Congress Gothenburg Executive Committee Administrative Session II Wednesday, 11 October 2006 (08.30 11.30 and 14.00 17.30) 1. Quorum and approval of Agenda Örjan GRUNDÉN, President of AIPPI, (Sweden) opened the meeting at 8.15am. Mr GRUNDÉN declared a Quorum to be present, and the stated Agenda was adopted unanimously. 2. Withdrawal of recognition of Regional Group Michael BRUNNER, Deputy Secretary General (UK) explained that previous problems with the APPIMAF Regional Group are on the way to being solved. With the approval of the Council of Presidents, he and other Bureau members have had a series of meetings with the Board of APPIMAF. He believes APPIMAF will shortly be fully representative of the Arab region. In that case, Mr Brunner was delighted to inform the meeting that there is no motion of withdrawal. 3. Congress 2014 decision to be taken Vincenzo PEDRAZZINI, Secretary General (Switzerland) indicated that invitations had been received from the National Groups of Lithuania, Canada and Chile within the relevant time. The Bureau has considered these invitations carefully, bearing in mind the desire to achieve geographical diversity. The Bureau invited the Canadian and Chilean National Groups to send a fully detailed invitation. The Chilean Group thereafter decided to withdraw its invitation, and therefore only the Canadian Group s invitation stands. The Bureau is satisfied that the invitation meets the Bureau s technical and infrastructure requirements. Donald MACODRUM, President of the Canadian National Group (Canada) addressed the meeting and invited the members of AIPPI to Toronto in 2014. Mr. MACODRUM introduced the conference centre, hotels, entertainment, sights, sporting events and shopping that Toronto has to offer. Mr. GRUNDÉN called for vote on the Canadian Group s invitation, which was approved by acclamation. 4. Finances Jacques LÉGER, Treasurer General (Canada) introduced the Year 2005 accounts. He noted that the detail of the 2005 accounts had been explained to the National Groups Treasurers on the previous day, and welcomed any questions at this time. No questions arose. Mr. LÉGER explained that the 2005 results were better than expected because no expenses were incurred in respect of the anticipated Executive Director. A surplus of CHF124,000 had been achieved against a budgeted surplus of CHF38,000. He referred the meeting to the Auditors report in this regard. Mr. LÉGER further explained that travel costs in 2005 were greater than budgeted due to the Bureau Assistants attending Bureau meetings, and the 1/8
Berlin ExCo meeting surplus being lower than expected. The subscription fees from independent members also were lower than expected. He said that he hoped to take steps to improve interest accruing on funds held in AIPPI s bank account. He noted that AIPPI s financial statements had been sent to the Finance Advisory Committee on time, and had been discussed with them subsequently. The Association has reserves of CHF1,654,169, of which CHF1,580,827 is in the form of cash as at 31 December 2005. Mr. LÉGER explained that capital held in the AIPPI Foundation has been reducing slowly due to expenditure on special projects, such as initiatives in least developed countries. Mr. LÉGER turned to the Year 2006 accounts. He explained that a slight surplus of CHF30,000 was budgeted, however the final result was still difficult to predict. In terms of the budget for Year 2007, Mr. LÉGER explained that a substantial deficit was forecast due to the costs associated with having now employed an Executive Director, as well as costs associated with work of the newly established Editorial Advisory Committee that will be partially funded. Additionally, two regional Road Shows were planned by the Bureau for 2007, which will incur significant costs. The Bureau had also decided to maintain a paper copy of a newsletter. Furthermore, the Bureau had the authority of the Executive Committee to invest the Association s reserves in a programme of growth. Mr. LÉGER noted that a deficit of CHF220,000 was presently predicted. Eiji KATAYAMA (Japan), Chairman of the Finance Advisory Committee, addressed the meeting. He explained that the FAC had reviewed the figures for the Year 2005 accounts and recommended their approval. He then addressed the Year 2007 budget and again noted the planned deficit, which is greater than 20% of annual income, due to the mandated active growth policy and hiring of an Executive Director. Mr. KATAYAMA pointed out that the Association had approximately CHF1.6 million in reserves and therefore the Association could afford to invest for a while, but only for a while. Mr. KATAYAMA explained the new Statutes Committee will have a mandate