Pre

• In basic terms, a licensing agreement is a contractual right

that gives someone permission to do a certain activity or to
use certain property owned by someone else. Increasingly,
these agreements are being reached between companies
located in different parts of the world.
Pre
• A franchise (or franchising) is a method of distributing
products or services involving a franchisor, who establishes
the brand's trademark or trade name and a business system,
and a franchisee, who pays a royalty and often an initial fee
for the right to do business under the franchisor's name and
system. The franchisor is the original business. It sells the
right to use its name and idea. The franchisee buys this right
to sell the franchisor's goods or services under an existing
business model and trademark.
2
• Franchises and Licenses are both business agreements in
which certain brand aspects are shared in exchange for a fee.
However, a franchising agreement pertains to a business's
entire brand and operations, while a licensing agreement only
applies to registered trademarks.
Pre
• In licensing, there is a one-time transfer of property or rights,
but in franchising involves the ongoing assistance of
franchisor. A substantial measure of fee negotiation is there
in licensing. Conversely, standard fee structure exists in
franchising.

• For franchisors, franchising allows them to expand their

business for less investment than opening new locations
themselves. A license allows the licensee to use, make and
sell an idea, design, name or logo for a fee. 3
• A joint venture is a combination of two or more parties that
seek the development of a single enterprise or project for
profit, sharing the risks associated with its development. The
parties to the joint venture must be at least a combination of
two natural persons or entities.
Pre entity created by two or more
• A joint venture is a business
parties, generally characterized by shared ownership, shared
returns and risks, and shared governance.
• Difference between a franchise and a joint venture is that a
franchise is a business arrangement in which one party signs
a contract with a firm to sell products or services using the
firm's name and image. A joint venture is an agreement
between two parties to work together for mutual profit,
typically by bringing a new product or service to a market. 4
• Patents - A patent is the granting of a property right by a
sovereign authority to an inventor. This grant provides the
inventor exclusive rights to the patented process, design, or
invention for a designated period in exchange for a
comprehensive disclosure of the invention. The three types of
patents are utility patents, design patents, and plant patents.
Pre
• Trademarks – It is a symbol, word, or words legally registered
or established by use as representing a company or product. The
apple shape with the bite taken out that Apple uses as its logo,
the swoosh logo that Nike features on all of its products.

• Trademark Franchise - A product and trademark franchise is an

arrangement under which the franchisor grants to the franchisee
the right to buy its products and use its trade name. This
approach typically connects a single manufacturer with a
network of dealers or distributors. 5
• Technology Transfer (TT), also called transfer of technology
refers to the process of conveying results stemming from
scientific and technological research to the market place and to
wider society, along with associated skills and procedures, and is
as such an intrinsic part of the technological innovation process.
• It is the process of transferring
Pre technology from the person or
organization that owns or holds it to another person or
organization.
• It includes the transfer of new technology from the originator to a
secondary user, especially from developed to developing
countries in an attempt to boost their economies.
• Technology transfer helps develop early stage intellectual
property into tools for direct use by the research community, or
into bases for new platforms, products, or services to be made
into products for public use. 6
• Technology Transfer can be broadly classified into vertical and
horizontal technology transfer.
- Vertical Technology Transfer - This chain of transfer includes
basic research to applied research, applied research to development,
and from development to production. It is also known as internal
technology transfer.
- Horizontal TechnologyPreTransfer - It occurs when technology
used in one place, organization, or context is transferred and used in
another place, organization or context. In discussing
commercialization of patents from academia to industry, one can
immediately notice some difficulty.
• Basically the transfer scope consists of four types of technologies -
General knowledge, Specific knowledge, Hardware, and
Behaviours. The categorizes of the transfer methods are -
Impersonal communication, Personal communication, Group
interaction, and Physical relocation. 7
• Telecommunication is the transmission of information by various
types of technologies over wire, radio, optical, or other
electromagnetic systems. Such transmission paths are often divided
into communication channels, which afford the advantages of
multiplexing multiple concurrent communication sessions.

