WORLD TRADE
ORGANIZATIONIP/C/W/388/Add.2
8 January 2003
(03-0073)
Council for Trade-Related Aspects
of Intellectual Property RightsOriginal:  English
IMPLEMENTATION OF ARTICLE 66.2 OF THE TRIPS AGREEMENT:
INFORMATION FROM DEVELOPED COUNTRY MEMBERS
Addendum
AUSTRALIA
The present document reproduces the information on Australia's implementation of
Article 66.2 of the TRIPS Agreement, which has been received from the Permanent Mission ofAustralia by means of a communication dated 14 November 2002.
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1. The following report is in response to the request by the TRIPS Council that developed
country Members make available information on their implementation of Article 66.2 of the TRIPS
Agreement pursuant to paragraph 11.2 of the Doha Decision on Implementation-Related Issues and
Concerns (WT/MIN(01)/17).  The latter requires that detailed reports be submitted by the end of 2002
on the functioning in practice of the incentives pr ovided to their enterprises for the transfer of
technology in pursuance of their commitments under Article 66.2.
Type of Incentives
2. Technology transfer is interpreted in this report broadly to include training, education and
know-how.  Australia's transfer of technology to least-developed countries (LDCs) occurs through
export-related activity as a normal process of market forces, through export-related assistance to
Australian firms, through facilitating a strong in tellectual property environment in LDCs and through
incentives which are a part of the Government's bilateral and regional development assistance
programme.
3. At the same time, the Australian Government has in place programmes designed to promote
innovation and competitiveness in the Australian economy which in turn can contribute to increased
transfers of technology in export markets includin g LDCs (for example., see programmes described at
www.dest.gov.au/ist/).  For example, technology tr ansfer may occur through exports and outward or
direct investment by Australian firms in other countries.  This transfer of technology may occur injoint ventures between Australian firms and overseas companies or governments.
4. Australia’s development assistance programme to LDCs contains many activities which
include a large technology transfer component, delivered via the provision of monetary incentives to
Australian business enterprises, educational institutions and other organizations.  Australia considers
that this provision of monetary incentives not only qualifies as an incentive to encourage and promoteIP/C/W/388/Add.2
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technology transfers to LDCs for the purposes of Ar ticle 66.2, but is effective in meeting the Article’s
objectives.
5. In addition to direct monetary incentives, Australia recognizes that technology transfer,
economic growth and poverty reduction are best fostered in an efficient, open and market-basedeconomy. Fundamental to this framework is good governance.  Australia provides extensive
governance assistance (total of $308.3 million in 2001-02, an estimated 30 per cent benefits LDCs -
note that “$” in this report refers to Australian dollars - A$1=US$0.56) which includes improving
economic and financial management, strengthening the rule of law and justice, increasing public
sector effectiveness and developing civil society and human rights.
Government Agency Making the Incentives Available
6. This report includes information on incentives for technology transfer provided by a number
of Australian Government agencies including the Australian Government's development assistance
agency "AusAID", "Austrade" (responsible for in creasing Australian exports), and IP Australia
(responsible for patents, designs and trademarks).
Eligible Enterprises and Institutions Providing Incentives
7. The vast majority of Australian development assistance activities are implemented by
organizations and individuals selected through a competitive tendering process.
Appropriate Technology
8. For sustainable development, it is critical that technology transfer be appropriate to the needs
of the particular country.  In order to ensure this, Australia jointly develops country strategies with allmajor partner countries to form the basis of development assistance.  The country strategies are
informed by a country-specific analysis of poverty and the most effective contributions Australia can
make to reduce it.  Australia is involved in work ing partnerships with a range of international and
community partners to ensure harmonization of resources and appropriately targeted assistance.
