(6)(a) In any case, the Director General shall transmit to the Executive
Committee the texts of all the advice and recommendations of the Committee.
He may comment on such texts.
(b) The Executive Committee may express its views on any advice,
recommendation, or other activity of the Committee, and may invite the
Committee to study and report on questions falling within its competence. The Executive Committee may submit to the Assembly, with appropriate comments,
the advice, recommendations and report of the Committee.
(7) Until the Executive Committee has been established, references in
paragraph (6) to the Executive Committee shall be construed as references to
(8) The details of the procedure of the Committee shall be governed by the
decisions of the Assembly.
(1)(a) The Union shall have a budget.
(b) The budget of the Union shall include the income and expenses
proper to the Union and its contribution to the budget of expenses common to
the Unions administered by the Organization.
(c) Expenses not attributable exclusively to the Union but also to one or
more other Unions administered by the Organization shall be considered as
expenses common to the Unions. The share of the Union in such common
expenses shall be in proportion to the interest the Union has in them.
(2) The budget of the Union shall be established with due regard to the
requirements of coordination with the budgets of the other Unions administered
by the Organization.
(3) Subject to the provisions of paragraph (5), the budget of the Union shall
be financed from the following sources:
(i) fees and charges due for services rendered by the International
Bureau in relation to the Union;
(ii) sale of, or royalties on, the publications of the International Bureau
concerning the Union;
(iii) gifts, bequests, and subventions;
(iv) rents, interests, and other miscellaneous income.
(4) The amounts of fees and charges due to the International Bureau and the
prices of its publications shall be so fixed that they should, under normal
circumstances, be sufficient to cover all the expenses of the International
Bureau connected with the administration of this Treaty.
(5)(a) Should any financial year close with a deficit, the Contracting States
shall, subject to the provisions of subparagraphs (b) and (c), pay contributions
to cover such deficit.
(b) The amount of the contribution of each Contracting State shall be
decided by the Assembly with due regard to the number of international
applications which has emanated from each of them in the relevant year.
(c) If other means of provisionally covering any deficit or any part
thereof are secured, the Assembly may decide that such deficit be carried
forward and that the Contracting States should not be asked to pay
(d) If the financial situation of the Union so permits, the Assembly may
decide that any contributions paid under subparagraph (a) be reimbursed to the
Contracting States which have paid them.
(e) A Contracting State which has not paid, within two years of the due
date as established by the Assembly, its contribution under subparagraph (b)
may not exercise its right to vote in any of the organs of the Union. However,
any organ of the Union may allow such a State to continue to exercise its right
to vote in that organ so long as it is satisfied that the delay in payment is due to
exceptional and unavoidable circumstances.
(6) If the budget is not adopted before the beginning of a new financial
period, it shall be at the same level as the budget of the previous year, as
provided in the financial regulations.
(7)(a) The Union shall have a working capital fund which shall be
constituted by a single payment made by each Contracting State. If the fund
becomes insufficient, the Assembly shall arrange to increase it. If part of the
fund is no longer needed, it shall be reimbursed.
(b) The amount of the initial payment of each Contracting State to the
said fund or of its participation in the increase thereof shall be decided by the
Assembly on the basis of principles similar to those provided for under
(c) The terms of payment shall be fixed by the Assembly on the proposal
of the Director General and after it has heard the advice of the Coordination
Committee of the Organization.
(d) Any reimbursement shall be proportionate to the amounts paid by
each Contracting State, taking into account the dates at which they were paid.
(8)(a) In the headquarters agreement concluded with the State on the
territory of which the Organization has its headquarters, it shall be provided
that, whenever the working capital fund is insufficient, such State shall grant
advances. The amount of these advances and the conditions on which they are
granted shall be the subject of separate agreements, in each case, between such State and the Organization. As long as it remains under the obligation to grant
advances, such State shall have an ex officio seat in the Assembly and on the
(b) The State referred to in subparagraph (a) and the Organization shall
each have the right to denounce the obligation to grant advances, by written
notification. Denunciation shall take effect three years after the end of the year
in which it has been notified.
(9) The auditing of the accounts shall be effected by one or more of the
Contracting States or by external auditors, as provided in the financial
regulations. They shall be designated, with their agreement, by the Assembly.
(1) The Regulations annexed to this Treaty provide Rules:
(i) concerning matters in respect of which this Treaty expressly refers to
the Regulations or expressly provides that they are or shall be prescribed,
(ii) concerning any administrative requirements, matters, or procedures,
(iii) concerning any details useful in the implementation of the
provisions of this Treaty.
(2)(a) The Assembly may amend the Regulations.
(b) Subject to the provisions of paragraph (3), amendments shall require
three-fourths of the votes cast.
(3)(a) The Regulations specify the Rules which may be amended
(i) only by unanimous consent, or
(ii) only if none of the Contracting States whose national Office acts
as an International Searching or Preliminary Examining Authority dissents, and,
where such Authority is an intergovernmental organization, if the Contracting
State member of that organization authorized for that purpose by the other
member States within the competent body of such organization does not dissent.
(b) Exclusion, for the future, of any such Rules from the applicable
requirement shall require the fulfillment of the conditions referred to in
subparagraph (a)(i) or (a)(ii), respectively.
(c) Inclusion, for the future, of any Rule in one or the other of the
requirements referred to in subparagraph (a) shall require unanimous consent.
(4) The Regulations provide for the establishment, under the control of the
Assembly, of Administrative Instructions by the Director General.
(5) In the case of conflict between the provisions of the Treaty and those of
the Regulations, the provisions of the Treaty shall prevail.