Pre
• Telecommunications is an important tool for businesses. It enables
companies to communicate effectively with customers and deliver
high standards of customer service.

• Mobile telecommunications can help maintain communication

capability for employees working in remote locations or at home.

• Examples of telecommunications systems are the telephone

network, the radio broadcasting system, computer networks and the
Internet. The nodes in the system are the devices we use to
communicate with, such as a telephone or a computer. 8
• In basic terms, a licensing agreement is a contractual right
that gives someone permission to do a certain activity or to
use certain property owned by someone else. Increasingly,
these agreements are being reached between companies
located in different parts of the world.
Pre
• An international license agreement doesn’t have to be long or
complicated. It can be straightforward and enforceable.
However, many issues come up when drafting a license
agreement. Laws relating to intellectual property can be
extremely complicated. An attorney can provide invaluable
help with drafting your agreement and enforcing it.
• Exclusive Property Rights - Preliminarily, before you start
negotiating a license agreement, make sure you have
exclusive property rights. 9
• While the law often changes in this area, the best way to lock
in your rights is to register for any or all of the following that
apply to your situation:
1. Copyrights – original works of authorship fixed in any
tangible expression form
2. Patents – inventions Pre
3. Trademarks – words, names or symbols identifying goods
made or sold, distinguishing them from others
• The application process can be rigorous, and you may have
to disclose your ideas publicly. So you may also want to
further protect your intellectual property by relying on laws.
Generally, these laws protect internally guarded ideas,
formulas, codes or other information giving a business
competitive advantage. 10
• There are 6 key provisions that should be included in foreign license
agreements:
• Approval of licensed goods: When major U.S. manufacturers license
products to companies abroad, they often arrange periodic inspections
of the manufacturing facilities to ensure the quality of the goods (and
to monitor whether the licensee is siphoning off products or engaging
Pre
in illegal labor practices). This offers you some assurance of
consistency and quality for your work.
• Royalties and accounting: Payment of royalties from a foreign licensee
can get tricky, especially when you consider issues like:
- currency conversion rates (probably best to always insist on payment
in U.S. currency)
- how the money will be paid (best to use wire transfers), and
- what taxes may be applied against your sales or royalties (before
signing the license, inquire into national or local tariffs or taxes that
may apply). It’s also wise to include an audit provision (which allows
11
you to inspect the foreign licensee’s books).
• Jurisdiction: Sometimes referred to as personal jurisdiction,
jurisdiction is the power of a court to bind the parties by its decision.
Unless the company does substantial business in the states, the only
way to get a foreign licensee into any international court is to include a
provision in the license agreement that requires the licensee to consent
to the jurisdiction of that particular country.
Pre
• Choice of law: Every country (and every state) has laws as to how
contracts are interpreted. The licensee will want the disputes to be
resolved under the laws of its country. Try to include in your
agreement that disputes will be resolved under the law of that
particular country for copyright purposes and the laws of your state
when it comes to contract issues.

• Arbitration: In arbitration, instead of filing a lawsuit, the parties hire a

neutral arbitrator to evaluate the dispute and make a determination.
You will almost always benefit by agreeing to have disputes arbitrated
and inserting this in your agreement. 12
• Arbitration (contd.): If possible, your agreement should award
attorneys’ fees to the prevailing party in the arbitration.
Try to get the licensee to agree to arbitrate the matter in a particular
country. If the licensee does not agree, there are three popular spots for
international arbitration:
- London (The London Court of Int’l Arbitration)
- Paris (The Int’l Court of Arbitration of the Int’l Chamber of Commerce), and
Pre
- Stockholm (The Arbitration Institute of the Stockholm Chamber of
Commerce).

