TRIPS Agreement
Agreement on Trade-Related Aspects of Intellectual Property Rights | |
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![]() WTO members (where the TRIPS agreement applies) Parties to the Agreement where also the membership of the European Union applies Observers to the WTO | |
Type | Annex to the Agreement establishing the World Trade Organization |
Effective | 1 January 1995[1] |
Parties | 164 (All WTO members)[2] |
Languages | English, French and Spanish |
Full text | |
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The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) is an international legal agreement between all the member nations of the World Trade Organization (WTO). It sets down minimum standards for the regulation by national governments of many forms of intellectual property (IP) as applied to nationals of other WTO member nations.[3] TRIPS was negotiated at the end of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) between 1989 and 1990[4] and is administered by the WTO.
The TRIPS agreement introduced intellectual property law into the multilateral trading system for the first time and remains the most comprehensive multilateral agreement on intellectual property to date. In 2001, developing countries, concerned that developed countries were insisting on an overly narrow reading of TRIPS, initiated a round of talks that resulted in the Doha Declaration. The Doha declaration is a WTO statement that clarifies the scope of TRIPS, stating for example that TRIPS can and should be interpreted in light of the goal "to promote access to medicines for all."
Specifically, TRIPS requires WTO members to provide copyright rights, covering authors and other copyright holders, as well as holders of related rights, namely performers, sound recording producers and broadcasting organisations; geographical indications; industrial designs; integrated circuit layout-designs; patents; new plant varieties; trademarks; trade names and undisclosed or confidential information. TRIPS also specifies enforcement procedures, remedies, and dispute resolution procedures. Protection and enforcement of all intellectual property rights shall meet the objectives to contribute to the promotion of technological innovation and to the transfer and dissemination of technology, to the mutual advantage of producers and users of technological knowledge and in a manner conducive to social and economic welfare, and to a balance of rights and obligations.
Background and history
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TRIPS was negotiated during the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) in 1986–1994. Its inclusion was the culmination of a program of intense lobbying by the United States, supported by the European Union, Japan and other developed nations. Campaigns of unilateral economic encouragement under the Generalized System of Preferences and coercion under Section 301 of the Trade Act played an important role in defeating competing policy positions that were favored by developing countries like Brazil, but also including Thailand, India and Caribbean Basin states. In turn, the United States strategy of linking trade policy to intellectual property standards can be traced back to the entrepreneurship of senior management at Pfizer in the early 1980s, who mobilized corporations in the United States and made maximizing intellectual property privileges the number one priority of trade policy in the United States (Braithwaite and Drahos, 2000, Chapter 7).
After the Uruguay round, the GATT became the basis for the establishment of the World Trade Organization. Because ratification of TRIPS is a compulsory requirement of World Trade Organization membership, any country seeking to obtain hard access to the numerous international markets opened by the World Trade Organization must enact the strict intellectual property laws mandated by TRIPS. For this reason, TRIPS is the most important multilateral instrument for the globalization of intellectual property laws. States like Russia and China,[5] that were very unlikely to join the Berne Convention have found the prospect of WTO membership a powerful enticement.
Furthermore, unlike other agreements on intellectual property, TRIPS has a powerful enforcement mechanism. States can be disciplined through the WTO's dispute settlement mechanism.
Requirements
TRIPS requires member states to provide strong protection for intellectual property rights. For example, under TRIPS:
- Copyright terms must extend at least 50 years, unless based on the life of the author. (Art. 12 and 14)[6]
- Copyright must be granted automatically, and not based upon any "formality", such as registrations, as specified in the Berne Convention. (Art. 9)
- Computer programs must be regarded as "literary works" under copyright law and receive the same terms of protection.
- National exceptions to copyright (such as "fair use" in the United States) are constrained by the Berne three-step test
- Patents must be granted for "inventions" in all "fields of technology" provided they meet all other patentability requirements (although exceptions for certain public interests are allowed (Art. 27.2 and 27.3)[7] and must be enforceable for at least 20 years (Art 33).
- Exceptions to exclusive rights must be limited, provided that a normal exploitation of the work (Art. 13) and normal exploitation of the patent (Art 30) is not in conflict.
- No unreasonable prejudice to the legitimate interests of the right holders of computer programs and patents is allowed.
- Legitimate interests of third parties have to be taken into account by patent rights (Art 30).
