US embassy cable - 05GENEVA2653

UNCLAS SECTION 01 OF 03 GENEVA 002653 
 
SIPDIS 
 
COMMERCE FOR USPTO PAUL SALMON; STATE FOR EB/TPP/IPE, IO/T 
 
E.O. 12958: N/A 
TAGS: IO, KIPR, WIPO, Intellectual Property 
SUBJECT: WIPO GENERAL ASSEMBLIES 2005 - BETTER THAN 
EXPECTED OUTCOME 
 
 
1.   Summary:  The meetings of the Assemblies of Member 
States of the World Intellectual Property Organization 
(WIPO), held in Geneva from September 26 to October 5, 2005, 
ended with better-than-expected results.  Member States 
strengthened accountability and oversight within the 
organization, thus advancing U.S. goals for UN reform.  The 
Assemblies also established a constructive framework in which 
to assess how to further integrate a development dimension in 
WIPO,s work to advance the Millennium Development Goals. 
Finally, in decisions on a future broadcasting treaty and a 
work program for the Standing Committee on Patents, Member 
States affirmed their commitment to further progress in 
WIPO,s core competencies.  Highlights on important agenda 
items are provided below.   End Summary. 
 
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Budget 
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2.  The Assembly adopted a balanced, results-based budget for 
the first time in several years.  The budget includes no fee 
increases and no change in member contributions. The budget 
includes funds to proceed with the acquisition of a 
commercial loan for 114 million Swiss francs for the 
construction of a new building adjacent to the current 
property and for the engagement of an external management 
firm to direct the project.  This was deemed necessary due to 
the problems experienced during the remodeling of the former 
WMO building that led to a doubling of the cost. The rate of 
staff growth was also slowed, with just 10 new permanent 
positions being added in each year in the 2006-2007 biennium. 
 Following a desk-to-desk review of the organization 
adjustments to the budget may be sought in 2006.  The 
Assembly affirmed that adjustments could also be made to 
reflect any program decisions that result from discussions of 
development issues. 
 
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Reform/Oversight 
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3.  Reflecting the resolve for UN reform expressed at the 
2005 UN World Summit, member states took two decisions to 
strengthen accountability and oversight and improve internal 
management and transparency at WIPO: adopting an Internal 
Audit Charter and approving the creation of an Audit 
Committee. The Audit Committee (composed of seven member 
state representatives and two representatives with audit 
experience) will have major oversight powers and 
responsibilities and will oversee construction of the new 
building and the desk-to-desk audit recommended by the UN 
Joint Inspection Unit (JIU).  Other JIU recommendations to 
improve good governance and member state oversight of WIPO 
included discontinuing direct recruitment and personal 
promotions, limiting the Director General,s ability to 
transfer funds between programs and hiring external 
management for the construction project. 
 
4.   A debate ensued when the EU, the U.S., the Eastern 
European countries, among others, supported amending the 
proposed decision to merely "note" the JIU's report and 
instead require the Director General to take immediate action 
on the JIU recommendations.  Unfortunately, opposition by 
Middle Eastern and African countries resulted in a weakened 
text to refer such recommendations to the Program and Budget 
Committee.  This effectively delayed their implementation a 
full year, since they would need to be approved by the 2006 
General Assemblies. The U.S. made clear in its intervention 
following that item that, despite this, we expect concrete 
actions in the coming year.  The Assembly amended the Staff 
regulations to require disclosure of activities that 
represent a conflict of interest for employees and strengthen 
financial disclosure requirements, thus establishing a 
stronger ethics standard for staff.  The Deputy Director 
General announced that WIPO had engaged independent auditors 
selected by the Swiss government to fully investigate the 
allegations of fraud and mismanagement that had surfaced 
during the last year.  (Mission comment:  we learned after 
the meeting that the Geneva office of Ernst & Young is 
conducting the investigation.  End comment.) 
 
