing research studies through publications and seminars . " (Philippine Development, Vol. VII, No . 10).

The creation of this institution is very significant because of its ability to pinpoint the critical area in need of development and to immediately avail of research facilities of the different government institutions, at the same time providing or raising funds necessary f o r the project.

The tremendous effect of all the f oregoing on the inventive and innovative activities of the Filipines is discernible.

In the field of inventions, from 1970 to 1975, a five-year period, local applications increased from 87 in 1970 to 939 in 1975, or about 2/3 of the 1,250 foreign applications filed in 1975. In 1976, local patent applications increased to 1,045 as against 1,287 foreign applications. By 1977, local applications total 1,161 while foreign applications total 1,208 or a difference of only il·

In trademarks, during the same period, local trademark applications rose from 958 in 1975, to 1,496, exceeding the total foreign applications of 1,037 filed in the period 1974-75. Local applications continue to exceed foreign applications . Thus, in 1978 local applications total 1,650 as against 1,324 for foreign and 1,953 local applications in 1977 as against 1,408 for foreign applications for the same year .

In foreign investments, there are now approximately 273 Philippine corpora­tions that have tie-ups with multi-national companies in the form of licensing agreements, mergers, etc., covering use of patents, trademarks and technical know­how in the different fields of industry from pharmaceuticals, chemicals, car manufacturing/or assembly, mining, textiles, rubber electronics to food, etc.

The Philippines is one of the few countries in Asia which has a well estab­lished patent and trademark system. The two main legal instruments of the industrial property system are well administered and strictly enf orced by t he Philippines Patent Office and the Courts law. At this point, permit me, Mr . Chairman , to quote from a decision of the Supreme Court of the Philippines in 1981 in a case involving the protection of a trademark which at the time had not yet been regis­tered in the Philippines .

"The lawful entry into the Philippines of goods bearing the trade mark since 1949 should entitle the owner of the trade mark to the right to use the same to the exclusion of others. Modern trade and commerce demands that depredations on legitimate trade marks of non- nationals should not be countenanced. "

Finally, while the Philippines had now a strong intellectual property syst em, there is still a need for strengthening its foundation so that the inventors and innovators will continue to unlock the many secrets of nature and apply the acquired knowledge for the benefit of m&nkind.

In closing, Mr . Chairman, allow me to quote from the speech of an American President on the need to strengthen the patent system.

"Never before has man unlocked so many secrets of nature and applied the acquired knowledge with such beneficial effects to mankind. The result has been the most revolutionary scientific and technological advances in the historv of civilization. But the challenges ahead are even greater . We have no cor~er on the inventive process, and the competitive world struggle in­tensifies with every passing year. In order to maintain our lead, we must make our patent system even more perfect."

INTERNATIONAL ASPECTS OF THE PATENT SYSTEM

by

Edward J . Brenner Patent Attorney, washington,

and former US Commissioner of Patents

I . INTRODUCTION

For many years, the various countries of the world have had their own indi­vidual patent systems. The patent laws from country to country vary with respect to patent procedures and substantive patent rights .

In recent years , a number of steps have been taken to provide for increased international cooperation in the patent field . A number of regional patent systems have been established. In addition, the Patent Cooperation Treaty has come into effect and has now been in operation for several years. Further inter­national cooperation in the patent field is possible in the future for the benefit of inventors, industry and the public worl dwide.

II . PATENT SYSTEMS OF INDIVIDUAL COUNTRIES WORLDWIDE •

A. Procedural Differences

The patent systems of various individual countries of the world vary in a number of important respects . For example, most countries of the world award a patent to the first to fi l e a patent application . However , in the case of the Philippines, the United States of America and Canada, the patent is awarded to the first inventor regardless of whether he was the first to file or not.

There are other significant procedural differences . Countries such as the United Kingdom, Germany, The Netherlands and Japan provide for opposition and/or revocation proceedings . Countries such as the United States of America have full examination systems ; countries such as Germany and Japan have deferred examination systems and France (until recently) and Italy have non-examination/registration systems .

B. Differences in Patent Rights

The patent term in various countries differs. For example, in some countries the term is 20 years; in others the term may be 14 years or 17 years. The term may run from date of filing or date of patent issuance .

In many countries such as most of the European countries and Japan, to main­tain one's patent in force, annual taxes must be paid. In other countries such as the United States of America and Canada, the life of the patent extends through its entire term without the necessity of paying maintenance taxes .

In some countries working of a patent is required . In some cases, actual working is required ; in other cases, only nominal working is necessary.

In most countries, there is some form of compulsory licensing required. In the United States of America and many other countries, the federal government may utilize a patent for governmental purposes but must pay the owner reasonable royalties for use of his patent. In some countries, compulsory licensing of a patent to one ' s competitor may be required under the law, for example, the compul­sory licensing of patents covering prescription drugs in some countries.

112 Edward J. Brenner

Patentable subject matter also varies from country to country. For example, in some countries new compositions of matter are not patentable, although most countries permit this . There arc presently disputes throughout the world as to whether computer programs and some new forms of life should be patentable subject matter.

Another difference in patent rights relates to imports made by a process carried out in a foreign country, which process is covered by a domestic patent . In some countries, such importation would be an infringement of the domestic patent on the process ; in other countries this would not be an infringement.

III. REGIONAL PATENT SYSTEMS

In order to minimize the differences from country to country in procedural and substantive patent laws, a number of regional patent systems have been established in the last decade or so. The purpose of such regional patent systems is also intended to simplify patenting for patent applicants and to reduce the governmental expense of such systems.

In Europe, the Nordic countries some time ago adopted a Nordic patent system . In recent years in Europe, many of the countries have adopted the European patent system . Under this system, European patent applications are examined and processed by a standard procedure for all member countries. Also , it is expected that the European patent will become accepted, at least in some European countries, as a single patent which covers more than one country.

In Africa , a regional patent system was adopted several years ago for a number of French-speaking African countries. Now there are plans to establish a similar regional system for English-speaking African countries.

IV . PATENT COOPERATION TREATY

In the mi d-1960 ' s WIPO initiated an effort to establish a program of inter­national patent cooperation involving the searching and examination of patent applicat ions. This effort culminated in a diplomatic conference in Washington in 1970 at which the Patent Cooperation Treaty (PCT) was established . Actual operations under the PCT as they relate to the searches and publication of inter­national applications commenced in 1978.

One of the major purposes of the Treaty is to reduce the cost on the part of inventors and patent applicants of obtaining patent protection in a number of countries for a particular invention. Onder the PCT there is a single search of the patent application which should reduce the searching effort throughout the world for corresponding patent applications covering the same invention. In a second phase, this same approach of international cooperation is extended to the examination for patentabil ity of inventions . As a foundation for the PCT sear­ching and examination, uniform and complete search files are being established in the offices of the International Search and Examining Authorities throughout the world.

Also , the PCT is having a significant effect on harmonizing the various laws throughout the world as they relate to procedures for obtaining a strong patent . Hopefully, some day a patent applicant may be able by means of a single search and examination under the PCT to obtain a truly international patent which needs no additional effort and expense in national patent systems, except for perhaps a limited amount of translation . Attaining such a goal would, of course, increase the incentives for invention and innovation.

It is to be noted that the PCT is primarily concerned with patent procedures, rather than substantive patent law relating to patent rights . However, from the individual inventor ' s standpoint, or that of his assignee, a desirable goal would be to have an international patent system that would provide him with worldwide

Edward J. Brenner

patent protection under a uniform substantive patent law. This would maximize the incentives to invent and innovate to thereby bring forth a stream of new and improved products for the benefit of the public and consumers wor l dwide . While it might be tempting for an individual country or group of countries to

113

not join such an international system so as to try to avoid paying any compen­sation to inventors or innovators for their efforts in the short range, this would be self-defeating in the long range because it would create a serious disincentive for inventors and innovatros worldwide to expend the necessary time, effort and money to bring forth the new inventions the world will need in the future. In the words of the old fable, this attitude threatens to kill the goose that lays the golden eggs .

The PCT in simplifying international patenting should also increase techno­logy transfer between nations . This is beacause, as mentioned previously, patent rights facilitate the licensing of know- how. Also, as stated before, there may be tax advantages and savings for technology transfer if patent rights are sold or exclusively licensed as part of the technology transfer .

INTERNATIONAL ASPECTS OF THE PATENT SYSTEM

by

Armand Fabella Chairman, Management Advisory Council,

Technology Resource Center Philippines

I will be talking this morning on the international aspects of the patent system. I think what is being referred to here is the exercise going on in a sister agency called the United Nations Conference on Trade and Development, on something called the Code of Conduct on the Transfer of Technology and, at the risk of being repetitious, may I make a few general statements which may not perhaps be completely accurate but which nevertheless represent my perception of certain relationships.

There are three parochial groups within the UN system. There is WIPO, and then UNCTAD is another, a third is UNIDO, and coming up as a possible fourth is the Conference on Science and Technology. They are all dealing with this very interesting and very fashionable area called technology. And the difference has to do with their approaches to this particular topic, and here I would like to call your attention to what strikes me as differences of opinion and differences of emphasis between some of these agencies.

Basically , WIPO is concerned with the encouragement of creativity by persons and in countries through the application of an intellectual property system. We can say that the approach of WIPO has to do with the protection and encourage­ment of intellectual property including its legal ramifications. On the other hand, in the utilization of this intellectual property, we find UNCTAD having a somewhat different thrust, and it has to do with increasing access to intellec­tual property for productive use.

This does not mean that they are completely separate. There is an increasing area of convergent thinking ; for example, one aspect, by now classical and tradi­tional, has to do with the right of an inventor not to use his invention , as against the argument that inventions are useless unless they are used. While opinions differ somewhat on this, you find, as I said, increasing convergence on the concept that inventions are meant to be protected, provided that they are utilized for the common good rather than a negative protective technique for withholding the utilization of the particular intellectual property . Nevertheless, this remains a basic distinction and of some interest to this group .

Although in many cases a distinction has been made in the proposed Code of Conduct between sources of technology and users of technology, care has been taken not to equate sources of technology with developed countries and not to identify the users of technology with the developing countries. Nevertheless, one can read between the lines that an important element in the discussions on the Code of Conduct on the transfer of technology has to do with greater access, on what we might call fair terms, to technology , especially protected technology coming from the developed countries.

By the very same token, WIPO has two aspects which are very important and critical, one is the protection of intellectual property and the other is the desirability of greater use. The problem which has r2sulted which I am referring to here has to do with technology sources located in developing countries, which is in a category for which it seems difficult to provide general information. On the other hand, it raises the question as to whether it is desirable that a legal distinction be made between indigenous technology and technology from abroad, in terms of the degree of protection which can be granted . On the other hand, if this is done, of course it will help resolve some 0f the problems that indigenous inventors face, but it does raise very basic legal questions.

116 Armand Fabella

If one looks at the direction of the present discussions at UNCTAD, it will be seen that it is basically towards improving the bargaining position of the technology recipient. There again, one can raise the question that an improvement in the bargaining position of the technology recipient does no good for the bargaining position of technology corning from a developing country. In the Philippine context , we could translate that into what is the role of, and what is the policy towards , Philippine investors.