to study issue relating to costs. Mr. KATAYAMA advised the meeting that the FAC recommended adoption of the Year 2007 budget. He concluded by thanking Mr. PEDRAZZINI, Mr. LÉGER, Cinzia PETRUZZELLO and fellow members of the FAC, for their assistance. Mr. GRUNDÉN put the motion that the Year 2005 accounts (both AIPPI and the AIPPI Foundation) be approved. This motion was passed unanimously. He put the motion that the Year 2007 budget be approved, which motion was passed near unanimously. Mr. LÉGER explained that the present Auditors, Argo Consilium, had performed well over a period of time and proposed their reappointment. Mr. GRUNDÉN put a motion that Argo Consilium be reappointed as AIPPI s auditors, which motion was approved near unanimously. Mr. LÉGER progressed to the issue of subscriptions, and explained that there had been not review of the subscription fees for at least six years. He introduced the idea of a reduction of the annual subscriptions to CH55 for members who are less than 30 years of age and an increase in the dues for independent members. He explained that he has the concurrence of the Chairs of the independent members for such an increase and thanked them for the support. He noted that this proposal is based upon the mechanism provided by Regulation 27. 2/8
Hoda SERAGELDINE (Egypt) raised questions of how fees might be used to promote membership. She asked about the possibility of reduced subscriptions for new National Groups, and further what was being considered for African countries. In reply, Mr. GRUNDÉN explained that the Statutes presently do not really allow for such things, but that the new Statutes Committee will consider these matters. Mr. GRUNDÉN put to the vote that the subscription fee for natural persons who are less than 30 years of age shall be CHF55. This motion was passed near unanimously. Mr. GRUNDÉN put the motion that the subscriptions for independent members be increased to CHF200. This motion was approved, with 80% of those voting being in favour. 5. Approval of work of the Officers Mr.. GRUNDÉN called for any comments on this topic, of which there were none. Mr. GRUNDÉN put the motion that the work of the officers of the Association be approved by the Executive Committee, which motion was approved near unanimously. 6. Report Programme Committee Professor Joseph STRAUS (Germany), retiring chairman of the Programme Committee, wished to thank all the members serving with him on the Committee over the past 14 years. Professor STRAUS pointed out that the Programme Committee has, over time, become more involved in the work of the Reporter General and his team, and has generally been given more responsibility and more tasks in recent years. However, Professor STRAUS pointed out that all AIPPI members share in the responsibility for making the Working Programme relevant and topical by proposing suitable Working Questions for the Programme Committee's consideration. Professor STRAUS then presented the draft topics for workshops at the Forum in Singapore. Finally, Professor STRAUS thanked the Bureau and in particular the Reporter General Team for a fruitful and friendly co-operation during many years. Mr. Örjan GRUNDÉN thanked Professor STRAUS for his important contribution to the scientific work of AIPPI through the years. This met with great applause. 7. Confirmation of Resolutions of Special Committees Mr. Jochen BÜHLING, Deputy Reporter General (Germany), introduced Special Committee Q180 which was put in place in order to continue the work of Working Question Q180 (Content and relevance of industrial applicability and/or utility as requirements for patentability). A further questionnaire had been sent out, and a great number of reports had been received from the NRGs. There was consensus for making at least some kind of use requirement, and the Draft Resolution had been prepared on that basis. Mr. GRUNDÉN put the draft resolution to the vote. It was carried by a large majority. Mr. BÜHLING thanked the chair and Committee members for their hard and difficult work. Mr. Ian KARET, Deputy Reporter General (UK), introduced Special Committee Q166 (Intellectual Property and Genetic Resources, Traditional Knowledge and Folklore). Mr. KARET suggested that the issue was highly topical and extremely current. There had been a survey made over the Summer by way of circulation of a Questionnaire which had been responded to by 25 NRGs. The Draft Resolution attempted to take the middle course among the varying opinions raised. 3/8
