Prof. ZHANG Naigen Director, the Center for IP Study FUDAN University Shanghai

1. China’s Engagement in Post-2012 Negotiations: Issues of Technology Transfer and Intellectual Property Prof. ZHANG Naigen Director, the Center for IP Study FUDAN University Shanghai Post Kyoto Protocal and Technology Transfer

2. China’s National Plan to Respond Climate Change • June 2007 by NCDR • Reduce greenhouse gas emission; • Actively participant int’l law making for Climate change; • Implement int’l obligations; • Technology transfer and cooperation: Tech-observe climate change Tech-reduce greenhouse Tech-suit climate change Post Kyoto Protocal and Technology Transfer

3. China’s engagement in Post-2012 negotiation • January 2007 Washington Declaration with China • 33rd G8 + 5 including China Chinese President Hu met with German Chancellor Merkel 08.06,2007 • 2007 UN General Assembly plenary debate • September 2007 Washington conferencewith China • 2007 United Nations Climate Change Conference • China’s position on Bali roadmap • Coming December 2008 Poland Conference • Closing December 2009 Copenhagen Conference Post Kyoto Protocal and Technology Transfer

4. China’s position on Bali roadmap Regarding technology transfer • China hopes that since the road map has prescribed, developed countries will continue to take the lead in emission reduction beyond 2012, andprovidefinancial,technological,adaptive and capacity-building assistanceto developing countries to help them enhance their capability in mitigating and adapting to climate change. Post Kyoto Protocal and Technology Transfer

5. China recent white paper on climate change Regarding technology transfer • China issued the white paper on October 29, 2008. • China will insist in the principle of response to climate change by technology innovation and transfer with developed countries’ responsibility to implement their promise of transferring technology for developing countries. • China will promote R&D on technology for response to climate change. • China will promote technology transfer under the Framework of Convention and Protocol. Post Kyoto Protocal and Technology Transfer

6. Issues of technology transfer and intellectual property • The crucial role of technology under any future global response to climate change • How to facilitate the transfer of clean technologies from developed countries to developing countries? Post Kyoto Protocal and Technology Transfer

7. Legal Framework for Environmentally Sound Technology Transfer in China • Legal framework of Convention on Climate Change for technology transfer Art. 4.5 of Convention Art. 10c of Kyoto Protocol • Legal system for technology transfer in China • Patent law for protection of patented technology transfer • Anti-unfair competition law for protection of know-how transfer • Contract law for technology transfer • Deregulation for control importation of technology Post Kyoto Protocal and Technology Transfer

8. Art. 4.5 of Convention • The developed country Parties and other developed Parties included in Annex II shall take all practicable steps to promote, facilitate and finance, as appropriate, the transfer of, or access to, environmentally sound technologies and know-how to other Parties, particularly developing country Parties, to enable them to implement the provisions of the Convention. In this process, the developed country Parties shall support the development and enhancement of endogenous capacities and technologies of developing country Parties. Other Parties and organizations in a position to do so may also assist in facilitating the transfer of such technologies. Post Kyoto Protocal and Technology Transfer

9. Art. 10c of Kyoto Protocol • Cooperate in the promotion of effective modalities for the development, application and diffusion of, and take all practicable steps to promote, facilitate and finance, as appropriate, the transfer of, or access to, environmentally sound technologies, know-how, practices and processes pertinent to climate change, in particular to developing countries, including the formulation of policies and programmes for the effective transfer of environmentally sound technologies that are publicly owned or in the public domain and the creation of an enabling environment for the private sector, to promote and enhance the transfer of, and access to, environmentally sound technologies. Post Kyoto Protocal and Technology Transfer

10. Survey of Technology Transfer to China (2005/mofcom) • Total 9,902 Registered imported technology contracts with value $ 19.05 billions • Key project 28.0 % • Know-how 26.7% = $ 5.15 billions • Technology service 24.9% • Joint venture 9.0 % • Patented technology 6.7% • Compute software 2.3% • Average patented technology transfer in China in last 5 years (2002-) was less than 10 % of total value. Post Kyoto Protocal and Technology Transfer

11. Royalty by imports and exports 2007 • Royalty of know-how license • by imports: 8.19 US$ billions increased 23.5% • by exports: 0.34 US $billions • increased 46.9% • It seems that imports of know-how is still taken about 25-30% of total amount of technology importation. Post Kyoto Protocal and Technology Transfer

12. Industries for Technology Transfer to China(2005) • Railway transportation 15.2 % • IT & communication 11.1% • Steel industry 10.3% • Transportation equipment 9.4% • Electricity 8.7% • Electricity machine 7.8% • Chemical & products 6.3% • Oil industry 4.4% • It appears that China needs more environmentally sound technologies transfer. Post Kyoto Protocal and Technology Transfer

13. Industries for Technology Transfer to China (2007/1-6) • IT & communication 18% • Transportation equipment 13.7% • Steel industry 9.3% • Chemical & products 8.7% • Electricity and Electricity machine 6.7% • Oil industry 2.6% • It seems no significant increase of environmentally sound technology transfer in China. Post Kyoto Protocal and Technology Transfer

14. China is improving its system • China is improving its legal system and establish national mechanism to have more technology transfer for climate environment protection. • Government new agent for coordination to promote environmentally sound technologies. • IP protection and technology licensing. Post Kyoto Protocal and Technology Transfer

15. IP protection and technology licensing • 2008 new patent law will be adopted soon. promote technology transfer. protection for patent rights. • 2007 new judicial guideline to protect trade secret including know-how technology. implement Anti-unfair competition law. • 2008 Anti-monopoly law regarding misuse of intellectual property. guideline for technology licensing in China. Post Kyoto Protocal and Technology Transfer

16. THANKS E-MAIL: zhangng@fudan.edu.cn Post Kyoto Protocal and Technology Transfer