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EU4Digital: supporting digital economyand society in the Eastern Partnership

Intellectual property rightsmanagement for digitalinnovations: action plan for policyrecommendations: Armenia

June 2020

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BackgroundThe EU4Digital Facility was launched by the European Commission in January2019. It aims to extend the benefits of the European Union’s Digital Single Marketto the Eastern partner countries: Armenia, Azerbaijan, Belarus, Georgia, Moldovaand Ukraine. The EU4Digital Facility works in six digital thematic areas, includingICT innovation stream.In 2019-early 2020, the ICT Innovation stream focused on the identification andsharing of best policies and practices of policy implementation at the national andregional level in ICT innovation field. Each Eastern partner country selected onepolicy area for EU4Digital Facility to focus on.Five policy areas have been selected by partner countries:

1. Intellectual property rights management for digital innovations(Armenia);

2. New organisational forms for supporting ICT Innovation (Azerbaijan);3. Digital innovation SMEs access to finance (Georgia, Ukraine);4. ICT innovation ecosystems for start-ups and scale-ups (Moldova);5. Digitising industry (digital transformation of SMEs in traditional sectors)

(Belarus).

For each of these areas, the Facility studied the best EU practices, undertook thegap analysis in each country and developed recommendations that identifyspecific EU tools, platforms, practices that can be mastered by Eastern partnercountry stakeholders.The gap analysis and recommendations were validated with the EU4Digital ICTinnovation Expert Network of Armenia in April-May 2020.This document provides the action plan for addressing the gaps related to policyarea ‘Intellectual property rights management for digital innovations’ inArmenia. It defines four key recommendations with action steps andconsiderations for implementation or intervention.The proposed action plan can be used for the internal policy priorities and asa basis for further activities and possible independent joint projects ofstakeholders. It is nessesary to highlight that the funding for the action plansimplementation is indispensable for most of activities of this action, whilesome of activities proposed in this action plan can be covered within the currentmandate of the EU4Digital Facility (trainings, study visits, networking events,promotion activities, etc.).This document was provided for national stakeholder consultation. EU4DigitalFacility asked the stakeholders to read and share their position, comments andsuggestions during the consultation.

List of abbreviations used in the document:AIPA – Intellectual Property Agency of the Republic of ArmeniaEC – The European CommissionEU – The European UnionEAEC – The Eurasian Economic CommissionEAEU – The Eurasian Economic UnionIP – Intellectual propertyIPR – Intellectual property rights

MoE – Ministry of EconomyMHTI – Ministry of High-Tech IndustryNAS RA – National Academy of SciencesTBD – To be determinedRA/AM – Republic of ArmeniaUATE – Union of Advanced Technology EnterprisesWIPO – World Intellectual Property Organisation

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Due to specifics of intellectual property (IP) as a business asset, there are only a few regulative acts that are used as part of the IPR policy in a prescriptive mannertowards IPR distribution (mostly covering publicly co-funded R&D), while most of IPR policy tools have the objective to facilitate the capacity building ofbusinesses and organisations to effectively manage their IP assets, including provision of external specialised consultancy.Because of limited absorbtion capacity of domestic markets in Eastern partner countries, it is essential that IPR ecosystems in these countries facilitate the innovatorsto grow for international markets, where the IP protection strategy follows the study of the market (including competitors, customers, resource structure, logistics),and is developed in a conjunction with a business strategy. To be able to support innovations based on frontier digital technologies, the IPR policy includes capacitybuilding of existing organisations servicing SMEs in IPR as well as building additional actors of the ecosystem to cover the service gaps.This plan focuses on identifying practical actions from the economic perspective, that can help to strengthen the capacity of the ecosystem to supportstart-ups and SMEs with digital innovations to efficiently manage their IP assets on the international markets.

