
Contents
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The Interpretive value of Article 7 The Interpretive value of Article 7
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Objectives Objectives
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7. The protection and enforcement of intellectual property rights should contribute to the promotion of technological innovation and to the transfer and dissemination of technology, to the mutual advantage of producers and users of technological knowledge and in a manner conducive to social and economic welfare, and to a balance of rights and obligations. 7. The protection and enforcement of intellectual property rights should contribute to the promotion of technological innovation and to the transfer and dissemination of technology, to the mutual advantage of producers and users of technological knowledge and in a manner conducive to social and economic welfare, and to a balance of rights and obligations.
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IPRs and innovation IPRs and innovation
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Transfer and dissemination of technology Transfer and dissemination of technology
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Social and economic welfare Social and economic welfare
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Balance of rights and obligations Balance of rights and obligations
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Principles Principles
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Abuse of IPRs Abuse of IPRs
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Practices which unreasonably restrain trade Practices which unreasonably restrain trade
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Practices which adversely affect the international transfer of technology Practices which adversely affect the international transfer of technology
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Annex Annex
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Negotiating history Negotiating history
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Composite text of July 23 1990 Composite text of July 23 1990
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Draft text transmitted to the Brussels Ministerial Conference (December 1990) Draft text transmitted to the Brussels Ministerial Conference (December 1990)
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Cite
Extract
The Interpretive value of Article 7
Objectives
The protection and enforcement of intellectual property rights should contribute to the promotion of technological innovation and to the transfer and dissemination of technology, to the mutual advantage of producers and users of technological knowledge and in a manner conducive to social and economic welfare, and to a balance of rights and obligations.
Negotiations on intellectual property in the Uruguay Round were initiated upon the demand of developed countries, with considerable resistance from developing countries. The primary objective of the proponents of the Agreement was to secure the rights of intellectual property owners to exploit their protected assets in the jurisdiction of all parties to the GATT. They emphasized the role of the protection of IPRs as incentives for innovation, and were keen to leave issues relating to the exploitation of the rights to the discretion of title-holders.
In contrast, developing countries feared that a strengthened protection of IPR protection would give too much power to title-holders and limit access to, and transfer of, technology to those countries. They approached these negotiations with a clear understanding of their weakness in the generation of new science and technology. At the time the negotiations took place, only a small fraction of world expenditures on R&D was accounted for by those countries. The situation is not too different today. Ten developed countries account for 84 per cent of global resources spent on R&D annually, control 94 per cent of the technological output in terms of patents taken out in the United States, and receive 91 per cent of global cross-border royalties and technology licence fees.1
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