- In each state, intellectual property laws may not offer any benefits to local citizens which are not available to citizens of other TRIPS signatories under the principle of national treatment (with certain limited exceptions, Art. 3 and 5).[8] TRIPS also has a most favored nation clause.
The TRIPS Agreement incorporates by reference the provisions on copyright from the Berne Convention for the Protection of Literary and Artistic Works (Art 9), with the exception of moral rights. It also incorporated by reference the substantive provisions of the Paris Convention for the Protection of Industrial Property (Art 2.1). The TRIPS Agreement specifically mentions that software and databases are protected by copyright, subject to originality requirement (Art 10).
Article 10 of the Agreement stipulates: "1. Computer programs, whether in source or object code, shall be protected as literary works under the Berne Convention (1971). 2. Compilations of data or other material, whether in machine readable or other form, which by reason of the selection or arrangement of their contents constitute intellectual creations shall be protected as such. Such protection, which shall not extend to the data or material itself, shall be without prejudice to any copyright subsisting in the data or material itself."
Access to essential medicines
The most visible conflict has been over AIDS drugs in Africa. Despite the role that patents have played in maintaining higher drug costs for public health programs across Africa, this controversy has not led to a revision of TRIPS. Instead, an interpretive statement, the Doha Declaration, was issued in November 2001, which indicated that TRIPS should not prevent states from dealing with public health crises. After Doha, PhRMA, the United States and to a lesser extent other developed nations began working to minimize the effect of the declaration.[9]
A 2003 agreement loosened the domestic market requirement, and allows developing countries to export to other countries where there is a national health problem as long as drugs exported are not part of a commercial or industrial policy.[10] Drugs exported under such a regime may be packaged or colored differently in order to prevent them from prejudicing markets in the developed world.
In 2003, the Bush administration also changed its position, concluding that generic treatments might in fact be a component of an effective strategy to combat HIV.[11] Bush created the PEPFAR program, which received $15 billion from 2003 to 2007, and was reauthorized in 2008 for $48 billion over the next five years. Despite wavering on the issue of compulsory licensing, PEPFAR began to distribute generic drugs in 2004–5.
Software and business method patents
Another controversy has been over the TRIPS Article 27 requirements for patentability "in all fields of technology", and whether or not this necessitates the granting of software and business method patents.
According to article 10 of the TRIPS Agreement the appropriate instrument to protect software protection is copyright. The importance of this instrument has recently been confirmed by the US Supreme Court (Oracle America, Inc. v. Google, Inc.).
Implementation in developing countries
The obligations under TRIPS apply equally to all member states, however developing countries were allowed extra time to implement the applicable changes to their national laws, in two tiers of transition according to their level of development. The transition period for developing countries expired in 2005. The transition period for least developed countries to implement TRIPS was extended to 2013, and until 1 January 2016 for pharmaceutical patents, with the possibility of further extension.[12]
It has therefore been argued that the TRIPS standard of requiring all countries to create strict intellectual property systems will be detrimental to poorer countries' development.[13][14] It has been argued that it is, prima facie, in the strategic interest of most if not all underdeveloped nations to use the flexibility available in TRIPS to legislate the weakest IP laws possible.[15]
This has not happened in most cases. A 2005 report by the WHO found that many developing countries have not incorporated TRIPS flexibilities (compulsory licensing, parallel importation, limits on data protection, use of broad research and other exceptions to patentability, etc.) into their legislation to the extent authorized under Doha.[16]
This is likely caused by the lack of legal and technical expertise needed to draft legislation that implements flexibilities, which has often led to developing countries directly copying developed country IP legislation,[17][18] or relying on technical assistance from the World Intellectual Property Organization (WIPO), which, according to critics such as Cory Doctorow, encourages them to implement stronger intellectual property monopolies.
Banerjee and Nayak[19] shows that TRIPS has a positive effect on R&D expenditure of Indian pharmaceutical firms.
Post-TRIPS expansion
In addition to the baseline intellectual property standards created by the TRIPS agreement, many nations have engaged in bilateral agreements to adopt a higher standard of protection. These collection of standards, known as TRIPS+ or TRIPS-Plus, can take many forms.[20] General objectives of these agreements include:
- The creation of anti-circumvention laws to protect Digital Rights Management systems. This was achieved through the 1996 World Intellectual Property Organization Copyright Treaty (WIPO Treaty) and the WIPO Performances and Phonograms Treaty.
- More stringent restrictions on compulsory licenses for patents.