• Foreign registrations: If your works are protected by the intellectual

property laws of a particular country like copyright or design patent
law, you should determine whether it’s worth your while to obtain
foreign copyright or patent registration in the countries where your
work is being manufactured or distributed. You may be able to require
that the licensee handle these administrative tasks.
• http://internationalbusinesslawadvisor.com/6-key-provisions-you-
should-include-in-your-international-licensing-agreements/ 13
• Index of Licensing Agreement -

Pre

• https://www.globalnegotiator.com/en/international-trademark-license-agreement-template
14
• International Franchise Agreement is defined as a contract whereby the
franchisor grants the franchisee (based in another country), in
exchange for direct or indirect financial compensation, the right to
exploit a package of industrial or intellectual property rights relating to
know-how and commercial symbols, and to receive continuing
commercial or technical assistance for the duration of the contract.
• Above agreements may be in Preregard to distribution of goods or supply
of services. In distribution franchise agreements, the franchisee is
granted the right to market the products manufactured or supplied by
the franchisor or by a supplier designated by the franchisor, under the
franchisor’s trademark according to the franchisor’s commercial know-
how and with its commercial assistance. In service franchise
agreements, the franchisee is granted the right to provide services (e.g.
restaurants, hotels etc.) developed by the franchisor, under the
franchisor’s trademark according to the franchisor’s commercial know-
how and with its commercial assistance.
• https://www.globalnegotiator.com/blog_en/international-franchise-agreement-template-
15
model/
• Key elements of International Franchising -

i) For the franchisor:

– the licensing of know-how embodied in operational manuals and
continuously updated, with a training support system;
– the licensing of trademarks and symbols; and
– the provision of assistance regarding
Pre distribution and management.

ii) For the franchisee:

– the franchisor’s exercise of reasonable quality controls over the
franchisee to protect its intellectual property rights;
– the payment of initial and ongoing fees in exchange for the right to
use these intangible assets;
– the participation in training courses organized by the franchisor;
– the use of franchisor’s trademarks and symbols;
– the strict compliance with the franchisor’s commercial standards;
– the information given to the franchisor concerning any difficulty
which may appear or improvements which may seem suitable. 16
• For both parties, a franchising agreement provides:
– a system to resolve disputes, including the service of notice of
defaults and opportunities to cure.

• Types of International Franchising:

There are many possibilities for internationalization of a franchise
system. Pre
The traditional approach consists in the franchisor creating a wholly
owned company or in appointing a master franchisee in another
country, which will organize a domestic franchising network. Another
possibility is to directly appoint franchisees in another country.
Four alternatives should be mention:
- International Franchisee Agreement (Individual Units)
- Master Franchisee Contract
- Area Representative
- Joint Ventures or Subsidiaries
17
• International Franchise Agreement (individual units)
In this type of agreement the Franchisor grants to the Franchisee the
exclusive power to distribute its products or services in establishments
which are equivalently equipped and furnished, as well as the right to
use Intellectual Property Rights (commercial signs, brands, trademarks
etc.). It also provides the Know-How (Franchise Handbook), and the
Pre for distribution to be carried out
technical and commercial support
correctly.
This type of contract is usually used when the franchisor and the
franchisee are in nearby countries. If the language of both countries is
different, it is advisable to make bilingual versions (English-French,
English-Spanish, English-German, etc.) to avoid misunderstandings in
drafting and subsequent application of the contract. This agreement
conforms to the UNIDROIT (Unification of Private Law) principles
and to the procedures established by the International Chamber of
Commerce for international franchise contracts.
• https://www.globalnegotiator.com/en/international-franchise-contract-template 18
• Master Franchise Contract
This is an Agreement between the Franchisor and a Master Franchisee.
This agreement allows the Master Franchisee the right to own and
operate more than one unit and the right to sub-franchise to other
independent businesses during a specified time during a specific
territory.
The type of relationship betweenPre the Franchisor and the Master
Franchise is often far more knowledgeable and connected in the culture
and business of the designated territory. However, the Franchisor loses
a substantial part of control over the System resulting from this transfer
of responsibility and the enforcement of System standards may be
more difficult in this type of relationship. Accordingly, selection of the
Master Franchisee is a crucial endeavour critical to the success of the
relationship.
Furthermore, Franchisor´s liability is more or less important depending
on the Master Franchisee´s involvement in the adaptation ion of the
concept. 19
• Area Representatives
Another alternative is to hire Area Representatives that enter into a
representation agreement with the Franchisor to act as an intermediary
between Franchisor and Franchisees. Unlike the Master Franchisee the
Area Representative does not act on its account but in the name of and
on behalf of the Franchisor. The franchise relationship is directly
between the Franchisor and thePre Franchisee.
Area Representative’s main obligations are evaluating, referring and
procuring potential candidates to the Franchisor and providing certain
services to Unit Franchisees within its designated territory, such as
training, site selection, grand opening assistance and on-going support.
Franchise Agreements are entered into directly between Franchisor and
each individual Franchisee. The Area Representative frequently receives
a portion (fixed amount) for each unit of franchise opened in its Territory
and is often entitled to a portion of the Franchise Fee (commission fix as
a percentage) collected for each Unit Franchise opened in its Territory.
The relationship between Franchisor and Area Representative is
regulated through Contract of International Sales Representative. 20
• Joint ventures or subsidiaries
The last alternative for franchisors is to consider setting up in the target
market either a subsidiary over they have control or a joint venture
with a local partner with knowledge of the target market in order to
share risks and expertise for the purpose of establishing and developing
the Franchisor´s System.
Pre
In a Joint Venture, the respective parties’ contribution may differ
position by requiring the joint venture company to enter into a Master
Franchise Agreement, and possibly also a trademark license, in respect
of the trademark to be used in the franchise business. Joint Ventures
and subsidiaries are entry forms to establish franchises in foreign
markets used by many multinational companies in the fast food and
fashion industries.
Finally, it should be noted that when drafting an International
Franchise Agreement the main objective is to achieve a fair balance
between the interests of the franchisor and those of the franchisee,
taking into account the core obligations of the contract. 21
• Index of Franchising Agreement –