There is another promising area which is increasingly becoming more active, and that is technology which is particularly suitable to the needs of developing countries and where the source of the technology is located in developing countries as well . With the growing oil shortage as an example (which is forecast to last for some time to come), the question arises of how many of the inventions emanating from the developed countries with respect to alternative sources of energy may not be accept­able in their present form for use in developing countries. For one thing, they have different factor proportions, and different concepts of cost, so this is an area where one might say special attention and consideration must be given to inventors from developing countries inventing products for particular application in developing countries. This has not been touched upon; as far as I know, no special considera­tion is being given to this aspect in the context of UNCTAD or in the Code of Conduct for the transfer of technology either .

What we have here is a situation which looks at inventors as technology sources, and industry and commerce are by and large technology users . If one is talking about domestic industry and domestic commerce, a large proportion of the intellectual property that is used by them in fact comes from abroad, and the question that is being raised here is the gap that seems to exist in the development of indigenous technology, not only for use within the country but, taking into account what might be called economies of scale, for use in many other developing countries as well .

I am not that well versed in international development but I think , on the basis of what I do know, that this is an area which is not getting a l l that much attention. Because there is a basic question which has arisen, if you place domestic inventions and innovations on the same basis as technology sources from developed countries, then by and large there would seem to be a competitive bias in favor of the techno­logy from developed countries on the basis of standard and equal rules and criteria . Therefore, what I am calling for (I am not sure of the legal implications) is some sort of special treatment, perhaps among developing countries or maybe in a developing country, with respect to the special problem of inventors in developing countries.

I made this point especially because it is my feeling that the discussions on the Code of Conduct, which have been going on for several centuries now in Geneva, will probably not last much longer, now that many of the major issues have been thrashed out and will perhaps end within the next session which starts next week. I am not sure if it can be finished this year but, in any case, the end is not all that far away, especially since agreement has been reached on the basic concepts of having guide­lines for the next few years , followed by what might be more legally precise elements later on .

As I have said, since the trend here has been basically in terms of increasing assistance for technology users, rather than the technology sources, it may be desirable from the point of view of the developing countries as a whole to examine this issue carefully. For example, we have representatives here from the Philippine Inventors Commission, and I am wondering just to what extent such a program might be of direct benefit to them. I realize the fact that this is a very small group, but nevertheless, it is a group which develops innovations and requires encouragement , and one is faced with certain policy decisions which may have to be made with far reaching legal implications . The fact remains, in my own personal perception, that in terms of what is happening nowadays, in effect domestic inventors are being lumped together with other technology sources from abroad, which is overwhelmingly unfair to the former group at the present time.

This is a question which deserves some going into. I am not sure either as to which would be the appropriate approach for this. It s trikes me that perhaps WIPO could play a substantial role here, but what is called for is an assessment of the implications of some of the forthcoming international decisions a nd their implication9 for particular countries, especially those in the Asia-Pacific region, which are by and large developing countries. I don't wish to take any more of your time than I have to, but I am pointing out that lumping all technology parties together blurs the fact that some of them are users and some of them are sources, and that as in any market they really have opposing interests--for all the polite words that you might use--one is a user, the other is a source, and each wants to maximize his benefit at the expense of the other.

Armand Fabella 117

Right now the trend is towards improving the bargaining position of the user, but as I said, I have the impression that while we are talking about the need for balance--r think the term used in the WIPO pink paper was "fair trading", whatever that may mean, and another term that was also used very often is "reasonable", except that the latter has very strong American juridical implications so that I would like to rework that phrase. Aside from that, there is the problem of differ­ences in interest which occur . In terms o£ protection for the users, this is coming along very nicely; in terms of industry and commerce as domestic technology suppliers, this is developing as well. Of course, one can raise the question whether the so-called inventor working in his own little laboratory and not associated within a large firm plays a critical role, but he does provide a first approach. This is my personal opinion; they should deserve some careful looking into especially within the context of Asian requirements, which are by and large very similar.

I was late in coming, I apologize for that. I will make up for it by keeping my talk short. Thank you very much.

USE OF PATENT DOCUMENTS AS A SOURCB OF TECHNOLOGICAL INFORMATION

by

Raymond Andary Senior Patent Information Officer , WIPO

INTRODUCTION

Patent documents contain descriptions of scientific and technical concepts as well as practical details of processes and apparatus. There is a general impres­sion among science information workers that the use made of this extensive source of information by scientists and technologists is not nearly as great as it s hould be. The degree of use is to some extent dependent on the location of the user; thus, in academic establishments, such as universities and colleges, it is found that the familiarity with patent literature is less than in industrial organiza­tions which must necessarily be aware of the patent system from the protection point of view and in a better position to make use of the technol0gical informa­tion contained in patent documents.

This document is intended as a general introduction to the role of patent documents as a source of technological information ·and discusses access to this source.

WHAT IS AN INVENTION? WHAT IS A PATENT?

An "invention" may be described as a new solution to a technical problem. The problem may be old or new. But the solution, in order to merit the name of invention, must be a new one, that is, one which has never been thought of before or at least, if thought of by someone, not published by him so that it became accessible to others.

The problem must be a "technical" one . The word "technical" has different meanings, depending on the context in which it is used. In connection with inven­tions, "technical" wants to convey two thoughts, namely, that the invention must be usable in practice, in industry, and that it cannot consist of the mere recogni­tion of a law of nature (such recognition is called a scientific discovery and not a technological invention).

An invention--because it is usable in industry--is economically valuable . It will enable industry to make new products, or ma.ke existing products more econcm~­cally (faster, more cheaply), or improve existing products (by making them more precise, yielding better or faster results when they are used) .

Inventions are rarely the result of an accidental or an instantaneous stroke of genius. They usually are the result of long and hard thinking and experimenta­tion with the precise aim and hope of arriving at a new solution amounting to an invention. In other words, inventions are usually the result of methodical re­search.

Such research requires investment: persons have to be employed to make the research, and laboratories, frequently with expensive equipment, materials and energy sources, must be put at thetr disposal.

It is not only just, but it is also necessary in order to encourage the making of the investment required for research, that an invention, once made, should be allowed to be used, at least for a limited time, only by the person who made it (the inventor) or by the enterprise for which it was made (the employer of the · inventor). Such exclusivity of use of the invention, for a limited period of time (maximum 20 years, generally speaking), is assured to the inventor (or his employer) by law, namely the patent law, but only in the country or territory subject to the law. The right is reflected in a certificate issued by a government authority and usually called a patent. This certificate or patent certifies--without guaran­teeing it--that a certain invention was made and that it belongs to a certain person ("the patentee"). In return for the grant of a patent, the inventor places the techno logical information surrounding his invention in the public domain. This is ach ieved by the patent office publishing a patent document .

120 Raymond Andary

WHAT DOES A PATENT APPLICATION, AND WHAT DOES A PATENT, CONTAIN?

The request, directed by the lnventor (or h1s employee, or the person or enterprise to whom the inventor sold h1s invent1on; in one word the "applicant") to the Government Authority (usually called "the Patent Office" or "the Industrial Property Office") asking for t~e grant1ng of a patent is called a patent applica­tion. Its contents are prescribed by the patent law of the country in which the application is made. I n addition to data concerning the applicant (name, address), a patent application characterist1cally contains two ma1n parts: a brief and very precise indication of what the applicant asserts--"claims"--to be his invention (this part is called "the claim" or "the claims") and a more lengthy explanation, describing the existing background and knowledge (the "prior art") on which the invention is based and the contribution that the invention will henceforth make in such background and knowledge (this part is called "the description") • If the nature of the invention is such--and this is frequently the case--that its under­standing is facilitated if it is ~ot only described by words but also illustrated by drawings, the application will also contain one or more drawings.

A patent looks very much like a patent application, the main difference being that it contains, instead of a request by the applicant, an indication that it is a grant by the Industrial Property Off1ce. The claims or the description may have undergone some modifications between the time the application was filed and the patent is granted, but the patent itself contains, like the application, the description and the claims-4modified, if modified before the grant--in full, as well as the drawings, if any. The length of a typical patent application or patent varies between 10 and 100 pages.

WHAT IS A "PATENT DOCUMENT"?

The expression "patent document" designates both patent applications and pat­ents. This is not an official expression used in patent laws but it is a convenient expression because it is short. It is to be understood to cover not only applica­tions for patents and patents but also applications for the grant of other kinds of official documents conce:rning inventions such as "inventors' certificates" and "utility models," known in the laws on inventions of some countries.

WHAT IS A "PUBLISHED PATENT DOCUMENT"?

A patent, once granted, is "published," and, in most countries where there is a major patenting activity, enough copies are made of it by the Industrial Property Office so that anyone wishing to acquire copies may buy them from the Industrial Property Office. Publication is sometimes also used in the sense of including the act of laying open a document for public inspection, that is, allowing any person to go to the Industrial Property Office and read the document there, with or with­out the possibility of obtaining a copy thereof.

The laws of several countries require the publication not only of the patents but also the patent applications (for example, the Federal Republic of Germany, Japan and t~e United Kingdom). Others only publish the granted patents (for example the Soviet Union and the United States of America). In the former countries, an invention is then published twice: first as a patent application , then as a patent .

In a country in which patent applications are published , the publication of a patent application usually takes place 18 months after it was filed in that country (or, if an application for the Si~e invention has been filed earlier--generally by the same applicant--in another country or countries, within 18 months from the earliest filing date). The publication of the patent itself norreally follows the publication of the patent application by one to three years . In some countries , it is even published three times: as an application before it was examined by the Patent Office, as an application after the examination, and as a patent ; this is the case, for example, in the Federal Republic of Germany.

In a country in which patent appl1cat~ons are not published, a patent is nor­mally published (if granted) within a period of six months to three years after the application for it was filed.

Raymond Andary 121

WHAT IS THE NUMBER OF PUBLISHED PATENT DOCUMENTS AND OF INVENTIONS?

According to the statistics of the last four years, the number of patent docu­ments published in the world each year is around one million, approximately one third of them being published patent applications. Although there are some 70 countries which puplish patent documents, approximately 80% are published by the following twelve:

Japan Germany (Federal Republic of) France United States of America Soviet Union United Kingdom

* Including ut.ili ty models.

437,000* 150,000* 67,000 66,000 54,000 40,000

Total :

Based on WIPO Statistics for 1978.

Netherlands AustraHa Ita lie Spain Canada Switzerland

939,000

20,000 23,000 24,000 23,000 21,000 14,000

l) Figure for 1977.

The number of the inventions which are covered by the some one million patent documents published per year is much smaller: their number may be estimated at 350,000 or less. In other words, each invention gives rise to an average of three published patent documents .

There are two main reasons for this difference between the number of inven­tions and of the corresponding patent documents. One is that, as has been stated above (in paragraph 13), certain countries publish not only patents but also publish (once, or sometimes even twice) the applications corresponding to the patents. The other r7aso~ is that an invention must be the subject matter of a separate patent appl1cat1on (and of a separate patent) in each and every country in which its protection is desired. Thus, the same invention may be the subject matter of publication not in one but several countries.* The average is somewhere between two and three.