- More aggressive patent enforcement. This effort has been observed more broadly in proposals for WIPO and European Union rules on intellectual property enforcement. The 2001 EU Copyright Directive was to implement the 1996 WIPO Copyright Treaty.
- The campaign for the creation of a WIPO Broadcasting Treaty that would give broadcasters (and possibly webcasters) exclusive rights over the copies of works they have distributed.
Panel reports
According to WTO 10th Anniversary, Highlights of the first decade, Annual Report 2005 page 142,[21] in the first ten years, 25 complaints have been lodged leading to the panel reports and appellate body reports on TRIPS listed below.
The WTO website has a gateway to all TRIPS disputes (including those that did not lead to panel reports) here [1].
- 2005 Panel Report:[22]
- European Communities – Protection of Trademarks and Geographical Indications for Agricultural Products and Foodstuffs.
- 2000 Panel Report:[23] Part 2[24] and 2000 Appellate Body Report[25]
- Canada – Term of Patent Protection.
- 2000 Panel Report, Part 1:[26] and Part 2[27]
- United States – Section 110(5) of the US Copyright Act.
- 2000 Panel Report:[28]
- Canada – Patent Protection of Pharmaceutical Products.
- 2001 Panel Report:[29] and 2002 Appellate Body Report[30]
- United States – Section 211 Omnibus Appropriations Act of 1998.
- 1998 Panel Report:[31]
- India – Patent Protection for Pharmaceutical and Agricultural Chemical Products.
- 1998 Panel Report:[32]
- Indonesia – Certain Measures Affecting the Automobile Industry.
Criticism
TRIPs imposed on the entire world the dominant intellectual property regime in the United States and Europe, as it is today. I believe that the way that intellectual property regime has evolved is not good for the United States and the EU; but even more, I believe it is not in the interest of the developing countries.
Since TRIPS came into force, it has been subject to criticism from developing countries, academics, and non-governmental organizations. Though some of this criticism is against the WTO generally, many advocates of trade liberalisation also regard TRIPS as poor policy. TRIPS's wealth concentration effects (moving money from people in developing countries to copyright and patent owners in developed countries) and its imposition of artificial scarcity on the citizens of countries that would otherwise have had weaker intellectual property laws, are common bases for such criticisms. Other criticism has focused on the failure of TRIPS to accelerate investment and technology flows to low-income countries, a benefit advanced by WTO members in the lead-up to the agreement's formation. Statements by the World Bank indicate that TRIPS has not led to a demonstrable acceleration of investment to low-income countries, though it may have done so for middle-income countries.[33] Lengthy patent periods under TRIPs have been scrutinised for unduly slowing the entry of generic substitutes and competition to the market. In particular, the illegality of pre-clinical trials or submission of samples for approval until a patent expires have been blamed for driving the growth of a few multinationals, rather than developing country producers.
Daniele Archibugi and Andrea Filippetti[34] argue that the importance of TRIPS in the process of generation and diffusion of knowledge and innovation has been overestimated by its supporters. This point has been supported by United Nations findings indicating many countries with weak protection routinely benefit from strong levels of foreign direct investment (FDI).[35] Analysis of OECD countries in the 1980s and 1990s (during which the patent life of drugs was extended by 6 years) showed that while total number of products registered increased slightly, the mean innovation index remained unchanged.[36] In contrast to that, Jörg Baten, Nicola Bianchi and Petra Moser(2017)[37] find historical evidence that under certain circumstances compulsory licensing – a key mechanism to weaken intellectual property rights that is covered by Article 31 of the TRIPS – may indeed be effective in promoting invention by increasing the threat of competition in fields with low pre-existing levels of competition. They argue, however, that the benefits from weakening intellectual property rights strongly depend on whether the governments can credibly commit to using it only in exceptional cases of emergencies since firms may invest less in R&D if they expect repeated episodes of compulsory licensing.
The 2002 Doha Declaration affirmed that the TRIPS agreement should not prevent members from taking measures necessary to protect public health. Despite this recognition, less-developed countries have argued that TRIPS's flexible provisions, such as compulsory licensing, are near-on impossible to exercise. In particular, less developed countries have cited their infant domestic manufacturing and technology industries as evidence of the policy's bluntness.