Pre

22
• International Joint Venture Contract governs the relationship between
two companies located in different countries, and which set up a third
company (the Joint Venture). This new company would usually be
located in the same country as one of the two partner companies, with
the purpose of mutually establishing an activity with its own
objectives: marketing and distribution, research, manufacturing, etc.
• The contract establishes all Pre the agreements needed to start up and
manage the Joint Venture. To ensure a contract that best suits the needs
of parties, there is a list of the number of options to choose from for
certain specific aspects of the contract (the company’s object, capital
stock, valuing of contributions made, organization and administration,
decision-taking, etc.). Furthermore, the contract makes reference to the
viability studies prior to the setting-up of the company and the
financing of its costs.
• This contract has been drafted taking into account the principles
established for the UNCTAD/OMC International Trade Centre for
Joint Venture contracts. 23
• Prior to the constitution of the Joint Venture, both parties may agree to
the implementation of a Feasibility Study including, among others, the
following elements:

(a) Definition of the business model;

(b) Analysis of the regulatory environment pertaining to the activities
to be undertaken within the territory
Pre hereunder;
(c) Evaluation of market potential;
(d) Valuing of assets contributed by the partners;
(e) Business plan; and
(f) Schedule of action.

Contracts drafted by the legal experts cover all relevant aspects that are
negotiated and agreed in the different types of business between
companies. However, when these contracts are used, one should take
into account some recommendations common to all and that are
commonly described in the User Guide accepted globally.
24
• Details of Parties -
• Be sure to insert in the first page of the contract the full details of the
Parties:
When a Party is a company you must insert the following information:
legal name, legal form (limited, incorporated, etc.), full address,
registration data and fiscal identification number.
When a Party is an individualPre that works as independent professional
(for example a commercial agent) you must insert the following
information: full name, profession, full address and fiscal identification
number.
• Clauses with different alternatives:
In the most important clauses of each contract (exclusivity, payment
terms, applicable law and competent jurisdiction, etc.) several drafting
alternatives are proposed so you can choose the most appropriate to
each situation. Therefore, the user, before submitting the contract to the
other Party, must choose the alternatives that seem best suited to their
interests, and eliminate the rest. 25
• Index of contracts –

Pre

26
• The Strasbourg Agreement establishes the International Patent
Classification (IPC) which divides technology into eight sections with
approximately 80,000 subdivisions. Each subdivision is denoted by a
symbol consisting of Arabic numerals and letters of the Latin alphabet.

