trips agreement upsc

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WTO and India

What is trips agreement.

From UPSC perspective, the following things are important :

Prelims level: Geographical Indication, WTO, TRIPS

Mains level: India and WTO

India runs the risk of being excluded from a proposal it co-authored at the World Trade Organization (WTO) negotiations, in 2020, to “temporarily waive” intellectual property rights (IPR) held, by primarily Western countries, on vaccines, therapeutics, and diagnostics for COVID-19.

What is the case?

• India and China are two major global suppliers of medicine.
• A small group of WTO members was discussing suggestions to exclude drug manufacturers in India and China from prospective waivers to IPR obligations.
• IPR obligations are a result of the Trade-Related Intellectual Property Rights (TRIPS) which WTO members are committed to upholding.

What is the Agreement on TRIPS?

• The Agreement on TRIPS is an international legal agreement between all the member nations of the World Trade Organization (WTO).
• It establishes minimum standards for the regulation by national governments of different forms of intellectual property (IP) as applied to nationals of other WTO member nations.
• TRIPS was negotiated at the end of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) between 1989 and 1990 and is administered by the WTO.
• It 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.

Key provisions

• TRIPS requires member states to provide strong protection for intellectual property rights.
• It seeks to provide copyright rights, covering authors and other copyright holders, as well as holders of related rights, namely performers, sound recording producers, and broadcasting organizations.
• It provides for geographical indications (GI); industrial designs; integrated circuit layout designs; patents; new plant varieties; trademarks; trade names and undisclosed or confidential information.
• It also specifies enforcement procedures, remedies, and dispute resolution procedures.
• TRIPS also has a most favored nation (MFN) clause.
• The obligations of the main international agreements of the World Intellectual Property Organization (WIPO) that already existed before the WTO was created:
• Paris Convention for the Protection of Industrial Property (patents, industrial designs, etc)
• Berne Convention for the Protection of Literary and Artistic Works (copyright).
• Some areas are not covered by these agreements. In some cases, the standards of protection prescribed were thought inadequate.
• So the TRIPS Agreement adds significantly to existing international standards.

What else is covered under TRIPS Agreement?

• Copyright terms must extend at least 50 years unless based on the life of the author.
• Computer programs must be regarded as “literary works” under copyright law and receive the same terms of protection.
• Patents must be granted for “inventions” in all fields of technology and must be enforceable for at least 20 years.

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TRIPS – Full Form, Functions, Waiver, TRIPS and TRIMS

The full form of TRIPS is "Trade-Related Aspects of Intellectual Property Rights." TRIPS is a significant international agreement under the World Trade Organization (WTO), setting global standards for the protection and enforcement of intellectual property rights.

TRIPS Full Form

The full form of “TRIPS” is “Trade-Related Aspects of Intellectual Property Rights”.(TRIPS) is an international agreement that falls under the purview of the World Trade Organization (WTO). This landmark agreement was established to address the complex intersection of trade and intellectual property, aiming to create a harmonized and standardized framework for protecting various forms of intellectual property on a global scale.

What is TRIPS?

TRIPS stands for “Trade-Related Aspects of Intellectual Property Rights.” It is an international agreement that is part of the World Trade Organization (WTO) framework. TRIPS was established to establish consistent and standardized rules for intellectual property (IP) rights on a global scale, ensuring that member countries have a common framework for protecting various forms of intellectual property, including patents, copyrights, trademarks, and trade secrets.

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The TRIPS agreement aims to strike a balance between promoting innovation and ensuring that access to essential goods and services, especially in fields like healthcare, remains accessible to all. It sets minimum standards for IP protection and enforcement that member countries are required to implement within their legal systems.

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What is Intellectual Property Rights?

Intellectual property is a comprehensive term encompassing a range of intangible assets that are products of human creativity and innovation. These assets, often intangible and non-physical in nature, are granted legal protection to their creators. Intellectual property rights (IPR) confer the authority to utilize and control these creations, ensuring recognition and safeguarding against unauthorized use.

At its core, intellectual property signifies the legal entitlement granted to individuals who own or possess rights over such creations. This necessitates the protection of intellectual property by individuals, businesses, and governments. Safeguarding these rights involves a deep understanding of their nature and the privileges they bestow.

