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FTAA - Free Trade Area of the Americas

Draft Agreement

Chapter on Intellectual Property Rights


(Continuation)


[ Article XX. Industrial Designs

1. Members shall provide for the protection of independently created industrial designs that are new or original, exclusively ornamental in nature and suitable for industrial use. Members may provide that designs are not new or original if they do not significantly differ from known designs or combinations of known design features.

2. The owner of a protected industrial design shall have the right to prevent third parties not having the owner’s consent from making, selling or importing articles bearing or embodying a design which is a copy, or substantially a copy, of the protected design, when such acts are undertaken for commercial purposes.

3. Designs that are for basically technical or functional considerations, designs that incorporate purely artistic effects and those the exploitation of which it is necessary to prevent in order to protect public order morality and decency may not be protected.

4. Members may provide limited exceptions to the protection of industrial designs, provided that such exceptions do not unreasonably conflict with the normal exploitation of protected industrial designs nor unreasonably prejudice the legitimate interests of the owner of the protected design, taking account of the legitimate interests of third parties. 

5. The duration of protection granted for the design shall be no less than 10 years from the filing of the application. Member States shall strive to provide in their laws at least a five year renewal.]

[ Article XX. Industrial Designs

1. Each Party shall provide for the protection of independently created industrial designs that are new or original. A Party may provide that:


a) designs are not new or original if they do not significantly differ from known designs or combinations of known design features; and

b) such protection shall not extend to designs dictated essentially by technical or functional considerations.

2. Each Party shall ensure that the requirements for securing protection for textile designs, in particular in regard to any cost, examination or publication, do not unreasonably impair a person's opportunity to seek and obtain such protection. A Party may comply with this obligation through industrial design law or copyright law.

3. Each Party shall provide the owner of a protected industrial design the right to prevent other persons not having the owner's consent from making or selling articles bearing or embodying a design that is a copy, or substantially a copy, of the protected design, when such acts are undertaken for commercial purposes.

4. A Party may provide limited exceptions to the protection of industrial designs, provided that such exceptions do not unreasonably conflict with the normal exploitation of protected industrial designs and do not unreasonably prejudice the legitimate interests of the owner of the protected design, taking into account the legitimate interests of other persons.

5. Each Party shall provide a term of protection for industrial designs of at least 10 years. ]

[Industrial designs

Article XX

“Industrial drawing, design or model” shall be understood to mean the particular appearance of a product that results from any arrangement of lines or combination of colors, or any two-dimensional or three-dimensional outward shape, line, outline, form, texture, or material, without the intended use or purpose of the said product being thereby changed, shall be considered an industrial design.

Article XX

The right to register an industrial design pertains to the designer and may be assigned or transferred by succession. 
Registration right holders may be natural persons or legal entities. 
If several persons make an industrial design jointly, they shall share the right to its registration. 
If several persons make the same industrial design, each independently of the others, registration shall be granted to the person or assignee with the first filing date or, where priority is claimed, date of application.

Article XX

Industrial designs shall be registrable provided they are new. An industrial design shall not be considered new if, before the filing date or validly claimed priority date, it has been made accessible to the public in any place or at any time, by description, use, or any other means.
An industrial design shall not be deemed new by virtue of the mere fact that it embodies minor differences in relation to earlier creations, or that it refers to a category of products different from that to which the said creations belong.

Article XX

The following creations shall not be registrable:

a) industrial designs when, the prevention of the commercial exploitation of which within the territory of the Party where registration is being applied for, is necessary to protect morality or public order. To those ends, commercial exploitation of an industrial design shall not be considered contrary to morals and public order merely by reason that the exploitation is prohibited or regulated by a legal or administrative provision;

b) industrial designs the appearance of which was dictated essentially by technical or functional considerations and that fail to incorporate any arbitrary contribution by the designer; and,

c) industrial designs that consist only of a form, the exact reproduction of was necessary to permit the mechanical assembly or connection of the product incorporating the design with another product of which it is a part. This prohibition shall not be applicable to products in which the design consists of another way to permit the assembly or the multiple connection of the product or of its connection within a modular system.