Overview of the Action Plan

Key recommendations Reference to Policyrecommendations

1. Adjust the legislative framework with definitions and clear rules facilitating R&D results creation in joint undertakings

Final goal: the clear rules of IPR allocation and transfer are established to innovation actors, incentivising collaboration and IP circulation in the economy,including IP created with public funds.

R.1.1., R.1.2.;R.2.1., R.2.2.

2. Enhance institutional capacity of AIPA, IPR consultants, technology transfer centres and other innovation ecosystem actors to provide servicesfor start-ups and SMEs on IPR-related issues

Final goal: increased capacity of AIPA, IPR consultants and other innovation ecosystem actors (technology transfer centres, techno parks, businessincubators, accelerators, competence centres, etc.) to provide the fast and qualitative consultations and support services to start-ups and SMEs.

R.3.1. - R.3.7.;R.2.2. - R.2.5.;R.5.1.; R.5.5.

3. Establish an IPR Helpdesk providing online and onsite support tailored to start-ups and SMEs

Final goal: the one stop shop is established (as a new or complementing existing services) for start-ups and SMEs to receive basic consultancy on IP assetsmanagement issues. The IPR-related services delivered by the key institutions and specialised consulting organisations are visible and accessible via onlinetool. The linkages among ecosystem actors in Armenia and internationally are strengthened.

R.4.1.; R.4.2.;R.5.2. - R.5.4.; R.5.6.R.6..1 - R.6.4.

4. Consider introducing financial instruments to support start-ups and SMEs in IPR registration, management and enforcement, as well as supportof IPR-related ecosystem services

Final goal: start-ups and SMEs can receive necessary financial incentives and support to facilitate IPR registration, management and enforcemen, includingpatenting abroad and consultations on IPR and development of IPR strategy.

R.7.1. - R.7.3.

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Detailed Action Plan

Recommendation / Action Potential activityowners / leads

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Status SpecificationLink toPolicyREC

Comments andsuggestions2020-

20212022-2025

1. Adjust the legislative framework with definitions and clear rules facilitating R&D results creation in joint undertakingsFinal goal: the clear rules of IPR allocation and transfer are established to innovation actors, incentivising collaboration and IP circulation in the economy, including IP created withpublic funds.

1.1.Update the legislationwith the definitions ofR&D relatedagreements and theprinciples of concludingR&D and technologytransfer agreements

NAS RA;MoE TBD X Not

started

Suggested objects:Research and development (R&D) agreement,technology transfer agreement and other relateddefinitionsNote:The correct legal translation of relevant EUdirectives and related acts, with definitions andterms needs to be performed, being interpretedaccording to the EU framework legislation logicsRelevant EU best practice:Commission Regulation (EU) No 1217/2010

R.1.1.

1.2.Consider extendingthe antimonopolisticexemptions tohorizontal R&D andtechnology transferagreements withspecial account ofpublic safeguards

MoE TBD X Notstarted

Relevant EU best practice:Commission Regulation (EU) No 316/2014Note:The possible contradiction of potential introductionof a softer regulation by the RA legislation than theprohibitions envisaged by the EAEU Treaty(including Annex 19 to the Treaty) needs to beinvestigated by direct dialogue with relatedauthorities, and official discussions of this issue atthe EAEC as for possible regulatory changes forR&D and technology transfer agreements withinEAEU might be launched.

R.1.2.

1.3.Consider applying therules and scenariosof IPR allocation incase of publicly (co-)funded projects

NAS RA;MoE TBD X X Not

started

Specific cases: joint R&D undertakings; co-financing within the state aid for R&D and

innovations.Possible steps:

R.2.1.;R.2.2.

UATE: For jointand co-fundedprojects withpublicity, theappropriateagreements,contracts

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Recommendation / Action Potential activityowners / leads

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20212022-2025

1. analyse the national EU member statespractices of governing R&D results and IPRresulting from publicly (co-) funded projects;

2. perform an economic analysis of the mostappropriate framework to be potentiallyintroduced in Armenia with account of itsspecific economic structure and with a goal tosupport technological progress and innovationdiffusion.