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Types Of Intellectual Property Rights

Intellectual Property Rights (IPR) encompass a diverse range of legal protections granted to creators, inventors, and innovators for their creations and inventions. The main types of intellectual property rights include:

• Copyright: Copyright protects original literary, artistic, and creative works, such as books, music, paintings, sculptures, films, and software. It grants the creator exclusive rights to reproduce, distribute, display, and adapt their work.
• Patents: Patents protect inventions and provide exclusive rights to the inventor for a specified period (usually 20 years) to make, use, and sell the invention. Patents cover processes, products, and methods that are novel, non-obvious, and have industrial applicability.
• Trademarks: Trademarks protect distinctive signs, symbols, names, and logos used to identify goods or services of a particular business. They prevent others from using similar marks that might cause confusion among consumers.
• Trade Secrets: Trade secrets protect valuable and confidential business information, such as formulas, processes, methods, customer lists, and technical know-how. Unlike other forms of IP, trade secrets are not publicly disclosed and are protected through confidentiality agreements.
• Industrial Designs: Industrial designs protect the visual ornamental aspects of products, such as their shape, color, texture, and aesthetics. They prevent unauthorized copying of the appearance of a product.
• Geographical Indications (GI): GIs protect products that have a specific geographical origin and possess qualities, reputation, or characteristics that are attributable to that origin. They prevent misrepresentation and protect traditional knowledge.
• Plant Varieties: Plant variety protection grants exclusive rights to breeders over new plant varieties they develop. This encourages innovation in agriculture and horticulture.
• Sui Generis Systems: Some countries have established unique systems to protect traditional knowledge, folklore, and genetic resources of indigenous and local communities.

Significance of TRIPS

The TRIPS Agreement serves as a pivotal cornerstone within the World Trade Organization (WTO) and the broader international trading system, with a primary emphasis on the protection of intellectual property (IP).

Situated as one of the key pillars of the World Trade Organization  alongside trading in services and commodities, the TRIPS Agreement addresses a significant void that existed prior to its inception. Before TRIPS, there existed notable disparities in the scope of IP protection and its enforcement across various sectors and countries.

As the importance of intellectual property in the realm of commerce burgeoned, these disparities evolved into contentious issues within international relations. Recognizing the indispensability of establishing a coherent and predictable regulatory framework for IP rights, the international community rallied for the creation of new trade-related regulations to govern such rights.

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The TRIPS Agreement emerged as the solution, standing as a testament to the commitment toward fostering order, consistency, and effective resolution of disputes concerning intellectual property. By setting forth comprehensive guidelines and standards for IP protection, enforcement, and dispute settlement, TRIPS ensures that creators, innovators, and rights holders are granted a cohesive and enforceable framework for their creations.

The TRIPS Agreement not only underscores the pivotal role of intellectual property in the global trading landscape but also highlights the imperative of balanced and universally accepted rules to govern it. This convergence of interests has propelled TRIPS to the forefront of international trade discussions, facilitating the evolution of a unified and equitable approach to intellectual property rights across the WTO community.

Relaxation Favoring TRIPS

“Relaxation Favoring TRIPS” refers to instances where certain flexibilities or exceptions are introduced in the implementation of the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement to address specific needs, especially in the context of public health and development. These relaxations aim to strike a balance between intellectual property protection and other crucial societal interests.

Some notable examples of relaxation measures within TRIPS include:

• Compulsory Licensing: This allows governments to grant licenses for the production of patented products or processes without the patent holder’s consent. It is often invoked to ensure access to essential medicines and promote public health, particularly during emergencies like epidemics.
• Parallel Importation: This allows the importation of patented goods from one country to another without the patent holder’s consent. It can help increase competition and lower prices for patented products, benefiting consumers.
• Bolar Exemption: This permits the use of patented inventions for research and experimentation before the patent expires. It is significant in the pharmaceutical sector for conducting clinical trials and seeking regulatory approvals.
• Non-Exclusive Licensing: Governments can promote technology transfer by granting non-exclusive licenses for certain patents, encouraging local production and innovation.
• Protection of Public Health: TRIPS acknowledges the importance of safeguarding public health. In cases of national emergencies or other circumstances, countries can take measures to protect public health and ensure access to affordable medicines.
• Exemption for Least Developed Countries (LDCs): LDCs are given an extended transition period for implementing certain TRIPS provisions, recognizing their unique developmental challenges.

Contradicting Relaxation of TRIPS

“Contradicting Relaxation of TRIPS” refers to situations where the relaxation or flexibilities provided by the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement can create tensions or conflicts between intellectual property protection and other objectives. While these relaxations are designed to address specific needs, they can sometimes contradict the original intent of IP protection or raise concerns about potential negative consequences.

For example, some instances of contradicting relaxation of TRIPS include:

• Intellectual Property Rights (IPR) Abuse: Relaxations like compulsory licensing, which allow governments to grant licenses for patented products without the patent holder’s consent, can be misused or abused for purposes other than public health emergencies, leading to potential conflicts with IP holders.
• Impact on Innovation: Overly broad relaxation measures might disincentivize innovation. If patent holders fear that their rights might be easily overridden, they might be less motivated to invest in research and development.
• Trade Disputes: Relaxations in certain countries might lead to trade disputes with countries that hold strong IP protection standards, particularly when there are disagreements about the scope and application of relaxation measures.
• Diminished Investment: If IP rights are not sufficiently protected, companies might be reluctant to invest in countries with weaker IP regulations, leading to reduced technology transfer and economic growth.
• Quality Control: Parallel importation, which allows goods to be imported without the consent of the IP holder, can raise concerns about quality control and consumer safety, as there might be no control over the origin or authenticity of the imported goods.
• Incentive for Local Production: While non-exclusive licensing and other measures might encourage local production, they could also undermine the motivation for inventors and companies to invest in research and development.
• Inequitable Access: Relaxations might not always lead to equitable access to essential goods, as local manufacturing capabilities and regulatory frameworks can vary significantly between countries.
• Long-Term Impact: Measures aimed at short-term gains, such as undermining patent protection for pharmaceuticals, might negatively affect the long-term innovation landscape in industries critical to public welfare.

Data Exclusivity and TRIPS

Data exclusivity is a concept closely related to intellectual property rights and has implications for the protection of certain types of data, particularly in the pharmaceutical and agrochemical industries. While the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement primarily focuses on patents, copyrights, trademarks, and other forms of intellectual property, it does not explicitly address data exclusivity.

Data exclusivity refers to the protection of clinical trial data or other non-publicly available data submitted by pharmaceutical or agrochemical companies to regulatory authorities for the approval of new products, such as drugs or pesticides. It prevents competitors from relying on this data to gain regulatory approval for generic versions or similar products for a specified period.

While TRIPS doesn’t directly govern data exclusivity, its principles of intellectual property protection can intersect with data exclusivity in a few ways:

• Patents and Data Exclusivity: Patents granted under TRIPS protect inventions, but they may also require the submission of data for regulatory approval. Some countries may provide additional protection through data exclusivity for a certain period, preventing generic competitors from relying on the original innovator’s data for approval.
• Pharmaceuticals and Public Health: The intersection between data exclusivity and access to medicines is a matter of concern. Striking a balance between protecting data exclusivity and ensuring timely access to affordable medicines, especially in public health emergencies, is crucial.
• TRIPS Flexibilities: Countries can use TRIPS flexibilities, such as compulsory licensing, to address situations where data exclusivity might hinder access to essential medicines. Flexibilities allow countries to navigate the fine line between intellectual property protection and public health needs.
• Trade Negotiations: Data exclusivity can be a topic in trade negotiations and discussions, especially in bilateral and regional trade agreements. Countries may debate the extent and duration of data exclusivity protection.
• Global Intellectual Property Landscape: The debate over data exclusivity reflects larger discussions about balancing IP rights with public health and access to essential goods. The global intellectual property landscape continues to evolve to address these complexities.

TRIPS Plus refers to provisions and standards that surpass the requirements laid out in the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement. While TRIPS sets the minimum global standards for intellectual property (IP) protection, some countries and international agreements go beyond these standards, introducing more extensive or stringent IP regulations. These additional measures are collectively termed “TRIPS Plus.”

TRIPS Plus provisions can encompass a range of areas, including patent duration, data exclusivity, copyright extensions, and stricter enforcement measures. They are often seen in bilateral or regional trade agreements, where countries negotiate additional IP protections to enhance their own economic interests, promote innovation, and strengthen IP enforcement. However, the introduction of TRIPS Plus measures can also raise concerns about potential negative impacts on access to essential goods, particularly in the context of public health.

The concept of TRIPS Plus underscores the dynamic nature of the global IP landscape, with countries seeking to customize their IP regimes based on their economic and developmental goals. The balance between fostering innovation and ensuring affordable access to essential goods remains a key consideration in discussions surrounding TRIPS Plus provisions.

TRIPS Agreement – Doha Declaration

The Doha Declaration on the TRIPS Agreement and Public Health, adopted at the World Trade Organization’s (WTO) Ministerial Conference in Doha, Qatar, in 2001, holds immense significance in the realm of intellectual property rights and global public health. The declaration emerged as a response to concerns about the potential adverse impact of strict intellectual property (IP) protection on access to essential medicines, particularly in developing countries.

The Doha Declaration recognized the primacy of public health over strict IP enforcement and affirmed the flexibilities inherent in the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement. The declaration clarified that TRIPS should not hinder countries’ ability to protect public health, promote access to medicines, and address public health crises.

Key elements of the Doha Declaration include:

• Flexibilities in TRIPS: The declaration affirmed the right of WTO member countries to use TRIPS flexibilities, including compulsory licensing and parallel importation, to ensure access to affordable medicines and address public health needs.
• Pharmaceutical Patents and Access to Medicines: The declaration acknowledged that WTO member countries have the flexibility to interpret and implement patent provisions in a manner that best supports public health objectives.
• Public Health Crises: The declaration recognized that countries can issue compulsory licenses and take other measures to ensure access to essential medicines during public health emergencies.
• Export of Medicines: The declaration supported the ability of least developed countries to import generic medicines produced under compulsory licenses for the purpose of addressing public health needs.
• Affordable Medicines: The declaration aimed to strike a balance between IP protection and the availability of affordable medicines, especially for countries facing health challenges like HIV/AIDS, malaria, and other epidemics.