TRIPS-plus conditions mandating standards beyond TRIPS have also been the subject of scrutiny.[38] These FTA agreements contain conditions that limit the ability of governments to introduce competition for generic producers. In particular, the United States has been criticised for advancing protection well beyond the standards mandated by TRIPS. The United States Free Trade Agreements with Australia, Morocco and Bahrain have extended patentability by requiring patents be available for new uses of known products.[39] The TRIPS agreement allows the grant of compulsory licenses at a nation's discretion. TRIPS-plus conditions in the United States FTA's with Australia, Jordan, Singapore and Vietnam have restricted the application of compulsory licenses to emergency situations, antitrust remedies, and cases of public non-commercial use.[39]
See also
Related treaties and laws
- Anti-Counterfeiting Trade Agreement (ACTA)
- EU Directive on the enforcement of intellectual property rights (IPRED)
- Patent Law Treaty (PLT)
- Substantive Patent Law Treaty (SPLT)
- Uruguay Round Agreement Act of the United States (URAA)
Related organizations
Other
- Confusing similarity
- Geographical indication
- Intellectual property in the People's Republic of China
- Japanese Sound Recording Trade Disputes
- List of international trade topics
- List of parties to international copyright agreements
- World Trade Organization Dispute 160
References
- ^ "WTO – intellectual property – overview of TRIPS Agreement". Wto.org. Retrieved 8 March 2019.
- ^ "WTO TRIPS implementation". International Intellectual Property Alliance. Retrieved 22 May 2012.
- ^ See TRIPS Art. 1(3).
- ^ Gervais, Daniel (2012). The TRIPS Agreement: Negotiating History. London: Sweet & Maxwell. pp. Part I.
- ^ Farah, Paolo Davide; Cima, Elena (2010). China’s Participation in the World Trade Organization: Trade in Goods, Services, Intellectual Property Rights and Transparency Issues" in Aurelio Lopez-Tarruella Martinez (ed.), El comercio con China. Oportunidades empresariales, incertidumbres jurídicas, Tirant lo Blanch,. Valencia, Spain. pp. 85–121. ISBN 978-84-8456-981-7.
{{cite book}}
: CS1 maint: location missing publisher (link) - ^ "intellectual property (TRIPS) – agreement text – standards". WTO. 15 April 1994. Retrieved 16 April 2012.
- ^ World Trade Organization, "Part II — Standards concerning the availability, scope and use of Intellectual Property Rights; Sections 5 and 6", Agreement on Trade-Related Aspects of Intellectual Property Rights
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suggested) (help) - ^ Timmermann, Cristian; Henk van den Belt (2013). "Intellectual property and global health: from corporate social responsibility to the access to knowledge movement". Liverpool Law Review. 34 (1): 47–73.
- ^ World Trade Organization (1 September 2003), Implementation of paragraph 6 of the Doha Declaration on the TRIPS Agreement and public health
- ^ Jean-Frederic Morin, “The Life-Cycle of Transnational Issues: Lessons from the Access to Medicines Controversy”, Global Society 25(2) 2011: 227–247.
- ^ "WTO – intellectual property (TRIPS) – frequently-asked questions". Wto.org. Retrieved 8 March 2019.
- ^ IP Justice policy paper for the WIPO development agenda, IP Justice, archived from the original on 8 January 2013
- ^ J.-F. Morin; R. Gold (2014). "An Integrated Model of Legal Transplantation: The Diffusion of Intellectual Property Law in Developing Countries" (PDF). International Studies Quarterly. 58: 781–792. doi:10.1111/isqu.12176.
- ^ Blouin, Heymann & Drager (2007). Trade and Health. McGill-Queen's University Press. p. 33.
- ^ Musungu, Sisule F.; Oh, Cecilia (August 2005), The use of flexibilities in TRIPS by developing countries: can they promote access to medicines?, Commission on Intellectual Property Rights, Innovation and Public Health (CIPIH)
- ^ Finger, J. Michael (2000). "The WTO's special burden on less developed countries" (PDF). Cato Journal. 19 (3). Archived from the original (PDF) on 28 July 2006.
- ^ J.-F. Morin; M. Bourassa. "Pharmaceutical patent policy in developing countries: learning from the Canadian experience". Intellectual Property, Pharmaceuticals and Public Health.
- ^ Banerjee and Nayak, Effects of Trade Related Intellectual Property Rights on the R&D Expenditure of Indian Pharmaceutical Industry,2014 'Journal of Pharmaceutical Health Services Research.
- ^ Jean-Frederic Morin and Dimitri Theriault, How Trade Deals Extend the Frontiers of International Patent Law, CIGI Paper 199, 2018; "Overview of "TRIPS-Plus" Standards – Oxford Scholarship".