Article XX

Registration of an industrial design shall last for ten years, counted from the filing date of the respective application in the Party concerned


Article XX

Registration of an industrial design shall confer on its owner the right to prevent third parties from making use of the design concerned. By virtue of that prohibition, the owner of the registration shall be entitled to proceed against any third party who, without the consent of the right holder, manufactures, imports, offers for sale, markets, or makes commercial use of products that incorporate or reproduce the industrial design.

Registration shall likewise confer the right to proceed against any person who produces or markets an article whose design only presents minor differences with respect to the protected design or where appearance is the same as the latter protected design.

Article XX

The protection accorded to an industrial design shall not apply to elements or characteristics of the design, which are dictated essentially by technical or functional considerations, or which fail to incorporate any arbitrary contribution by the designer.

The protection accorded to an industrial design shall not apply to the exact reproduction of such elements or characteristics as may be needed to allow the product incorporating the design to be mechanically assembled or joined to another product of which it is a part. This restriction shall not apply where the design assumes a particular form to allow for the assembly or multiple connections of the products or the connection of those products within a modular system.

Article XX

Registration of an industrial design shall not confer the right to proceed against a third party who makes commercial use of a product incorporating or reproducing the design once it has been introduced into the commerce of any country by the right holders or another person authorized by them or with economic ties to those right holders.

For purposes of the preceding paragraph, two persons shall be considered to have economic ties when one of the persons is able to exercise a decisive influence over the other, either directly or indirectly, with respect to the exploitation of the industrial design, or when a third party is able to exert that influence over both persons.]


10) PLANT VARIETIES

[ Article XX. Plant varieties

1. Members shall grant protection to plant varieties, through patents, through an effective sui generis system, such as the system of the International Union for the Protection of New Varieties of Plants – UPOV, or through a combination thereof. 

2. For the purposes of this Agreement:

a) “breeder” shall mean the person that has created or discovered and developed a plant variety,

b) “plant variety” shall mean a set of plants from a single botanical taxon of the lowest known rank which, irrespective of whether it fully meets the conditions for the granting of breeder’s rights, may

i) be defined by the expression of the characteristics stemming from a certain genotype or a certain combination of genotypes,

ii) be distinguished from any other set of plants by the expression of at least one such characteristic,

iii) be considered as a unit, having regard to its ability to self propagate without alteration.
3. This Agreement shall apply to all botanical genera and species.

4. Without prejudice to the provision of the previous paragraph, any State Party which applies this Agreement to a specific genus or species shall have the power to limit the benefit of protection to nationals of other States Parties which apply the Agreement to that genus or species.

5. Parties shall recognize and guarantee that the right granted to the breeder shall be tantamount to declaring the following subject to the prior authorization of the breeder:

a) production for commercial purposes,

b) sale,

c) marketing of the reproductive and propagating material, per se, of the plant variety.

6. Members may grant breeders, for certain botanical genera or species, a more extensive right than the one stipulated in the previous paragraph, which shall be extended to the marketed product. 

7. The breeder may make his authorization subject to conditions and limitations.

8. The breeder’s authorization shall not be necessary to use the plant variety as the initial source of variation with a view to creating other varieties. The authorization to market such plant varieties shall be subject to the laws of each State Party. Likewise, such authorization shall be required when the repeated use of the plant variety becomes necessary for the commercial production of another variety.

9. Members may restrict the right of the breeder with the intention of allowing farmers to use the product of the harvest of the protected variety for reproductive or propagating purposes 

10. The right of the breeder shall be granted:


a) where the plant variety is new, distinctive, homogenous, stable and designated by a name intended as its generic name; and

b) when the requirements stipulated in a) have been reviewed.
11. The plant variety must be clearly distinguishable from any other plant variety, the existence of which is well known at the time protection is sought.

12. On the date the application for protection is filed with a State Party, the plant variety:


a) must not have been offered for sale or marketed, with the consent of the breeder, in the territory of the said State, or if so provided in the law of the State, not having been offered for sale or marketed for over a year, and

b) must not have been offered for sale or marketed, in the territory of any other State, with the consent of the breeder, for a prior period of more than six years in the case of vines, forest trees, fruit trees, and ornamental trees, including in each case their root stock, or for a prior period of more than four years in the case of other plants.

