RESTRICTEDWORLD TRADE
ORGANIZATIONIP/C/W/157/Rev.1
21 October 1999
(99-4576)
DRAFT ANNUAL REPORT (1999)
OF THE COUNCIL FOR TRIPS
Revision
I. GENERAL
1. Since the period covered by its last report1, the Council for TRIPS has held five  four formal
meetings, on 17 February, 21-22 May, 7-8 July [ and 20- 21 22 October]  1999.  The minutes of these
meetings are to be found in documents IP/C/M/22-[ 25].2
2. The meetings referred to above were chaired by Ambassador Carlos Perez del Castillo
(Uruguay).
3. The meetings of the Council were open to all WTO Members, other governments with
observer status in WTO bodies and international intergovernmental organizations with regularobserver status in the Council.  Decisions on requests for observer status from 14
 15 organizations are
pending.3
II. NOTIFICATIONS AND NOTIFICATION PROCEDURES
(i) Article 63.24
4. The notification procedures, adopted by the Council at its meeting in November 1995, require
that, as of the time that a Member is obliged to start applying a provision of the TRIPS Agreement,
the corresponding laws and regulations shall be notified without delay (IP/C/2).  To date, [ 36]
Members have made such notifications under Article 63.2 with respect to all or most of theirimplementing legislation relating to all provisions of the Agreement.  [
Ten]  other Members have
made notifications relating specifically to the implementation of Articles 3, 4 and 5 of theAgreement.
5  Notifications concerning the implementation of Article 70.8 and, in some cases,
Article 70.9 of the TRIPS Agreement have been received from [ 23] Members;  some of them indicate
that product patent protection for pharmaceutical and/or agricultural chemical products is already
available in their territories.
5. The notification procedures also specify that a Member who has amended a law or regulation
to bring it into conformity with provisions of th e TRIPS Agreement in advance of its obligation under
the TRIPS Agreement to start applying these provisions will use its best endeavours to notify such
law or regulation as soon as possible after its entry into force.  Three Members have made such
notifications.  Other notifications indicating that they are made without prejudice to a transition period
under the provisions of Article 65 have been received from [ five]  Members.
                                                     
1 Document IP/C/15
2 Document IP/C/M/25 to be circulated.
3 The organizations in question are listed in document IP/C/W/52/Rev.6  7.
4 Circulation of notifications referred to in paragraphs 4 and 5 below takes place in the
IP/N/1/COUNTRY/- series of documents.  Those referred to in paragraph 6 below have been circulated in theIP/N/6/COUNTRY/- series of documents.
5 A practical aid to assist delegations making the required notification is available in document IP/C/9.IP/C/W/157/Rev.1
Page 2
6. At its November 1995 meeting, the Council also agreed that Members would provide
responses to a checklist of issues on enforcement (IP/C/5).  To date, [ 38] Members have notified
responses, two of which have been made without prejudice to entitlements under Article 65.
(ii) Articles 1.3 and 3.16
7. Articles 1.3 and 3.1 of the TRIPS Agreement, relating to the definition of beneficiary persons
under the Agreement and to national treatment, allow certain exceptions to the normal rules on these
matters, provided that notifications are made to the Council for TRIPS.  Under these provisions, [ 25]
Members have submitted such notifications.
(iii) Article 4(d)7
8. Article 4(d) of the TRIPS Agreement requires a Member seeking to justify an exception to the
MFN rule on the basis of an international agreemen t relating to the protection of intellectual property
which had entered into force prior to the entry into force of the WTO Agreement to notify that
agreement to the Council for TRIPS.8  To date, [ 49] notifications have been received under this
provision from [ 34] Members.
(iv) Article 699
9. Article 69 of the TRIPS Agreement requires Members to establish and notify contact points
for the purposes of cooperating with each other with a view to eliminating international trade in goods
infringing intellectual property rights.  Procedures for such notifications were agreed by the Council
in September 1995.  To date, [93]  94 Members have notified contact points.