• The appropriate IPC symbols are indicated on patent documents

(published patent applicationsPre
and granted patents), of which over 2
million are issued each year. The appropriate symbols are allotted by
the national or regional industrial property office that publishes the
patent document. For Patent Cooperation Treaty (PCT) applications,
IPC symbols are allotted by the International Searching Authority.

• Although only 64 States are party to the Agreement, the IPC is used by
the patent offices of more than 100 States, four regional offices and the
Secretariat of WIPO (World Intellectual Property Organization) in
administering the Patent Cooperation Treaty (PCT) (1970).

• https://www.wipo.int/treaties/en/classification/strasbourg/ 27
• In Trademarks License Agreement, the proprietor (Licensor) of a
registered trademark gives authorization to another company
(Licensee) to manufacture and distribute products under this
trademark. The license is given for a specific range of products
(typically consumer and fashion products) for which the licensee
obtains exclusivity in a distinct territory (typically a country).
Pre
• In exchange for the rights granted, the Licensee shall pay to the
Licensor a certain amount of money and a percentage (royalties) based
on the sales value of the products sold under the license.

• This agreement is distinctively worded to cover the granting of

trademark licenses in international markets, but with slight changes it
may also be used when the Licensor and the Licensee are based in the
same country.

28
• Classification is indispensable for the retrieval of patent documents.
Such retrieval is needed by patent-issuing authorities, potential
inventors, research and development units and others concerned with the
application or development of technology.
• In order to keep the IPC up to date, it is continuously revised and a new
edition enters into force each year on Jan 1. The revision of the IPC is
carried out by the IPC Committee
Pre of Experts set up under the
Agreement. All States party to the Agreement are members of the
Committee of Experts.
• The Strasbourg Agreement created a Union, which has an Assembly.
Every State that is a member of the Union is a member of the Assembly.
Among the most important tasks of the Assembly is the adoption of the
biennial program and budget of the Union.
• The IPC Agreement was concluded in 1971 and amended in 1979. It is
open to States party to the Paris Convention for the Protection of
Industrial Property (1883). Instruments of ratification or accession must
be deposited with the Director General of WIPO.
29
• Intellectual property (IP) can be just as valuable as - or even more
valuable than - tangible property. Many companies make money
exclusively through marketing products based on intellectual property
rights. That’s why it is so important to protect your intellectual
property through patents, trademarks, copyrights, and other legal
devices that keep your intellectual property safe.
• Under an intellectual propertyPrelicensing agreement (also known as an
intellectual property license or an intellectual property license
agreement), you retain ownership of your patent, copyright, or
trademark, but you give another party permission to use some or all of
your intellectual property rights for a specific amount of time for a fee
or royalty. These intellectual property contracts typically specify
termination dates and procedures.
• A patent license agreement typically grants a licensee exclusive rights
to manufacture, sell, and use a patented invention, subjected to certain
terms. A patent license agreement will also define the amount of
royalties the licensee owes the licensor. 30
• Under an intellectual property licensing agreement (also known as an
intellectual property license or an intellectual property license
agreement), you retain ownership of your patent, copyright, or
trademark, but you give another party permission to use some or all of
your intellectual property rights for a specific amount of time for a fee or
royalty. These intellectual property contracts typically specify
termination dates and procedures.
Pre
• There are several types of intellectual property licenses embodied in a
typical intellectual property agreement. The following three are the most
common:
- Exclusive License: You agree not to grant any other licenses of the
invention and rights concerned, as well as not to use the technology
yourself.
- Sole License: You agree not to grant any other licenses of the invention
and rights concerned, but you can use such rights yourself.
- Non-Exclusive License: You agree to give the licensee certain rights,
but you also reserve the right to grant licenses of the invention and rights
concerned to third parties or to use them yourself. 31
• Most of the time, IP holders want to maintain control of their IP,
and they choose intellectual property licensing. This is
advantageous because you can determine the manner in which your
IP is used and change partners if a partnership isn’t advantageous.