Relevant EU best practice:Communication from the Commission COM2014/C 198/01 as well as IPR rules for the FP7and Horizon 2020 projects.

examples, andprocedures’descriptions mustbe published inofficial electronicplatforms.

2. Enhance institutional capacity of AIPA, IPR consultants, technology transfer centres and other innovation ecosystem actors to provide services for start-ups andSMEs on IPR-related issues

Final goal: increased capacity of AIPA, IPR consultants and other innovation ecosystem actors (technology transfer centres, techno parks, business incubators, accelerators,competence centres, etc.) to provide the fast and qualitative consultations and support services to start-ups and SMEs.

2.1.Develop digital toolsand introduce trainingprogramme for AIPA

AIPA TBD X X Inprogress

Suggested forms of capacity building: extend the available online application

processing tools (aipa.am) into a robust onlinetool for handling the full application process forIPR and other relevant processes );

consider expanding the AIPA capacities, whichwill allow “permitting AIPA to have independenthiring and employment decision-makingcapacity, including hiring specialists and hiringindependent contractors” (in line with the ABArecommendations);

provide targeted trainings for AIPA staff andexternal consultants in patent substantiveexamination, challenging and enforcing patentand other IP rights, including capacity buildingof judges;

practical knowledge transfer of the EUexperience to AIPA and related regulators ofbuilding the innovation ecosystem in thecollaboration of public and private

R.3.1.;R.3.7.;R.5.5.

AIPA: Currentlythe establishmentof programme oftrainings forjudges is underdiscussion, whichwill be alsoincluded in theIPR new strategyof the Ministry ofEconomy of RAthat is planned tobe drafted in thenear future.

UATE: The digitaltools must bedeveloped by theArmenian ICTcompanies. It is

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Recommendation / Action Potential activityowners / leads

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20212022-2025

stakeholders around IPR by study visits andjoint projects; implementation in Armenia;

develop participation in the internationalworking groups specialised in issues of IPR inthe digital economy (examples: AI initiatives inIP offices; IPR Experts Group at APEC;ALLEA Permanent Working Group on IPR) .

Underrepresented topics:IP audit; IP strategy and IPR issues emergingaround publicly funded R&D.

suggested toorganise trainingsnot only for AIPA,but also for otheractors and serviceproviders, likestudents ofjuridical facultiesspecialising in IP.

2.2.Introduce theinternational trainingprogramme for theIPR consultants

NAS RA IPRconsultants X Not

started

Target groups for the trainings:IPR Helpdesk and innovation infrastructureorganisations and ecosystem actors (technologytransfer centres, techno parks, businessincubators, accelerators, etc.) that help bringinginnovations to marketExamples of the trainings:WIPO eLearning center; WIPO Academy.

R.3.2.;R.3.7.

UATE: Thecorrectidentification ofvarious actors andconsultants is veryimportant for theeffectiveimplementation ofthis point.

2.3.Introduce newservices of innovationinfrastructureorganisations andecosystem actorsthrough targetedcollaboration with theEU counterparts andtransfer of bestpractices

NAS RA;AIPA

TBD X Notstarted

Targeted organisations:Innovation infrastructure organisations andecosystem actors (technology transfer centres,techno parks, business incubators, accelerators,etc.); patent attorneys and patent agentsRelevant EU practices: PRO INNO list of services including

organisations from 33 countries; Enterprise Europe Network; Protection against cybersquatting and

counterfeit trade (i.a. preventive system foravoiding trade mark infringement by domainname registrants (TMCH) and disputeresolution procedures (UDRP, URS, PDDRP)to assist SMEs in using Internet as amarketing channel.

Examples of networking opportunities: IPR Helpdesk;

R.3.3. -R.3.7.;R.5.1.;R.5.5.

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Recommendation / Action Potential activityowners / leads

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20212022-2025

Registration as a EEN local Network contactpoint and at the European IP Helpdesk’sSignposting Directory.