Mr. GRUNDÉN put the draft resolution to the vote. It was carried by a large majority. Mr. KARET thanked the chair and members of the Committee for their swift work. Mr. BÜHLING introduced Special Committee Q165 (Optional Protocol to the EPC with regard to Litigation concerning European Patents). Mr. BÜHLING mentioned, by way of background, that during a meeting between representatives of the European Commission and the Bureau of AIPPI, the European Commission had invited AIPPI to state its view on the current draft Protocol. This is part of the reason why it was proposed to draft a resolution on this issue. The Draft Resolution is in line with previous resolutions on this subject. The Draft Resolution does not exclude further development of the Community Patent, nor does it give precedence to EPLA over a Community Patent. Mr. David PELLISÉ (Spain) agreed that a stand should be taken. However, he suggested that the proposed text was inconsistent with the fact that the European Parliament had drafted a resolution earlier in the week urging the European Commission to incorporate significant amendments to the current proposal. It did not, therefore, make much sense to say that the current proposal should be studied carefully. Mr. CRUZ (Spain) supported this intervention. AIPPI should wait and see what came out of the European Parliament's vote on 12 October 2006. Mr. BÜHLING said the Draft Resolution did not address the current proposal for a Protocol and he could not see any contradiction. Dr. Jochen PAGENBERG (Germany), chairman of Q165, pointed out that AIPPI could not hold up stating its mind eternally and must take a stand, as all other relevant NGOs have done. Mr. Denis MONEGIER DU SORBIER (France) observed, on behalf of the French Group, that it was in favour of the Draft Resolution. Mr. GRUNDÉN put the draft resolution to the vote. It was carried by a large majority. Mr. BÜHLING thanked the chairman and members of the Committee. 8. Confirmation of Resolutions of Working Committees Mr. KARET, introduced Draft Resolution Q189. Mr. GRUNDÉN put the draft resolution to the vote. It was carried by a substantial majority. Mr. KARET, introduced Draft Resolution Q190. He proposed that in paragraph 4, 3 rd line, there should be an amendment, in that the word "licensee" should be deleted. Mr. GRUNDÉN put the draft resolution to the vote, with the amendment proposed. It was carried by a substantial majority. Mr. KARET introduced Draft Resolution Q191. Mr. GRUNDÉN put the draft resolution to the vote. It was carried by a substantial majority. Mr. KARET took the chair. 4/8
Mr. Dariusz SZLEPER, Assistant Reporter General (France) introduced Draft Resolution Q192. Some modifications had been made subsequent to the plenary session, including the removal of part q) of the preamble into paragraph 2 of the resolution itself. The Belgian Group had proposed that paragraph 2 b)ii) of the Resolution (definition of bad faith) to be amended so as to read: "bad faith shall require awareness of the existence of the prior trade mark or other distinctive sign". However, the Working Committee wished to include a qualification going beyond mere knowledge of the earlier right. Mr. Fernand DE VISSCHER (Belgium) stated that he had the difficulty with the draft text that the issue was not how to prove but what to prove. He believed bad faith existed as soon as the later user was aware of the earlier right, and it should not be a requirement that there is proof that he was aware of the unlawfulness of his own acts in the light of the earlier right. This would make it too easy for the later user. Mr. DE VISSCHER did not accept analogies to the principles for criminal sanctions as the situation considered here did not concern criminal sanctions. Mr. Klaus HAFT, Chairman Working Committee Q192 (Germany) could not support Mr. DE VISSCHER's intervention and referred to paragraph 2 b)iii) which dealt with Mr. DE VISSCHER's concern about making it "too easy" for infringers to escape. Mr. KARET then put the proposed amendment to the vote. The amendment was rejected by a large majority. Mr. KARET then put the Draft Resolution to the vote. It was carried by a substantial majority. 9. Elections Mr. GRUNDÉN advised the meeting of the responsibility of the Council of Presidents to nominate the Chairman of the Finance Advisory Committee, and that a few days earlier, the Council had unanimously approved Gunnar BAUMGÄRTEL (Germany) to be proposed for that position. Mr. MYRICK named the persons nominated for election to the Bureau, namely Messrs BRUNNER, Secretary General (UK), BÜHLING, Reporter General (Germany), KATAYAMA, Treasurer General (Japan), FREISCHEM, Deputy Secretary General (Germany), SZLEPER, Deputy Reporter General (France) and CALAME, Deputy Reporter General (Switzerland). Mr. MYRICK called for a vote, and those persons were duly elected by a 97% majority. Mr. MYRICK named the Bureau