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WIPO Feels The Winds Of Change
by William New
GENEVA--The transparent lockbox to be used to deposit the ballots in the May election for the next director general of the World Intellectual Property Organization may be a symbol of the coming change -- and the leftover lack of trust -- in this low-profile but nonetheless highly important United Nations agency. In the past year or so, WIPO has undergone a soul-searching process -- or, some might say, a battle for its soul. At stake is control of the organization and its booming revenues. It is not yet clear who will win, but an outcome is near. Loss Of Faith Last week, on March 31, the organization agreed on its 2008-2009 biennial budget after a six-month delay. The delay was precipitated by disagreement over the current director general, who was mired in controversy and ultimately agreed to step down one year early -- in October 2008. As Congress debates reform of the U.S. patent system, the person chosen to lead the global patent body could have an impact on the end result. Patents, copyright and trademarks are key drivers of U.S. global competitiveness. Major U.S. firms and law associations have weighed in on the WIPO election, saying they are losing faith in the organization. The budget agreement signals a breakthrough. The United States, which led the effort to topple the current director, maneuvered at the October annual WIPO General Assembly of all member governments to block the budget until there was discussion or action on the director general. The United States also sought a 15 percent reduction in fees paid by users to WIPO for processing of patent applications, to reflect the roughly $60 million in surplus income WIPO earned last year. The agreement cuts fees by 5 percent and offers a 90 percent discount on fees for many least-developed and developing countries. A Money-Making Agency WIPO is a money-maker in an age when ownership of intellectual property rights is seen as a fast way to the global economic upper echelons. The main revenue generator is the WIPO Patent Cooperation Treaty -- PCT -- under which a patent application filed in one nation gets recognized in all nations participating in the treaty. The PCT accounts for the majority of WIPO income, followed by its administration of the Madrid treaty and protocol on trademarks. Earning its own way through the services it offers makes WIPO different from most other international organizations, which rely primarily on government donations. The new WIPO budget is $626 million over two years. By comparison, the total budget in 2007 for its better-known neighbor, the World Trade Organization, was $182 million. Being self-sufficient is a source of pride for WIPO. But it also creates a tug between the handful of nations that own roughly 80 to 90 percent of the world's intellectual property rights and whose inventors, businesses and lawyers pay the vast majority of the fees at WIPO -- and the rest of the member nations, who argue that WIPO as a United Nations organization should be more concerned with poverty alleviation and other global problems. Last year, WIPO members agreed to embark on a hard-won "Development Agenda," aimed at ensuring all activities take into account the impact and benefit to even the smallest economies. Some developing countries have feared the targeted takedown of the director and budget holdup by developed countries (including the United States, host country Switzerland, and the rest of Western Europe), was in part to upend the Development Agenda. The developed countries, for their part, say they simply want good governance in an organization in which they have so much at stake. Caught In The Middle The WIPO director general himself, Kamil Idris of Sudan, was caught between the sides, according to sources. He was seen by developed countries as having allowed the Development Agenda and other changes to move the organization toward the murky bureaucracy of other UN agencies -- and by developing countries as having carried the agenda of the rich countries and resisted efforts to establish the Development Agenda. Idris, for his part, put up a tremendous fight during the attack on his credibility, and is said to have targeted those disloyal to his leadership. Now, in building his legacy, he claims credit for accomplishments during his time such as the Development Agenda, as well as bringing international attention to the organization. Idris, in a rare interaction with journalists, last week said the budget passage is a sign the organization is "back on track," and said everything he has done while in the position has been for the good of the organization as a whole. "I'm a human being," he said. "I may be upset, but I try to rise above." U.S. Ambassador to the United Nations in Geneva Warren Tichenor said the United States remains committed to building confidence in WIPO, and that the budget deal was made possible by an internal WIPO agreement that all personnel or structural changes would be left for the next director general. There are 13 senior posts unfilled at WIPO. Tichenor also said the reduction in patent fees -- the first since 2002 -- will save U.S. companies more than $6 million during the remainder of the 2008/09 biennium. The reduction takes effect on July 1. WIPO, which became a UN agency in 1974, has had only two directors general so far, with Idris taking over in 1997. Directors serve a six-year term and may be re-elected, as Idris was in 2003. In the past couple of years, unconfirmed reports circulated as to wrongdoing by Idris and his staff. One close adviser quietly quit after an investigation of his possible payoff for a construction contract and ties to the UN oil-for-food scandal. He has not been found guilty of wrongdoing. Idris was ultimately undone by a WIPO independent inspector's report -- which his office sought to suppress -- that detailed irregularities in the official reporting of Idris' age. According to the report, he may have gained his first WIPO position and risen in the ranks by inflating his age, and only moved to change it after more than two decades when retirement was looming. The debate over the director general weakened the unity of the developing countries, as the African Group became Idris' stalwart defender while others had doubts. Many Hats In The Ring The news of the director general's early departure set off a race for the plum leadership post that had been percolating quietly in the WIPO hallways since last summer, when speculation began of Idris' leaving. Now, 15 formal candidates for the position have thrown their hats into the ring. The candidates come from every part of the world: Australia, Bangladesh, Brazil, France, Honduras, Italy, Japan, Kenya, Macedonia, Mexico, Pakistan, Philippines, Poland, Russia and Slovenia. They include:
Five candidates already work at WIPO, and a number of candidates may have been put forward to further their careers - without any real hope of winning the election - or to increase the regional representation in the pool of candidates. The WIPO Coordination Committee, an executive committee of 83 member governments, will meet over two or three days in mid-May to reduce the list of hopefuls from 15 to one. WIPO members will have a chance to meet each candidate in a special meeting next week. The WIPO Coordination Committee's recommendation will go before the full annual General Assembly of 184 WIPO members in late September for approval. The new director is expected to take over on Oct. 1. Meanwhile, substantive policymaking at the organization appears to be largely on hold for a year, as every move is politicized. Key committees on copyright, patents, and on genetic resources, traditional knowledge and folklore are moving slowly. Editor's note: William New, a former reporter for National Journal's Technology Daily, is editor-in-chief of Geneva-based Intellectual Property Watch, which has published interviews with the candidates for WIPO director general. They are available at: www.ip-watch.org | |||||||||||||||
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