(v) Notifications under other provisions of the Agreement
10. A number of notification provisions of the Berne and the Rome Conventions are incorporated
by reference into the TRIPS Agreement but without being explicitly referred to in it.10  T o  d a t e ,
[three]  Members have made notifications under the provisions of Article 14 bis(2)(c) as applicable
under the TRIPS Agreement and [ two] Member have made notifications under provisions of the
Appendix to the Berne C onvention so applicable.11
(vi) Other
11. The Council has also received a number of communications from Members providing
information concerning their status under the transitional provisions of Article 65 of the Agreement.
Some of these communications were made in conjunction with notifications made under Article 63.2
(see under (i) above).  [ Six] other communications were made separately from any such notification.12
                                                     
6 Circulation of these notifications takes place in the IP/N/2/COUNTRY/- series of documents.
7 Circulation of these notifications takes place in the IP/N/4/COUNTRY/- series of documents.
8 An informal guideline to assist individual Members in making or reviewing their notifications under
Article 4(d) is available in the Annex to document IP/C/M/12.
9 The most recent compilation of these contact points is contained in document IP/N/3/Rev.3.
10 Circulation of  these notifications takes place in the IP/N/5/COUNTRY/- series of documents.
11 For the calculation of the renewable ten-year period for which notifications under the Appendix
remain valid, reference is made to document IP/C/14.
12 To the extent that these notifications were made in conjunction with a notification under Article 63.2,
they have been circulated in the IP/N/1/COUNTRY/- series of documents.  When made separately, they areavailable in an IP/C/- or IP/C/W/- document.IP/C/W/157/Rev.1
Page 3
III. REVIEW OF NATIONAL LAWS AND REGULATIONS
12. The Council completed work on outstanding que stions arising from the review of the
legislation of the 33 Members taken up in the period between 1996 and the first part of 1998 as well
as from the review of the legislation of three Members taken up in the autumn of 1998.13  [The
legislation of two other Members was addressed at the Council's meeting in October 1999.]
13. At its meeting in September 1998, the Council agreed that the Chair would consult with other
individual Members, which had availed themselves of a transitional period ending on 1 January 2000,
to see if they would be in a position to have their le gislation reviewed in the first part of 2000, so as to
initiate the post-2000 review of legislation.  It was also agreed that consultations would be held on the
practical arrangements that would need to be put in place for the reviews of the national implementing
legislation of developing countries in 2000 and 2001.  At the Council's meeting in July and October
1999, the Chair informed the Council which Members had agreed to have their legislation reviewed in2000 -  now amounting to  12
 13 volunteering to be taken up in the first part of the year and a further
12 14 in the second - and that these reviews would addr ess all areas of intellectual property at the
same time.  The procedures as employed in the reviews of national legislation by the Council so
far will be used .
IV. IMPLEMENTATION OF ARTICLE 70.8 AND 70.9
14. The Council continued its consideration of the implementation of Article 70.8 and the related
provisions of Article 70.9.14  At the Council's meeting in July 1999, the Council was informed that
responses to questions15 previously put to certain Members about the implementation of Article 70.8
and 70.9 had been received from the Members in question.
V. IMPLEMENTATION OF ARTICLE 66.2
15. This Article requires developed country Members to provide incentives to enterprises and
institutions in their territories for the purpose of promoting and encouraging technology transfer to
least-developed country Members in order to enable them to create a sound and viable technological
base.  At its meeting in December 1998, the Council agreed that a question put by the delegation of
Haiti requesting information on how Article 66.2 was being implemented be circulated in an informaldocument of the TRIPS Council to all Members and that developed country Members be invited to
supply information in response to this question.  To date, information has been submitted by [14]
 16
Members.  The matter was addressed at each meeting of the Council during the period covered by this
report.  In the discussions that took place on it additional information was provided by some Members
and comments made on the adequacy of the submissions received.