TRIPS and TRIMS UPSC

Both TRIPS (Trade-Related Aspects of Intellectual Property Rights) and TRIMS (Trade-Related Investment Measures) are important aspects of the global trade landscape, governed by the World Trade Organization (WTO). They have different focuses but play significant roles in shaping international trade and investment policies.

1. TRIPS (Trade-Related Aspects of Intellectual Property Rights): TRIPS is an agreement under the WTO that establishes minimum standards for intellectual property protection across member countries. It covers various forms of intellectual property, including patents, copyrights, trademarks, and trade secrets. TRIPS aims to strike a balance between protecting intellectual property rights and ensuring that countries can use these rights to promote public welfare, access to medicines, and technological development.

Key Points:

• TRIPS sets the framework for IP protection and enforcement, ensuring that member countries adhere to certain standards.
• It addresses issues like patents for pharmaceuticals, access to essential medicines, and technology transfer.
• TRIPS also allows for certain flexibilities (compulsory licensing, parallel importation) to ensure access to essential goods, especially medicines, during public health emergencies.
• TRIPS is particularly relevant in discussions about innovation, access to knowledge, and the public interest.

2. TRIMS (Trade-Related Investment Measures): TRIMS is another agreement under the WTO that focuses on investment-related measures that can affect trade. It aims to promote transparency and non-discrimination in investment policies of member countries. TRIMS addresses measures that could distort trade by favoring domestic industries or creating unfair advantages for foreign investors.

• TRIMS targets investment-related measures that could impact trade and lead to protectionist practices.
• It aims to create a level playing field for foreign investors and prevent trade distortions resulting from discriminatory or restrictive investment policies.
• TRIMS promotes transparency, national treatment, and a non-discriminatory environment for investment.
• While TRIPS is centered on intellectual property, TRIMS focuses on investment practices that can affect trade flows.

TRIPS Agreement UPSC

TRIPS is not only relevant to the economy and international relations but also touches upon various aspects of public health, innovation, and the broader global trade landscape. Aspirants who thoroughly comprehend TRIPS can engage with complex issues related to intellectual property protection, access to essential goods, and the balance between trade interests and public welfare. Utilizing trusted UPSC economics books and comprehensive notes can provide a solid foundation for mastering this critical topic and effectively addressing it in the exam.

What does TRIPS cover?

Why was trips introduced, what is the role of trips in trade disputes, how does trips relate to developing countries.

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Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) – UPSC Economy Notes

The Agreement on TRIPS, a key component of the World Trade Organization (WTO), establishes legal standards for member countries to safeguard intellectual property across various domains, including copyrights, geographical indications, industrial designs, integrated circuit layout designs, patents, monopolies for new plant varieties, trademarks, and more. It also delineates procedures for dispute resolution and enforcement.

Table of Contents

TRIPS and Patents:

1. patent as an exclusionary right:.

• Definition: A patent is an exclusionary right that grants the holder the authority to prevent others from utilizing the patented inventions for a specified duration.
• Purpose: The primary objective of a patent is to incentivize innovation and invention. It serves as a reward for individuals or entities investing in research and development (R&D).

2. Knowledge Exchange and Public Domain:

• Exchange: In exchange for obtaining a patent, the inventor shares knowledge related to the patented invention for commercial use.
• Public Domain: After the patent’s expiration, the information enters the public domain, contributing to the overall pool of knowledge.

3. Incentive for Innovation:

• Role: Patents act as a significant incentive for innovation by providing inventors with exclusive rights to their creations for a specific period.
• Sustainability: The exclusivity ensures that the costs and efforts invested in R&D are sustainable, fostering continuous innovation.

4. TRIPS Impact on Patents:

• Regulatory Framework: TRIPS establishes a comprehensive regulatory framework for patents, outlining the minimum standards that member countries must adhere to.
• Global Harmonization: It contributes to global harmonization of patent protection, ensuring a level playing field for innovators and creators worldwide.

Conclusion: The TRIPS agreement, with its emphasis on patents and intellectual property protection, aims to strike a balance between promoting innovation and safeguarding the public interest. By setting international standards, TRIPS seeks to encourage creativity while ensuring fair access to knowledge and inventions.