- ^ World Trade Organization (2005). "Annual Report 2005" (PDF).
- ^ "2005 News items – Panel reports out on geographical indications disputes". WTO. 15 March 2005. Retrieved 16 April 2012.
- ^ "CANADA – TERM OF PATENT PROTECTION : Report of the Panel" (PDF). Wto.org. Retrieved 8 March 2019.
- ^ "ATTACHMENT 1.1 : FIRST SUBMISSION OF THE UNITED STATES" (PDF). Wto.org. 18 November 1999. Retrieved 8 March 2019.
- ^ "CANADA – TERM OF PATENT PROTECTION" (PDF). Wto.org. Retrieved 8 March 2019.
- ^ "UNITED STATES – SECTION 110(5) OF THE US COPYRIGHT ACT" (PDF). Wto.org. Retrieved 8 March 2019.
- ^ "UNITED STATES – SECTION 110(5) OF US COPYRIGHT ACT : Request for the Establishment of a Panel by the European Communities and their Member States" (PDF). Wto.org. Retrieved 8 March 2019.
- ^ "WorldTradeLaw.net" (PDF). Worldtradelaw.net. Retrieved 8 March 2019.
- ^ "UNITED STATES – SECTION 211 OMNIBUS APPROPRIATIONS ACT OF 1998" (PDF). Wto.org. Retrieved 8 March 2019.
- ^ "UNITED STATES – SECTION 211 OMNIBUS APPROPRIATIONS ACT OF 1998" (PDF). Wto.org. Retrieved 8 March 2019.
- ^ "WorldTradeLaw.net" (PDF). Worldtradelaw.net. Retrieved 8 March 2019.
- ^ "WorldTradeLaw.net" (PDF). Worldtradelaw.net. Retrieved 8 March 2019.
- ^ Ping Xiong ‘Patents in TRIPS-Plus Provisions and the Approaches to Interpretation of Free Trade Agreements and TRIPS: Do They Affect Public Health?’ (2012) 46(1) Journal of World Trade 155
- ^ Archibugi, D. and Filippetti, A. (2010) 'The globalization of intellectual property rights: Four learned lessons and four thesis Archived 25 July 2011 at the Wayback Machine', Journal of Global Policy, 1: 137–49.
- ^ Collins-Chase, Charles (Spring 2008). "The Case Against TRIPS-plus protection in developing countries facing AIDs epidemics". University of Pennsylvania Journal of International Law. 29 (3). Retrieved 23 June 2015.
- ^ Patrice Troullier et al 'Drug Development for Neglected Diseases: A Deficient Market and a Public Health Policy Failure' (2002) 360 The Lancet, 2188
- ^ Baten, Jörg; Bianchi, Nicola; Moser, Petra (2017). "Compulsory licensing and innovation–Historical evidence from German patents after WWI". Journal of Development Economics. 126: 231–242. doi:10.1016/j.jdeveco.2017.01.002.
- ^ Jean-Frederic Morin, 'Tripping up TRIPs Debate: IP and Health', International Journal of Intellectual Property Management 1(1/2), 2006:37–53.
- ^ a b Richard Newfarmer, Trade, Doha, and Development (The World Bank, 1st ed, 2006) 292
Sources
- Braithwaite and Drahos, Global Business Regulation, Cambridge University Press, 2000
- Westkamp, 'TRIPS Principles, Reciprocity and the Creation of Sui-Generis-Type Intellectual Property Rights for New Forms of Technology' [2003] 6(6) The Journal of World Intellectual Property 827–859, ISSN 1422-2213
- Banerjee and Nayak, 'Effects of trade related intellectual property rights on the research and development expenditure of Indian pharmaceutical industry' [2014] 5 Journal of Pharmaceutical Health Services Research 89–94.
- Azam, M. (2016). Intellectual Property and Public Health in the Developing World. Open Book Publishers. A free textbook for download.
External links
![](http://upload.wikimedia.org/wikipedia/commons/thumb/4/4c/Wikisource-logo.svg/38px-Wikisource-logo.svg.png)
- TRIPS agreement (PDF version)
- Agreement on Trade-Related Aspects of Intellectual Property Rights (html version)
- World Trade Organization links
- Audio presentation by Professor Susan Sell, George Washington University, on intellectual property rights in the global context.
- WTO TRIPS Agreement profile on database of Market Governance Mechanisms
- Intellectual property law of the European Union
- Use dmy dates from May 2011
- Intellectual property treaties
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