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2001 Session of WIPO General Assemblies Concludes

Geneva, October 3, 2001
Press Releases PR/2001/291

The Assemblies of the World Intellectual Property Organization concluded on Wednesday following a review of the Organization's activities over the past year and approval of the program and budget for the next biennium (2002-2003). During the meeting, from September 24 through October 3, 2001, member states also took a number of important decisions, which include:

Program & Budget 2002-2003

Member states approved the program and budget for the 2002-2003 biennium amounting to 678.4 million Swiss Francs (CHF). This represents an increase of 19.9 % over the revised budget for 2000-2001 of 565.9 million CHF. The portion of the budget funded by contributions from member states entails no change in the contribution of each member state. Contributions by member states amount to less than 10% of the overall budget. WIPO is largely a self-funding agency, financing its activities from revenues acquired through the provision of services to the private sector in the form of international registration/filing of patents, trademarks, designs and arbitration activities.

The increase in the budget expenditure is due to the dramatic rise in demand for WIPO's services to the private sector as well as growth in strategic areas of the Organization's programs and services and the related policy issues that need to be addressed in the 2002-2003 biennium. In implementing the new program and budget, transparency in accountability and performance will be enhanced by a process of continuous monitoring and evaluation by the secretariat and the member states. In addition, WIPO will continue to take the lead in an international effort to promote greater use of the intellectual property system by small and medium sized enterprises (SMEs), the economic backbone of many countries, to increase their competitiveness and improve access to larger markets. This was affirmed by the Director General following a keynote address by the Minister of Industry, Energy and Mining of Uruguay, Dr. Sergio Abreu, on the same subject.

The delegates also decided that there should be an evaluation of a number of options relating to the construction of a new WIPO building and conference complex. Pending a final decision by the member states on the new building complex, the secretariat of WIPO will proceed with administrative and planning arrangements for the construction project. The Federal Audit Office of Switzerland was requested to assess the evaluation. The results of the evaluation will be examined by the member states in April 2002. For further information, please see Update 143/2001.

Cooperation for Development Activities

Member states also discussed WIPO cooperation for development activities and applauded the work of the Organization in infrastructure capacity building, human resources development, promotion of innovation and development of collective management systems. WIPO program for the Least Developed Countries (LDCs) was considered to be one of the priorities for the years to come. As a sign of support, member states approved a 14% increase in the budget of the Organization's development for cooperation activities in the 2002-2003 biennium. Delegates welcomed the recently launched initiative between WIPO and the World Trade Organization (WTO) to help least-developed countries maximize the benefits of intellectual property protection. The technical assistance available under the joint initiative includes cooperation with preparing legislation, training, institution-building, modernizing intellectual property systems and enforcement.

Electronic Commerce and Domain Names

Member states recognized the significance of the issues examined in WIPO's Second Process Report (SPR) of the Second WIPO Internet Domain Name Process (The Recognition of Rights and the Use of Names in the Internet Domain Name System) and stressed the importance of the issues. The SPR addressed the abusive registration as domain names of International Nonproprietary Names (INNs) for pharmaceutical substances, names and acronyms of international intergovernmental organizations, personal names geographical identifiers, notably, indications of geographical source used on goods, geographical indications and other geographical terms; and trade names (See PR/2001/281). Member states decided to convene two special sessions of the Standing Committee on the Law of Trademarks, Industrial Designs and Geographical Indications (SCT), to be held back-to-back with ordinary sessions of the SCT. These special sessions would be devoted to a comprehensive analysis of the SPR.

A report of the two special sessions will be submitted to the WIPO General Assembly in September 2002 for consideration and decision. The report will present options for the treatment of the issues dealt with in the SPR. This will indicate whether such issues are ripe for action, require further discussion, are not sufficiently significant in their impact to require any action or are not the subject of consensus.

Patent Cooperation Treaty (PCT)

For the fifth consecutive year, member states approved reductions in the filing fees for international patent applications under the PCT. As of January 1, 2002, an applicant seeking protection in more than five countries or regions will benefit from a fee reduction of more than 7%. For the period between 1997 and 2003, PCT filing fees - for applicants using the most common filing strategy, - will have been reduced on average by 45%.

Member states also took note of progress in the PCT reform process launched one year ago. Delegates approved a recommendation to establish a working group to examine ways to simplify and streamline PCT filing and processing procedures.

In a move to ease the workload of major offices that act as International Preliminary Examining Authorities (IPEAs) under the PCT, delegates unanimously decided to modify the time limit relating to entry into the national phase under PCT Chapter II from 20 to 30 months from the priority date. The national phase is the second of the two main phases of the PCT procedure; it follows the international phase and consists of the processing of the international application before each office of or acting for a contracting state that has been designated in the international application. Since IPEAs will only have to carry out examination in cases where the applicant has a real interest in the results of the international preliminary examination procedure, rather than only to buy time, it is expected that the number of demands for international preliminary examination will decrease significantly. This will allow these Authorities to better serve the needs of applicants with a genuine desire to take advantage of the substantive benefits offered by the international preliminary examination procedure.