There are no exact statistics on the number of patent documents published so far from the beginning of the times when patents were first published. But they may be estimated to be around 27 million. Normally, only the recent ones are of practical importance for those searching technological information; the older ones are frequently only of historical interest . Nevertheless, access to the older ones is an absolu~e necessity for any Industrial Property Office whose law requires it to pass a judgment on the question of whether a given patent application related to an invention is, objectively, new, since such a judgment requires looking at all the existing patent documents likely to disclose a similar invention.

WHAT ARE THE ADVANTAGES OF PATENT DOCUMENTS AS A SOURCE OF TECHNOLOGICAL INFORMATION?

Patent documents generally convey the most recent information. This · is so because applicants are in a hurry; usually the applicant who, among several applicants applying in respect of similar inventions, was the first to apply will be granted the patent, whereas the applications of the others will be denied; furthermore, only with a patent in his hand has an inventor the maximum legal means at his disposal for fight­ing against the use of his invention by others against his will; finally, an inventor having a patent usually can stipulate a higher sales price or royalty for selling or licensing his invention than if he does not, or does not yet, have a patent. There are some well-known cases which show that important inventions were disclosed in patent docu­ments several years before their appearance in other forms of literature, for example:

• Patent documents published in different countries but relating to the same inven­tion are generally called a "patent family."

122

Hollerith (punched card) Baird (television) Whittle (jet engine) Morrogh (ductile cast iron) Ziegler, Natta (polymerization catalysts)

Raymond Andary

Date ' of published patent

1889 1923 1936 1939 1953

Date of first dis­closure in other forms of literature

1914 1928 1946 1947 1960

Patent documents generally have a fairly uniform structure: the claims give the essence of what is new; the description is required to allow the background to the invention (what was known before the invention, i.e., the "prior art") and to state clearly the difference between the pre-existent technology and what the invention contributes, as a new matter, as a step forward, in technology; this means, among other things, and as distinct from scientific or technological articles, that the reader of patent documents does not first have to familiarize himself with, and adjust his mental processes to, the mental processes--different for every author--of the author of a scientific article; in other words, this fairly uni­form structure of patent documents makes their reading, once one gets accustomed to it, generally easier.

Patent documents generally disclose technological information by describing the inventions in accordance with the requirements of the applicable patent law and by indicating the claimed novelty and inventiveness by reference to the existing state of the art. They are thus sources of information not only on what is new (the invention) but also on what is already known (i.e. the state of the art), and in many cases furnish a history, in summary form, of the technological progress in the field to which they relate.

Patent documents generally cover most of what is new and most of what is worth­while knowing about technological advance; this isshown not only by the great number of patents but also by the fact that they cover every branch--big or small, relatively simple or sophisticated--of technology. Naturally, there are certain inventions, mainly in the field of arms and warfare, which are not or cannot be patented because their publication could be prejudicial to national security. But , on the whole, such inventions constitute a relatively small percentage of all the inventions made.

Patent documents generally contain information which is not divulged in any other form of literature. Thus it is wrong co consider that relevant information contained in-patent documents will come to one's notice by other means . A recent investigation effected by the u.s. Patent and Trademark Office shows that as much as 70% of the technology disclosed in U.S. patent documents from 1967 and 1972 has not been disclosed in the non-patent literature . *

Many patent documents contain an abstract. Abstracts allow a general idea to be formed of the contents of the document within a few minutes, and in any case a much shorter time than would be required to read the full text of the patent document.

Patent documents bear "classification symbols." For the purposes of main­taining search files and performing searches for the state of the art, Patent Offices classify patent documents according to the field or fields of technology to which their contents relate. A number of different national classification systems exist. The International Patent Classification (IPC) has been established by an intergovernmental agreement, and is now applied by at least 40 Patent Offices. , This Classification allows retrieval of the patent documents belonging to any given branch of technology .

* Chemical Technology, May 1978, pp. 272-276.

Raymond Andary 123

The main part of the high cost of processing and classifying patent documents for building-up search files, and of keeping the classification system up to date, is borne directly ~ the Patent Offices which publish large numbers of patent documents; other users have access to patent documentation without incurring, in addition to their costs as users, the cost of maintaining, developing and classifying their own patent documentation collections.

Patent documents belonging to a given classification subdivision contain ~ highly concentrated supply of usually technically advanced information on a given technological field.

Patent documents bear a date from which conclusions can be drawn as to the age of the invention and to-the question of whether the inventions they describe are still under legal protection . If they are no longer legally protected, they can be used without the consent of the patentee.

Patent documents generally indicate the ~ and address of the applicant, the patentee, and the inventor, or at least one or two of these persons. These indications allow any potential licensee to contact the persons concerned in order to find out under what conditions he may be authoriezd to exploit the invention.

Patent documents often disclose not only concepts concerning the general utili!¥ of the invention, but generally, also detailed information on the possi­bility of its practical application in industry.

Since the technological information contained in patent documents is not secret, it .can be freely used to support research and development activities; if a given invention is not protected by a patent in the country of the user (and it is obvious from the statistics that only a tiny minority of inventions is ever protected in the majority of developing countries) , the said invention can even be put to industrial application in that country, although the results of that idnustrial application cannot be exported to another country where the invention is protected by a patent.

The above-mentioned specific characteristics of patent docume.nts make them eminently useful sources of technological information, with some clear advantages over other sources of technological information. There are, however, a certain number of limitations to this usefulness, which are the following:

(a) new technology is not always sufficiently inventive to be patentable;

(b) even where a patent has been granted by an examining Office, . this is not a guarantee that the invention is absolutely new. Furthermore, the question of whether the invention is such that, in practice, it will be economically desirable to use it i!' one whose solution- -particularly if the invention or the technical field to which it relates is a sophisticated one--requires great experience in the tech­nical field concerned. Even highly speciaiized experts may make mistakes in judging this question. It is clear that purely technological information as contained in patent documents often needs to be complemented by information of other sorts (com­mercial or economic for instance);

(c) although patent documents are generally written in a way which allows the invention to be executed on the basis of them alone, it will frequently b~ necessary in practice to execute it with the cooperation of the inventor (for example, by acquiring his know-how and blueprints under a contract concluded with him).

OBSTACLES THAT HAVE TO BE OVERCOME TO IMPROVE THE USE OF THE TECHNOLOGICAL INFORMATION CONTAINED IN PATENT DOCUMENTS

The reasons for a sometimes insufficient use of patent documents might comprise any of the following:

(a) ignorance on the part of the scientist and technologist and even some !science information workers as to the type of information contained in patent docu­f'ents;

124 Raymond Andary

(b) the high number of patent documents published each year may act as a deterrent;

(c) the fact that many of them will be in a language that the searcher of the information does not understand;

(d) the effort of locating and the cost of obtaining copies of the desired patent documents.

WHAT ARE THE MEANS tmEREBY THE SAID OBSTACLES MAY BE OVERCOME?

Ignorance as to the type of information contained in patent documents and as to means of access to them may of course be alleviated by education. Many technicians and scientists approach patent documents gingerly because they are unfamiliar with the language and structure, and perhaps because of a belief, especially common in the academic community, that patent documents are not an entirely reliable source of technological information. Yet understanding how patents are structured and the reasons for the way they are written can make this important source of information effective and accessible.

The obstacle constituted by the enormous number of published patent documents is solved by classification and the retention of only one among several patent documents describing the same invention (which may be called also the elimination ~repetitive documents).

The language obstacle is--sometil:nes only partly-overcane by finding, among patent documents relating to the same invention but written in different languages , those which are in a language that the searcher .!.£!: the information understands. Another, partial, solution lies in consulting an abstract in an accessible language of the patent document instead of com~ul ting the full text of the patent document which is in a language accessible to the searcher for the information.

The locating of the patent documents requires information on where copies of th~, accessible to the public, are kept, and the obtaining of copies requi.res information on which institutions or firms sell copies (in what form: "paper copies," microforms, etc.) of which kinds of patent documents.

Classification

Any "classification system" of patent docume.nts subdivides technology into various "fields." The classification system used by most Industrial Property Offices for classifying the documents issued by them is the International Paent Classification (IPC). This Classification is based on an international multi­lateral treaty, the "Strasbourg Agreement Concerning the International Patent Classification" to which all the major countries producing patent documents are party. Same of the Industrial Property Offices use, or use also, classification systems other than the IPC. For example, the United States Patent Office uses both the "United States Classification" and the IPC.

The IPC subdivides technology into more than 54,000 fields calied "groups" or "sub-groups." Each group is described in a few words and identified by a "Classi­fication Symbol" consisting of numbers and letters. The descriptions of all these 54,000 subject-matter fields are contained in a book, and the title "IPC" is used to designate both the system and the book.

The system works in the following way. The patent document, before publica­tion, is "classified," that is to say, it is assigned the classification symbol or symbols which correspond to the technical fie l d or fields to which the invention described in the patent doc ument pertains. The symbol or symbols are inserted on 1

the front page o f the document and appear on each copy of t he published document. This classification is effected by the Industria l Property Off ice which publishes the patent document .

Raymond Andary 125

The above statement is true for about 90% of the patent documents currently published. But since the IPC has been applied only for between 15 to 2 of the last years (some countries started to apply it later than others), there are some 18 million patent documents which were published prior to the commencement of the application of the IPC . A project is now under realization to classify also most of the patent documents which were published prior to the application of the IPC, that is, which were published without IPC symbols. Such a classification of older patent documents results in the establishment of two kinds of lists: one showing, under each classification symbol, the serial numbers of the patent documents belong­ing under that symbol; the other showing, opposite the serial number of each patent document, its IPC symbol or symbols . The lists are stored in machine-readable records, and the project for this "reclassification" (according to the IPC of pre­IPC patent documents) is called "CAPRI" (Computerized Administration of Patent Document£ ~eclassified according to the !PC). The lists will cover all the patent documents of at least Austria, Germany (1877 to 1945) and the Federal Republic of Germany (after 1945), the Soviet Union, Swit~erland, the United Kingdom and the United States of America.

Now, where any person wishes to know which patent documents are likely to contain information on a given technological problem, first of all he has to find the classification symbol which covers the relevant field of technology--this he will do by finding the appropriate entry in the •book• containing the IPC--and , then he has to find the serial numbers of the documents which bear that classification symbol. Such lists exist in each of the major Industrial Property Offices, at least as far as patent documents published by it are concerned. INPADOC has computerized lists of practically all the patent documents whic.h bear IPC symbols (or were assi­gned such symbols under the CAPRI project), and such lists may be ordered from INPADOC.

"INPADOC" stands for "International Patent Documentation Center." It is an institution--employing some 40 persons--located in Vienna and wholly owned by the Government of Austria. It was established in 1972 under an Agreement concluded between the Government of Austria and the World Intellectual Property Organization (WIPO). A full description of INPADOC and its services is contained in a separate brochure .

Elimination of Repetitive Documents

As already indicated, the same invention is frequently the subject of several published patent documents, because, in some countries, not only the patent but also the application on which the patent is granted is published and because the same invention, where protection for it is sought in different cou.ntries, will normally be published in each of them as a patent and, in some, also as a patent application.

