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Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Could World Intellectual Property Organization be defunded?

By | November 1, 2011, 9:55am PDT

Summary: Defunding WIPO could have an impact on the technology industry in short order. It’s conceivable that any restraint on software and content piracy abroad could be lifted.

The World Intellectual Property Organization, which aims to curb piracy around the world, could be defunded quickly should the Palestinians look to join under a U.S. law from 1994.

The Christian Science Monitor noted that the United Nations Educational, Scientific and Cultural Organization decision to recognize Palestine as a state could to wreak havoc on certain groups if they follow suit. For instance, the U.S. defunded the UN culture and education agency shortly after Palestine was recognized.

Under a 1994 law, the U.S. has to cut financial ties with any UN agency that gives Palestinians full membership. The Christian Science Monitor also noted that if the Palestinians wanted to join WIPO the country would be a lock. WIPO has 184 member states.

CBS News reported:

The lopsided vote to admit Palestine as a member of UNESCO, which only the United States and 13 other countries opposed, triggered a long-standing congressional ban on U.S. funding to U.N. bodies that recognize Palestine as a state before an Israeli-Palestinian peace deal is reached. The State Department said a $60 million payment to UNESCO scheduled for November would not be made as a result, and U.S. officials warned of a “cascade” effect at other U.N. bodies that might follow UNESCO’s lead.

Now Palestine may have other priorities that rate higher than digital piracy, but you can’t rule out a U.S. move to defund it. The U.S. has been a strong supporter the WIPO as it tries to cut piracy of movies and software. WIPO broke down its funding on its Web site:

WIPO is unusual among the family of UN organizations in that it is largely self-financing. About 90 percent of the Organization’s budgeted expenditure of 618,8 million Swiss francs for the 2010-2011 biennium will come from earnings from the services which WIPO provides to users of the international registration systems (PCT, Madrid system, The Hague System etc.). The remaining 10 percent will be made up mainly of revenue from WIPO’s arbitration and mediation services and sales of publications, plus contributions from Member States. These contributions are relatively small. The five largest contributing countries each donate about one-half percent of the Organization’s budget.

WIPO extends into patent and copyright issues as well as piracy and features a bevy of intellectual property treaties.

In other words, defunding WIPO could have an impact on the technology industry in short order. It’s conceivable that any restraint on software and content piracy abroad could be lifted.

Related:

Palestine becomes member of UNESCO, US cuts funds

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Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic.

Disclosure

Larry Dignan

Larry Dignan has nothing to disclose. He doesn’t hold investments in the technology companies he covers.

Biography

Larry Dignan

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CNET News.com. Larry has covered the technology and financial services industry since 1995, publishing articles in WallStreetWeek.com, Inter@ctive Week, The New York Times, and Financial Planning magazine. He's a graduate of the Columbia School of Journalism and the University of Delaware.

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RE: Could World Intellectual Property Organization be defunded?
Andywebs 2nd Nov
Did anyone read what the WIPO wrote? The US only contributes .005 or 0.5% of the WIPO's budget. In other words, the US defunding them would have no impact.
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who needs patents anyway?
killing wipo will be a first step forward to liberate people from software tyranny.
And also to balance the budget!
Let the Palestinians in so we can stop all this silly patent nonsense.
This would be the best thing to happen out of this whole stupid debacle!!
Did anyone read what the WIPO wrote? The US only contributes .005 or 0.5% of the WIPO's budget. In other words, the US defunding them would have no impact.

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