???? Examining the Nexus of Intellectual Property and ESG ??

?? Calling all Global PI Researchers and Managers,

In an epoch where the dynamic of Technology Transfer assumes a commanding role in the global milieu, a surge of environmental, social, and governance (ESG) considerations has recently captured the attention of the international community.

???? Negotiating the equilibrium between the imperatives of technological advancement and the imperative to conserve finite natural resources, the lifeblood of industrial endeavors has metamorphosed into a compelling international mandate from an environmental perspective. ??

?? Environmental responsibility is not only germane but imperative, as industries are compelled to navigate the terrain of sustainability by ameliorating their impact on nonrenewable natural resources, curtailing pollution, and addressing climate change concerns. Simultaneously, the fabric of social responsibility has undergone augmentation, necessitating the establishment of unambiguous criteria for investors to harmonize their pursuit of business ambitions with social responsibilities toward their employees and the communities in which they operate.

Furthermore, the ascension of good governance assumes primacy, delineating frameworks and standards to guide investors in decision-making and the management of their internal and external business relations.

ESG, an acronym signifying Environmental, Social, and Governance, encapsulates a set of standards and constraints within these thematic axes. The adherence to these standards is posited to portray a company as a responsible member of both global and local communities. Recent empirical surveys have corroborated that companies conforming to ESG requirements exhibit greater potential for financial gains than their non-compliant counterparts. ????

?? As the phenomenon of Technology Transfer traverses international boundaries, a concomitant need for harmonized legal frameworks to safeguard Intellectual Property Rights (IPRs), the linchpin of technological investments, has materialized. Addressing this exigency, the TRIPS Agreement, a seminal accord within the World Trade Organization's (WTO) purview, embedded in Annex 1C of the Marrakesh Agreement signed on April 15, 1994, has institutionalized a compendium of uniform standards for the protection of IPRs. Member nations are mandated to harmonize their domestic legislation with these prescribed standards.

??The central query posed herein pertains to the correlation between ESG adherence and the valuation of IPRs. IPRs, instrumental in the Technology Transfer process, operate as tools to mitigate the moral hazard confronting investors while concurrently illuminating their exposure to markets and communities. Functioning as identifiers within the business realm, IPRs furnish end-users with a mechanism to discern the proprietors of products and services in the market. Consequently, the practices of an investor manifest in the market through their IPRs. A trademark, for instance, becomes an instrument through which investors communicate any environmental or social initiatives, thereby contributing to the enhancement of their reputation and renown. ???

The intersectionality between IPRs and ESG manifests during the administration of IPRs concerning associated practices. In essence, the methodologies and practices employed by investors in attaining and managing their IPRs are pivotal factors in gauging the extent of compliance with ESG standards.

Industries engaged in sectors with environmental ramifications are proactively addressing standards related to the sustainability of non-renewable natural resources, pollution mitigation, and climate change. This is manifested through support for innovations in green technologies and the incorporation of trademarks that advocate environmental protection.

The licensing of IPRs serves as another paradigm of the convergence between IPRs and ESG. Within the ambit of drafting franchise agreements, a prevalent form of IPRs licensing, franchisors may stipulate ESG standards for compliance by franchisees during the execution of the agreement. Examples of franchise agreements are discernible in the domains of fast-food restaurants and cosmetics. Adherence to the prescribed ESG standards during the execution of the franchise agreement by the franchisee invariably augments the value of IPRs implicated in the pertinent franchise agreement. ????

Compulsory licensing, a scenario where governmental entities permit a third party to exploit a patented invention or process under emergency circumstances, introduces a palpable overlap between IPRs and ESG. Instances such as the concession to pharmaceutical companies to produce patented medicines during pandemics underscore the intersectionality of IPRs and ESG. This entails the temporary relinquishment of exclusive exploitation rights by the IP holder in consonance with their social responsibility, thereby contravening the primary objective of IPRs - the temporally exclusive right of exploitation by the IP holder.

The imperative of protecting data and proprietary knowledge exchanged among investors in the course of business aligns with the precepts of good governance and professional standards. Ergo, adherence to good governance standards, both internally and externally, safeguards the integrity of business practices, fostering a positive image and augmenting the reputation and goodwill of an enterprise.

?? The symbiotic relationship between IPRs and ESG is discernible: heightened adherence to ESG standards correlates with an augmentation in the value of IPRs. It is incumbent upon businesses to harmonize the exploitation of IPRs with ESG standards during their operational endeavors, thereby accruing benefits to the goodwill of IPRs and concomitantly enhancing their financial value.

#IPR #ESG #TechnologyTransfer #GlobalBusiness #Innovation #wipo #IP ????