The average searcher for technological information will generally not need all these documents, because their contents are, grosse~, repetitive, but will wish to have .only one of them. How can he know, then, which published documents relate to the same invention?

Where the repetition is between the application filPd and the patent granted in the same country, it is easy to recognize that the two documents relate to the same invention since the serial number of the patent is the same as that of the patent application or the patent indicates the serial number of the patent appli ­cation.

Where the repetition is among patent documents published in different coun­tries, the fact that they relate to the same invention is detectable thanks to the following facts and in the following way. All later filed patent applications usually refer to the patent application first filed. They have to refer to it if the applicant wishes to avail himself--and he usually strongly desires to do so-­of the date (the "priority date") of the earliest application ("the priority application") . The reference, in all the later applications, to the priority application consists of the indicatiOn of the country in which the priority appli­cation was filed, the serial number under which it was filed and the date on which it was filed. Each later filed application, when published, contains these data

1~ 6 Raymond Andary

concerning the priority application; the same is true for each patent granted on each later filed application. Patent documents indicating these data are called me.mbers of the same "family" of patent documents. The members of a family are identified by INPADOC in the following way : INPADOC's computer is so proqrammed that it can be asked to indicate the country and the serial number of all the published patent documents which refer to a given serial number, namely, that of the priority application; if the computer is asked this question it will reply to it by printing out the numbers of the patent documents of the patent family together with the indication of the countries in which they were published. The person searching for the information is thus able to eliminate or retain, as he likes, any or all of the repetitive documents.

Selection of Documents in Certain Languages

If the searcher for the information does not understand some of the languages ~n which some of the published patent documents belonging to the same patent family are written, he may--unless he is ready to order a translation--eliminate from consideration those members of the patent family which are in such languages. Since, as stated above, the "Patent Family Service" of INPADOC indicates not only the serial number of each patent document but also the country which has published it, it is easy to guess, without looking at it, in what language the document is .

There are, however, a handful of countries--Belgium, Canada and Switzerland among them--where patent documents may be in more than one language and one has to make a special enquiry to know, without actually asking for a copy of the docu­ment, in which of the languages that document has been published.

There are many patent documents which are officially published in a given language but of which abstracts-- that is, a description of their technological content in a few lines--are available in another language . For example, the Japanese Patent Office publishes since 1977 English abstracts of a sub-stantial portion of its published unexamined patent applications. Or, Derwent Publications Limited, a private firm in London, publishes each year tens of thousands of abstracts in English of patent documents published in all kinds of languages, including Russian and Japanese. The same is true of "Chemical Abstracts," a periodical published in the United States of America.

More complete information about these abstracts may be obtained by writing to the Patent Office of the Japanese Government, Derwent and Chemical Abstracts:

Japanese Patent Office 4-3 Kasumigaseki 3-chome Chiyoda-ku Tokyo, Japan

Derwent Publications Limited Rochdale House 128 Theobalds Road London WClX BRP, United Kingdom

Chemical Abstracts Service The Ohio State University Columbus, Ohio 43 210 United States of America

The Locating of Documents

Each Industrial Property Office has a collection of the patent documents it has ever published. Each major Industrial Property Office also has complete, or almost complete, collections of patent documents published by the Industrial Property Offices of the other countries or at least of most of them.

Members of the general public usually are allowed to consult such collections . I n major Patent Offices and major libraries, specialized staff is usually avail­able to assist the public in locating published patent documents it is interested in

Raymond Andary 127

The Obtaining of Copies of Documents

Industrial Property Offices and most libraries mentioned above are usually equipped to furnish copies of published patent documents contained in their collections to anyone who wants th~m and pays the prescribed price. Unit prices, mostly inde-pendent of the number of pages of the patent document, range from US dollar 0.50 for a US patent to approximately US dollars 5.00 for a Soviet Union patent. The average price per patent document,- on standing order, is approximately OS dollars 2.00.

WHAT IS THE PROGRAM OF WIPO IN THE FIELD OF PATENT INFORMATION AND DOCUMENTATION?

The program established by WIPO in order to facilitate access to the techno­logical information contained in patent documents can be subdivided as follows :

(a) Improvement of Primary and Secondary Sources of Patent Information.

WIPO has developed standards, recommendations and guidelines aimed at improv­ing the quality and legibility of primary and certain secondary sources of patent information, i . e. patent documents, patent gazettes and abstracts. These standards, recommendations and guidelines basically address themselves to :

(i) the layout, presentation and content of patent documents and gazettes;

(ii) bibliographic data and codes pertaining to patent documents and ga.zettes;

(iii) microform and machine-readable data carriers for patent documents and gazettes;

(iv) the preparation of abstracts.

These standards, recommendations and guidelines are accepted by all countries which publish a large number of patent documents .

(b) Improvement of Means of Access to Technological Information Contained in Patent Documents

The development and the improvement of the IPC (see also paragraphs 39 to 41 above) is an international effort which takes place in the framework of the IPC Union created by virtue of Article 1 of the Strasbourg Agreement Concerning the International Patent Classification and under the auspices of WIPO. It is estimated that, each year, 120 work-months of work at the international level and 240 work­months at the national level are devoted to revising the IPC and adapting it to newly developing technologies and the needs of the users. The yearly effort to allot the IPC syrr~ols to newly issued patent documents is estimated at approximately 90,000 hours of work by highly qualified Patent Office staff.

In cooperation with the United Nations Industrial Development Organization (UNIDO), WIPO started work on the preparation of user- oriented Guides to the IPC in four selected key sectors of industrial activities of developing countries, namely: ~ron and Steel, Fertilizers, Aqro- industries, Agricultural Machinery and Implement~. These Guides will enable users of technological information to identify easily those "groups" of the IPC which might contain patent documents describing solutions to certain technical problems in the said sectors.

The importance of the international raferral services f o r patent information offered by INPADOC are described above and in a brocht.:::e "INPADOC General Infor­mation," which is available on request.

In 1975 WIPO started, with the help of the Austrian Gove rnment , a program for providing free of charge to developing countries state- of- the-art searches. The search reports are prepared on the basis of a search request describing a solution to a technical problem or a technical problem itself and provide information on rele­vant patent documents or other literature describing alternative solutions or known solutions to a technical problem. In 1976, 100 search reports were provided free of

~ 28 Raymond Andary

charge to developing countries. An agreement to continue to provide search reports in 1977 and later years was signed between the Republic of Austria and WIPO and has been successfully implements. Since up to now more than 500 such state-of-the-art searches have been performed, the International Bureau has recently received offers from several other countries, among which are the Federal Republic of Germany and Sweden, to join in this program as "donor" countries.

(c) International Exchange and Procurement of Patent Documents

Currently issued patent documents are widely exchanged free of charge among countries and more especially among the Patent Offices of those countries, under bilateral or multilateral exchange agreements. The patent documents are exchanged in the form of paper copies or in microform. It is estimated that a total of more than 15 million copies of patent documents per year are exchanged in this way. secondary sources of patent information in the form of patent gazettes are also exchanged free of charge on a broad basis.

In order to promote national and regional infrastructures, WIPO has success­fully developed and sponsored procurement and exchange of primary and secondary sources of patent information. For example, WIPO was able to organize the procure­ment, free of charge, to Algeria of a collection of Belgian patent documents put at the disposal by Norway, and collections of German Democratic Republic and Canadian patent documents put at the disposal by the Netherlands. More recently , and more closely relating to this Seminar, WIPO organized, thanks to the kind assistance--as a donor country-- of the United Kingdom, the shipping of an almost complete collection of US patents to the People's Republic of China (approximately 3 million documents).

(d) Technical Assistance and Training

Technical assistance to developing countries in the field of pa~ent information and documentation is one of the important program areas of WIPO. In 1973, WIPO, jointly with the United Nations Development Programme (ONDP) and the Brazilian Government, launched a project aimed at the modernization of the Brazilian patent system, including the establishment of the national patent documentation center in the Patent Office of Brazil. The work on the project is in progress. Similar projects in other areas of the world (for example, in the African Intellectual Property Organization (OAPI) in Yaound~, Cameroun, and for English-speaking African countries) are now in the final planning stage.

In 1980 WIPO will--for the fourth time--organize in Vienna, Austria , following an agreement to this e~fect between the Government of Austria and WIPO, a five-week Training Course in the Use of Technological Information Contained in Patent Documents. A total of 18 participants from developing countries can attend this intensive train­ing course in the use of patent information. Another training course covering the same' subject is presently being held at the European Patent Office for 25 trainees from developing countries, and also this training course will be repeated in 1980. Further training courses are foreseen to take place ir. Moscow in September 1980 , and in the European Patent Office in October 1980.

(e) WIPO Permanent Committee on Patent Information (PCPI)

Following recommendations formulated by the Ad Hoc Committee for Coordination of the Technical Activities of WIPO, the WIPO Coordination Committee and the Executive Committee of the Paris Union, at their sessions from September 26 to October 4, 1977, adopted a decision establishing the WIPO Permanent Committee ~ Patent Information (PCPI). This decision culminated efforts aimed at streamlining all program activitie~ of WIPO in the field of patent information and related matters. These activities hav~ now become a major area in the WIPO program and budget.

the objectives of the PCPI are to encourage and institute, within the framework of WIPO, close cooperation among the States members of the various Unions, particular. the national and regional Industrial Property Offices of such States, in all matters concerning patent information, including the following: the presentation of the con­tent of patent documents; the codes for desiqnatinq and identifying bibliographic da

Raymond Andary 129

in patent documents; systems and methods for indexing, classifying and coding patent documents in order to make them more easily accessible for the purposes of search and examination of applications and for the purposes of information sought by inventors, research and development institutions, industry, governments and the ge.nera1 public; extracting, storage and retrieval of bibliographic data of patent documents; . making informative abstracts of patent documents; the establishment of state-of-the-art reports

The members of this Permanent Committee are the States members of the Paris, PCT and IPC Unions which have expressed the desire to become members. Fifty-three States and two International Organizations are at present members of this Permanent Committee.

Three sessions of the PCPI have so far taken place and at its third session, held in October 1979, the program for the PCPI in 1980 was established. Four Work-ing Groups of the PCPI have been established and to each of them quite detailed and definite tasks have been given. The Working Groups are the fol lowing:

(i) the Working Group on Planning, with the mandate to, in general , advise the PCPI on the definition of the objectives, tasks, program and working methods of the PCP! and the Working Groups established by the PCP!,

(ii) the Working Group ~ Patent Information for Developing Countries , with the mandate to deal with tasks concerning the identification of needs of developing countries in the field of patent information and to make proposals on ways and means of meeting such needs,

(iii) the Working Group ~ Search Information, with the mandate to deal with tasks concerning search file organization and maintenance, including IPC revision matters and search system development,

(iv) the Working Group ~ General Information, with the mandate to deal with tasks,such as those concerning standards, and other matters not appro­priate to the Working Groups refered to under (ii) and (iii) above.

A total of 12 meetings of the PCP! and its Working Groups are scheduled to take place in 1980.