The Functioning in Practice of Incentives:  Monitoring and Evaluation
9. Monitoring and measuring the effectiveness and results of development assistance are key
concerns for the Australian aid programme.  A range of mechanisms and experts are continually used
to ensure effectiveness of monetary incentives including the Audit Committee, High Level Advisory
Groups, the Aid Advisory Council, the Committee for Development Co-operation, peer reviews,
corporate reviews and the Office of Review and Evaluation.
10. Through reviews and evaluations, Australia considers that the education of LDC nationals at
Australian universities and their training in the use and management of technological equipment
comprise two of the most effective means of transferring technology and know-how to which
Australia has access.  Consequently, a significant portion of AusAID’s assistance is directed atproviding education and training.  A detailed account of illustrative AusAID activities and funding is
provided below, including in the table "Australia ’s aid programme:  Assistance to least-developed
countries with a major technological transfer component 2001-2002".
Details of Incentives for Technology Transfer to LDCs
AusAID:  Bilateral Programmes
11. Australia’s aid programme provided approximately $224 million in development assistance toIP/C/W/388/Add.2
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LDCs in 2001-02.  The large majority of these activities carry a technology transfer or investment
incentive component.  However, only those activities for which technology transfer/investment
incentive is a major component or the primary aim ha ve been included in the figures provided in the
attached table.
12. In 2001-02, some $42 million was spent on such activities (or approximately 19 per cent of
total development assistance expenditure to LDCs).  Examples of activities for which technology
transfer is a major component are outlined below:
Cambodia - Secondary Education13.  Australia has provided $6.2 million from 1997 to 2002 supporting secondary education
through the development of a well-functioning computerized system for handling national grade 12
exams.  The quality of the system has been recognized in the Cambodian Government’s decision to
use grade 12 exams for selection into universities for the first time ever.
Laos and Cambodia – Hydrometeorological Network (Phase 1 and 11)
14.  This project aims to improve the hydrometeorological knowledge and infrastructure of the
Mekong River Commission (MRC), at a tota l cost of $1.8 million (Phase I 1998-2001) and
$5.9 million (Phase II 2001-2005).  Activities include:
• upgrading of 14 key electronic data collection stations linked by Australian HYDSYS
software, accessible from a central monitoring position;
• a training programme for MRC staff in Australia and in situ ;
• support to the MRC to ensure that measurable data is obtained,  including direct internet links
with Australian field hydrologists;  and
• procurement of hydrometeorological equipment and other related hardware.
15. This project is making a significant contribution to the water resource management of the
Mekong Basin, as well as being a showcase for Australian technology.
Samoa – Primary Education Curriculum
16. Australia is providing $2.5 million (2000-2004) to improve the quality and know-how in
teaching and learning in Samoan primary schools. The programme includes:
• the Samoan Education Department developing its first primary school curriculum materials;
• local educators training in desktop publishing and the recording and duplication of cassette
tapes;  and
• local educators working with advisers to pro duce, distribute, support and monitor the use of
teaching and learning materials.IP/C/W/388/Add.2
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Australian Development Scholarships
17. Australian Development Scholarships (ADS) ar e awards for long-term in-Australia training.
The objective of the programme is to provide appropriate and cost-effective training to provide
developing country nationals with qualifications and skills necessary for development.  In 2001-02Australia provided $22.6 million to recipients from the following LDCs – Cambodia, Vanuatu,
Bangladesh, Bhutan, Burma, Ethiopia, Kiribati , Laos, Lesotho, Malawi, Maldives, Mozambique,
Nepal, Samoa, Solomon Islands, Tanzania, Tuvalu, Uganda and Zambia.
ACIAR18.  Through the Australian Centre for International Agricultural Research (ACIAR), Australia
provided $2.2 million (2001-02) to LDCs on technical pest, disease and rural development issues
including:
• virus indexing and DNA fingerprinting in Samoa;
• risk assessment of zoonotic infections in livestock in Kiribati and Vanuatu;
• managing migratory tuna in Kiribati, Samoa, Solomon Islands and Vanuatu;
• rodent management and research in Cambodia;  and
• assistance with the control of Newcastle disease in Mozambique.
