Unit-5: Technology Transfer In Developing Countries

demands. Although internationally binding regulations are no guarantee against the exploitation of developing countries and the enforcement of such regulation would be difficult, the framework for legal redress would be in place and nations would have a tool for defending themselves against transnational giants. Until such strict regulations are in place covering the transfer, handling and use of genetically engineered organisms, there must be a worldwide moratorium on their release to the environment. Unit - 5

TECHNOLOGY TRANSFER IN INTELLECTUAL PROPERTYRIGHTS AND BIODIVERSITY

1.Introduction

During the 1992 United Nations Conference on Environment and Development (UNCED) in Rio de Janeiro and the process leading to it, technology transfer

These two factors raise the cost and reduce the flow of technology to developing countries. The same United Nations Conference on Trade and Development, (UNCTAD) study, TRIPS limits the ability of countries to impose working requirements and issue compulsory licences. The implication of this limitation is that foreign firms may choose not to license technologies under the stronger Intellectual Property Right regime, but rather supply markets with imports at higher prices. Another negative effect on costs is that technology supplying firms will have stronger leverage in their bargaining positions as a result of stronger patent and trademark protection, permitting them to negotiate higher licence charges and royalty fees. Thus developing countries could suffer reduced inward technology flows at higher prices . According to Oh (2000), “there is concern that the use of Intellectual Property Rights may, in fact, adversely affect the flow of foreign direct investment. Analysis of the use of patents by foreign companies in developing countries has shown that such multinational corporations use patents as a defensive strategy” . It refers to the use of patenting to preserve markets that were once captured through exports and are subsequently threatened by

At the situation, patents are used as instruments to achieve control over foreign markets, even without direct investment thus eliminating the need for Foreign Direct Investment (FDI). For this reason, it have shown that approximately two-thirds of patented products are never produced. They are patented in order to keep rivals away from the field . One of the objectives of the Indian patent law, for example, is the need to prevent registration of patents merely to enable patentees to enjoy monopoly for the importation of the patented article . A strict Intellectual Property Rights regime can discourage research and innovation by locals in a developing country. Where most patents in the country are held by foreign inventors or corporations, local Research and Development can be stifled since the monopoly rights conferred by patents could restrict the research by local researchers. Strict Intellectual Property Rights protection, by its apparent bias, may actually slow the pace of innovation in developing countries, and increase the knowledge gap between industrial and developing countries. In such situations, the IPRs system favours those who are producers of proprietary knowledge, vesting them with greater bargaining powers over the users. “The proposed changes to the Intellectual Property Right policies of developing countries have raised a number of important issues, the most important of these is the