Advisory Panel on Privatization Reports to Director General
Geneva, May 22, 2001
Press Releases PR/2001/269
The World Intellectual Property Organization (WIPO) ad hoc Advisory Panel on Privatization has called on WIPO to assist its member states to better realize the value of intellectual property assets of state-owned companies that are being privatized. In a final report to WIPO Director General Dr. Kamil Idris, marking the end of its year-long work, the Panel emphasized that it was particularly important for developing countries to maximize the value of these assets.
The Panel highlighted the relevance of privatization to the economies of all WIPO member states. For developing countries, in particular, privatization is at the heart of policies for macro-economic management, fiscal consolidation, improved productivity and efficiency of public sector enterprises and has a direct bearing on the growth of gross domestic product (GDP) and the reduction of poverty . It is therefore, extremely important that countries are able to maximize the value of the intellectual property assets of state-owned companies which are being privatized.
The work of the Panel which included two meetings (in May and October/November 2000) and research work submitted by several panel members revealed a strong likelihood of systemic undervaluation of such assets in the privatization process. This tendency stemmed from a variety of reasons, including the inadequacy of internationally accepted standards and methodologies for valuation of intellectual property assets. At present, there is a perceptible gap in the international assistance available to countries to promote better understanding of the interface between intellectual property and privatization, especially in auditing and valuing intellectual property assets.
The Panel found that given its neutral and objective role, WIPO had an important role to play in responding to the acutely felt need of many member states for assistance in appropriately valuing intellectual property assets during privatization and post-privatization phases.
The Panel recommended that WIPO worked to enhance awareness of legal, economic and procedural aspects of the privatization process among its member states. It was also suggested that the WIPO could also offer intellectual property-related technical assistance to member states, for instance, in developing inventories of existing intellectual property assets, effective management of intellectual property and in undertaking training and human resources development programs. Increased awareness of the importance of a systematic and periodic intellectual property audit was also of great importance. In addition, the Panel suggested that consideration be given to the development of appropriate guidelines for the identification, audit and valuation of intellectual property assets in the form of, for example, a "Guide on the Valuation of Intellectual Property Assets".
The Panel also suggested that WIPO had an important role in enhancing inter-agency cooperation with relevant intergovernmental (IGOs) and non-governmental organizations (NGOs), governments, industry and experts in developing suitable accounting procedures for valuation of intellectual property assets. More importantly, the Panel considered that WIPO was well placed to assist member states in developing and integrating a suitable policy and implementation framework for intellectual property management and enforcement into general economic and industrial strategies, particularly, in relation to the privation of state-owned enterprises
Panel members included : Professor Edward S. Ayensu, Member of the Inspection Panel, The World Bank, Professor Klaus Gretschmann, former Director General, Economic and Financial Affairs, and currently Ministerial Director, Economic and Financial Affairs, Chancellors Office, Federal Chancellery of Germany, Mr. K.G. Anthony Hill C.D, former Ambassador and Permanent Representative of Jamaica in Geneva, Mr. Jorge Alberto Lozoya, Secretary, Ibero-American Cooperation, Madrid, Professor Anne O. Krueger, Professor in Humanities and Sciences and Director, Center for Research on Economic Development and Policy Reform, Stanford University, United States of America, Professor Sadao Nagaoka, Professor at the Institute of Innovation, Hitotsubashi University, Japan, His Excellency Mr. Philippe Petit, Ambassador and Permanent Representative of France in Geneva, Mr. N. K. Singh, former Secretary to the Prime Minister of India and Panel Coordinator, currently Member, Planning Commission, Government of India, and Mr. Patrick Smith, former Director General, Australian Industrial Property Organization.
For further information, please contact the Media Relations and Public Affairs Section at WIPO:
- Tel: (+41 22) 338 81 61 or (+41 22) 338 95 47;
- Fax: (+41 22) 338 88 10;
- E-mail: publicinf@wipo.int