Among the PCPI program items for 1980 are the following:

the question how to select, store and distribute bibliographic informa­tion contained in articles publ.ished in technical journals and aopropriate for inclusion in Patent Office .search files,

the development of a long-term program for the PCPI ,

the improvement of collecting and dissemination of industrial property statistics,

the consideration of proposed improvements to the IPC in approximately 50 subclasses,

the study of users of patent information and their needs, with special emphasis on the needs of developing countries.

ROLE OF INVENTORS AND INVENTORS' SOCIETIES

by

Shoichi Inouye Vice President of Japan Institute of Invention

and Innovation and former Director-General, Japanese Patent Office

It is indeed a great honor for me to be given the opportunity of addressing this international meeting.

Although the topic assigned to me is "The Role of Inventors and Inventors' Societies," you may sense -as I proceed -that the content of my talk and this topic are not necessarily in exact agreement with each other. This is because I felt that more than a cursory mention should be made of the patent system, in particular, the relationship between Japan ' s economic progress and her patent system.

May I request your advance understanding in this regard .

I. Inventions and Inventors

In the history of human progress, a multitude of impossible things have been made possible, thanks to inventions. The daily necessities, transportation equipment , communications facilities and so on that we take for granted are all the fruits of invention--the results of the efforts of inventors .

Inventions of various kinds have made possible the birth and improvement of technology, the progress of industry and the increasing betterment of living. And there is no doubt that inventions will enable such improvement , progress and betterment to continue without end.

Thus, it can be said that the role of inventors is that of a driving force of the technology, economy and culture of society.

People are prone to consider an invention as being something that happens to suddenly emerge in the inventor ' s mind . But it is not such a simple matter. While it is, of course, important that attention be given to the inventions themselves, profound recognition should be given to the pains and efforts that were involved.

No one has put it better than Edison, who said that genius is 99 percent effort and from such effort comes the one percent of inspiration.

Upon looking at inventions in this way we find ourselves face to face with three basic questions.

One is the question of how inventions can be made widely known and put to use for the good of society.

Another is the question of how inventions , in the sense that they are the results of the pains and efforts of their inventors, can be protected .

And the t~ird question is how the development of still more and still better inventions can be encouraged .

132 Shoichi Inouye

To sum up, there is a need for disclosure and utilization, for protection and for encouragement.

It was to meet these needs that the patent system came into existence . And, in my country, the Japan Institute of Invention and Innovation was formed to facilitate the effective functioning of the patent system and to encourage inventive effort as well.

I would now like to expand on the matters that I have mentioned.

II. Basic Purpose of Patent System

1. Disclosure of Inventions - One of the Basic Elements of the Patent System.

No matter how useful an invention, mankind would stand to lose if it remained undisclosed and disappeared with the inventor's death.

From olden times, there have been numerous cases of valuable recipes or techniques being secretly handed down to only a chosen few. Practices of this kind make it impossible for such inventions to contribute widely to the progress of society . Herein lies the need for disclosure.

At the same time, inventions are the crystallization of the pains and efforts of their inventors over a period of many years. The inventor could not be asked to disclose his invention without receiving any compensation in return . It is because of this need to compensate the inventor for his disclosure that the patent system was born .

The basic purpose of the patent system is to draw out from the confines of the individual the product of his brain, namely, his invention, and cause him to disclose it for the sake of technological and industrial progress and, in return, to grant him exclusive rights in the form of a patent for a certain period of time.

The disclosure by an inventor of his invention has the effect of eventually stimulating all other researchers in the same sector and thereby serves as a spring­board to still more advanced inventions.

That is to say, the brain of the individual is put to the service of mankind . This is where we find the cultural significance of the patent system.

2. Protection of Inventors - a Second Element of the Patent system.

The patent system confers on the inventor exclusive rights in the form of a patent, to his invention:

I might mention here that, in Japan , we have a utility model system in addition to a patent system, with patents being granted for inventions and utility model registrations for devices, or minor inventions . The former are valid for 15 years and the latter for 10.

At any rate, the inventor's interest is protected by the granting of exclusive rights . Being exclusive, these rights rule out the use of the invention by any other person without the consent of its possessor, and the possessor may either practice the invention himself or license it at a consideration to others for their use.

3. As mentioned above, the patent system, while protecting the interest of the inventor, causes him to disclose its contents for use by society. It, therefore, has the merit of serving the benefit of both the individual and the whole .

Shoichi Inouy~ 133

Appropriate indeed is the description that the patent system is an invention pertaining to inventions.

Lincoln said, "The patent system added the fuel of interest to the fire of genius . " He was placing his finger on the fact that the patent system is the most effective means of stimulating and encouraging invention.

III . Economic Progress and Patent System of Japan

I would now like to touch on the Japanese experience.

l. The Japanese patent system was established 95 years ago, in 1885, or four years prior to the promulgation of the Japanese Constitution.

No more than 14 years later, in 1899, Japan became a signatory to the Paris Convention, thereby, conunitting herself to the principle of national treatment for foreigners in respect of protection of the interest of inventors .

Japan bas since consistently upheld the basic spirit of the patent system, which is to bring about unceasing technical progress and industrial growth by disclosure of inventions while protecting the interest of the inventors .

Around the end of the 19th century, Japan was in an undeveloped state, both industrially and technologically. Anxiety ·was being widely voiced over the possible consequences of granting patents to foreigners for a great number of valuable technologies. The adoption of the patent system and the accession to the Paris Convention could not have been accomplished without the greatest resolve .

The key element was, I believe, the judgement that emphasis should be placed, not on the disadvantages of granting numberous patents to foreigners, but rather on the positive effects of the disclosure o,f new inventions, namely, that of sti­mulating researchers and engineers into making still more advanced inventions that would bring about further industrial growth.

2. The rapid recovery and growth of the Japanese economy after World War II can be attributed in very large measure to the patent system. That is to say, active importation of new technology from abroad was one of the main factors of the high rate of growth achieved by the Japanese economy during 30 years that followed the war ' s end.

The fact that a reliable patent system was a vital component of the background for all this should not be left unnoticed. Certainty of protection of new foreign technologies by the Japanese patent system enabled their owners to proceed without anxiety in applying for patents in Japan and in licensing them to Japanese enterprises.

It was the disclosure of such inventions that made it possible for Japan to fill the technological void left by the war a.nd to rapidly raise her technological levels and, at the same time, bring about industrial growth and progress .

In this sense, it can be said that Japan is fully utilizing the international nature of her patent system.

IV. Small Inventors in Japan

I would next like to tell you about small inventors in Japan as see.n from patent and utility model registration applications.

1. A very large number of applications for patents and utility model regis­trations are made in Japan each year . In 1979, a total of 359,533 such appli­cations were filed, 174,083 for patents and 185,450 for utility model registrations.

134 Shoicni Inouy~

2. Now, what are the reasons for the extraordinarily large number of applications in Japan? While a keenness to invent or devise might be cited as one of them, more ~portant, I believe, are the following :

1) There are an unusually large number of enterprises in each industrial sector, causing competition among them to be highly intense.

This can be seen from a comparison of Japan with other industrial countries in respect of the number of major enterprises in the various sectors of industry, for instance, steel, electrical equipment, communications instruments, chemicals and aluminium.

In a highly competitive society, exclusive rights acquired by way of patents or utility model registrations are weapons of unsurpassed potency.

2) Often, an application is filed to prevent competitors from obtaining patents or utility model registrations for a certain invention, this being another phenomenon that has its roots in the competitive environment.

3) Furthermore, there are not a few cases where an application is filed without adequate search of prior art.

3. Although utility model registrations are granted for devices that are lower in level than inventions and are valid for only 10 years against 15 years for patents, they are no less effective from the standpoint of exclusivity.

Such being the case, many practical and convenient devices developed by small inventors have become subjects of utility model registration applications and eventually objects of wide use.

4. In Japan, it has often been demonstrated that the small inventor, if blessed in respect of business conditions such as finances and sales, can develop himself into big business in a comparatively short period of time. This was especially true during the growth period of the Japanese economy.

In that sense, the economic and social environment in Japan is one that gives currency to the principle of equal opportunity irrespective of size. It would not necessarily be an exaggeration to say that many of the big business concerns of Japan had their origins in small inventors.

5. According to statistics for the year 1979, individuals accounted for 10.5 percent of all published patent applications and 19.0 percent of all published utility model registration applications. In more simple sectors such as office supplies, stationery, sporting goods, recreational goods and household articles, their share was a considerably high 35 6o 40 percent.

v. Activities of Japan Institute of Invention and Innovation

I would now like to turn to activities of Japan Institute of Invention and Innovation which is the largest association in Japan in the field of inventions. Strictly sepaking, it is not an association of inventors alone. Its membership comprises inventors and also people who support the idea of encouragement of invention. Established in 1904, the Institute is now in its 76th year.

1 . Organization and Purpose .

Organization . The Honorary President is His Imperial Highness Prince Hitachi, and, in addition to the president, the main officials are three vice presidents, one general director and one managing director.

Shoichi Inouye

Also, there are 215 employees at the Institute's headquarters and a total of 82 full-timers and 98 part-timers at its branch offices, for a total of 180 persons.

The membership comprises 4 , 700 sustaining members and 8,000 full members, for a total of more than 12,000.

In addition to the headquarters, which are located in Tokyo, there is a branch office in each of the 47 prefectures.

Purpose. The purpose of the Institute is to promote the advancement of technology and the growth of industry by encouraging invention and furthering the putting to practical use of the results thereof.

135

For this purpose , the Institute is engaged in a broad range of activities under the guidance and supervision of the Science and Technology Agency and the Patent Office .

These activities come under three categories : (1) encouragement and promotion of invention, (2) publicizing of the patent system and furthering of its utilization (3) providing of patent information services.

2. Encouragement and Promotion of Invention .

The Institute's activities for encouragement and promotion of invention are as follows.

(1) National Awards.

National awards are given to persons who have produced particularly excelling inventions. The winners are selected from persons recommended by the prefectural branch offices and related organizations . The presentation ceremonies are held in Tokyo around May or June each year, with the list of awards headed by a grant from the Imperial Family.

The other principal awards are given by the Prime Minister, the Minister of International Trade and Industry, the Director General of the Science and Technology Agency, the Director-General of the Patent Office, the President of the Japan Institute of Invention and Innovation, the Chairman of the Japan Federation of Economic Organizations and the Chairman of the Japan Chamber of Commerce and Industry .

(2) Local Awards.

The national is divided into eight districts for purpose of the local awards, and, about October each year, awards are presented, district by district, to persons who have produced excelling inventions .

(3) National Awards for Students and for Schoolteachers .

National awards are annually presented in Tokyo for the purpose of stimulating invention among those on whose shoulders the nation ' s destiny wi11 be resting, namely, students.

The annual awards for inventions by students have already been presented 38 times and those for schoolteachers 28 times .

The awards go to items that are selected by a judging committee from objects of invention recommended by the prefectural branch offices.

In addition to the Imperial award, there are awards from the Prime Minister, the Minister of Education, the Director General of the Science and Technology Agency, the Director General of the Patent Office and the President of the Japan Institute of Invention and Innovation.

136 Shoichi Inouye

(4) National Contest for Uncornmercialized Inventions.

The purpose of this contest, which is held annually, is to introduce to the public uncommercialized inventions in sectors ranging from daily living to indus­try and technology. The contest to be held this year will be the 21st .