• Also, intellectual property licensing allows you to produce a steady

income from your IP over Pre a particular time period and possibly
confer the same rights to multiple users.

• Intellectual property assignment agreements can also have its

advantages, however, if you assign intellectual property to a third
party, you no longer have any responsibility towards the product.

• That means you cannot generally be sued for problems relating to

your IP and you are not responsible for any maintenance fees.
Intellectual property assignment is generally more appropriate
when you are selling your business or leaving a field entirely. 32
• While both exclusive intellectual property licenses and intellectual
property assignment agreements give exclusive exercise of that
right to another person in exchange for monetary compensation, an
exclusive license is much more limited than an assignment.

• If you assign an IP right to another person, you permanently

transfer that right and wouldPre
have to repurchase it in order to use it
again.

• An IP license is generally subject to a certain term and possible

renewal. For that reason, you generally get more money upfront
with an assignment.

• In addition, unless otherwise stated in the contract, an exclusive

license cannot generally be handed off to a third party without your
permission, but if you assign that right to someone else, they can
then license or sell it as they see fit. 33
• What is an implied license?
In certain circumstances, an implied IP license arises without the
existence of a formal licensing agreement if the conduct of the
parties indicates that the IP holder intended to license certain rights
to the other party.

Often, courts grant impliedPrelicenses in cases where one party

created a copyrighted work at the request of another under a
contract that did not explicitly confer the copyright to the purchaser
after payment and completion of the work.

• Depending on the complexity of your needs, the cost of drafting

intellectual property licensing or intellectual property assignment
agreements may vary.

• https://www.priorilegal.com/intellectual-property/intellectual-
34
property-assignment-agreements-and-licenses
• Index of Trademarks License Agreement -
\

Pre

35
• This type of agreement is to be used by companies for technology
transfer, either through granting intellectual property rights
(patents, trademarks, utility models, industrial designs) or technical
assistance and know how.
• In the first case, the intellectual property and exclusive rights are
granted, acknowledged and internationally registered, in order to
Pre
manufacture and trade products.
• In the second case, the contract deals with the transfer of
intellectual property which has no international legal recognition,
but does have intrinsic value.
• The Working Group on Transfer of Technology was established by
the Ministers in Doha and aims to examine the relationship
between trade and the transfer of technology from developed to
developing countries, and ways to increase the flow of technology
to developing countries. The current chair is Ambassador LE Thi
Tuyet Mai (Viet Nam). 36
• In the most important aspects of the contract (technology, exclusivity,
royalties, termination of the contract, applicable law and competent
jurisdiction, etc.) different alternatives have been provided, for the
most appropriate one to be selected according to who drafts the
contract (Licensor or Licensee).
• This International Technology Transfer Contract is designed for
Pre the Licensor and Licensee are in
international operations in which
different countries, but with slight adjustments can also be used for
domestic transactions in which both are located in the same country.
• A number of provisions in the WTO agreements mention the need for a
transfer of technology to take place between developed and developing
countries. However, it is not clear how such transfers take place and if
specific measures are by WTO to encourage such flows of technology.
• WTO ministers decided in Doha to establish a working group to
examine the issue. The working group will report to the General
Council which itself will report to the next Ministerial Conference.
37
• Technical assistance activities aim to help developing countries take full
advantage of the multilateral trading system. Within the WTO
Secretariat, these activities are coordinated by the Institute for Training
and Technical Cooperation (ITTC), based on technical assistance and
training plans. The Committee on Trade and Development regularly
oversees all Trade-Related Technical Assistance activities.
• The WTO's technical assistance Pre and training plans contain detailed
information on all of the WTO Secretariat's Technical Assistance
“products” as well as on individual activities. The WTO responds to
specific national and regional needs in line with its Progressive Learning
Strategy, which provides graduated levels of training to course
participants. A results-based management approach is used to monitor
and evaluate these activities and to further develop the assistance
provided.
• The changing needs of WTO members continue to determine the type of
assistance provided.
• https://www.wto.org/english/tratop_e/devel_e/teccop_e/tct_e.htm
38
• Through various paragraphs of the Doha Declaration, WTO
member governments have made new commitments on technical
cooperation and capacity building.
• WTO member governments reaffirm all technical cooperation and
capacity building commitments made throughout the declaration
and add general commitments:
Pre
- The Secretariat, in coordination with other relevant agencies, is to
encourage WTO developing-country members to consider trade
as a main element for reducing poverty and to include trade
measures in their development strategies.
- The agenda set out in the Doha Declaration gives priority to
small, vulnerable, and transition economies, as well as to
members and observers that do not have permanent delegations in
Geneva.
- Technical assistance must be delivered by the WTO and other
relevant international organizations within a coherent policy
39
framework.
• Index of Technology Transfer Agreement