13. Only a single plant variety may be deposited with States Parties under the same name.

14. The granting of the breeder’s right shall not be contingent on supplementary or different criteria from those mentioned, provided that the breeder has complied with the formalities provided under the law of the State Party, with whose authority the application was filed and the appropriate fees paid. 

15. The right granted to the breeder shall not be for a period less than fifteen years from the deed of protection was issued. 

16. The duration of protection for vines, forest trees, fruit trees, and ornamental trees, including in each case, their root stock, shall not be less than eighteen years from the date mentioned in the previous paragraph. 

17. Members may provide limited exceptions to the rights conferred solely for reasons of public interest, provided that such exceptions do not unreasonably conflict with the normal exploitation of the plant variety or unreasonably prejudice the legitimate interests of the owner of the protected right holder, taking account of the legitimate interests of third parties. Where such a limitation is tantamount to allowing a third party to perform any of the acts for which the authorizations of the breeder is required, Members shall adopt all the measures [necessary] for the breeder to receive a fair remuneration.

18. The right of the breeder shall be declared null and void pursuant to the provisions of the national legislation of each State Party, if it is provided that:

a) the requirements set as to novelty and differentiation of the plant variety for which registration is being sought were not effectively complied with at the time the deed of protection was issued;

b) the right of the breeder was granted to a person that was not entitled thereto, unless it was assigned to the person in whom the right was vested.

19. each State Party may declare forfeiture of the right of the breeder which was granted, if it is proved that:

a) the requirements for homogeneity and stability were not complied with effectively;

b) the breeder is unable to submit to the competent authority the reproductive or propagating material that will make it possible to breed the plant varieties with its characteristics, as they were defined when protection was granted;

c) the breeder did not pay within the time periods specified the fees due, where applicable, for the extension of his rights;
20. A breeder who files applications for protection regularly in one of the States Parties, shall enjoy a right of priority for a period of twelve months in order to file in the other States Parties. This time period shall be calculated from the date the first application was filed. The period shall not include the day the application was filed. 

21. The right of the breeder is independent of the measures adopted by a Member to regulate in its territory, the production, control, and marketing of the materials of the plant variety, and the import and export of such material. In any event, such measures shall not prevent the enforcement of the provisions of this Agreement.]

[ Article XX. New Plant Varieties

Article XX.

Each Party shall recognize and guarantee the right known as “breeders’ rights,” through a special registration system, in order to protect the rights arising from the breeding of plant varieties.

Article XX.

The right granted to a breeder of a plant variety is an intellectual property right that confers on its holder an exclusive right, under which the breeder’s authorization is required for certain acts involving the exploitation of the protected variety. 

Article XX.

Breeders’ rights shall be marketable, transferable and inheritable. The owner of the right may grant licensing authorities to third parties for the use of the protected varieties. 

Article XX.

Breeders’ rights shall extend to all plant genera and species, and shall apply, in general, to whole plants, including any type of flower, fruit or seed, and any other part thereof that can be used as material for reproduction or propagation. Breeders’ rights shall also be granted when the variety is new, distinct, uniform and stable.

Article XX

The right granted to the breeder shall be for 20 years from the date on which such protection was granted. For vines, forest trees, fruit trees and ornamental trees, including, in each case, their root-stock trees, protection shall be for 25 years. Once the period of protection has expired, the varieties shall be considered to have fallen into the public domain. ]

[ Plant Varieties

Article XX

The parties shall recognize and guarantee protection of the rights of breeders of new plant varieties.

The parties shall encourage research activities and technology transfer related to the obtaining of new plant varieties.

Article XX

The scope of application of this agreement shall cover any botanical genus or species, provided that their cultivation, possession or use are not prohibited for reasons of human, animal or plant health.

Article XX

For purposes of the present Agreement, the following definitions shall apply:

LIVE SAMPLE: the sample of the variety provided by the applicant a plant breeder certificate, which will be used to carry out tests of novelty, distinctiveness, uniformity and stability.

VARIETY: set of cultivated botanical items that are distinguished by certain morphological, physiological, cytological or chemical characteristics that can be perpetuated by reproduction, multiplication or propagation.

