Intellectual Property for Fostering Innovation in the Arab Region VISION ESCWA, an innovative catalyst for a stable, just and flourishing Arab region MISSION Committed to the 2030 Agenda, ESCWA’s passionate team produces innovative knowledge, fosters regional consensus and delivers transformational policy advice. Together, we work for a sustainable future for all. E/ESCWA/TDD/2019/5 Economic and Social Commission for Western Asia Intellectual Property for Fostering Innovation in the Arab Region United Nations Beirut © 2019 United Nations All rights reserved worldwide Photocopies and reproductions of excerpts are allowed with proper credits. All queries on rights and licenses, including subsidiary rights, should be addressed to the United Nations Economic and Social Commission for Western Asia (ESCWA), e-mail: [email protected]. 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References to dollars ($) are to United States dollars, unless otherwise stated. Symbols of United Nations documents are composed of capital letters combined with figures. Mention of such a symbol indicates a reference to a United Nations document. United Nations publication issued by ESCWA, United Nations House, Riad El Solh Square, P.O. Box: 11-8575, Beirut, Lebanon. Website: www.unescwa.org. Photo credit: © iStock.com iii Acknowledgments The present report is prepared by the Innovation Programme Management Officer in the Section at the Technology for Development Innovation Section contributed and peer- Division of the Economic and Social reviewed this study. Ms. Marie Helena Abou Commission for Western Asia (ESCWA) Jaoude, intern at the Innovation Section, also under its work programme for the biennium participated in the research for selected parts 2018-2019. of the study. The study is based on an extensive report The study was reviewed by Mr. Walid prepared by Mr. Pierre El Khoury, specialized Abdelnasser, Director of the Regional Bureau for lawyer in intellectual property and information Arab Countries at the World Intellectual communication technology and Professor of law Property Organization (WIPO); and by Mr. at University La Sagesse, Beirut. It was Mahmoud Saqr, President of the Academy discussed during an expert group meeting of Scientific Research & Technology (ASRT) entitled “Intellectual Property Systems in the in Egypt. Arab Region” held 17 and 18 April 2019 in Beirut. The information and knowledge shared The study was also reviewed by Mr. Fouad and the discussions held during the meeting Mrad, Senior Programme Manager, Technology was used to enhance the study. for Development Division, and Mr. Niranjan Sarangi, Economic Affairs Officer at the This study was prepared under the leadership Economic Development and Integration and supervision of Ms. Nibal Idlebi, Acting Division, ESCWA. Additionally, the study drew Director of the Division for Technology for on comments made at internal ESCWA Development and Chief of the Innovation meetings and observations made by the ESCWA Section. Ms. Lize Denner, the Associate Publications Committee. v Executive Summary In today’s technology- and knowledge-driven landscape. Arab legislation has also been economy, intellectual property (IP) is an maintaining the effort to restrict counterfeiting important legal structure. IP policies play a key and piracy by developing successful partnerships role in the management of research and between the public and private sector. development and enhancing innovation and entrepreneurship. Intellectual property rights However, for emerging market economies in are part of a complex regime of bilateral, this knowledge-based era, growth and regional and multilateral treaties that has been economic development is driven by the evolving since the nineteenth century. innovation and creative processes for products and services. A balanced design of managed While IP rights are recognized and have existed intellectual property rights leading to temporary in their modern form in the Arab world since the monopolies can yield such an outcome. Without beginning of last century, today only few Arab the legal rights to appropriate the returns from countries have a national intellectual property innovations, the incentives to engage in strategy with measures to encourage and inventive and creative activities are likely to facilitate the effective development, decline. In this regard, a balance incentivizing management and protection of intellectual innovation versus improving access to property rights. However, compared to other technology to promote diversification must be intellectual property markets such as Europe struck. Several factors contribute to the and the United States, intellectual property framework conditions for strengthened rights protection and exploitation in the Arab intellectual property rights protection that region have plenty of room for growth and supports, with other factors, the Arab region’s improvement. journey towards innovation, international trade and foreign investment. Over the last twenty years, tremendous efforts have been made in this direction. Intellectual This report is a desk review of the intellectual property legislation in Arab countries have been property laws and practices – specifically the developed in cooperation with the World patent and copyright fields – of some countries Intellectual Property Organization (WIPO), within in North Africa, the Middle East and the Gulf. the framework of the World Trade Organization Examples from other countries are added where (WTO) or through bilateral agreements, to ensure appropriate to illustrate the links between compliance with their commitments under the intellectual property, innovation, Trade-Related Aspects of Intellectual Property competitiveness, and the progress towards Rights (TRIPS) and on the international achievement of the Sustainable Development vi Goals in the Arab region or to show best dissemination of knowledge, and a weak practices for addressing specific challenges in intellectual property system which, by failing to the IP systems. encourage researchers to innovate, is not sustainable and stifles innovation. It proposes The report proposes some practical solutions to an evaluation tool for IP systems, enabling the dilemma of balancing strong intellectual authorities to determine the effectiveness and property protection that could harm the public gaps in systems from inception of a protective interest, especially concerning the work to its commercialization. vii Contents Page A. Legal framework before the enactment of the TRIPS Agreement 7 B. Legal framework after the TRIPS Agreement 11 A. IPRs and the SDGs 19 B. IPRs and innovation ecosystem in the Arab region 32 C. Copyright contribution to innovation 34 D. The impact of IPRs on innovation and some solutions 43 A. IP management in selected Arab countries 49 B. Regional efforts on IP in the Arab region 86 C. SWOT Analysis 88 A. Initiatives for increasing awareness on IP issues 101 B. Initiatives for Boosting Women in Innovation 103 C. Developing National IP strategy 105 D. Mechanisms for the administration and enforcement of IPRs 106 E. Proposal for IP system evaluation tool 113 List of Tables Table 1. Agreements with European Union and the United States 15 Table 2. Countries with the highest share of applications with at least one woman for 2000 and 2018 29 Table 3. Summary of key differences between tangible goods and digital content 39 Table 4. List of Arab countries members to the WCT and the WPPT 40 Table 5. The extension of the copyright term to certain copyright works in Oman 42 Table 6. Research centres and institutions in the government sector 52 Table 7. Lebanese IPRs statistics 2011-2017 55 Table 8. Summary of IP and validity in Morocco 68 viii Table 9. Total pendency by disposition date 80 Table 10. Patents granted for national research institutions in 2015 83 Table 11. SWOT diagram of the Arab region analysis 98 Table 12. R&D tax deduction rates 107 Table 13. IP system evaluation matrix 113 List of Figures Figure 1. The Economic Growth Policy Pyramid 19 Figure 2. Share of applications with at least one women inventor, by technology 28 Figure 3. Share of applications with at least one women inventor in the Arab region, 2014-2018 30 Figure 4. Arab States ranking in the GII 2019 (total 129) 33 Figure 5. Arab States ranking in the GCI 2018 (total 137) 33 Figure 6. Composition of the copyright sectors contribution to GDP in Lebanon (2008) 36 Figure 7. Composition of the copyright sectors contribution to employment in Jordan (2013) 36 Figure 8. Contribution of copyright industries to GDP – comparative chart (2014) 37 Figure 9. Contribution of copyright