Product and Process Patents under TRIPS (Trade-Related Aspects of Intellectual Property Rights)

Under the WTO (World Trade Organization) framework, patents can be granted for both processes and products. Here’s an overview of the key aspects related to product and process patents:

• Product Patents: Provide absolute protection for the product, covering all processes that may lead to similar products.
• Process Patents: Offer protection for a specific process or method of manufacture.
• Allows for both process and product patents.
• Requires product patents for certain sectors, including food, pharmaceuticals, and chemicals.
• Product patents are valid for 20 years.
• Developing countries, including India, transitioned to TRIPS compliance, accepting both product and process patents.
• Concessional terms, such as a grace period of 10 years, were granted for adopting product patents in specific fields like food, pharmaceuticals, and chemicals.
• The Patents (Amendment) Act of 2005 in India incorporated changes to align with TRIPS requirements.
• Safeguards were introduced, including pre-grant and post-grant challenges.
• Incremental innovations with small-scale improvements may not qualify for new patents.
• Provisions for granting compulsory licenses and allowing parallel imports to address public health crises were introduced.
• Prior to 1970, multinational corporations (MNCs) dominated the pharmaceutical market in India.
• The 1970 Patents Act in India allowed only process patents for pharmaceuticals and agrochemical products.
• This led to the growth of a robust local generic drug industry, offering affordable alternatives to patented drugs.
• India’s acceptance of TRIPS and product patents aimed at facilitating the global expansion of the Indian pharma industry.
• The Indian government anticipated benefits, including attracting foreign direct investment (FDI) and fostering research and development (R&D) in the pharma sector.
• Concerns included fears of monopoly pricing and potential price hikes due to product patents.
• However, the government retained the power to control prices of essential medicines through mechanisms like the Drug Price Control Order (DPCO).
• Debates continue on whether 20-year patents could hinder technological development in India.
• Supporters argue that TRIPS compliance modernizes laws, enables Indian pharma companies to grow globally, attracts FDI, and includes safeguards.
• Generic medicines, produced by Indian companies, offer unbranded alternatives to patented drugs.
• These generics can be granted for drugs with either process patents or expired product patents.

In summary, India’s transition to TRIPS compliance involved a balancing act between global intellectual property standards and the need to protect public health through access to affordable medicines. The changes aimed to position the Indian pharma industry competitively on the global stage.

TRIPS and Public Health Safeguards: Compulsory Licensing and Parallel Imports

While TRIPS (Trade-Related Aspects of Intellectual Property Rights) has long-term benefits for the development of new medicines, it can pose challenges to the availability of affordable medicines during public health emergencies. To address this, TRIPS includes two important safeguards, which have been incorporated into Indian law as well:

• Compulsory licensing allows a government, during a public health crisis, to request the production and sale of essential drugs in the country at concessional prices.
• If the patent holder agrees, they receive a compulsory license. If not, the government can temporarily override the patent and grant a license to another company.
• This enables the production of generic copies of patented products domestically, ensuring an adequate and affordable supply of essential drugs.
• Compensation is paid to the patent holder, and generic copies are typically more affordable than branded drugs.
• Parallel imports involve the importation of drugs from another country when the country facing a health emergency lacks the manufacturing capacity.
• In situations where the patent holder refuses to offer the drug at an affordable price, parallel imports allow the importation of the same drug from another country.

Indian Context:

• In 2012, India granted its first compulsory license to Natco Pharma for the production of the generic version of Bayer’s Nexavar, an anti-cancer drug used in treating liver and kidney cancer.
• This move was welcomed by health experts and NGOs as it prioritized health and patient access to essential medicines.
• Compulsory licensing allows India to address health emergencies by ensuring the production of generic versions of vital drugs when needed.
• The U.S. responded negatively to India’s use of compulsory licensing, placing India on the Priority Watch List in the U.S. Trade Representative’s (USTR) Special 301 Review.

U.S. Trade Representative’s Special 301 Review:

• Special 301 is a section in U.S. trade law that aims to penalize countries whose intellectual property (IP) laws are perceived to go against U.S. interests.
• India’s use of compulsory licensing, seen as a pro-health and pro-patient measure, led to its placement on the Priority Watch List in the Special 301 Review.
• This reflects the tension between IP protection and the need for affordable and accessible medicines, especially during public health crises.

In summary, compulsory licensing and parallel imports serve as critical tools to ensure access to affordable medicines in the face of public health emergencies, even if they may attract international scrutiny and trade-related consequences.

Incremental Innovations, Section 3(d), and Voluntary Licensing in India’s Patents Act

Incremental innovations and section 3(d):.

• Section 3(d) of the Indian Patents Act: This section aims to prevent evergreening of patents, a practice where a company extends the patent protection on a drug by making minor modifications without significantly enhancing therapeutic efficacy.
• The section disallows patents for existing drugs unless there is a substantial difference in properties related to therapeutic efficacy.
• A landmark ruling in 2013 by the Supreme Court rejected Novartis’ plea for a patent on its anti-cancer drug Glivec, stating that it lacked novelty and failed to meet India’s patenting standards.
• The ruling upheld India’s policy stance that incremental innovations without enhanced therapeutic efficacy would not qualify for patents.
• This ensures that pharmaceutical companies cannot extend their monopoly on a drug without bringing about substantial improvements.