ESSENTIALLY DERIVED VARIETY: a variety shall be deemed to be essentially derived from an initial variety when it is predominantly derived from the initial variety, or from a variety that is itself predominantly derived from the initial variety, while retaining the expression of the essential characteristics that result from the genotype or combination of genotypes of the initial variety, but which is still is clearly distinguishable from the initial variety, conforming to the initial variety in the expression of the essential characteristics that result from the genotype or combination of genotypes of the initial variety, except for the differences which result from the act of derivation.

MATERIAL: material deriving from plant reproduction or multiplication in any form; harvested product, including whole plants and parts thereof; and any product made indirectly from the proceeds of the harvest.

Article XX

Parties shall grant breeders certificates to the creator of a plant variety, provided it is new, uniform, distinct and stable, and that it has been given a denomination which will be its generic designation.
For purposes of this Agreement, “creation” shall mean the breeding of a new variety by the application of scientific knowledge to an inheritable plant improvement.

Article XX

A variety shall be deemed to be new, or novel, if the material of reproduction or multiplication, or harvested product, has not been sold or otherwise disposed of to third parties, by or with the consent of the breeder or his assignee, for the purpose of commercially exploiting the variety.

Novelty shall be deemed to have been lost when:


a) Exploitation has begun at least one year before the date of filing the application for a breeder’s certificate, or validly claimed priority date, if sale or disposal took place within the territory of any Party; 

b) Exploitation has begun at least four years before, or in the case of trees or vines, earlier than six years before the date of filing the application for a breeders certificate, or validly claimed priority date, if sale or disposal took place in the territory other than that of Party.
Article XX

Novelty shall not be deemed to have been lost by the sale or disposal to third parties, among other things, when such acts are:

a) the result of an abuse which injures the interest of the breeder or his assignee;

b) part of an agreement to transfer the right on the variety, provided this has not been physically transferred to a third party;

c) part of an agreement under which a third party increases, on behalf of the breeder, stocks of the material of reproduction or multiplication;

d) part of an agreement under which a third party undertakes field or laboratory testing, or small-scale processing tests in order to evaluate the variety; or when

e) relate to harvested material obtained as a byproduct or surplus of the variety or from the activities mentioned in subparagraphs (c) and (d) of this article; or,

f) carried out by any other unlawful means.
Article XX

The variety shall be deemed to be distinct if it is clearly distinguishable from any other variety whose existence is a matter of common knowledge at the time of the filing of the application, or validly claimed priority date.
In particular, the filing of an application for the granting of a breeder’s certificate or for the entering of another variety in an official register of varieties, in any country, shall be deemed to render that other variety a matter of common knowledge from the date of the application, provided that the application leads to the granting of a breeder’s right or to the entering of the said other variety in the official register of varieties, as the case may be.

A variety shall be deemed to be uniform if, subject to the variation that may be expected from the particular features of its reproduction, multiplication or propagation, it is sufficiently uniform in its relevant characteristics.

The variety shall be deemed to be stable if its essential characteristics remain unchanged from generation to generation, and at the end of each particular cycle of reproduction, multiplication or propagation. 

Article XX

Each Party shall ensure that no rights pertaining to the designation registered as the denomination of the variety shall hamper the free use of the denomination in connection with the variety, even after expiration of the breeder’s certificate.

Article XX

Breeder’s certificates shall be granted for a period of between 20 and 25 years in the case of vines, forest trees, and fruit trees including grafts, and between 15 and 20 years for other species, counted from the grant date, as determined by the competent national authority.

Article XX

The holder of the rights on a registered variety shall be obliged to maintain it and replace it, as appropriate, throughout the period for which the breeder’s certificate is valid.