VI. OTHER IMPLEMENTATION ISSUES RAISED IN THE COUNCIL
16. At each meeting of the Council during the period  covered by this report, the issue of whether
United States law on the protection of trademarks and trade names was in conformity with the
                                                     
13The records of the introductory statements made by delegations, the questions put to them and the
responses given, including follow-up questions and res ponses thereto, are circulated in, respectively, the
IP/Q/COUNTRY/- (copyright and related rights), IP/Q2/COUNTRY/- (trademarks, geographical indicationsand industrial designs), IP/Q3/COUNTRY/- (patents, layout-designs of integrated circuits, undisclosedinformation and the control of anti-competitive practices in contractual licences) and IP/Q4/COUNTRY/-
(enforcement) series of documents.  The responses to the Checklist of Issues on Enforcement are circulated in
the IP/N/6/- series of documents.  These documents reflect responses to some 5000 questions and amount tosome 3000 pages of documentation
14 As regards notifications relating to Article 70.8 and 70.9, reference is made to paragraph 4 above.
15 Document IP/C/W/113IP/C/W/157/Rev.1
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Agreement was addressed, in the light of Section 211 of the United States Omnibus Consolidated and
Emergency Supplemental Appropriations Act of 1998.
17. At the Council's meeting s in April and October  1999, the issue of whether Slovenian law
was in conformity with Article 22 of the Agreement was raised, in the light of the Slovenian decree on
Lippizaner horses notified by Slovenia under Article 63.2 of the Agreement.
VII. RELEVANT DEVELOPMENTS ELSEWHERE IN THE WTO
18. During the period under review, the Council was informed of five actions under the Dispute
Settlement Understanding relevant to the TRIPS Agreement, as reflected in documents IP/D/16-20.
In three disputes, panels were established and panel procedures are on-going.  These disputes concern
provisions affecting patent protection of pharmaceutical products (IP/D/11);  Section 110(5) of the US
Copyright Act (IP/D/16);  and the term of patent protection (IP/D/17).  Consultations are still pending
on disputes concerning certain measures affecting the grant of copyright and related rights (IP/D/8and 12);  measures affecting the enforcement of intellectual property rights (IP/D/9);  measures
affecting the enforcement of intellectual property rights for motion pictures and television broadcasts
(IP/D/13 and 14);  patent protection for pharmaceutical and agricultural chemical products (IP/D/15);
patent protection for pharmaceuticals and test data protection for agricultural chemicals (IP/D/18);
the protection of trademarks and geographical indications for agricultural products and foodstuffs;and Section 211 of the US Omnibus Appropriations Act of 1998 (IP/D/20).
VIII.  TECHNICAL COOPERATION
19. The Council has continued its work in this area on the basis of the procedures agreed at its
meeting in February 1996.  During the period under review, several delegations informed the Council
of specific technical cooperation activities made available to them or by them, or which had takenplace in their territories.  The Council agreed that this year developed country Members would update
the information on their technical and financial cooperation activities pursuant to Article 67 of the
Agreement in time for the Council's meeting in October 1999, which had a special focus on technical
cooperation.  For the sake of transparency, intergovernmental organizations observers to the TRIPS
Council also presented, on the invitation of the Coun cil, information on their activities.  In addition,
the WTO Secretariat provided information on its technical cooperation in the TRIPS area.  This
information can be found in documents IP/C/W/154-156 and Addenda.
16
20. The Secretariat cooperates with a number of intergovernmental organizations, notably with
WIPO pursuant to the Agreement Between WIPO and the WTO which entered into force on
1 January 1996 and the joint initiative on technical cooperation of the Directors-General of the two
Organizations of July 1998.  Both Secretariats provided information [ at each meeting since]  on
progress in the implementation of the joint initiative.
IX. REVIEW OF THE APPLICATION OF THE PROVISIONS OF THE SECTION ON 
GEOGRAPHICAL INDICATIONS UNDER ARTICLE 24.2
21. The Council continued its consideration of this matter in 1999.  At its meeting in July 1999,
the Council requested the Secretariat to prepare a paper summarizing, on the basis of an agreed
outline17, the responses to the Checklist of Questions adopted in 199818, in order to facilitate an
understanding of the more detailed information that had been provided in these responses.  So far,
                                                     
16 Contact points in developed country Members' administrations which can be addressed by
developing countries seeking technical cooperation on TRIPS are contained in document IP/N/7/Rev.2 andaddenda.