Pre

40
• The trade rules that apply to telecommunications services include the
framework articles of the General Agreement on Trade in Services
(GATS), which contain the principles for trade in all services. In
addition, the GATS also contains an Annex on telecommunications.
• Telecommunications services are a global market worth over US$ 1.5
trillion in revenue. Mobile services account for roughly 40 per cent of
this, while mobile subscribersPre
worldwide currently outnumber the use
of fixed telephone lines by more than two to one. Over the past decade,
the market has witnessed far-reaching changes, with the introduction of
competition into a sector that was once a monopoly.
• Commitments in telecommunications services were first made during
the Uruguay Round (1986-94), mostly in value-added services. In
post-Uruguay Round negotiations (1994-97), WTO members
negotiated on basic telecommunications services. Since then,
commitments have been made by new members, upon accession to the
WTO, or unilaterally at any time.
41
• Telecommunications, like other services, are included in the services
negotiations, which began in January 2000. In the current Doha Round
of negotiations, additional market opening as well as the binding of
recent reforms (i.e. a commitment not to increase a rate of duty beyond
an agreed level) in telecommunications is the objective of many of the
negotiating requests made by WTO members to their trading partners.
As of July 2008, 39 governments
Pre had made offers to improve their
existing commitments or to commit for the first time in the
telecommunications sector.
• At the Hong Kong Ministerial Conference (December 2005), a new
sector-specific negotiating mechanism was mandated by the trade
ministers. Plurilateral negotiations have followed, with progress
reported regularly to the Special Session of the Council for Trade in
Services.
• Throughout the negotiations, individual members or groups of
members have submitted proposals or other statements outlining their
positions and objectives on various issues arising in the negotiations.
42
• At the Hong Kong Ministerial Conference (December 2005), a new
sector-specific negotiating mechanism was mandated by the trade
ministers. Negotiating objectives outlined by WTO members in the
Chairman's note to the Trade Negotiations Committee include:
- achieving broad coverage in a technology-neutral manner and
significant commitments in all modes of supply
- working with least-developed Precountries and developing countries to
find ways to encourage new and improved offers and to provide
technical assistance to support this process
- reducing or eliminating exclusive rights, economic needs tests (i.e. a
test using economic criteria to decide whether the entry into the market
of a new foreign firm is warranted), restrictions on the types of legal
entity permitted, and limitations on foreign equity
- commitment to all provisions of the telecommunications Reference
Paper
- the elimination of exemptions to most-favoured nation (MFN)
treatment (i.e. non-discrimination)
43
• A total of 108 WTO members have made commitments to facilitate
trade in telecommunications services. This includes the establishment
of new telecoms companies, foreign direct investment in existing
companies and cross-border transmission of telecoms services.

• Out of this total, 99 members have committed to extend competition in

basic telecommunications (e.g. Prefixed and mobile telephony, real-time
data transmission, and the sale of leased-circuit capacity).

• In addition, 82 WTO members have committed to the regulatory

principles spelled out in the “Reference Paper”, a blueprint for sector
reform that largely reflects “best practice” in telecoms regulation.

• https://www.wto.org/english/tratop_e/serv_e/telecom_e/telecom_e.htm
• https://www.wto.org/english/tratop_e/serv_e/telecom_e/telecom_com
mit_exempt_list_e.htm

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