Member states also appointed the Spanish Patent and Trademark Office as the 10th PCT International Preliminary Examining Authority (IPEA). It is anticipated that the Spanish Office will start functioning as an IPEA some time in 2002. Member states also approved measures lending greater flexibility to the European Patent Office in determining those international applications for which it is competent to act as an International Searching Authority and as an IPEA Information Technologies Projects.

Member states also took note of progress in the PCT automation project, known by the acronym IMPACT (Information Management for the PAtent Cooperation Treaty), and in the PCT electronic filing project. The success of both projects is of the highest priority for the Organization. The rapid expansion of the PCT system - with an average growth rate of 17% since 1991 - underlines the need to forge ahead with such projects. An electronic filing system and automation of the PCT processing procedures would mean lower costs for applicants who will also benefit from more efficient services. WIPO aims to complete the IMPACT project by December 2002 and the PCT electronic filing project by November 2003.

In addition, member states expressed their satisfaction with the progress made to date with the WIPONET Project, a global intellectual property information network between and among all WIPO member states. They approved the requested budget as part of the integrated program and budget approval for the completion of the deployment to intellectual property offices and the operation of the global information network for 2002-2003. In linking the intellectual property offices of WIPO member states, this flagship project will facilitate access to and exchange of information across the globe and enhance use of the intellectual property system to foster economic and cultural development in all these countries.

Patent Agenda

Member states also expressed support for an important new initiative of the Director General, namely the launching of worldwide consultations on the development of a strategic blueprint for the future evolution of the international patent system. The initiative known as the "WIPO Patent Agenda" underlines Dr. Idris' commitment to WIPO's continued leadership in developing the international patent system to maximize the benefits of creative work for all countries. For further information please see PR/2001/290.

Protection of Marks, and other Industrial Property Rights in Signs, on the Internet

Member states adopted the Joint Recommendation Concerning the Protection of Marks, and other Industrial Property Rights in Signs, on the Internet. This Recommendation provides guiding principles on a clear legal framework for the use of marks on the Internet. This clarity also contributes to the development of electronic commerce. The provisions are designed to assist lawmakers in applying existing national and regional laws to legal problems arising from the commercial use of a sign on the Internet. Such problems include concurrent use of identical or similar signs on the Internet and how courts take account of the territorial basis of industrial property rights in signs when determining remedies.

The question of applicable law is not addressed by the present provisions, but left to the private international law of individual member states.

The Joint Recommendation is the third instrument (together with the Joint Recommendation Concerning the Provisions on the Protection of Well-Known Marks (1999) and the Joint Recommendation Concerning Trademark Licenses (2000)) to emerge from WIPO's policy of applying new and flexible approaches to the progressive development of international harmonized common principles. For further information, please see Update 127/2001.

Diplomatic Conference on the Protection of Audiovisual Performers

Member states recognized the need to continue consultations to resolve a deadlock over the article relating to transfer of rights between performers and producers. This was the only outstanding issue blocking agreement on an international treaty relating to the rights of performers in their audiovisual performances. Negotiations deadlocked over this point at a Diplomatic Conference held in Geneva in December 2000. Member states stressed the importance of the protection of audiovisual performances and expressed concern that it had not yet been possible to reach an agreement on this issue. They decided to carry the issue over to the 2002 session of the WIPO Assemblies. For further information, please see PR 2000/248, PR 2000/249 and PR 2000/250.

Madrid Union Assembly (Trademarks)

Member states took steps to further simplify the Madrid system of trademark registration making it safer and more user-friendly by adopting a series of amendments to the regulations of the Madrid system. In particular, a new provision enabling the recording of licenses with respect to international registrations in the International Register was adopted. This will make it easier, cheaper and faster for users to record trademark licenses in multiple countries by eliminating the need to request recordals with the trademark office of each country concerned. Most of the amendments will enter into force on April 1, 2002. Member states also agreed to study the implications of expanding the language regime of the Madrid system to include Spanish. This question will be considered by the member states in September 2002.

Hague Union Assembly (Industrial Designs)

Measures were also adopted to simplify use of the Hague system for the registration of industrial designs. Approval of a new method of calculating fees charged for the publication of industrial designs under the Hague Agreement for the International Deposit of Industrial Designs will generate average fee reductions of approximately 10% through savings in publication costs.

WIPO Logo Competition

Member states approved measures to advance the creation of a new logo for the Organization following the results of the WIPO Logo Competition earlier this year which produced no design that was suitable to replace the existing logo. Under the proposed steps, a well-known design and image-creation company would be selected from a number of companies which will invited to submit proposals that reflect the new vision and strategy of WIPO. A suitable logo would then be developed to be approved by the Director General after consultations with the regional group coordinators of the member states.

In its 2000 session, member states decided that a new logo should be created to stand as a symbol of WIPO as a dynamic, innovative and future-oriented organization in the 21st century. An international jury appointed by WIPO to oversee a three-month competition - which drew 784 submissions from 58 countries - decided in June that none of the projects met the criteria established by member states for a new logo. For further information, please see PR 2001/279.

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