Voluntary Licensing:

• Gilead Sciences engaged in licensing agreements with seven Indian generic manufacturers for its anti-Hepatitis-C drug, Sovaldi.
• The licensing agreements allow Indian companies to manufacture and sell the drug in 91 voluntary-license (VL) countries.
• Indian manufacturers can set their own prices but pay a 7% royalty rate on sales to Gilead Sciences.
• The manufacturing of active pharmaceutical ingredients (APIs) takes place in India.

Criticism and Consensus:

• Some critics argue that the licensing agreements have limitations, restricting exports to certain countries while excluding important middle-income countries.
• The consensus opinion, however, is that Gilead’s licenses represent a significant victory for public health.
• The agreements enable the production of generic versions of Sovaldi, making the drug more accessible and affordable, particularly in countries facing Hepatitis-C challenges.

In summary, Section 3(d) of the Indian Patents Act prevents the grant of patents for incremental innovations lacking enhanced therapeutic efficacy. Additionally, voluntary licensing agreements, as exemplified by Gilead Sciences, contribute to broader access to essential medicines, addressing public health concerns.

Anti-Counterfeiting Trade Agreement (ACTA) and Sui Generis System

Anti-counterfeiting trade agreement (acta):.

• Multinational Corporations (MNCs) from advanced nations disagreed with India’s patent laws that prohibited evergreening and incorporated compulsory licensing provisions.
• In response, these nations formed the Anti-Counterfeiting Trade Agreement (ACTA) in 2011.
• ACTA aimed to establish international standards for the enforcement of intellectual property rights (IPRs).
• Signatories of ACTA included the European Union (EU), Australia, Canada, Japan, South Korea, the United States, and several like-minded countries.
• Supporters argued that ACTA was necessary to combat the global trade of counterfeit goods and piracy of copyright-protected works.
• ACTA had its own definition of counterfeiting, and it labeled its IPR protection as “TRIPS Plus,” indicating standards beyond those required by the TRIPS agreement.
• ACTA countries threatened to confiscate medicines that did not adhere to its standards.
• For instance, generic medicines from India being shipped to other developing countries could face confiscation at the airports and ports of ACTA member nations.
• ACTA faced criticism for being anti-World Trade Organization (WTO), and over time, it underwent revisions, losing some of its initial strength.

Sui Generis System:

• The term “sui generis” means “of its own kind” or “unique.”
• In the context of the TRIPS agreement, it provides member countries with the option to adopt a sui generis system instead of adhering strictly to TRIPS norms.
• Member nations can choose to protect inventions either based on the TRIPS rules for patents or through another indigenous system that has traditionally been in use in the country.
• This offers flexibility in tailoring patent laws to the specific needs and traditions of each country.

In conclusion, ACTA was initiated by advanced nations to enforce stricter intellectual property rights standards globally but faced criticism and dilution over time. On the other hand, the sui generis system provides countries the flexibility to adopt patent laws that align with their unique needs and historical practices.

• What is TRIPS?

TRIPS stands for Trade-Related Aspects of Intellectual Property Rights. It’s an international agreement that came into effect in 1995 as part of the World Trade Organization (WTO) establishment. TRIPS sets minimum standards for protecting various forms of intellectual property (IP) across member countries.

• What types of IP does TRIPS cover?

TRIPS applies to seven main categories of IP:

• Geographical Indications (e.g., Champagne)
• Industrial Designs
• Layouts for Integrated Circuits
• Undisclosed Information (Trade Secrets) [Trade Related Aspects of Intellectual Property Rights (TRIPS)]
• Why was TRIPS created?

Before TRIPS, IP protection and enforcement varied widely between countries. This inconsistency caused tension in international trade. TRIPS aimed to harmonize these differences and establish a more level playing field for global commerce.

• Are there any exceptions to TRIPS obligations for developing countries?

Yes, TRIPS acknowledges the needs of developing nations. It allows them longer transition periods to implement some aspects of the agreement. Additionally, TRIPS includes provisions for compulsory licensing, which lets governments authorize local production of patented medicines under specific circumstances to ensure public health access.

• What are some criticisms of TRIPS?

Some argue that TRIPS’ strong emphasis on IP protection hinders access to affordable medicines and discourages innovation in developing countries. Additionally, critics raise concerns that TRIPS may limit traditional knowledge and biodiversity protections.

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• Post published: June 12, 2018
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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.
• TRIPS was negotiated at the end of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) in 1994 and is administered by the WTO.
• The TRIPS agreement introduced intellectual property law into the international trading system for the first time and remains the most comprehensive international 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 content producers including performers, producers of sound recordings and broadcasting organizations; geographical indications, including appellations of origin; industrial designs; integrated circuit layout-designs; patents; new plant varieties; trademarks; trade dress; 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.
• India has ratified the Trade Facilitation Agreement (TFA) of the World Trade Agreement (WTO) and the instrument of Acceptance for Trade Facilitation Agreement was handed over to WTO Director-General by India on April 22, 2016 
• India is the 76th WTO member to accept the TFA. 
• TFA sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues. 