(5) Children's Clubs.

The Institute's program for the establishment of invention clubs for children was launched in 1974. The purpose of the clubs is to enable children to give free display to their latent creativeness through creative activity and, at the same time, experience the joy that comes from the materialization of ideas. There are now 15 such clubs .

3 . Publicinzing of Patent System and Furthering of Its Utilization .

The Institute publicizes patent system and furthers its utilization by engaging in the following activities.

(1) Lecture Meetings and Workshops .

The Institute holds lecture meetings and workshops each year with the coope­ration of the Patent Office for the purpose of bringing about wider knowledge and understanding of the patent system.

The reason is that efficient operation of the system cannot be expected unless it is widely understood. This becomes all the more important when major modifica­tions are made in the system pursuant to a revision in laws or accession to an international agreement.

(2) Special Training Seminars.

The Institute conducts seminars for systematic training on industrial property for the purpose of equipping people with knowledge of a high level and an acute business sense in respect of the industrial property system , which is assuming growing importance with the progress of economic life and technology .

(3) Settlement of Industrial Property Disputes .

In view of the increase in the number of patent disputes in recent years, the Institute has established an "Industrial Property Problems Disposition Committee", which performs consultation and mediation services with a view to facilitating early out-of-court settlement of disputes at low cost.

(4) Promotion of Circulation of Patent .

Exchange of technology among enterprises has become increasingly important as a result of the ever-rising level and evergrowing diversification of technology.

The Institute furnishes articles to the press on patented technologies made available to it by enterprises. It also publishes such information in its patent circulation information bulletin, which is widely distributed.

In this way, the Institute acts as an intermediary between enterprises that are prepared to furnish patented technologies and enterprises that may desire to purchase the same .

Shoichi Inouye 137

(5) Publication of Technical Disclosures.

As I have already explained (section 2, chapter IV), many patent and utility model registration applications are filed in Japan for preventive purposes . This is one of the reasons for the very large number of applications that are filed every year, bringing about undue delays in examination and, in turn, in trans­forming inventions into legal rights.

The Institute started publishing a monthly bulletin of technical disclosures in June, 1976, because it felt that the subsequent filing of applications for any technology so disclosed could be prevented and that duplication of R & D efforts and filing of unproductive applications could be minimized, by publishing techno­logies for which the enterprises that developed them have no intention of filing patent or utility model registration appli·cations.

Technology is made a matter of public knowledge via the bulletin within 15 to 45 days from the time that the request for that purpose is made. This is a very short period of time, considering the fact that early disclosure under the law takes place a year and a half after filing of application. Furthermore, the proce­dures are simple and involve little in the way of cost.

Recently, each issue of the bulletin contains over 200 cases of technical disclosures . In 1978, 2,631 cases of such disclosures were made at the request of a total of 63 companies .

4 . Patent Information Services .

The steady increase of patent information in recent years makes the question of its effective utilization an important consideration in respect of the develop­ment of technology and the conduct of business.

Such being the case, the Institute provides, in response to current needs, fine- textured services in categories such as foreign patent information, not to mention that of the domestic variety, and primary and secondary information and related literature as well. More specifically, the services are as follows:

(1) Distribution of publications such as the Unexamined Patent Application Gazette, the Published Examined Patent Gazette and English-language abstracts of the former, and procurement of official foreign gazettes.

(2) Furnishing of copies of domestic and foreign patent publications.

(3) Distribution, on an exclusive basis, of the PCT specifications and PCT gazettes issued by WIPO.

(4) Sale of Products of Japan Patent Information Center.

Patent information has sharply increased in recent years, bringing the total number of cases to as many as 1,200,000 a year . In Japan, there is a Japan Patent Information Center, which furnishes a wide. variety of patent information service on the basis of its computerized system for this purpose . The Institute sells the entire line of the Center's products.

Such are the activities of the Japan Institute of Invention and Innovation.

Since policies, economic conditions and social needs, of course, vary from country to country, the system of any single country is not necessarily applicable unmodified to other countries. Nevertheless, we would be delighted if the system as established and practiced in Japan should be found to offer helpful suggestions to people in other countries .

138 Shoichi Inouye

I believe there is nothing more precious than the development of creative technology in ensuring a bright future for mankind. It is my sincere hope that this workshop will contribute greatly to the furtherance of creative technology everywhere through effective utilization of the industrial property system.

In concluding, I wish to thank you for your patient attention.

ROLE OF INVENTORS AND INVENTORS ' SOCIETIES

by

Gonzalo 0. Catan, Jr. President

Filipino Inventors Society

Inventors societies in general provide the forum for the fruitful exchange of ideas among inventors at the local, national, regional and international levels. These ideas range from new and improved concepts, policies on the trans­fer of technology, government incentives for inventions, guidelines for remunera­tion of royalties for inventions to other subjects that help promote inventions and their inventors.

Inasmuch as I am privy (I have been Vice President of the Filipino Inventors Society for two years and President for five years) to the Philippine setting, I shall touch in this paper on the particular role of the Filipino I nventors Society in our local, national and regional affairs .

The Filipino Inventors Society was organized 25 years ago. The society then, sponsored simple inventions contests by giving deserving inventions medals and ribbons with the view toward recognizing and promoting useful inventions. Then the Society worked for the passage of a law that provided some form of incentives for inventions and their inventors . This law, Republic Act 3580, gave tax exemp­tions for inventions provided that the manufacture of the invention is capitalized for not more than p50,000 (about ~6 , 800) and that the inventor is the entrepreneur himself.

It provided also for the creation of the Philippine Inventors Commission, P . I . C. , which entity was charged with the responsibility of assisting inventors. The assistance takes the form of assisting inventors in their monthly and annual meetings, assisting inventors in the application of patents both local and foreign, assisting inventors in the making of prototype models, assisting inventors in the promotion of inventions in general . The P . I.C, also assists in conducting the annual inventions contest where the government through R.A. 3850 provides some amounts for prizes for outstanding inventions in different categories.

In 1978 the Filipino Inventors Society and the P . I . C. succeeded in having His Excellency President Ferdinand E. Marcos sign Presidential Decree 1423 which amended R.A. 3850. The amendment provides for exemptions from all taxes, licenses and fees for all Filipino inventions for five years from the start of commercial sale, provided that the capital for the venture is not more than p4 Million (~538,350) and that the inventor owns a majority of the equity of the business.

The Filipino Inventors Society is now assisting the government in making the implementing Rules and Regulations for P . O. 1423 in two areas : one area--the mechanics in giving tax exemptions, the other--the rules and regulations pertaining to the Inventors Guarantee Loan Fund .

Currently, we are also helping the government through the National Science Development Board and U.P. Law Center to draft the New Science and Technology Code. The President of our Society is a member of the Steering Committee .

The number one asset of the Society is the collective, creative brains of our officers and members . With this asset, the Society periodically writes down its suggestions to our government policy makers on the promotion of local inven­tions and technology for hastening national development . Our suggestions are in consonance with the instructions of President Ferdinand E. Marcos in his dialogue with our Society in Malacanang in 1973 wherein he talked on "The Genius of the Race . "

Gonzalo 0. Catan, Jr .

I would like to share with you a summary of some of the FIS suggestions, most of which are backed up by position papers addressed to the government policy makers and implementors :

1. The Rules and Regulations of P.D . 1423 should be signed by the Minister o f Finance in order that the decree signed two years ago can now be implemented;

2. There should be a re-assessment of governmeut programs that are import­oriented as such programs that sacrifice the interest of local inventions and manufac­tured products;

3 . The government's Science and Technology Policy Makers should organize a special Task Force to select, collate, record and distribute to regional centers those useful but expired patents in order to hasten technology transfer to the province or countryside ;

4 . The government should initiate the setting up of a regional common patent system among the develop.ing countries within the ASEAN and/or Pacific Region ;

5 . Private sectors should work with government leaders in articulating and promoting the importance of self-reliance so that every citizen of our country shall have a self-reliant mentality rather than a colonial mentality.

6. Self-reliance BLISS- FIS communities where the people of the community sha l l use locally manufactured and patented products should be set up . The Filipino Inventors Society is presently preparing the feasibility study.

7. There should be a body that serves as "watch dog" to protect the long-term national interests including control and regulation of what foreign technology should be absorbed and how much royalty or share of profits to pay ;

8 . A special group should be commissioned to study what Japan, China, and Germany did in making themselves self-reliant ;

9 . The Sandigan Bayan or People's Court should be made operational and functional in order to minimize corruption, the main enemy of self-reliance as it means the importation of unwanted, wasteful technology and products.

The Filipino Inventors Society participated in the preparation for the Second Festival of Philippine Inventions, this WIPO Workshop and the Annual Invention Contest. our officers and members are part of various executive and working com­mit tees. Also, we have representatives among the panel of judges . Since all these activities are directed to the promotion of Philippine inventions and inventors naturally it is but proper that the Filipino inventors themselves get involved.

The Filipino Inventors Society with the assistance of Philippine Inventors Commission and some private sponsors conduct monthly dialogues among inventors , particularly with representatives of government and private sectors for the purpose of exchanging ideas that are useful both for our country and inventors . At these meetings we also review together our on-going projects .

The Society, together with its daughter affiliate, Filipino Inventions Pro­motions Foundation, Inc . , engages in promotional activities such as the Center for Philippine Inventions, various Invention Bxpos like the current floating ex­position, and other invention exhibits undertaken with government agencies.

At the present time, the Filipino Inventors Society is organizing an advisory council to be composed of officials coming from both government and private sectors which shall not only provide us with proper linkages but also the neces­sary advice for invention and entrepreneural development to take advantage of P . O. 1423, "Inventors Incentives Act."

The Constitution and By-laws of the Society provide, among others, that we can address officially and professionally bonafide members o f our Society who are in good standing as "Inventor . " So Mr. Sian becomes Inventor Sian and ~..r. Anos becomes Inventor Anos .

Gonzalo 0. Catan, Jr . 141

Also, our society can act as a court so that members may be removed of their titles if they commit acts that are inimical to the promotion of Filipino inventors and inventions. Such acts might include patent infringement, estafa, etc .

The Filipino Inventors Society is also working on a project to set up with government a BLISS-PIS self-reliant community wherein all the people living in that community shall be using all locally patented and manufactured products from housing, water, transportation to community industries.

Our Society sends representatives to regional and international invention fairs. We hope that we can affiliate with the International Federation of Inven­tors Associations so that we will be able to communicate on a regional basis with other societies and not only participate in their fairs but invite their partici­pation in our fairs.

There are always questions from the public on how one can become an inventor and how to patent an invention. While we have the Philippines Patent Office and the Philippine Inventors Commission to help in this area, most often our members and officers also give much of their time to inform the public on how to develop new ideas and become an inventor . We have an office at the Philippine Invention Center where our members volunteer some of their time to entertain the public questions relative to inventions. We also coordinate with the Science Foundation of the Philippines and some universities for the purpose of organizing creative societies and encouraging the development of future inventors.

