Alternative Energy/Are IPR a Barrier to the Transfer of Climate Change Technology

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Copenhagen Economics & The IPR Company, 2009. Are IPR a Barrier to the Transfer of Climate Change Technology, Copenhagen: Copenhagen Economics. Available at: http://trade.ec.europa.eu/doclib/html/142371.htm [Accessed May 15, 2009]. Copenhagen, 2009 - The paper is designed as a study to address whether IPR create a barrier to technology transfer from developed countries to emerging economies and developing countries. The paper was contracted specifically for the UNFCCC discussion around the 2012 Kyoto Protocol replacement, which is currently being designed. Key points addressed include the rapid increase in alternative energy patents as well as the development of patents protected in developing countries. In 1998 1 in 20 patents were protected in developing countries, while in 2008 it was 1 in 5. Even more striking is the fact that within those developing countries 99.4% of the patents were in a small group of emerging markets (China, India, Brazil, etc.). This data leads the authors to determine that patent rights are not a barrier to tech transfer to the majority of these developing countries since there are hardly any alte energy patents registered in these countries. The conclusion states that emerging markets could benefit from greater IP protection regimes since they have the market size and technological capacity for tech innovation domestically and foreign patent holders would be more willing to transfer technology if they knew their patents were protected. There is also enough market competition in these emerging markets to avoid monopolistic prices for patents. The report suggests that tech transfer to developing countries should consist of support that would compensate low-income developing countries for the economic burden of carbon abatement while preserving the countries’ incentive to minimize the costs of that abatement.

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