DRAFT PROPOSED PROGRAM AND BUDGET FOR THE 2016/17 BIENNIUM
Document prepared by the Secretariat 03.1.The attached Draft Proposed Program and Budget for the 2016/17 Biennium is submitted to the present session of the Program and Budget Committee (PBC) in accordance with Financial Regulation 2.6 for “discussion, comments and recommendations, including possible amendments” and pursuant to the Mechanism to further involve Member States in the preparation and follow up of the program and budget of the Organization (see documents WO/PBC/13/7 and A/46/12).
03.2.This present draft has been prepared taking duly into account the inputs, comments and feedback received from Member States in their responses to the Questionnaire on the Draft Program and Budget 2016/17.
[Draft Proposed Program and Budget for the 2016/17 Biennium follows]
WORLD INTELLECTUAL PROPERTY ORGANIZATION
DRAFT PROPOSED PROGRAM AND BUDGET FOR THE 2016/17 BIENNIUM
TABLE OF CONTENTS
03.1.The attached Draft Proposed Program and Budget for the 2016/17 Biennium is submitted to the present session of the Program and Budget Committee (PBC) in accordance with Financial Regulation 2.6 for “discussion, comments and recommendations, including possible amendments” and pursuant to the Mechanism to further involve Member States in the preparation and follow up of the program and budget of the Organization (see documents WO/PBC/13/7 and A/46/12). 2
03.2.This present draft has been prepared taking duly into account the inputs, comments and feedback received from Member States in their responses to the Questionnaire on the Draft Program and Budget 2016/17. 2
03.3.In accordance with the Mechanism, following the present review, a PBC session will be convened in September 2015, for discussion and recommendation to the fifty-fifth session of the Assemblies (October 5 to 14, 2015). 2
FOREWORD BY THE DIRECTOR GENERAL 6
I. FINANCIAL AND RESULTS OVERVIEW 8
II. PROGRAM NARRATIVES BY STRATEGIC GOAL 26
III. ANNEXES 169
IV. APPENDICES 235
FOREWORD BY THE DIRECTOR GENERAL
The Program and Budget provides an opportunity for the Member States to fix the results that they wish the Organization to achieve in the next biennium and for the Organization to design the programs that will enable those results to be delivered.
The Organization is fortunate to enjoy a sound financial basis on which to plan and execute this process of defining results and designing programs for the delivery of the results. We expect to complete the current biennium (2014-2015) with a moderate surplus. Income over the next biennium (2016-2017) is expected to rise by 6 per cent to 756.3 million Swiss francs as a result of growth in demand under the Global IP Systems (principally, the Patent Cooperation Treaty (PCT), the Madrid System for trademarks and the Hague System for designs). We propose that expenditure should rise by 4.9 per cent to 707 million Swiss francs, delivering a projected surplus, after estimated adjustments for International Public Sector Accounting Standards (IPSAS), of 20.8 million Swiss francs, which it is proposed would be used primarily for building the reserves to a more secure level.
The healthy financial position of the Organization should not be taken for granted. It has been underpinned by the expansion of the Global IP Systems. While we expect both the Madrid System and the Hague System to expand quite rapidly in the coming years, the principal source of revenue remains the PCT (around 76 per cent of total revenue). Increase in demand under the PCT is influenced by a variety of factors, some of which suggest that the increase in demand experienced over recent years may not continue at the same level in the medium term.
At the same time, the Organization is facing several major investment requirements. The Global IP Systems rely for their income on high-quality and cost-effective services increasingly delivered through sophisticated IT platforms. These IT platforms have enabled significant productivity gains and the containment of staff costs, but they require constant improvement and development. In addition, like all other organizations and enterprises in the contemporary networked world, the Organization is exposed to the vulnerability of the online environment. The mitigation of that vulnerability requires major investments in IT security and in business continuity and organizational resilience.
We are proposing that these additional major investments be absorbed in the next biennium without any fee increases in the Global IP Systems. This continues the outstanding record of the past seven years of no fee increases. This record is, however, unprecedented when compared to fee increases in national and regional IP offices and the time will come in the future, naturally, when reasonable fee increases will be needed.
An additional financial challenge arises from the current volatile global economic environment and, in particular, from the incidence of negative interest rates. Negative interest rates have arrived at the same time as the Organization is required to move from its traditional secure investment resource of the Federal Department of Finance of the Swiss Confederation. These factors will necessitate the adoption of a prudent and responsible investment policy that will enable the Organization to conserve capital, as well as the adoption of a prudent hedging policy in respect of the currency exposures engendered by the system of payment of PCT fees.
The key program priorities proposed for the next biennium are set out in paragraphs 17 to 39. Please allow me to comment on four areas, in particular, in a larger perspective than the coming biennium.
The first area is the Organization’s normative agenda (Strategic Goal I). Member States have concluded three international agreements in the past four years – the Beijing Treaty on Audiovisual Performances, the Marrakesh Treaty on Facilitating Access to Published Works for Person who are Blind, Visually Impaired or Otherwise Print Disabled and the Geneva Act of the Lisbon Agreement on Appellations of Origin and Geographical Indications. The effect and legitimacy of these agreements will depend on their speedy and widespread ratification by Member States. Important subjects on the normative agenda, including some that are very long-standing, remain unresolved. In addition, in a globalized and complex world, characterized by very rapid and fundamental technological change, in which intellectual property plays an increasingly prominent role, it is timely that a dialogue commence about the future normative agenda of the Organization as the multilateral venue for the development of international intellectual property policy. These issues and the questions that they raise lie within the preserve of the Member States. They require commitment to multilateralism, engagement and appropriate compromise from the Member States. Without that, we can expect a static multilateral framework without any advancement.
The second area is the Organization’s Global IP Systems (Strategic Goal II). They form the basis of the Organization’s revenue, accounting for about 95 per cent of total revenue. The membership of these Systems, particularly the Madrid System and the Hague System, is undergoing rapid geographical expansion from relatively limited bases (at present, 95 Contracting Parties for the Madrid System and 49 Contracting Parties for the latest Act of the Hague System). It is important for the legitimacy and sustainability of these systems that they continue to expand and be embraced by an increasingly wide geographical participation. It is also important that they continue to be modernized, work which is carried out in Working Groups of Member States convened under the respective treaties.
A third area is the rich array of IT platforms that are managed by the Organization (Strategic Goal IV) and that underlie the operation of the intellectual property system worldwide. Enormous progress had been made in this area in recent years. With the IT platforms of the PCT, the Madrid System and the Hague System, together with the Global IP Databases (PATENTSCOPE, the Global Brands Database and the Global Designs Database) and platforms such as the Digital Access Service (DAS), WIPO CASE (Centralized Access to Search and Examination) and IPAS (Intellectual Property Automation System), which is used in over 80 countries, many of the elements of a true global IP infrastructure exist. All these platforms enjoy widespread use throughout the developed and developing world, and extensive buy-in from diverse communities, whether IP Offices, industry, NGOs or the general public. We hope to see these various platforms increasingly form part of an integrated global IP platform.
Finally, there is the area of the extensive programs of the Organization in respect of development. Following the direction of the member States, development has been main-streamed in all substantive Strategic Goals of the Organization. The programs dedicated exclusively to development, notably the regional bureaus, the Academy and Development Agenda Coordination, face increasing challenges in meeting the rise in demand for services that is a natural consequence of the increased prominence of intellectual property in the economy. Part of the response to this challenge that we continue to work on is the achievement of greater coherence in the allocation of responsibilities for capacity building, which now permeates the whole program of the Organization.