Regional Programmes
19.  In addition to bilateral assistance, the Australian aid programme also provides LDCs with
transfers of technology and investment incentives  through various regional programmes.  In some
cases, it is difficult to separate expenditure specifically to LDCs through these programmes;  however,
relevant regional LDCs certainly benefit.
Virtual Colombo Plan 2001-06
20.  The joint Australian and World Bank technology transfer initiative, the Virtual Colombo
Plan (VCP), is improving education and access to knowledge through the use of Information and
Communications Technology (ICT).  Australia will provide $200 million (2001-05) with an estimated$40 million to LDCs.  Key outputs include:
• contributing to the Development Gateway Foundation - an internet site for comprehensive
and quality information about development issues, including Australian specialist research
and knowledge;
• contributing to the World Bank’s Global Deve lopment Learning Network (GDLN)  providing
multimedia, internet and videoconferencing facilities to provide high-quality specialistlearning programmes including the establishment of GDLN in Cambodia and Laos;
• training government officials in the Asia-Pacific region in curriculum development and
central banking through the GDLN system;
• polytechnic assistance to Samoa;IP/C/W/388/Add.2
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• assisting the University of the South Pacific deliver distance education by strengthening
regional centres, online library services and personnel;
• delivering short courses online in Kiribati and Tonga;
• providing an ICT adviser in Cambodia;  and
• strengthening the African Virtual University.
Policy and Management Reform Fund
21.  In 2001-02, Australian funding to the Pacific Policy and Management Reform Fund was
$20 million.  Key activities in 2001-2002 benefiting LDCs include:
• $8.6 million (1999-2004) to Vanuatu’s Ministry of Finance and Economic Management for a
new financial management information system to control all government expenditure,purchasing and finance record keeping;
• $4.8 million (1995-2003) to Kiribati for improved budgeting systems and planning through
the utilization of software and computerizing accounting procedures;  and
• $7.3 million (1998-2003) under Regional Customs Project to Samoa, Fiji and Vanuatu to
implement ASYCUDA computerized customs systems to facilitate trade and improve
collection of customs revenue.
South Pacific – Medical Equipment Maintenance Project
22.  Australia provides $3.7 million (1999-2005) to  Vanuatu, Cook Islands, Solomon Islands,
Kiribati, Samoa, Tonga and Tuvalu to assist wi th improved management of medical equipment
resources.  The project has been designed by the Royal Australasian College of Surgeons and
activities include:
• providing improved systems for equipment management, maintenance and repair in Health
Ministries through the use of a purpose-designed computer system (NEWEMS);
• rotating a biomedical engineer through Vanuatu, Samoa, Tonga and the Solomon Islands to
provide Pacific Island biomedical personnel with advice and emergency assistance for
maintenance and repair problems;
• regular visits from an engineer or technician to each Pacific Island country to help establish
computer inventories of equipment and maintenance schedules;  and
• on-the-job training in maintenance and repairs for local staff and more formal training will be
provided to selected personnel through an annual workshop in Fiji and scholarships for
enrolment in intensive electronic courses.
APEC Support Programme23.  Australia has provided $16 million through this project since it commenced in 1995.
Expenditure in 2001-02 was $2.5 million.  The objective of the APEC Support Program is to support
small, high-impact requests from Australian Government departments and statutory authorities for
assistance aimed at supporting developing member economy participation in Asia Pacific Economic
Cooperation (APEC).  The programme also aims to facilitate and strengthen links between otherIP/C/W/388/Add.2
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Australian Government bodies and developing economies in the APEC region.  Priority funding under
this programme is given to activities that orig inate from the activities of APEC Working Groups or
other APEC entities and which directly assist AP EC developing members to implement on trade and
investment liberalization and facilitation.