What is TRIPS Plus?

• TRIPs Plus are higher level of protection norms demanded by the developed countries that are not prescribed by the WTO’s TRIPs regime. Although they are named as ‘TRIPS-Plus,’ they are not formally related to TRIPs. Rather, the term is used to indicate that these requirements go beyond the minimum standards imposed by TRIPs. Many developing countries who are members of FTAs are under pressure to enact these tougher conditions in their patent laws.
• The developing countries have concerns over the higher level of protection demanded by the developed world. They fear that once such levels of protection are given multilaterally, it will reduce competition and may led to price rise of medicines, affecting health security in poor countries.

What is Data Exclusivity?

• Data exclusivity is the protection of clinical test data submitted to a regulatory agency to prove safety, quality and efficacy of a new drug, and preventing the generic drug manufacturers from relying on this data in their own applications. Such a data exclusivity will stop generic drug manufactures of developing countries from using these data while applying for licenses.
• The demand for protecting exclusive data that have high commercial value is a major demand from the developed world which doesn’t usually come under TRIPs.

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The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)

About trips:.

• 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 establishes minimum standards for the regulation by national governments of different forms of intellectual property (IP) as applied to nationals of other WTO member nations.
• TRIPS was negotiated at the end of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) in 1994 and is administered by the WTO.
• 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.”
• 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.
• India has ratified the Trade Facilitation Agreement (TFA) of the World Trade Agreement (WTO) and the instrument of Acceptance for Trade Facilitation Agreement was handed over to WTO Director-General by India on April 22, 2016
• India is the 76th WTO member to accept the TFA.
• TFA sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues.
• 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. 

Post-TRIPS expansion (TRIPS-Plus)

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. 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.

Although they are named as ‘TRIPS-Plus,’ they are not formally related to TRIPs. Rather, the term is used to indicate that these requirements go beyond the minimum standards imposed by TRIPs. Many developing countries who are members of FTAs are under pressure to enact these tougher conditions in their patent laws.

The developing countries have concerns over the higher level of protection demanded by the developed world. They fear that once such levels of protection are given multilaterally, it will reduce competition and may led to price rise of medicines, affecting health security in poor countries.

The TRIPS Agreement covers five broad areas:

• how general provisions and basic principles of the multilateral trading system apply to international intellectual property
•  what the minimum standards of protection are for intellectual property rights that members should provide
•  which procedures members should provide for the enforcement of those rights in their own territories
•  how to settle disputes on intellectual property between members of the WTO
•  Special transitional arrangements for the implementation of TRIPS provisions.

TRIPS Significance

The TRIPS Agreement makes protection of intellectual property rights an integral part of the multilateral trading system, as embodied in the WTO. The agreement is often termed one of the three “pillars” of the WTO, the other two being trade in goods (the traditional domain of the GATT) and trade in services.

Before TRIPS, the extent of protection and enforcement of IP rights varied widely across nations and as intellectual property became more important in trade, these differences became a source of tension in international economic relations. Therefore, it was considered prudent to have new trade rules for IP rights in order to have more order and predictability, and also to settle disputes in an orderly manner.

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. Lengthy patent periods under TRIPs have been scrutinized 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.

TRIPS-plus conditions mandating standards beyond TRIPS have also been the subject of scrutiny. 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.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.

Copyright usually refers to the rights of authors in their literary and artistic works. In a wider sense, copyright also includes ‘related rights’: the rights of performers, producers of phonograms and broadcasting organizations.

A trademark is a sign or a combination of signs used to distinguish the goods or services of one enterprise from another.

Geographical indications

A name or indication associated with a place is sometimes used to identify a product. This “geographical indication” does not only say where the product comes from. More importantly, it identifies the product’s special characteristics, which are the result of the product’s origins.

Well-known examples include “Champagne”, “Scotch Whiskey”, “Tequila”, “Darjeeling” and “Roquefort” cheese.

Industrial designs

Industrial design is generally understood to refer to the ornamental or aesthetic aspect of an article rather than its technical features.

Under the TRIPS Agreement, original or new industrial designs must be protected for at least 10 years.

A patent is an exclusive right granted for an invention, which is a product or a process that provides, in general, a new way of doing something, or offers a new technical solution to a problem. To get a patent, technical information about the invention must be disclosed to the public in a patent application. They must be protected for at least 20 years.

Layout designs of integrated circuits

An integrated circuit is an electronic device that incorporates individual electronic components within a single ‘integrated’ platform configured to perform an electronic function.

