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TRIPS AGREEMENT

  • The TRIPS Agreement is the most comprehensive multilateral agreement on intellectual property rights (IPRs). 
  • It was negotiated during the Uruguay Round (1986–1994) of the General Agreement on Tariffs and Trade (GATT) and became a core part of the World Trade Organization (WTO) framework.
    • Came into force: 1 January 1995
    • Part of: The Marrakesh Agreement, which established the WTO
    • Binding on all WTO members

Objectives of TRIPS:

  • Standardize IPR rules across all WTO members
  • Promote innovation, creativity, and transfer of technology
  • Provide adequate protection of intellectual property
  • Ensure that IPR enforcement does not hinder international trade
  • Allow flexibilities for public interest, especially in health and food security

What Are Intellectual Property Rights (IPRs)?

  • IPRs are legal rights granted to inventors, authors, and creators to protect their creations. 
  • These rights give the creator exclusive control over the use of their work for a specified period.

Types of IPRs Covered Under TRIPS:

Type

Description

Copyrights

Protection of original literary, musical, and artistic works

Trademarks

Logos, signs, or symbols used to distinguish goods/services

Patents

Exclusive rights granted for inventions (products or processes)

Geographical Indications (GIs)

Names identifying goods originating from a specific region (e.g., Darjeeling Tea)

Industrial Designs

Aesthetic aspects or appearance of a product

Trade Secrets

Confidential business information that provides a competitive edge

Layout Designs of Integrated Circuits

Protection for the layout design of chips and semiconductors

Key Provisions of the TRIPS Agreement

Minimum Standards of Protection:

  • Each member must provide minimum levels of protection for each category of IPRs.
  • Based on pre-existing conventions: Paris Convention (for Industrial Property) and Berne Convention (for Literary and Artistic Works).

Enforcement Mechanism:

  • Members must establish civil, criminal, and border procedures for effective enforcement of IPRs.

Dispute Resolution:

  • Disputes under TRIPS are resolved via the WTO's Dispute Settlement Body (DSB).

Council for TRIPS:

  • A forum within WTO where members discuss implementation, review, and enforcement of TRIPS provisions.

Compulsory Licensing (A Major Flexibility)

  • Under Article 31 of TRIPS, countries can issue a compulsory license, which allows third parties to produce a patented product or process without the consent of the patent owner under specific conditions:
  • Conditions:
    • National emergency or extreme urgency
    • Public health crisis
    • Anti-competitive practices
    • India issued a compulsory license for Nexavar (cancer drug) in 2012, making it 97% cheaper.

India and the TRIPS Agreement

  • India joined WTO in 1995 and became bound by the TRIPS Agreement.
  • To comply:
    • The Indian Patents Act, 1970 was amended in 1999, 2002, and 2005.
    • The 2005 amendment was crucial: it introduced product patents in pharmaceuticals, food, and chemicals.

Doha Declaration on TRIPS and Public Health (2001)

This declaration clarified that:

  • TRIPS should not prevent members from taking measures to protect public health.
  • Members have the right to:
    • Use compulsory licenses
    • Import/export generic medicines
    • Set their own rules for exhaustion of rights
  • This was especially crucial for developing and least-developed countries, allowing them to combat HIV/AIDS, tuberculosis, and malaria using generic drugs.

Criticisms of TRIPS:

Criticism

Explanation

Disadvantage to Poor Countries

High patent standards can make life-saving drugs unaffordable.

Monopolistic Power

Multinational corporations get exclusive control, limiting competition.

Impact on Farmers

Patent protection on seeds can hurt traditional agricultural practices.

Weak Technology Transfer

Developing nations don't always benefit from promised tech transfers.

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