17 Informal document No. 2104 of 13 April 1999
18 Document IP/C/13 and addendumIP/C/W/157/Rev.1
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such responses have been received from the European Communities and 12 of their member States
and from 19 other Members.19
X. IMPLEMENTATION OF ARTICLE 23.4
22. The Council continued its preliminary work in itiated in 1997 on issues relevant to the
negotiations specified in Article 23.4 of the Agreement concerning the establishment of a multilateralsystem of notification and registration of geographical indications for wines, and on issues relevant to
a notification and registration system for spirits, in accordance with paragraph 34 of the Council’s
report (1996).
20  The information-gathering process agreed by the Council in 1997 had generated
12 submissions from Members on systems for the registration of geographical indications which they
operated21 and a background note, prepared by the Secretariat, on existing notification and registration
systems for geographical indications relating to wines and spirits.22  Since then, further discussions
have been held on what the next step should be for carrying forward this work.  Proposals on thematter received from delegations in wr iting in July 1998 (European Communities
23) and February
1999 (Japan and the United States jointly24) were discussed extensively in the Council.  In July 1999,
the Council had before it a background note it had requested the Secretariat to prepare on international
notification and registration systems for geographical indications relating to products other than wines
and spirits.25  It also received, at that time, a joint proposal from Canada, Chile, Japan and the
United States.26
XI. TRADE FACILITATION
23. In September 1998, the Council agreed to consider the issue of trade facilitation, which was a
matter on the agenda of the Council for Trade in G oods as a result of a decision at the Singapore
Ministerial Conference in December 1996, following a letter the Council had received inSeptember 1998 from the Chair of the Council for Tr ade in Goods.  This letter requested the Council
for TRIPS to address those aspects of trade facilitation which the TRIPS Council regarded as being
related to the TRIPS Agreement.  The Council took up the issue in December 1998 and had before it,
at its meeting in February 1999, a non-paper submitted by the European Communities as well as a
Secretariat background note on the relationship between the TRIPS Agreement and tradefacilitation
27.  The Council agreed, at that meeting, that  the Chair should convey to the Council for
Trade in Goods the record of the discussions that it had held on the matter, as reflected in the minutes
of the Council's meetings, together with copies of the texts that had been presented to the Council on
it.
XII. ELECTRONIC COMMERCE
24. In September 1998, the General Council adopted a Work Programme on Electronic
Commerce28, as a follow-up to the Declaration on Global Electronic Commerce adopted by Ministers
at the Ministerial Conference in May 1998.  As part of this work programme, the Council for TRIPS
was to examine and report - by 30 July 1999 - on the intellectual property issues arising in connection
with electronic commerce, including issues concerning the protection and enforcement of copyright
and related rights;  the protection and enforcement of trademarks;  and new technologies and access to
                                                     
19 Document IP/C/W/117 and addenda
20 Document IP/C/8
21 Document IP/C/W/76 and addenda
22 Document IP/C/W/85
23 Document IP/C/W/107
24 Document IP/C/W/133
25 Document IP/C/W/85/Add.1
26 Document IP/C/W/133/Rev.1
27 Document IP/C/W/123
28 Document WT/L/274IP/C/W/157/Rev.1
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technology.  The issue was taken up by the Council for TRIPS at its meeting in December 1998 and
further discussed in February, April and July 1999 on the basis of a factual background note the
Council had requested the Secretariat to prepare examining the provisions of the TRIPS Agreement
relevant to paragraph 4.1 of the Work Programme on Electronic Commerce.29  It also received
communications on the matter in April (the European Communities30) and in July (Australia, India,
Japan and the United States31).  The Council heard presentations from the observer of WIPO at its
meetings in December 1998 and July 1999 on the work of that Organization in this area.  The Council
sent an agreed progress report to the General Council on 30 July 1999.32
XIII.  REVIEW OF THE PROVISIONS OF ARTICLE 27.3(b)
25. In December 1998, the Council initiated the review  of the provisions of Article 27.3(b) of the
Agreement.  Members that were already under an obligation to apply Article 27.3(b) were invited to
provide information on how the matters addressed in this provision were presently treated in theirnational law.  Other Members were invited to provide such information on a best endeavours basis.
