The Contribution of Patents to Dissemination of Sustainable Technologies

1. The contribution of (eco-) patents and patent information to the dissemination of sustainable technologies Ged Owens Coordinator, Public Policy Issues Int. Organisations, Trilateral and IP5 | Dir. 5.2.4 28 May 2013

2. Content • The Global Patent System and Climate Change Mitigation Technologies • EPO's Patent Information services • "Espacenet" (www.espacenent.com) • EPO's specially developed Y02 classification scheme for climate change mitigation technology • Key results of studies on patenting of clean energy technology • Patents and Standards

3. Objectives of the global patent system To support innovation by : • enabling technology developers to protect their investments; • promote the dissemination of technical information by legally obliging inventors to publicise their inventions; • allowing research and development activities to build upon existing inventions; • establishing a framework for technology transfer, both locally and globally through licensing.

4. 38 member states Extension agreements for 2 states 4000 patent examiners 40 years of EPO - originally only 7 member states EPO - largest PCT search authority (40%) for up to 146 contracting states in PCT system Quality patents - only granting temporary exclusive rights via patents for genuine technical inventions Approx. half of all patent applications at EPO are refused or withdrawn The scope of protection of those granted mostly reduced during examination process European Patent Organisation- Quality patents for Europe — and beyond ?

5. Patents and Climate Change Mitigation Technologies • Climate Change Mitigation Technologies (CCMTs): • Human intervention to reduce the sources or enhance the sinks of greenhouse gases (UN definition). • Enormous political and social interest for these technologies • from international agencies, NGOs, private enterprises... • Enormous investments. • from private sector, venture capitalists, governments. • CCMTs not the same as "clean technologies": • Focuses on greenhouse gases. • Not necessarily "clean" in other aspects (for example nuclear energy).

6. UNEP - EPO - ICTSD: Patents and CCMTs Patent rights subject of much discussion in climate change debate • Rio conference 1992; Rio "plus 20" conference in 2012 United Nations Environment Programme (UNEP) Division of Environmental Law and Conventions (DELC) • international environmental law, governance and policy. • supports governments for environmental challenges European Patent Office (EPO) • one process for patent protection in up to 40 European countries. • "patent information" - publication of patent documentation International Centre for Trade and Sustainable Development (ICTSD) • advances trade policy that supports sustainable development • a leading broker of knowledge and information for above

7. Patents and Climate Change Mitigation Technologies (CCMT) Global patent system • Legal protection for inventions in exchange for disclosure EPO Patent Information system • 88 mio. patent documents available worldwidevia the internet, free of charge • EPO's Y02 classification "tagging" of climate change relevant technologies CCMT Patent applications 1980 - 2011 • 1,5 mio. patent applications relating to CC Mitigation Technology

8. Searching for patent documents: classification Patent Information system EPO database "Espacenet" 88.000.000 patent documents free of charge on internet Search on keywords and classification International Patent Classification (IPC) @ 70.000 entries Cooperative Patent Classification (CPC) EPO / USPTO @ 240.000 entries Y02 classification scheme: dedicated to Climate Change Mitigation Technologies

9. How it works "Y02" tagging scheme is complementary to the existing classifications. Includes around 1000 classification entries and nearly 1 500 000 documents. It provides easy access to the general public on patenting in climate change mitigation technologies • Y02C: Greenhouse gases – capture or storage/sequestration or disposal • Y02E: Greenhouse gases – emissions reduction technologies related to energy generation, transmission or distribution • Y02B: Buildings - Climate change mitigation technologies in buildings, including the residential sector • Y02T: Transport - Climate change mitigation technologies in the transportation of goods and persons • Y04S: Smart Grids technologies - Remote network operation, smart metering, electric and hybrid vehicles interoperability, trading and marketing

10. Example CO2 capture and storage (classical) cumbersome, difficult

11. Example: CO2 capture and storage Y02C Tag gives overview of all relevant technologies close Y02C10

12. Patent landscaping studies • Carried out in conjunction with United Nations Environment Programme (UNEP) and International Centre for Sustainable Trade and Development (ICTSD) • Rio conference 1992 and Rio +20 (2012) • "Patent rights barrier to technology transfer of CCMT to developing countries..." • Providing evidence on which to form policy • using Y02 classification scheme, and PATSTAT - EPO's patent statistics tool • Key results (Global landscape 2010; Africa 2013): • CCMT developed primarily by USA, Germany, France, UK, Japan, Korea (PV solar) • Continually increasing activity throughout period • Sharp increase in activity after Kyoto protocol - policy works ! • Less than 1% of CCMT patent applications filed in Africa • Available on EPO website : • www.epo.org/clean-energy

