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The TRIPS Agreement

The history of international agreements

Agreements on Trade Related aspects of Intellectual Property rights (TRIPs) came into effect on January 1,1995. It was a major outcome of the Uruguay Round of multilateral trade negotiations, which led to the establishment of the World Trade Organisation (WTO). Developing country members of the WTO have had to comply with all the provisions of TRIPS since January 1, 1996. For developing countries, the transitional arrangements incorporated into TRIPS allow a gradual phasing-in a period of 5 years till January 1, 2000. Such a phasing-in period is also permitted to former centrally planned economies, which are now in the process of transition to the market economy.

Long-standing interest in trans-border coordination of legislation and enforcement of Intellectual Property Rights (IPRs), stems from the realisation that patent and copyright protection restricted within national boundaries, has little effect in preventing imitation or copying abroad, unless similar protection is offered by other countries also. Hence, all international agreements on patents, copyrights, designs and trademarks have stipulated that each country should provide at least the same level of IPR protection to non residents as to residents.
This is referred to as “National treatment”.

Objectives

Enforcement of TRIPs contributes to:

  • Promotion of technological innovation and dissemination of technology.
  • Mutual advantage of producers and users of technological knowledge.
  • Social and economic welfare.
  • Balance of rights and obligations

Principle

(1) Members can adopt measures necessary to

  • Protect public health and nutrition
  • Promote public interest in sectors of socio-economic and technological development

(2) Appropriate measures, if consistent with the provisions of this agreement, will be needed to prevent:

  • The abuse of intellectual property rights by right holders
  • The resort to practices which unreasonabley restrain trade
  • The negative effect on the international transfer of technology.

Impact of TRIPS on developing countries

The main function of the TRIPS agreement was to improve IPR enforcement in developing countries.

Problem areas

  1. Exports of pirated and counterfeit products from countries in East Asia and Latin America were one of the prime motives for formulating the TRIPS agreement. These infringing exports were mainly copyright material, in particular sound and video recordings, books and software.
  2. The misappropriation of trademarks of high-class fashion goods was the other major problem area.
  3. Patent infringements in developing countries posed a less serious problem. The local authorities have not effectively combated IPR infringements in developing countries. The intention of TRIPS was to bring the countries that were not members under the umbrella of a binding international IPR agreement, and to ensure stricter enforcement practices.

The apprehensions of developing countries about TRIPS:

  1. Stronger enforcement of IPR might leads to transfer of income from less developed countries to more affluent innovation producing nations.
  2. A stricter IPR enforcement regime might curb the flow of technological knowledge to less developed countries.


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