2.4.Establish thetechnology transfercentres and equipthem withcompetencies andtools related tocommercialisation ofR&D results vialicensing and creationof spin-off companies

NAS RA;MHTI;Universities;R&Dorganisations

ArmenianEngineeringAssociation

X X Notstarted

Note:Estabishment of technology transfer centres underthe universities and R&D organisations requiresefforts beyond the scope of current topic. IPRmanagement related activities within the currentaction plan includes: analyse the EU best practices and consider

application in Armenia as for the IPR-relatedpractices of technology transfer centres;

elaborate the sample Code of Practice andsample Agreement for universities and publicR&D organisations on IPR distribution;

organise the IPR-related awareness-raising,study visits and training of staff at theuniversities and public research organisationsfor the technology transfer centres.

EU best practices: Recommendation2008/416/EC; IP Booster

R.2.2. -R.2.5.

UATE: Theexperiencedsectorial businessassociations ofArmenia musthave the right tocreate the transfercentres after theappropriateaccreditation bythe Governmentstructures and incooperation withthe EU structures.

3. Establish an IPR Helpdesk providing online and onsite support tailored to start-ups and SMEsFinal goal: the one stop shop is established (as a new or complementing existing services) for start-ups and SMEs to receive basic consultancy on IP assets management issues.The IPR-related services delivered by the key institutions and specialised consulting organisations are visible and accessible via online tool. The linkages among ecosystem actorsin Armenia and internationally are strengthened.

3.1. Establish the centre‘IP for SMEs’, servingas an IPR Helpdeskfor start-ups andSMEs

NAS RA;MHTI

AIPA;Advisoryplatformadjacent tothe MHTI’ArmenianEngineeringAssociation;UATE

X X Notstarted

Possible steps:1. determine the organisational, financial and

technical model for the IPR Helpdesk asactivity of an existing or new organisation;

2. assign the staff;3. develop the technical specification for online

toolkit (Action 3.2.).

Examples of services: Consultations of start-ups and SMEs,

including:

R.4.1.

Support is neededforimplementation.

UATE: This pointcan beimplemented bythe experiencedsectorial businessassociations ofArmenia.

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Recommendation / Action Potential activityowners / leads

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20212022-2025

o Free awareness-raising and first-levelconsultations on: registering formal IPRs (such as

patents, trademarks or design rights); managing IP as a business asset; dealing with IPR infringements.

o The advanced consultations (consideringthe specifics of business cases) on a paidbasis.

o Providing expertise and (or) elegibilityservices on state support related to IPRfor SMEs (operator of state supportrelated to IPR for SMEs related to IPR).

Notes: Institutional setting – such centre(s) might be

established under AIPA or in cooperation withexisting competence centres (including lawcompanies), as a public agency or as an NGOuniting private consulting companies, and beopen to all SMEs.

Deployment of work:o Staff the centre with trained experts (see

Recommendation 2);o A mentorship of European IPR Helpdesk,

IP Booster and PROINNO organisationsmight be sought.

3.2. Develop andintroduce the onlinetoolkit for SMEs

TBD TBD X Notstarted

Suggested components of the modular-architecture toolkit: Awareness raising toolkit for SMEs:

o description of the business importance ofIPR, particular knowledge domains (allthose covered by WIPO) and instructionsfor SMEs on the steps;

o description of the regulatory frameworkand links to relevant laws;

R.4.2.;R.5.2.-R.5.4.;R.5.6.

Support is neededforimplementation.