Finally, we inventors realize that creating and inventing is a gift of God. Therefore, our Society makes it a point to witness before other men that every invention is a form of divine inspiration . We as members of the Society help in witnessing and glorifying God ' s gift to us of being able to "see, create and invent" by using our inventions as a means of developing our fellowmen socially, politically, economically, culturally and spiritually. It was never the inten­tion of God that inventions become the means to exploit other people of the world while a few wallow in luxury and abundance. In the beginning as in Genesis, God made the world abundant for all men. Those who have more shall be a servant to more people--not a master and exploiter to more people. Pope John Paul II, Karol Wotyla in his book "Sign of Contradiction" admonishes us to be careful of the modern anti-Christ--people who come from rich or advanced countries who offer aid when in fact such aid only makes the recipient country poorer .

May I share with you the thoughts of our dynamic resident Ferdinand E. Marcos about inventors and inventions when he dialogued with the Filipino Inventors Society last April 13, 1973 . He said:

"I come here today to pledge to each and everyone of you, and through you, to the entire Filipino nation the full commitment of the government to support and aid inventors in every way possible .. . It is necessary for our society to change . We need an environment that will be kind to our gifts and seek the best in us. It is necessary that government lead the way in the making of such a situation; history has only too well noted that inventors are notoriously incapable of protecting themselves . . . History is replete with the cases of gifted minds who were neglected by the society in which they rea l ized their best work ... You can be assured that the Philippine government will watch the developments in the invention field and exert all possible efforts to extend assistance and encouragement to our inventors in order that the full potential of their work will not be aborted by obstacles and therefore withheld from our people • . .

"When we seek to establish a new society, we seek to excel , we seek per­fection. a~r inventors more than the rest of us, perhaps, embody this noble pursuit of excellence and perfection .. .

"If necessity is the mother of invention, our comparatively low level of development at the present time should be the matr~x of the genius o~ the race • . . Beginning today, you are going to be given a new ideal and the financing insti­tutions had better stop being pawnshops and now start helping our inventors . ..

"I hereby authorize the Fil ipino Inventors Society and the National Science Development Board to inform me of any failure to implement this policy that I have announced today .•.

142 Gonzalo 0. Catan, Jr.

"Today, the men of imagination--the inventors among them--are shaping the v~s~on which that nation needs for purposeful action. It is the com­bined work of the genius of the race which will shape our future."

REPORT AND RECOMMENDATIONS OF THE WORKSHOP

1. At the invitation of the Government of the Republic of the Philippines, the participants in the Workshop, which was arranged to coincide with the Second Festival of Philippine Inventions and the 14th Annual Inventions Contest held at Philtrade, Manila, attended the opening ceremonies of the Festival and Contest during the morning of April 14 , 1980, and toured the exhibits on display.

2. In the afternoon of April 14, 1980, the Workshop was opened at the Philippine International Convention Center , Manila. On that occasion, speeches were made by Honorable Felipe Ll . Santillan, Commissioner, Philippine Inventors Commission, who welcomed the participants, Dr . Arpad Bogsch , Director General, WIPO, and Honorable Melecio s. Magno , Minister, National Science Development Board (NSDB). The United Nations Development Programme (UNDP) was represented by Mr. B.R. Devarajan , Resident Representative, UNDP, Philippines . Copies of these three speeches are annexed to the report.

3. The participants in the Workshop included 45 representatives of 17 countries and one territory (Hong Rong), 10 observers from the Asian Patent Attorneys Association (APAA), one observer from the International Federation of Inventors' Associations (IFIA) and 31 observers from the Philippines . The list of partici­pants is annexed to the report.

4. Honorable Felipe Ll. Santillan, Commissioner, Philippine Inventors Commission, and head of the Philippine delegation, was elected Chairman of the Workshop.

5. Lectures were delivered by invited speakers and officials of WIPO on the following topics: Survey of the Industrial Property System in the Asia and Pacific Region (Mr. Lakshman Kadirgamar, WIPO); International Aspects of the Patent System (Mr. Armand Fabella, Chairman, Management Advisory Council, Techno­logy Resource Center, Philippines, and Mr . Edward J . Brenner, Patent Attorney and former Commissioner of Patents , United States of America); Promoting Creativity and Inventiveness (Mr. Farag Moussa, WIPO, and Mrs. Soledad Antiola, Director, Science Foundation of the Philippines); Assistance and Incentives to Inventors by the Government (Mr. Farag Moussa, WIPO, and Honorable Felipe Ll . Santillan, Commissioner, Philippine Inventors Commission); Assistance and Incentives to Inventors by the Private Sector (Mr. Enrique Zobel, President, Filipinas Foundation); The Role of Commerce and Industry in the Development, Promotion and Marketing of Inventions and Innovations (Mr . Owe Storakers, Vice President, Swedish National Development Company, Honorable Vicente B. Valdepenas, Jr.,Deputy Minister, Ministry of Trade, Philippines and Mr. Ceferino Follosco, Director, Philippine Chamber of Commerce and Industry); The Role of Industrial Property Laws in Promoting Indi­genous Inventive and Innovative Activity (Mr . Edward J. Brenner, Patent Attorney and former Commissioner of Patents, United States of America, Mr. Manuel B . Marzan, Assistant Director, Philippines Patent Office, Professor Upendra Baxi , Faculty of Law, Delhi University, India, and Mr. Evener J . Villasanta, President, Patent Attorneys Association of the Philippines); Use of Patent Documents as a Source of Technological Information (Mr. Raymond Andary, WIPO); Role of Inventors and Inventors Societies (Mr. Shoichi Inouye, Vice President, Japan Institute of Invention and Innovation and former Director General, Patent Office, Japan, and Mr. Gonzalo 0. Catan, Jr., President , Filipino Inventors Society).

6. Each lecture was followed by an open forum during which participants addressed questions to the lecturers and to Dr . Arpad Bogsch, Director General, WIPO, or made statements or comments concerning the experience of their respective countries, association or federation in the field of industrial property generally or specifi­cally in relation to the encouragement and promotion of indigenous inventive and innovative activity.

7 . At the invitation of the Government of the Republic of the Philippines the participants attended the closing ceremonies of the Second Festival of Philippine Inventions and the 14th Annual Inventions Contest at Philtrade, Manila , during the morning of April 18, 1980. Dr . Arpad Bogsch, Director General , WIPO, presented the WIPO International Gold Medal for the Outstanding Invention at the Second Festival of Philippine Inventions, 1980, to L'lr. J ose Ha . R. Concepcion and cne ~HPO

144 Report and Recommendations

Gold Medal for the Outstanding Filipino Inventor , 1980 , to Honorable Felipe Santillan, with corresponding diplomas, and announced that these two WIPO medals and diplomas would continue to be awarded every year in the Philippines, and that such medals and awards would also be offered at similar Festivals and Contests that might be organized in other developing countries.

8 . At the invitation of the appropriate Philippine authorities, the participants visited, in the afternoon of April 18, 1980, the Philippines Patent Office (Metro Manila) and the Technology Resource Center (Metro Manila) and on April 19, 1980, the Sarao Motors, Inc. (Paranaque , Metro Manila), Development Academy of the Philippines (Tagaytay City), Makiling-Banahaw Geothermal Plant (Laguna) and the NSDB complex (Taguig, Metro Manila).

9 . The participants expressed their appreciation to WIPO, the Government of the Republic of the Philippines and UNDP for organizing the Workshop, and to the Government of the Republic of the Philippines, in particular the National Science Development Board, the Ministry of Trade, the Philippine Inventors Commission and the Philippine Patent Office , and the members of the Philippine organizing committee composed of officials from different ministries, bureaus, agencies and private organizations, their thanks for the excellent arrangements made , and the facilities provided, for the Workshop and the generous hospitality extended to them .

10 . The participants wished to record their admiration for the work being done in the Philippines towards encouraging and promoting indigenous inventive and inno­vative activity, the manner in which the second Festival of Philippine Inventions and the 14th Annual Inventions Contest had been organized, the quantity and quality of the exhibits, and the role of the Philippine Inventors Commission and the Filipino Inventors Society in encouraging and assisting indigenous inventors and innovators.

11. The Workshop was closed on April 23, 1980. At a luncheon hosted by the Philippine Inventors Commission after the closing ceremony , speeches were made by Honorable Felipe Ll . Santillan, Commissioner, Philippine Inventors Commission, Mr. B.R. oevarajan, Resident Representative, UNDP, Philippines, and Dr . Victor Ordonez, Special Assistant, Office of the Minister of Trade, Philippines.

12. The participants agreed on the following conclusions and recommendations:

(a) that the Workshop had been most interesting and useful in as much as it had given them the opportunity of acquainting themselves with legal and other measures, policies and practices adopted in countries within and outside the Region for the specific purpose of encouraging and assisting indigenous inventors and innovators, as well as the probl ems encountered in this field in some countries in the Region ;

(b) that such legal and other measures, policies and practices should be an important consideration in the formulation of laws relating to industrial property in the countries in the Region;

(c) that a national industrial property system designed to suit the devel­opmental objectives of a country in the Region, including patent protec­tion, support for inventive research and development, and assistance and incentives to indigenous inventors, could play an important role in the encouraga~ent, promotion and diffusion of inventions and innovations in the countries in the Region;

(d) that they welcome the decision of WIPO to offer medals and diplomas to outstanding inventions and inventors in the Region, and hoped that WIPO could consider offering other forms of incentives to deserving inventors and i nnovators .

(e) that, recognizing the value of exchanging information on industrial property systems, legal and other measures , policies and practices pre­vailing in the Region in relation to the encouragement and promotion of indigenous inventive and innovative activity and the problems encountered in their implementation, WIPO should, with the assistance of UNDP , con­tinue to organize meetings at the regional level , as appropriate, in order to promote greater awareness of industrial property in genera l or on specific topics ;

Report and Re commendations 145

(f) that, in order to promote creative intellectual activity in the Region, WIPO should, with the assistance of UNDP, explore the possibility of organizing meetings and training courses, at the regional, sub-regional and national levels, for the benefit of inventors and innovators and potential inventors and innovators in the Region, utilizing for such meetings and training courses, whenever possible, the facilities and expertise available in other countries in the Region, thereby encourag­ing technical cooperation between or among such countries;

(g) that, in particular, WIPO should, at the instance of individual countries or groups of countries in the Region, organize meetings, at the na~ional or sub-regional level, on topics such as the different approaches to the formulation of industrial property laws, licensing agreements and arrange­ments, patent information, assistance and incentives to inventors and innovators, for the benefit of participants from the government or govern­ments concerned, as well as from non-governmental institutions interested in the subject of industrial property;

(h) that, at the instance of individual countries or groups of countries in the Region, WIPO should furnish advice and assistance to such countries or groups of countries in gaining access to the technological informa­tion contained in patent documents and other related materials;

(i) that it was to be welcomed that the study being prepared by WIPO on institutions, such as industrial property offices, other governmental, or non-governmental organizations including inventors societies and associations, dealing with the encouragement and promotion of inventive and innovative activity, would take into account the experiences of such offices, organizations, societies and associations in the Region;

(j) that WIPO should, with the assistance of UNDP, continue its work on a survey of the industrial property system in the Region ;

(k) that, in the formulation and implementation of the inter-country projects, referred to above, WIPO and UNDP should give due consideration to making the maximum use of the facilities available in and through the Regional Centre for Technology Transfer (RCTT) situated in Bangalore, India, there­by strengthening the Centre ' s capacity to play its role in the transfer of technology ;

(l) that WIPO should publish in a volume the lectures delivered at the Work­shop and distribute copies of the volume, as widely as possible , to governmental and non-governmental institutions, organizations, societies and associations, within and outside the Region concerned with the en­couragement and promotion of inventive and innovative activity.