Assistants nominated for election, namely Messrs CAREY (Chile), MILLER (Australia), MICHELI (Switzerland), LINDGREEN (Denmark), DAGG (UK) and OKUYAMA (Japan). Mr. MYRICK called for a vote, and these persons were elected by a 94% majority. Mr. MYRICK named Messrs SUEUR, Chairman (France), HUBER (Germany), GIELEN (Netherlands), MACODRUM (Canada), MANSALA (Finland), XU (China), KONDO (Japan) and DU PLESSIS (South Africa) for election as members of the Programme Committee. These persons were elected by a 95% majority. Mr. MYRICK named Messrs BAUMGÄRTEL, Chairman (Germany), RICHELET (Argentina), SHIN (Rep. Korea), MYON (France) and PAWLOY (Austria) for election as members of the Finance Advisory Committee. These persons were duly elected by a 96% majority. 5/8
10. Appointment of President and Vice-President Mr. GRUNDÉN advised that the US National Group had nominated Ronald E. MYRICK for appointment as President, met by acclamation. Furthermore, the French National Group had nominated Thierry MOLLET-VIÉVILLE for appointment as Vice-President, met by acclamation. 11. Investiture of new Members of Honour and new Award Holders Mr. MYRICK named Mr. GRUNDÉN as a Member of Honour and outlined to the Executive Committee Mr. GRUNDÉN s long history of service to the Association. Mr. PEDRAZZINI named Professor Dr Joseph STRAUS as a Member of Honour. Mr. PEDRAZZINI outlined Mr. STRAUS s extensive involvement and service to the Association, particularly as Chairman of the Programme Committee. Mr. PEDRAZZINI named Luis-Alfonso DURÁN as a Member of Honour. Mr. PEDRAZZINI spoke of Mr. DURÁN s family history in AIPPI, and to Mr. DURÁN s very long years of service, skill and dedication. Mr. DURÁN was largely responsible for modernising the scientific work of the Association, and had formed an exceptional team who will continue his legacy. Mr. DURÁN named Ian KARET as a Member of Honour. Mr. DURÁN explained that Mr. KARET had managed to balance demanding professional work, voluntary AIPPI work and family. He praised Mr. KARET as being hard working and committed to the Association, and hopes Mr. KARET can continue to maintain some involvement with the Association. Mr. DURÁN named Mr. PEDRAZZINI as a Member of Honour. Mr. DURÁN outlined Mr. PEDRAZZINI s extraordinary contribution to the Association and activity in the Swiss National Group. Of all Mr. PEDRAZZINI s achievements for the Association, he will name but a few: he is principally responsible for the modernisation of the Association, for example instituting the Forum and introducing the Secretary General Team and Reporter General s Team, the new format and periodicity of AIPPI s meeting, the facilitation of a professional Secretariat and now Executive Director. Mr. DURÁN sincerely hopes that Mr. PEDRAZZINI will continue to keep in touch with the Association. Mr. MYRICK made note that Peter SIEMSEN (Brazil) had now attended 50 AIPPI meeting! 12. Miscellaneous No miscellaneous business arose. 13. Speeches Mr. PEDRAZZINI spoke about what were past achievements and what he has learnt for the future. This breaks down in to two basic themes. The first is professionalism. Intellectual property is clearly now a political topic. There is competition among the NGOs involved in the IP scene. It is difficult for volunteers to respond quickly enough to changing situations. Accordingly, what is needed is professionals. He observed that almost 60% of all costs now are dedicated to staff, where as it was 0% when he first joined the Bureau as Deputy Secretary General. AIPPI therefore needs money to function properly, and that money cannot be expected to come from the existing members. There is therefore a need to expand the membership and a need to change structures. Some such changes have already been made to lay the foundation, for example the Secretary General s Team, the Reporter General s Team and the Special Committees. He said there is an urgent need to revisit management structures and funding and the new Statutes Committee therefore has a very important role. The second theme is the need for good functioning of the National Groups. National Groups should strive to be leading policy making bodies in each respective country. They should 6/8
