XX.XX.2009

1. Patents and Clean Energy: 
Bridging the Gap between Evidence and Policy A first glance at the methodology and findings Ahmed Abdel Latif, ICTSD IISD Trade and Investment Symposium 14 December 2009. Copenhagen Patents and Clean Energy: Bridging the gap between evidence and policy XX.XX.2009 Seite 1

2. Enhanced transfer of climate friendly technologies :A key element of a global climate change deal The UNFCCC calls on developed countries to take steps to promote transfer of technology (TOT) to developing countries (Article 4.5). Bali Action Plan calls for “enhanced action on technology transfer.” Discussions at the UNFCCC on IPRs have witnessed a polarization around the question of whether IPRs are a barrier to the transfer of climate change technologies or an essential pre-requisite to promote innovation and technology transfer.

3. Menu of options in the negotiations for addressingthe nexus Technology Transfer/IPRs • Negotiating text reflects a wide range of views and proposals: → Business as usual approach → Promoting the transfer of technologies in the public domain → Promoting R&D cooperation → Patent pools → Building capacities on research and innovation in developing countries → Use of TRIPS flexibilities Exclusion from patentability/compulsory licensing,

4. Deconstructing the role of IPRs in Technology Transfer • Technology Transfer (TT) is a complex and multidimensional process. • Its success is contingent on many factors (finance, local absorptive capacity, enabling environment). • TT involves knowledge which is embodied not only in IPRs such as patents but also in blueprints, designs, know-how and trade secrets. • IPRs are important to promote innovation. By offering protection against a loss of control of information in technology-related transactions, IPRs can be an instrument facilitating the transfer of technology. • IPRs have also an impact on cost of technology acquisition and rate of technology diffusion. Licensing conditions play a key role. • Role of IPRs varies according to technology and sector. IP issues raised in the context of mitigation technologies are different from those in the context of adaptation.

5. Bridging the Gap between Evidence and Policyon IPRs and Clean Energies • Empirical data and analysis on transfer of climate change technologies and IPRs is limited and recent. • The scale of the challenge is such that only a broadly based partnership can succeed. • UNEP-EPO-ICTSD Project on Patents and Clean Energy announced in April 2009. →Unique Partnership →Robust Methodology →Some Preliminary Findings

6. Engineering a Unique Partnership • Each organization brings its perspective, skills and expertise to the project: → UNEP (UN Agency/Green Economy Initiative) → European Patent Office (Specialized Expertise in Patents) → ICTSD (NGO/Work on IPRs and Sust. Development) • The project includes carrying out: → Technology Mapping → Patent Landscape of energy generation technologies → Survey of Licensing practices in clean energies

7. Research and Analytical Steps Current project Further possible projects PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5 Technology Mapping studies in 4 key mitigation sectors identified by the IPCC Energy Buildings Transport Industry Identification and specification of technologies for mitigation Patent landscaping: What patents exist on these technologies? Licensing survey for 300-500 selected companies and institutions per sector Synthesis report to better inform UNFCCC negotiations on transfer of technology and financing Broad dissemination of results

8. Robust Methodology (I) • Simultaneous combination in the same study of technology mapping, patent landscape and survey of licensing practices. • Technology Mapping validated byIPCC experts. • Patent Landscape carried out by EPO patent examiners. • The patents have been identified individually in the EPO’s EPODOC database, which is the most comprehensive source of data on patent documents. • Survey of Licensing Practices carried out in cooperation with business associations. • Not a one time exercise but a continuous flow of information

9. Robust Methodology (II) • For the purpose of carrying out the Patent Landscape, the International Patent Classification system (IPC), only provides broad classifications for clean energy technology. • The EPO enhanced the search process through its own internal European Classification system (ECLA), which provides a significant advantage over previous searches based on the International Patent Classification (IPC) system or other systems. • As a result, the EPO has developed new and more specific classification codes for tracking clean energy technologies. • These new classification now enable searching to be made easier and more thorough given that many clean energy technologies overlap.

10. Patent Landscaping • The areas of technology targeted in the searches were: windenergy; hydro/marine energy; solar energy; geothermal energy; biofuels; carbon capture and storage, and energy storage. • Increase in patenting in clean energy technologies as against fossil fuel energy. In particular, wind-power, solar photovoltaic and CO capture have been exhibiting a rapid growth in recent years. • The patenting activity across all clean energy technology appears to be dominated by Japan, US, Germany, Korea, Great Britain and France. • Significantly, 87% of solar photovoltaic patents are invented by Japan, US, Germany, Korea and France.

11. Growth rate of clean energy patenting

12. Patenting in solar PV energy

13. Survey of Licensing Practices • 680 organizations contacted, 155 responses. 66% private companies, 18 % academic institutions and 4% government. • IP laws and protection in the developing country where the technology is to be licensed was an important factor for technology holders. However, of equal importance was the scientific capabilities, infrastructure, human-capital of the licensee. • The main recipients of licensing: BRIC countries, with China topping the list. • Willingness to provide more flexible licensing terms (including monetary ones) in developing countries? 65% of respondents gave a positive response. • Facilitating licensing arrangements?

14. Next Steps • UNEP-EPO-ICTSD side event at COP-15, 18th December (11:00-12:30), Room Liva Well, Bella Center. • Final Report during the first half of 2010.

15. ICTSD Initiative on Climate Change Technology and Trade • Initiative launched in 2008 as an informal mechanism to formulate a research agenda, identify gaps and priorities to be addressed with a view to Identifying obstacles and potential points of intervention to promote the transfer of climate-related technology. • Recent policy oriented research: Innovation and Technology transfer to address climate change: Lessons from the global debate on IP and Public Health by Frederick Abbott, Issue Paper, No.24. Access to climate Change Technology by Developing Countries by Cynthia Cannady, Issue Paper No. 25

16. Conclusion Broader policy question: Should the IP system operate in a business as usual mode when it comes to climate change ?

17. Thank you ICTSD Global Platform on Climate Change and Trade Policies and Sustainable Energy ICTSD Initiative on Climate Technology and Trade aabdellatif@ictsd.ch