Green technology should be shared

Big business is gearing up to fight the use of green technology by developing countries seeking to reduce carbon emissions

by Mark Weisbrot

The battle over intellectual property rights is likely to be one of the most important of this century. It has enormous economic, social and political implications in a wide range of areas, from medicine to the arts and culture – anything where the public interest in the widespread dissemination of knowledge runs up against those whose income derives from monopolising it.

Now it appears that international efforts to slow the pace of worldwide climate disruption could also run up against powerful interests who advocate a fundamentalist conception of intellectual property

According to Inside US Trade, the US chamber of commerce is gearing up for a fight to limit the access of developing countries to environmentally sound technologies (ESTs). They fear that international climate change negotiations, taking place under the auspices of the United Nations, will erode the position of corporations holding patents on existing and future technologies.

Developing countries such as Brazil, India and China have indicated that if – as expected in the next few years – they are going to have to make sacrifices to reduce carbon emissions, they should be able to license some of the most efficient available technologies for doing so.

Big business is worried about this, because they prefer that patent rights have absolute supremacy. They want to make sure that climate change talks don't erode the power that they have gained through the World Trade Organisation.

The WTO is widely misunderstood and misrepresented as an organisation designed to promote free trade. In fact, some of its most economically important rules promote the opposite: the costliest forms of protectionism in the world.

The WTO's rules on intellectual property (Trade-Related Aspects of Intellectual Property, or Trips) are the most glaring example. These are designed to extend and enforce US-style patent and copyright law throughout the world.

Patents are monopolies, a restriction on trade that creates inefficiency in exactly the same way that tariffs, quotas or other trade barriers do. The economic argument for relaxing patent rules is therefore the same as that for removing trade barriers, only times 50 or 100 or even 1,000 – since the average tariff on manufactured or agricultural goods is quite small compared to the amount by which patent monopolies raise the price of a pharmaceutical drug.

These restrictions cost US consumers an estimated $220bn a year compared to competitive pricing – many times the gains from trade liberalisation that we could even hope to get from a successful completion of the current Doha round of negotiations in the WTO that began in 2001 in Qatar.

http://www.guardian.co.uk/commentisfree/cifamerica/2009/may/19/wto-climate-change-intellectual-property