have real impact on their local political scene. They need to convince their governments of AIPPI s view such that these governments would then take that view to international meetings. Mr. DURÁN spoke next and, according to tradition, gave a summary of the Working Question Resolutions adopted in terms of their timeliness and significance. Three Resolutions also have been adopted for the Special Committees, and ten Workshops had taken place that all had excellent speakers, worthy topics and were well attended. He congratulated the Congress Organising Committee, the Chairs and Moderators, and all who participated. He observed that in his time in the Reporter General s Team he had seen an increased number of reports from the National Groups, an average of 30 at the time of the Congress in Rio to around 43 for the present Working Questions. Additionally, there are now sixteen Special Committees and they are all active. He observes that there are some increasing cooperation between the Programme Committee and the Reporter General s Team, which gives great benefits. The globalisation of commerce makes intellectual property more important and relevant for countries economies. Therefore, intellectual property has become more political. Intellectual property also is more visible, but there is still a poor knowledge, leading to plainly incorrect opinions being voiced. Therefore, there is a role in education for members of this Association. AIPPI needs to convince others of the value of intellectual property. AIPPI needs to find another way or voice to talk about and promote intellectual property. We always needs to be concerned with balanced proposals or benefit both develops and developing countries. He said that it is necessary to continue with comparative law studies and harmonisation proposals AIPPI s traditional scientific work as no-one else is doing this. AIPPI must continue to cooperate and have a dialogue with Governmental Organisations such as WIPO, as well as local and national governments. Mr. DURÁN concluded by thanking members of the Spanish National Group, the delegates to the Executive Committee meeting, his Reporter General s Team members, his earlier bosses, and colleagues on present and past Bureaus. He further thanked the Chairman of the Programme Committee, the General Secretariat staff, the partners of his firm, and his family. Mr. DURÁN asked that the same support be given to the new Report General s Team and the new Bureau. Mr. MYRICK next spoke, and said he was grateful for the opportunity to serve the Association as President. He thanked the previous Statutes Committee (Q172) for its work. He noted that the new Statutes Committee (Q200) has a very broad mandate for continuing a project of modernisation and change. A very short timeframe has been set down to achieve this, and hopefully by the Executive Committee meeting in Singapore next year. He also thanked the Chair and members of the Membership Bureau Advisory Committee (Q171) for a job well done. He expressed the view that increased membership and activity of the National Groups is vital. The Bureau will do its part to assist this. He noted that a new Membership Advisory Committee will be instituted. Further, the Bureau will specifically look at subscriptions reform. Yet further, a new Editorial Advisory Committee will look at the Association s website, newsletter and general communications. He indicated that he proposed to make visits to National Groups in Asia and the Americas to learn personally what the National Groups wish from the Association and the Bureau. The Secretary General and Executive Director will be visiting European and African Groups for the same purpose. He said that growth can and needs to be achieved. With a 10% increase per annum in many National Groups and even a doubling of size by some National Groups, will inevitably mean that growth will be achieved. He will be looking at other processes and tools within the work of the Bureau and General Secretariat. For example, a master calendar will be established and published. AIPPI must have something significant to say to governmental organisations and other non-governmental organisations. AIPPI will seek to take the lead with other NGOs, while being sensitive to the objects of those other organisations. He noted that the new Executive Director is only one person and will need the help of all. He mentioned that the Boston Congress is being arranged with vigorous planning and by an enthusiastic group with great ideas. He also thanked Regina QUEK, President of the Singapore National Group (Singapore) and exhorted everyone to attend the Forum and ExCo meeting in Singapore in 2007. 7/8
Mr. GRUNDÉN began by stating that this point in time is the start of the next process of change. He said that it had been a great honour to serve as President and that what had been achieved in the outgoing Bureau is the facilitation of change and giving a flying start to the incoming Bureau. He thanked particularly Mr. MYRICK for sharing the work of the Presidency, and thanked the Swedish National Group Organising Committee, who he believed should be proud of what had been achieved. Mr. GRUNDÉN closed the meeting at 4.10pm. 8/8