21. Recognises the potential role of the intellectual property and patent system in promoting innovation, transfer and dissemination of technology to the mutual advantage of stakeholders, providers, holders and users of genetic resources, their derivatives, and of associated traditional knowledge in a manner conducive to welfare and development, while emphasising the necessity of preventing the adverse effects of the IPR and patent system on indigenous peoples’ and local communities’ application of traditional knowledge, their laws, practices and knowledge system and their ability to use, develop, create and protect their knowledge in relation to genetic resources; points out that, under certain circumstances, contracts between the parties ...[+++] may be identified by indigenous peoples or local communities as a more feasible solution to share benefits and to protect their interests while preserving the environment and preventing social and economic harm, e.g. by means of safeguard clauses;

5. Recognises the potential role of the intellectual property and patent system in promoting innovation, transfer and dissemination of technology to the mutual advantage of stakeholders, providers, holders and users of genetic resources, their derivatives, and of associated traditional knowledge in a manner conducive to welfare and development, while emphasising the necessity of preventing the adverse effects of the IPR and patent system on indigenous peoples’ and local communities’ application of traditional knowledge, their laws, practices and knowledge system and their ability to use, develop, create and protect their knowledge in relation to genetic resources; reiterates that, against the background of its recent resolution on the pate ...[+++]nting of essentially biological processes, especially in the area of breeding, excessively broad patent protection can hamper innovation and progress and become detrimental to small and medium breeders by blocking access to animal and plant genetic resources; points out that, under certain circumstances, contracts between the parties may be identified by indigenous peoples or local communities as a more feasible solution to share benefits and to protect their interests while preserving the environment and preventing social and economic harm, e.g. by means of safeguard clauses;

Consequently, provision is made for incorporation in consumer contracts of a clause under which the consumer and the trader agree that any dispute is to be referred to an extrajudicial dispute resolution system accredited under a scheme approved by the Commission, provided that specific conditions ensuring that the consumer makes an informed decision to acquiesce to such a clause are satisfied.

At the earliest opportunity possible the Commission had a discussion on the issue in the Standing Committee on feedingstuffs and a vote on the safeguard clause in the Standing Veterinary Committee.

The Commission launched an investigation in January 2011 after it became aware of the agreement between Telefónica S.A. and Portugal Telecom SGPS S.A . The Commission has a copy of the agreement concluded on the occasion of the Vivo transaction and of the non-compete clause, which originally was due to run from September 2010 to the end of 2011 (see IP/11/58) .

IV. 2.4 Discrimination in favour of national firms On every occasion that it has been aware of them, the Commission has opposed the retention of clauses which discriminate against non-national or non-regional firms.