UATE: It issuggested todevelop theexisting aipa.amweb-page,

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o model confidentiality agreement and otherframework agreements with employeesand economic counterparts;

o introduction of the main principles of IPprotection and management;

o references to training opportunities(national and international).

o example - ip4inno. Mapping of the specialised consulting and

support services for start-ups and SMEs:o a searchable online database of IP

attorneys’ specialisation andorganisations delivering support andconsulting on the IPR assets protectionand management;

o combining the database with an “SMEjourney” functionality advising theorganisation with the services relevant tothe stage of development and challengesof the business (online request for servicedelivery);

o consider the realisation of such mappingas a regional (EaP or other) platform.

o consider introducing a voluntary ‘marketaccreditation/certification’ and maintaininga database of trusted consultants in alllifecycle stages of IP and related rightsmanagement.

Example - European IP Helpdesk’sSignposting Directory.

including the moreuser friendlysystem ofelectronicpayments andregistrationprocedure usingthe EU bestpractices.

3.3. Introduce trainingprogrammes forstart-ups and SMEson the IP relatedissues

NAS RA TBD X Notstarted

Possible steps:1. develop training courses and webinars in

Armeninian (examples: WIPO Academy; IP forBusiness Series for SMEs);

2. negotiate partnership and direct access tomaterials via WIPO e-Learning center;

R.6.1.-R.6.4.

Support is neededforimplementation.

UATE: This pointcan be

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Recommendation / Action Potential activityowners / leads

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3. translate materials into Armenian andnegotiate hosting of them;

4. promote the usage of available trainingcourses and webinars among start-ups andSMEs via AIPA, innovation infrastructureorganisations, business associations,chambers of commerce.

implemented bythe sectorialbusinessassociation ofArmenia withgrant-supportedfinancing.

4. Consider introducing financial instruments to support start-ups and SMEs in IPR registration, management and enforcement, as well as support of IPR-relatedecosystem services

Final goal: start-ups and SMEs can receive necessary financial incentives and support to facilitate IPR registration, management and enforcemen, including patenting abroad andconsultations on IPR and development of IPR strategy

4.1. Localise therecommendations inother relevant ICTInnovationintervention areas(developed for otherEastern partnercountries byEU4Digital Facility) forArmenia

NAS RA TBD X Notstarted

Notes: Specific topics of interest are ‘Digital

innovation SMEs’ access to finance’ and ‘ICTinnovation ecosystems for start-ups and scale-ups’.

The main output of these recommendationsshould be the proposed financial frameworkfor the national innovation ecosystemdevelopment (including tax reliefs, grants,vouchers, loans, subsidies for SMEs andframework to support IPR-related ecosystemservices), to be used as a basis whenconsidering the introduction of specificfinancial tools for IPR ecosystem.

Development and implementation of thefinancial framework will benefit from expertiseand advice from experienced internationalexperts, including diaspora (i.e. Armenian BarAssociation) and its networks.

The localisation must be done taking intoconsideration the legislation of RA. In case ofsome missing points in the RA legislation theappropriate normative acts must bedeveloped.

R.7.1.

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Recommendation / Action Potential activityowners / leads

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4.2. Consider introducingfinancial supportmechanisms forstart-ups and SMEsfor IPR patenting andadvisory services

NAS RA TBD X Notstarted

Examples of instruments:1. tax benefits for IPR-protection for start-ups

and SMEs (OECD, 2006); Patent boxes,2017);

2. co-investments scheme for patenting abroadfor start-ups and SMEs;

3. targeted innovation vouchers for advancedconsultations on IPR issues to be provided tostart-ups and innovative SMEs by both publicand private organisations, including accreditedpatent attorneys, law firms and valuation firms.Example: Business Finland and Vinnova(possible mentoring EU organisation).

Notes: TAIEX and TWINNING are the EU support

tools that could be supportive in transfer ofparticular EU tax benefits scheme in theEastern partner countries by EU supervisionduring policy elaboration.

The exact suggestion of a tax benefit rate andmodel should be done after in-depth review ofthe options of organisation in other countriesand economic assessment of the efficientmodel in Armenia.

The advisory council of the investment fundmight be sought from the EU/internationalbusiness angel/patent attorneys/valuationexpert communities.

R.7.2.-R.7.3.