TNAG-1927-FCO40-2744-Future-of-Hong-Kong-Sino-British-Joint-Liaison-Group-sub-gro-1989 — Page 149

[Notes on the Preamble, contd.]

IPIC/DC/3 page 12

27. Ad third paragraph: The envisaged effects that it is expected will be achieved through the conclusion of the Treaty are set out in the third paragraph of the Preamble. The first of these effects is the provision of a framework for the promotion of the broader dissemination of microchip products. This effect is expected to result from the greater confidence in the repression of unlawful copying that the creators of layout-designs would have as a consequence of the assurance of international protection. This confidence, in turn, will lead to a greater readiness on the part of creators to sell their products on an international basis.

28. The second effect expected from the conclusion of the Treaty is the provision of a framework for the transfer of technology towards developing countries in particular. Given that the assurance of international protection is likely to lead to a greater willingness on the part of creators to sell products on an international basis, the layout-designs incorporated in microchip products will be available to a broader international consuming and using public. Since it is envisaged that "reverse engineering" will be permitted under the Treaty (see Article 6(2)), enterprises in places where a microchip product becomes available will have the opportunity to evaluate and analyze, and thereby acquire a knowledge of, the layout-design incorporated in such a product and the techniques by which the layout-design has been created. Similarly, the assurance of international protection is expected to provide an appropriate institutional environment for the encouragement of voluntary licensing, and thus for the transfer of technology through licensing.

29. It may be noted here also that the Preamble is prefaced by the expression "Contracting Parties," which represents a change from the expression "Contracting States" used in previous versions of the draft Treaty. The change is a necessary consequence of the provision in Article 14(1)(b) of the draft Treaty that would allow any Intergovernmental Organization having its own legislation providing for intellectual property protection in respect of layout-designs and applicable in the territory of all its member States to become party to the Treaty. The expression "Contracting Parties" is used throughout the draft Treaty.