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Broadcasters Treaty 
------------------- 
 
5.  After lengthy wrangling, the General Assembly adopted 
language providing for the convening of a Diplomatic 
Conference on the Protection of the Rights of Broadcasting 
Organizations. The provision calls for two meetings of the 
Standing Committee on Copyright and Related Rights (SCCR) to 
be held before the next General Assembly.  The purpose of 
these meetings is to aim to agree, and to finalize a draft 
treaty so that the 2006 General Assembly can convene a 
Diplomatic Conference in December 2006 or at an appropriate 
time in 2007.  The U.S. believes that this language reflects 
the broad consensus among developed and the vast majority of 
developing countries in the General Assembly that the 
convening of a Diplomatic Conference is appropriate and 
timely.  Although discussions at the two SCCRs will focus on 
the second revised consolidated text (SCCR/12/2 Rev.2) and 
the working paper on webcasting (SCCR/12/5 Prov.), in 
introducing this provision in the Plenary Session, the 
Chairman made it clear that this procedure followed normal 
WIPO procedures and did not preclude members from making 
proposals to modify the present Chairman's Second revised 
Consolidated text or the working paper.  The two SCCR 
Meetings will provide an effective means to finalize a text 
so that the 2006 General Assembly will be able to fulfill its 
mandate to convene a Diplomatic Conference. 
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Genetic Resources, Traditional Knowledge 
and Folklore (IGC) 
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6.   With very little discussion, the WIPO General Assembly 
decided to extend the current mandate of the IGC for the 
2006-2007 biennium.  This mandate is sufficiently broad so 
that no outcome is excluded, including the possible 
development of an international instrument or instruments. 
Considerable progress has been made in IGC discussions on 
these issues.  The U.S., however, believes that there cannot 
be a one-size-fits-all approach to the protection of genetic 
resources, traditional knowledge and folklore.  While policy 
objectives and core principals may form the basis of some 
type of instrument(s) in the future (e.g., guidelines, 
recommendations, etc.), the U.S. underscored that it is still 
premature to consider treaty language at this time. 
 
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IP and Development 
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7.  After considerable discussion and informal consultations, 
the General Assembly decided to enhance the development 
dimension in WIPO,s work by establishing a provisional 
committee to accelerate and complete discussions on proposals 
relating to a WIPO development agenda. This provisional 
committee, which will effectively replace the Permanent 
Committee on Cooperation for Development Relating to 
Intellectual Property (PCIPD) during its existence, will meet 
in 2 one-week sessions and report to the 2006 General 
Assembly with recommendations, if any.  This decision will 
help WIPO members continue discussions on IP and development, 
launched at the 2005 General Assembly by a proposal of Brazil 
and Argentina, in a more structured and effective manner.  By 
having one-week sessions, rather than 3-day meetings, the 
provisional committee is more likely to attract the 
participation of capitol-based experts who can engage in an 
in-depth, factual examination of all proposals that have 
emerged to date.  Furthermore, the General Assembly decision 
imposes a deadline for new proposals as the first day of the 
first session of the provisional committee.  This will ensure 
that these discussions will not be dragged on interminably, 
but rather will focus on a finite number of proposals before 
it.  The work of the provisional committee will not prejudice 
the provision of WIPO technical assistance or the activities 
of other WIPO bodies in discussing matters relevant to 
development. 
 
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Substantive Patent Law Harmonization 
------------------------------------ 
 
8.  After extended discussion and informal consultations, the 
General Assembly decided upon a process designed to move 
discussions on substantive patent law harmonization forward. 
The decision provides that: 
 
--An informal open forum will be held in the first quarter of 
2006 on all issues that have been raised in the draft of the 
SPLT or that Member States wish to include in the draft SPLT. 
 The forum will be of three-days duration.  The various 
issues will be discussed with contributions from speakers 
reflecting a balance of geographical representation and 
perspectives, and technical expertise.  Member States may 
submit proposals for issues and speakers for the forum until 
November 15, 2005.  The Chair of the WIPO General Assembly 
will conduct consultations on the draft program with all 
interested Member States.  The Director General will publish 
the final program in January 2006. 
 
--A three-day informal session of the SCP will be held soon 
after in Geneva to agree on a work program for the next 
session of the SCP, taking into account the discussions of 
the open forum.  WIPO will, in the measure possible, provide 
financial assistance to facilitate the participation of 
developing countries. 
 
--A five-day ordinary session of the SCP will be held to 
commence work on the work program of the SCP agreed at the 
informal session of the SCP. 
 
--WIPO General Assembly in September 2006 will consider the 
progress made with a view to determining a work plan for the 
following year. 
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Further Information 
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9. All of the documents prepared by the Secretariat for the 
2005 WIPO Assemblies meetings are available on the website of 
WIPO at www.wipo.int.  The final reports of these meetings 
should be posted there soon.  For further information, please 
contact Candy Green, Acting Director of the Office of 
Intellectual Property Enforcement (EB/TPP/IPE) at (202) 
647-3985 or by email at greenc@state.gov. 
Moley