While it was left to each Member to provide information as it would see fit, having regard to the
specific provisions of Article 27.3(b), the Secretariat was requested to provide an illustrative list of
questions relevant in this regard in order to  assist Members to prepare their contributions.
33  T h e
Secretariat was also requested to contact the FAO, the Secretariat of the Convention on BiologicalDiversity and UPOV, to request factual information on their activities of relevance.  [
By the time of
the Council's meeting in July  October  1999,]  information had been received from 33 Members as
well as from the three intergovernmental organizations referred to.  At that meeting, t  The Council
had before it , in July,  an informal note containing a structured summary overview of the information
presented by these  Members, which the Secretariat had prepared in response to a request from the
Council.34  Some Members commented on the contents of this overview.  Views were expressed on
the present provisions of Article 27.3(b), including on their relation to the protection and use of
biodiversity, and on possible changes to these provisions that might be considered.  In October, the
Council received submissions from two Members, had a further exchange of views and agreed
to revert to the matter at its next meeting, taking into account the outcome of the SeattleMinisterial Conference.
XIV. ARTICLE 64.3
26. Under Article 64.3, the Council is required to examine, before the end of 1999, the scope and
modalities for complaints of the type provided for under Article XXIII:1(b) and (c) of GATT 1994
(so-called "non-violation" disputes) made pursuant to the TRIPS Agreement.  The Secretariat
prepared a factual background note as requested by the Council on the experience with disputes so far
under the TRIPS Agreement, including any references made to non-violation issues, the negotiatinghistory of paragraphs 2 and 3 of Article 64 of the TRIPS Agreement, the experience with non-
violation complaints under the GATT/WTO, and any information available on the use of the non-
violation concept in disputes on intellectual property matters elsewhere.
35  The Council discussed the
matter at each of its meetings during the period covered by this report, on the basis of this note as well
as a discussion paper submitted by Canada  in February 199936 and a written  proposals  received
from the delegations of Cuba, the Dominican Republic, Egypt, Indonesia, Malaysia and Pakistan
jointly in writing in February 1999 (Canada) and  in April 1999.37  Most Members have expressed
                                                     
29 Document IP/C/W/128
30 Document IP/C/W/140
31 Documents IP/C/W/144, 145, 147 and 149
32 Document IP/C/18
33 Document IP/C/W/122
34 Informal document No. 2689 of 7 May 1999
35 Document IP/C/W/124
36 Document IP/C/W/127
37 Document IP/C/W/141IP/C/W/157/Rev.1
Page 7
themselves in favour of recommending to the Mini sterial Conference an extension of the period
referred to in Article 64.2 of the Agreement, in order to allow the Council to further examine
the scope and modalities of "non-violation" complaints under the TRIPS Agreement.  One
Member has made it clear that it is not in a posi tion to join a consensus to that effect.  Some
Members were of the view that, in the absence of a decision of the Ministerial Conference
pursuant to Article 64.3, there would be no scope for "non-violation" complaints under the
TRIPS Agreement.  Some other Members were not in a position to share this view.
XV. REVIEW OF THE IMPLEMENTATION OF THE AGREEMENT UNDER
ARTICLE 71.1
27. At its meeting in October 1999, the Chair in formed the Council that, following informal
consultations that he had held on the matter, the Council would, in the light of the outcome of
the Seattle Ministerial Conference, take up this issue at its first meeting in 2000 and that, priorto that meeting, the Chair would hold further informal consultations on it.
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