Nov. 28 2008, Geneva Post Kyoto Protocal and Technology Transfer 1

China’s Engagement in Post-2012 Negotiations:

Issues of Technology Transfer and Intellectual Property

Prof. ZHANG Naigen

Director, the Center for IP StudyFUDAN University

Shanghai

Nov. 28 2008, Geneva Post Kyoto Protocal and Technology Transfer 2

China’s National Plan to Respond

Climate Change June 2007 by NCDR Reduce greenhouse gas emission; Actively participant int’l law making for Climate

change; Implement int’l obligations;

Technology transfer and cooperation: Tech-observe climate change

Tech-reduce greenhouse

Tech-suit climate change

Nov. 28 2008, Geneva Post Kyoto Protocal and Technology Transfer 3

China’s engagement in Post-2012 negotiation January 2007 Washington Declaration with China 33rd G8 + 5 including China Chinese President Hu met with German Chancellor Merkel 08.06,2007 2007 UN General Assembly plenary debate September 2007 Washington conference with China 2007 United Nations Climate Change Conference China’s position on Bali roadmap Coming December 2008 Poland Conference Closing December 2009 Copenhagen Conference

Nov. 28 2008, Geneva Post Kyoto Protocal and Technology Transfer 4

China’s position on Bali roadmap Regarding technology transfer

China hopes that since the road map has prescribed, developed countries will continue to take the lead in emission reduction beyond 2012, and provide

financial, technological, adaptive and capacity-building assistance to developing countries to help them enhance their capability in mitigating and adapting to climate change.

Nov. 28 2008, Geneva Post Kyoto Protocal and Technology Transfer 5

China recent white paper on climate change

Regarding technology transfer

China issued the white paper on October 29, 2008. China will insist in the principle of response to

climate change by technology innovation and transfer with developed countries’ responsibility to implement their promise of transferring technology for developing countries.

China will promote R&D on technology for response to climate change.

China will promote technology transfer under the Framework of Convention and Protocol.

Nov. 28 2008, Geneva Post Kyoto Protocal and Technology Transfer 6

Issues of technology transfer and intellectual property

The crucial role of technology under any future global response to climate change

How to facilitate the transfer of clean

technologies from developed countries to developing countries?

Nov. 28 2008, Geneva Post Kyoto Protocal and Technology Transfer 7

Legal Framework for Environmentally Sound Technology Transfer in China Legal framework of Convention on Climate

Change for technology transfer Art. 4.5 of Convention

Art. 10c of Kyoto Protocol

Legal system for technology transfer in China

Patent law for protection of patented technology transfer Anti-unfair competition law for protection of know-how transfer Contract law for technology transfer Deregulation for control importation of technology

Nov. 28 2008, Geneva Post Kyoto Protocal and Technology Transfer 8

Art. 4.5 of Convention

The developed country Parties and other developed Parties included in Annex II shall take all practicable steps to promote, facilitate and finance, as appropriate, the transfer of, or access to, environmentally sound technologies and know-how to other Parties, particularly developing country Parties, to enable them to implement the provisions of the Convention. In this process, the developed country Parties shall support the development and enhancement of endogenous capacities and technologies of developing country Parties. Other Parties and organizations in a position to do so may also assist in facilitating the transfer of such technologies.

Nov. 28 2008, Geneva Post Kyoto Protocal and Technology Transfer 9

Art. 10c of Kyoto Protocol

Cooperate in the promotion of effective modalities for the development, application and diffusion of, and take all practicable steps to promote, facilitate and finance, as appropriate, the transfer of, or access to, environmentally sound technologies, know-how, practices and processes pertinent to climate change, in particular to developing countries, including the formulation of policies and programmes for the effective transfer of environmentally sound technologies that are publicly owned or in the public domain and the creation of an enabling environment for the private sector, to promote and enhance the transfer of, and access to, environmentally sound technologies.

Nov. 28 2008, Geneva Post Kyoto Protocal and Technology Transfer 10

Survey of Technology Transfer to China (2005/mofcom) Total 9,902 Registered imported technology

contracts with value $ 19.05 billions Key project 28.0 % Know-how 26.7% = $ 5.15 billions Technology service 24.9% Joint venture 9.0 % Patented technology 6.7% Compute software 2.3%

Average patented technology transfer in China in last 5 years (2002-) was less than 10 % of total value.

Nov. 28 2008, Geneva Post Kyoto Protocal and Technology Transfer 11

Royalty by imports and exports 2007

Royalty of know-how license by imports: 8.19 US$ billions

increased 23.5% by exports: 0.34 US $billions increased 46.9%

It seems that imports of know-how is still taken about 25-30% of total amount of technology importation.

Nov. 28 2008, Geneva Post Kyoto Protocal and Technology Transfer 12

Industries for Technology Transfer to China (2005) Railway transportation 15.2 % IT & communication 11.1% Steel industry 10.3% Transportation equipment 9.4% Electricity 8.7% Electricity machine 7.8% Chemical & products 6.3% Oil industry 4.4%

It appears that China needs more environmentally sound technologies transfer.

Nov. 28 2008, Geneva Post Kyoto Protocal and Technology Transfer 13

Industries for Technology Transfer to China (2007/1-6) IT & communication 18% Transportation equipment 13.7% Steel industry 9.3% Chemical & products 8.7% Electricity and Electricity machine 6.7% Oil industry 2.6%

It seems no significant increase of environmentally sound technology transfer in China.

Nov. 28 2008, Geneva Post Kyoto Protocal and Technology Transfer 14

China is improving its system

China is improving its legal system and establish national mechanism to have more technology transfer for climate environment protection.

Government new agent for coordination to promote environmentally sound technologies.

IP protection and technology licensing.

Nov. 28 2008, Geneva Post Kyoto Protocal and Technology Transfer 15

IP protection and technology licensing

2008 new patent law will be adopted soon. promote technology transfer. protection for patent rights. 2007 new judicial guideline to protect trade secret

including know-how technology. implement Anti-unfair competition law. 2008 Anti-monopoly law regarding misuse of

intellectual property. guideline for technology licensing in China.

Nov. 28 2008, Geneva Post Kyoto Protocal and Technology Transfer 16

THANKS

E-MAIL: zhangng@fudan.edu.cn