LIST OF PARTICIPANTS

I . STATES AND GOVERNMENT AUTHORITIES

AFGHANISTAN

Mr. Safdar ALI Project Analyst, Investment Department, Ministry of Planning

Mr. Mohamed Ali AYUBI General Director, Investment Department, Ministry of Planning

BANGLADESH

Mr. Ahmed AMINUDDIN Deputy Director, Industries/Planning, Ministry of Industries

Mr. Abdul QUADER Research Officer, Ministry of Commerce

Mr . K.M. Siddique ULLAH Deputy Chief (Industry), Planning Commission

BHUTAN

Mr. Nima Dorji DUKPA Deputy Director, Industrial Development Corporation, Ministry of Trade, Industry and Forests

Mr . Tika Ram SHARMA Indust rial Development Officer, Department of Trade and Industry

CHINA

Mr. WU Huijin Deputy Chief Engineer, Research Institute of Petroleum Processing, Beijung

Mr . YANG Daosheng Engineer, Research Institute of Petroleum Processing, Beijung

FIJI

Ms. Iunaise Vusenga HELO Legal Officer, Crown Law Office

INDI A

Mr. M.P. BHATNAGAR Senior Development Engineer (Electronics) and Officer in charge, Patent & Royalty Section, National Resear-ch Development Corporation of India

Dr. J .C. SRIVASTAVA Scientist in charge, Technology Utilization Division, Council of Scientific & Industrial Research

148 List of participants

INDONESIA

Mrs. Nurachman BAKAR Head, Division of Organization and Management, Bureau for Legal Affairs and Organization, Department of Industry

Miss Giatika HAMDAN! Head, Division of Legislation, Bureau for Legal Affairs and Organization, Department of Industry

Prof. Isjrin NOERDIN Bandung Institute of Technology

Miss Siti PARTINAH Directorate of Treaties and Legal Affairs, Department of Foreign Affairs

MALAYSIA

Mrs. Noriah ABIDIN Deputy Registrar of Trade Marks and Patents, Ministry of Trade and Industry

Mr. Halimi HUSSAIN Assistant Director, Ministry of Trade and Industry

MONGOLIA

Mr. Namsarain GANHUYAG Officer, State Committee for Science and Technology

Mr. Tserendolgoriin HASBATOR Head of Division, Scientific and Technical Information Centre

NEPAL

Mr. Stalin Man PRADHAN Industrial Engineer and Chief, Techno-Economic Division, Department of Industries

Mr . Janardan Bhakta RAJBHANDARI Deputy Director, Department of Industries

PAKISTAN

Mr . .Riaz Ahmad MALIK Registrar, Trade Marks Registry, Ministry of Commerce

PAPUA NEW GUINEA

Mr. William FOX Senior Projects Officer, National Investment and Development Authority

Mr. George Elliot HARRE Foreign Investment and Development Adviser (Legal) , National Investment and Development Authority

Mr. Elias KEDEK Projects Officer, Industrial Development, Department of Labour and Industry

Mr. Stephen MARK Projects Officer (Forestry), National Investment and Development Authority

Mr. Makuna RAWALI Secretary to the Board, National Investment and Development Authority

List of participants 149

PHILIPPINES

?rof. Esteban BAUTISTA Head, Division of Research & Law Reform, University of the Philippines Law Center

Mr. Gonzalo o. CATAN, Jr. President, Filipino Inventors Society

Mr. Renato GONZALES Industry Development Analyst, Ministry of Industry

Mr. Manuel B. MARZAN Assistant Director of Patents, Philippines Patent Office

Honorable Felipe Ll. SANTILLAN Commissioner, Philippine Inventors Commission

Ms. Lydia G. TANSINSIN Chief, Planning & Programming Division, National Science Development Board

Atty. Teofilo P. VELASCO Chief Legal Officer, Philippines Patent Office

REPUBLIC OF KOREA

Mr. Eui-Bak KIM Examiner, The Office of Patents

Mr . Man-Gi PAIK Examiner (Electronics Field), The Office of Patents

SRI LANKA

Mr. Kirthisiri A.D.S. JAYASINGHE Deputy Registrar of Companies, Ministry of Trade and Shipping

Mr. Nelun E. RATNAJEEWA Senior Assistant Registrar of Companies, Ministry of Trade and Shipping

THAILAND

Ms. Kanokphan CHANCHARASWAT Senior Economist, Industrial Economics and Planning Division, Ministry of Industry

Mr. Yanyong PHUANGRACH Chief, Design Section, Department of Commercial Registration, Ministry of Commerce

VIET NAM

Mr. LE Khac Trung Official, Ministry of Foreign Affairs

Mr . TRAN Cue Official, Ministry of Foreign Affairs

HONG KONG

Mr. SHUM Lap Shing Assistant Principal Solicitor, Registrar General ' s Department

Mr . SUM Chee Wan Daniel Assistant Commissioner, Trade Controls, Trade, Industry and Customs Department

150 List of participants

II. INTERNATIONAL ORGANIZATIONS

ASIAN PATENT ATTORNEYS ASSOCIATION (APAA)

Atty. Rafael ABIERA, Jr . Patent Attorney , Member of APAA, Philippines

Atty. Alonzo Q. ANCHETA Patent Attorney, Councilor of APAA, Phi l ippines

Atty. Dominguito MA. GUEVARA Patent Attorney, Member of APAA, Phi lippines

Atty. Noel LAMAN Patent Attorney, Councilor of APAA, Philippines

Att y. Edilberto NARCISO , Jr. Patent Attorney, Member of APAA, Philippines

Atty. Armando ONGSIOCO Patent Attorney, Councilor of APAA, Philippines

Atty . Aniceto SALUDO Patent Attorney, Councilor of APAA, Philippines

Atty. Jesus S.J. SAYOC Patent Attorney , Member of APAA, Philippines

Atty. Antonio VELICARIA Patent Attorney, Member of APAA, Philippines

Atty. Chavalit UTTASART Patent Attorney, Member of APAA, Bangkok, Thailand

INTERNATIONAL FEDERATION OF INVENTORS ASSOCIATIONS (IFIA)

Mr. Leif B . KNUTRUD Secretary, Oslo

III. INVITED SPEAKERS

Prof . Upendra BAXI Faculty of Law, Delhi Univers ity

Mr . Edward J . BRENNER Patent Attorney, Washington, and former US Commissioner of Patents

Mr. Shoichi INOUYE Vice President of Japan Institute of Invention and Innovation and former Director-General, Japanese Patent Office

Mr . Owe STORAKERS Vice-President of the Swedish National Development Co .

List of participants

IV. UNITED NATIONS DEVELOPMENT PROGRAMME (UNDP}

Mr. B. R. DEVARAJAN Resident Representative, UNDP, Philippines

Mr . A. Y. MORVAN Deputy Resident Representative, ONDP , Philippines

Mr. K. WILAIRAT Assistant Resident Representative, UNDP, Philippines

Mr . C. ESP INA Administrative Officer, UNDP , Philippines

Ms. Ludivina SANTOS Fellowship Officer, UNDP, Philippines

V. WORLD INTELLECTUAL PROPERTY ORGANIZATION (WIPO}

Dr. Arpad Bogsch Director General

Mr . Farag MOUSSA Counsellor, Head, External Relations Section, External Relations and Development Cooperation Policy Division

Mr. Lakshman KADIRGAMAR Head, Development Cooperation Policy Section, External Relations and Development Cooperation Policy Division

Mrs. Indrani PIKE-WANIGASEKARA Assistant, Office of the Director General

Mr. Raymond ANDARY

151

Senior Patent Information Officer, Classifications and Patent Information Division

VI . PHILIPPINE OBSERVERS

Mr . Nelson ABOGANDA Executive Director, Technology for Human Development Foundation, Inc.

Atty. Fidelino A. ADRIANO Deputy Commissioner, Philippine Inventors Commission

Mr. Celso P . BUCCAT Head , Techno-Economic Section, Research & Development Division, Philippine Inventors Commission

Mr. Gaspar A. CALLEJA Chief, Invention Assistance Division, Philippine Inventors Commission

Ms. Consolacion CASTANETO Science Research Associate III, Science Foundation of the Philippines

Ms . Felicitas CATACUTAN Head Patent Examiner, Chemical Technology Division, Philippines Patent Office

Mr . Cesar CAZENAS Head Patent Examiner, Mechanical Division, Philippines Patent Office

Mr. Roger COLLANTES Program Director , Technology Resource Center

152 List of participants

Mr. Rudy CONCEPCION Supervising Patent Examiner, Chemica l Technology Division, Phi lippines Patent Office

Mr. Jesus D. EISMA Assistant (UN Specialized Agencies), Office of the UN and International organi­zations (UNIO), Ministry of Foreign Affairs

Mr. Cornelio EMBRADORA Acting Head Patent Examiner, Electrical Division, Philippines Patent Office

Ms. Thelma FULGADO Economic Researcher, National Economic and Development .Authority

Ms . Gloria JAVIER Supervising Patent Examiner, Promotion & Assistance Division, Philippine Inventors Commission

Mr. Silvestre JAVIER International Science Relations Officer IV, National Science Development Board

Atty. Alfredo LAYA, Jr. OIC, Legal and Policy Office, Technology Resource Center

Mr. Jacinto L. LEDESMA Acting Chairman, FILIPROM Foundations, Inc.

Mr. Ramon T. MACAM Head Patent Examiner, Promotion & Assistance Division, Philippine Inventors Commission

Mr. Carlo MAGNO Dean, College of Engineering, National University

Atty. Julius MAGNO Legal Counsel, Ministry of Industry

Atty . Jaime MANZANO Vice-President for Internal Affairs, Patent Attorneys Association of the Philippines

Mr. Modesto L. NONATO Head, Feasibility Study Group, Philippine Inventors Commission

Ms. Concordia PASCUAL Head Patent Examiner, General Organic Chemistry Division, Philippines Patent Office

Mr. Ronni PASOLA Director, Filipino Inventors Society

Ms . Adelina PATRIARCA Ministry of Trade

Ms. Rosie B. RAMIZO Science Research Associate I, Science Foundation of the Philippines

Mrs. Dolores v. REYES Assistant, Office of the UN and International Organizations (UNIO), Ministry of Foreign Affairs

Mr. Roberto SALIDO Director, FILIPROM Foundations, Inc.

Mr . Sofronio SIAN Executive Vice- President , Filipino Inventors Society

List of participants

Ms . Zinnia P . TERUEL Chief, Research & Development Division, Philippine Inventors Commission

Mr . .Arturo TOLENTINO Managing Director , Development Academy of the Philippines

Mr . Marte TORRES Project Officer, Development Academy of the Philippines