13. Results of survey on licensing of CCMT Important factors for licensing / technology transfer stated as: • Access to real know-how from source companies (often "Trade secrets") • Suitably skilled staff • Scientific infrastructure • Favourable market conditions • Finance • Patent rights as framework for technology transfer • only one amongst many factors • Patent right holders are generally willing to license, and mostly would give preferential terms to enterprises in developing countries

14. Y04S: Smart Grids - Patents and standards • analysis of standards: IEEE-SA 2030 and IEC • external experts: cooperation with IEEE-SA P2030 WG • 90 codes, divided over...

15. Worldwide trends in Smart Grid patenting Approximately 6500 patent families related to Smart Grids

16. Standards: Mostly set by industry Perceived by public to be for the public good. In a technically interlinked world, their nature is potentially global. Accessibility and ownership issues increasingly debated Patents : Temporary exclusive rights Can be used to exclude others from use of the technology, or license Embedded in standards, they offer their owners a 'double competitive advantage'. Territorial nature Patents and standards Exclusively owned technologies embodied in standards - rules of inclusionand use must be clear: Solution: Licensing on FRAND terms - Fair, Reasonable And Non-Discriminatory - reasonable terms, and to all

17. How to optimise the interaction of patents and standards ! • Important if latest technology is to be included in standards ! • Latest and best technology increasingly patented • Patent applications must be filed before inventions are disclosed in standards development process • EPO includes standards-related documentation in "prior art" searches • prevents granting of patents for already disclosed inventions • Patent applicants must declare Standards Essential Patents (SEPs) - and SDOs should list these on public databases • Patent rights licensed to all parties on FRAND terms • Fair, Reasonable And Non-Discriminatory

18. EPO measures: • Increased awareness (at highest level) • Technology watch in this particular field (resource planning) • Ensure : • Documentation (1 million standards related documents: used as prior art ) • Legal clarity - when Standards are valid prior art • Examination measures: • additional training • early warning systems for “suspicious cases” • systematic links with technical committees of SDOs etc.

19. Patents and standards work ! • Telecommunications and smart phones • enormously successful industry ! • billions of Euros • 10.000+ Standard Essential Patents • some court cases - but not unusual considering market value • Key element - licensing Standard Essential Patents on FRAND terms • Fair, Reasonable And Non-Discriminatory • ETSI - European Telecommunications Standards Institute • EPO's leading partner since 2006 • Memorandum of Understanding since 2009 • Also ITU, IEEE-SA, IEC and smaller standards organisations • Cooperation starting with CEN-CENELEC • Increasingly important in wider areas - Smart Grids, smart cities, smart transport, smart buildings .... • Many areas important for sustainable development !

20. Further Information The UNEP/EPO/ICTSD studies available at: http://www.epo.org/clean-energy E-Learning module on Y02 (Climate Change): http://www.epo.org/topics/issues/clean-energy/classification.html Use Y02 in esp@cenet: www.espacenet.com PATSTAT - Patent Statistics and landscaping tool http://www.epo.org/searching/subscription/raw/product-14-24.html

21. Conclusions Global patent system supports innovation and dissemination of technology For licensing / technology transfer, patent rights one of many factors EPO's Patent Information services make technical information available worldwide, free-of charge from 88 million patent documents 1,5 million related to Climate Change Mitigation Technology Patents and Standards can provide synergy Cooperation between IPOs and SDOs ongoing increasingly important for sustainable technologies Emails: Ged Owens: gowens@epo.org Victor Veefkind: vveefkind@epo.org THE END

22. Supplementary slides - for information only

23. Example: Solar Updraft Tower (Solar Chimney)

24. Example: Solar Updraft Tower • Problems: • Different facets of the same technology • Too much Noise in classes • Possible conflict with solar tower concentrators..

25. EPO Patent Information Services Espacenet, 88 million patent documents, free-of-charge: www.espacenet.com Combine with Y02 Classification Scheme for CCMT Example (country level) using EPO's Espacenet : We want to figure out which "Clean energy" applications are filed in Egypt

26. "Clean energy" applications filed in Egypt - I

27. "Clean energy" applications filed in Egypt - II

28. "Clean energy" applications filed in Egypt - III

29. "Clean energy" applications filed in Egypt - IV 20 results in 2012

30. "Clean energy" applications filed in Egypt - V

31. "Clean energy" applications filed in Egypt - VIExample (country level): Y02E close