WTO Ministerial Meeting: IP Compromise Remains Elusive

Compromise on intellectual property issues remained elusive at last week’s World Trade Organization ministerial meeting. An initial statement by the European Union initially identified GIs as a "poltical must have," along with agriculture, non-agricultural market access, and services. However, the US later announced that it does not intend to engage in negotiations on GI extension. "These TRIPS issues are important to many members, but we think it's vital to keep the focus of this meeting on agriculture, (manufactured goods), services. This meeting is not the time to create new mandates on the TRIPS issues," a spokesperson for US Trade Representative Susan Schwab reportedly said at a press briefing on 22 July.

Norwegian Foreign Minister Jonas Støre is continuing informal consultations on three intellectual property issues: 1) the multilateral register for wines’ and spirits’ geographical indications (GIs), 2) extending geographical indications protection beyond wines and spirits (“GI extension”), and 3) proposals to require patent applicants to disclose the origin of genetic material and traditional knowledge. Støre told Intellectual Property Watch late Thursday that movement on these issues would depend on progress on agriculture and non-agricultural market access.

The WTO's goal for this so-called "July 2008 package" was to agree on “modalities” in agriculture and non-agricultural market access (NAMA) — ie, the formulas and other methods to be used to cut tariffs and agricultural subsidies, and a range of related provisions — and to look at the next steps in concluding the Doha round of negotiations.

Talks But No Breakthroughs Yet On IP Issues For Ministers At WTO [International]

Intellectual property issues have been a topic of debate at the World Trade Organization ministerial negotiations since Friday and while there have been no changes in positions there has been some talk of looking for compromises, according to sources attending the event. Ministers from some IP-proponent countries raised the issues as critical to the heads of delegation meeting on Monday, the first day of the mini-ministerial in Geneva, while opponents held a meeting of like-minded countries reinforcing their position against the inclusion of IP issues in the talks, sources said.

WTO Director General Pascal Lamy began on Friday to talk with officials about IP issues in an attempt to find a way to navigate the standstill on them, sources said. Lamy held meetings on Friday, Saturday and Sunday, they said. However, on Monday evening, the issue was not a primary topic of the Green Room meeting, the smaller, closed gathering held in Lamy’s office. The ministerial is scheduled to run from 21-27 July.

The focus in the next few days is expected to be squarely on the issues of agriculture and non-agricultural market access (NAMA) before IP issues become critical, if at all, according to several sources. But the outcome of the mini-ministerial (about 40 of the WTO’s 153 members) will be tied to addressing demands from the European Union, Switzerland, India, Brazil and others on issues related to intellectual property and trade.

The IP issues are: the creation of a mandated register on geographical indications - product names associated with a place and characteristics - for wines and spirits; extension to other products of the higher-level GI protections currently enjoyed by wines and spirits; and an amendment to the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) to require the disclosure of origin of traditional knowledge and genetic material in patent applications, intended to bring TRIPS in line with the UN Convention on Biological Diversity (CBD).

A draft modalities text has been prepared by proponents, claiming support from a majority - over 100 - of WTO members (IPW, WTO/TRIPS, 18 July 2008). The text, TN/C/W/52, is now posted as a document to the WTO website. The opponents’ longstanding position favouring a voluntary register and database for consultation, referred to as the joint proposal, has been submitted again and posted as document TN/IP/W/10/rev.1.

A possible split in the IP issues may have been suggested by Lamy, according to sources. It generally has been the view that the GI register and the CBD amendment might have more middle ground for negotiating, while the GI extension might be more two-dimensional, sources said.

But such a split would not be acceptable to IP proponents, an official from a proponent country said. And the opponents’ meeting on Monday, which included countries such as Australia, Chile, Costa Rica, Mexico, New Zealand and the United States, reconfirmed the view that none of these issues should be discussed this week, according to a participant.

India not to open legal services sector soon: Ministry of Commerce

The ongoing World Trade Organisation (WTO) talks will not lead to India opening up the legal services sector to foreign firms, Commerce Secretary Gopal Pillai said. However, he has made it clear that permitting foreign legal firms into India to deal with mergers and acquisitions (M&A) as well as arbitration cases will be beneficial. "The Indian legal services sector needs reforms that involve issues related to limited liability, number of partners and advertising restrictions. Once that is done, it has to be ready for liberalisation of the sector," Pillai said.

"In this round, we won't commit opening up of the legal services sector in the services negotiations of the Doha Round. But opening of the sector has great potential for the Indian professionals," Pillai said, adding that foreign lawyers would not come and practice in Indian district courts.

"They are interested in M&A and arbitration between companies." Currently, foreign law firms are not allowed to provide their services in India while professionals in the sector are not comfortable to liberalising the sector for foreign participation. The resistance by the Indian legal professionals for entry of foreign firms into India is because of a multitude of regulations.

For example, advocates in India are not allowed to advertise. More over, there are restrictions on the number of partners in a legal firm, which cannot cross 20. The Bar Council of India Rules prohibit Indian advocates from sharing remuneration with any person or legal practitioner who is not an advocate.

"We understand that there are limitations. But in the future most of them will be addressed. On issues of liberalisation, the commerce ministry will be guided by the law ministry as well as the Bar Council, with whom we are interacting. Surely, Indian law firms with just 20 partners will be at a disadvantage when a US firm with 2,000 partners set up base in India," added Pillai.

At present, there are nearly one million lawyers in India. The global legal services market has been estimated at $220 billion while India's share stands at $300 million.