ASEAN-Australian Economic Development Co -operation Program and ASEAN-Australian
Development Cooperation Program
24.  Australia’s ASEAN - Australian Economic Co-operation Program (AAECP) was established
in 1974 to promote cooperation between Australia and ASEAN countries. Its successor is the
ASEAN-Australian Development Cooperation Pr ogram (AADCP) with a budget of $45 million
(2000-08).  Activities within the programme stream include:
• customs capacity building;
• legal infrastructure for E-commerce;
• assistance in private sector competitiveness and SME development;
• quality assurance systems for fruit, vegetables, fish and fishery products;
• animal and plant health management and quarantine;  and
• risk assessment in support of food safety measures.IP/C/W/388/Add.2
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Australia’s aid programme:  Assistance to least-developed countries with a major technological
transfer component 2001-2002
LDC Education Agriculture HealthWater and
Sanitation Energy Construction CustomsEconomics
and
Finance TOTAL
Bangladesh 3,384,151 50,545 3,434,696
Bhutan 3,322,131 67,575 3,389,706
Burma
(Myanmar) 308,663 417,525 726,188
Cambodia 2,776,758 2,237,926 153,945 293,120 5,461,749
Ethiopia 8,642 8,642
Kiribati 1,919,193 105,317 391,019 2,415,529
Laos 5,108,914 174,555 440,681 415,915 118,660 6,258,725
Lesotho 142,933 142,933
Malawi 148,582 148,582
Maldives 1,303,523 1,303,523
Mozambique 2,129,623 475,867 2,605,490
Nepal 2,404,154 175,309 7,500 2,586,963
Samoa 3,243,322 678,119 240,436 762,726 4,924,603
Solomon
Islands 1,037,575 165,482 138,390 635,414 1,976,861
Tanzania 314,368 389,916 704,284
Tuvalu 694,933 105,357 800,290
Uganda 284,037 284,037
Vanuatu 3,221,854 65,005 105,357 1,715,133 5,107,349
Zambia 271,033 111,137 382,170
South Pacific 87,673 87,673
TOTAL 32,024,389 4,619,045 1,296,983 1,098,951 754, 074 762,726 87,673 2,106,152 42,749,993
Austrade
25. Austrade actively supports LDCs in the Asia-Pacific region wishing to visit Australia to get a
first-hand appreciation of Australian capabilities and possible application in their own countries.   For
example, Austrade arranged a visit programme for the Tuvalu Government Energy Mission to
Australia in April 2002.  The purpose of the visit was to see available renewable technology such as
hybrid systems, solar technology and wind technology with the intention of reducing fuel costs byusing renewable technologies.
26.  Austrade also encourages Australian companies to explore markets in LDCs in the Asia-
Pacific region through business missions to these areas.  An example of this is a planned business
mission, organized in conjunction with the Australia-Pacific Islands Business Council, to Pacific
Islands of Samoa and Tonga in 2003.
IP Australia
27. Australia assists in the process of technology transfer by facilitating the development of
strong intellectual property regimes in countries in the Asia and Pacific Region.  The principal
mechanism for facilitating this development is through the WIPO-Australia Joint Working Group onIntellectual Property Technical Assistance in the Asia and Pacific Region.  Under this WorkingIP/C/W/388/Add.2
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Group, Australia assists in the coordination, planning and implementation of IP technical cooperation
projects in the region.
28. An example of the development activities under this Joint Working Group is the
establishment of a three-year Regionally Focused Action Plan (RFAP) for the Pacific IslandCountries.  The RFAP seeks to develop the Forum Is land Countries' (FICs) intellectual property (IP)
systems to meet world standards.  The RFAP will be providing assistance to the following LCDs:
Kiribati, Samoa, Solomon Islands, Tuvalu and Vanuatu.
29. The other style of activity under the Joint Working Group is providing IP experts to LCDs
under WIPO's Nationally Focused Action Plans.  For example, in October 2002 an Australian expert
undertook a mission to prepare a manual on trademark administration for the Cambodian IP Office.
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