Article XX

The granting of the breeder’s certificate shall confer on its holder the right to prevent third parties, without his consent, from carrying out the following acts with respect to the material of reproduction, propagation or multiplication of the protected variety:

a) production, reproduction, multiplication or propagation;

b) preparation for the purposes of reproduction, multiplication or propagation;

c) offering for sale;

d) selling or any other act that implies introduction into the market for commercial purposes, of the material of reproduction, propagation or multiplication;

e) export;

f) import;

g) stocking for any of the purposes mentioned in the preceding paragraphs;

h) Commercial use of ornamental plants, or parts thereof, as multiplication material for the purpose of producing ornamental or fruit bearing plants or parts thereof, or cut flowers;

i) the acts referred to in the previous paragraphs in respect of harvested material, including entire plants and parts thereof, obtained through the unauthorized use of material of reproduction or multiplication of the protected variety shall require authorization from the breeder, unless the breeder has had reasonable opportunity to exercise his right in relation to the said material of reproduction or multiplication.

The breeder’s certificate shall also confer on its holder the rights established in the preceding paragraphs with respect to varieties that are not clearly distinguished from the protected variety, as defined in Article XX of the present Agreement, and with regard to varieties whose production would require repeated use of the protected variety.

The competent national authority may confer on the right holder, the right to prevent third parties from performing, without his consent, the acts indicated in the previous paragraphs, with respect to varieties that are essentially derived from the protected variety, unless this itself is an essentially derived variety.

Article XX

A breeder’s right shall not confer on its holder the right to prevent third parties from using the protected variety when this is done:

a) privately, for non-commercial purposes;

b) for experimental purposes; and

c) for the purpose of breeding and exploiting a new variety, except in the case of a variety essentially derived from a protected variety. Any such new variety may be registered in the name of its breeder.
Article XX

A breeder’s right shall not been infringed by a person who stocks and plants for their own use, or for sale as raw material or food, the product obtained from growing the protected variety. Commercial use of the material of multiplication, reproduction or propagation, including whole plants and parts thereof, of fruit bearing, ornamental and forest species, is excluded from this article.

Article XX

A breeder’s right may not be exercised in respect of acts indicated in Article XX of the present Agreement, when the material of the protected variety has been sold or otherwise marketed by or with the consent of the holder of the right, except where such acts imply:

a) a new reproduction, multiplication or propagation of the protected variety, subject to the restriction established in Article XX of the present Agreement;

b) export of the material of the protected variety, such as to permit its reproduction, to a country that does not provide protection to varieties of the plant species to which the exported variety belongs, except where such material is destined for human, animal or industrial consumption.
Article XX

Where necessary, the Parties may adopt measures in their territory to regulate or control the production, commercialization, import or export of the material of reproduction or multiplication of the variety, provided such measures do not imply non-recognition of any breeder’s rights recognized by the present Agreement, nor hinder the exercise thereof.

Article XX

The holder of a breeder’s certificate may grant licenses to exploit the variety.

Article XX

In order to ensure adequate exploitation of the protected variety, in exceptional cases of national security or public interest, Parties may declare it to be freely available, subject to equitable payment being made to the breeder.

Parties shall determine the amount of any such payment, having heard arguments from the interested parties and expert opinion, based on the extent of the exploitation of the licensed variety. ]


11) UNDISCLOSED INFORMATION

[Article XX. Trade secrets

1. In the course of ensuring effective protection against unfair competition as provided in Article 10bis of the Paris Convention (1967), Members shall protect undisclosed information in accordance with paragraph 2 and data submitted to governments or governmental agencies in accordance with paragraph 3.

2. Natural and legal persons shall have the possibility of preventing information lawfully within their control from being disclosed to, acquired by, or used by others without their consent in a manner contrary to honest commercial practices so long as such information:

a) is secret in the sense that it is not, as a body or in the precise configuration and assembly of its components, generally known among or readily accessible to persons within the circles that normally deal with the kind of information in question; 

b) has commercial value because it is secret; and 

c) has been subject to reasonable steps under the circumstances, by the person lawfully in control of the information, to keep it secret.
3. Members, when requiring, as a condition of approving the marketing of pharmaceutical or of agricultural chemical products which utilize new chemical entities, the submission of undisclosed test or other data, the origination of which involves a considerable effort, shall protect such data against unfair commercial use. In addition, Members shall protect such data against disclosure, except where necessary to protect the public, or unless steps are taken to ensure that the data are protected against unfair commercial use.]

Continuation: [Article XX. Protection of undisclosed information

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