Intellectual Property Rights

Intellectual property rights are the rights given to persons over the creations of their minds. Intellectual property rights (IPRs) are legal rights that protect these creations. In contrast to rights over tangible property, IP rights give their owners rights to exclude others from making use of their creations only for a limited period. IP rights entitle the owners to receive a royalty or any sort of financial compensation or payment when another person uses their creations

Source: TRIPS

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TRIPS Agreement and Related Issues

• It establishes minimum standards of protection and enforcement that each government has to give to the intellectual property held by nationals of fellow WTO members.

Table of Contents

TRIPS Agreement

In our last article, we have discussed the basics of intellectual property rights and the types of intellectual property rights . In this article, we will discuss TRIPS Agreement UPSC and the issues revolving around TRIPS.

What is TRIPS agreement?

• The WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) is the most comprehensive multilateral agreement on intellectual property (IP).
• The WTO TRIPS was negotiated during the 1986-94 Uruguay Round, and has introduced intellectual property rules into the multilateral trading system for the first time.
• The TRIPS Agreement came into effect on 1 January 1995.

TRIPS Agreement objective

• It plays a pivotal role in facilitating trade in knowledge and creativity, in resolving trade disputes over IP, and in assuring WTO members the latitude to achieve their domestic policy objectives.
• The WTO’s TRIPS Agreement is an attempt to narrow the gaps in the way these rights are protected and enforced around the world, and to bring them under common international rules.

TRIPS Agreement 1994: Broad areas

• How general provisions and basic principles of the multilateral trading system apply to international intellectual property
• What the minimum standards of protection are for intellectual property rights that members should provide
• Which procedures members should provide for the enforcement of those rights in their own territories
• How to settle disputes on intellectual property between members of the WTO
• Special transitional arrangements for the implementation of TRIPS provisions.

TRIPS agreement provisions

• The TRIPS Agreement contains general provisions and basic principles such as national and most-favoured-nation treatment, as well as exhaustion of rights.
• The TRIPS Agreement also covers: copyright and related rights; trademarks ; geographical indications ; industrial designs ; patents , including the protection of new varieties of plants; layout-designs of integrated circuits; and undisclosed information, including trade secrets and test data.

TRIPS agreement WTO: Three main features

• Standards : In respect of each of the main areas of intellectual property covered by the TRIPS Agreement, the Agreement sets out the minimum standards of protection to be provided by each Member.
• Enforcement: The second main set of provisions deals with domestic procedures and remedies for the enforcement of intellectual property rights. The Agreement lays down certain general principles applicable to all IPR enforcement procedures.
• Dispute settlement: The Agreement makes disputes between WTO Members about the respect of the TRIPS obligations subject to the WTO’s dispute settlement procedures.

Q. TRIPS agreement is administered by?

Q. What is trips agreement full form?

Ans. Trade-Related Aspects of Intellectual Property Rights (TRIPS).

Q. Where can I find TRIPS Agreement pdf.

Ans. It will be uploaded in this page soon.

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• India, with South Africa, piloted a proposal to waive key provisions of the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement on Covid-19 vaccines, drugs, therapeutics, and related technologies.

Trade-Related Aspects of Intellectual Property Rights (TRIPS)

• The TRIPS agreement is part of the international legal order on trade enshrined in the World Trade Organisation (WTO). 
• It was negotiated in 1995 at the WTO.
• The WTO adopted the Doha Declaration in 2001 , which clarified that in the event of a public health emergency, governments could compel companies to licence their patents to manufacturers even if they did not think the offered price was acceptable.
• To guarantee minimum standards of IP protection 
• Provide legal consistency that enables innovators to monetize their intellectual property in multiple countries.
• copyright and related rights (i.e. the rights of performers, producers of sound recordings and broadcasting organizations); 
• trademarks including service marks; 
• geographical indications including appellations of origin; 
• industrial designs; 
• patents including the protection of new varieties of plants; 
• the layout-designs of integrated circuits;
• undisclosed information including trade secrets and test data.
• It plays a central role in facilitating trade in knowledge and creativity, in resolving trade disputes over IP, and in assuring WTO members the latitude to achieve their domestic policy objectives.  
• Under the TRIPS agreement, the Governments can compel companies to license their patents to other manufacturers, (even if companied think the offered price is not acceptable) in case of a public health emergency.
• The core idea behind the proposal is that intellectual property (IP) rights such as patents should not become a barrier in scaling up the production of medical products like vaccines, diagnostics and therapeutics essential to combat Covid-19. 

Shortcomings that impacted India’s global campaign

• During the entire pandemic, India rarely made use of the existing flexibilities under the Indian Patent Act, such as compulsory licences (CL) , which are consistent with the TRIPS agreement, to increase the supply of Covid-19 medical products despite being nudged by the judiciary to do so. 
• India did not proactively develop a national strategy to implement the TRIPS waiver as and when it was adopted. 
• A TRIPS waiver at the WTO would only be an enabling framework. 
• It would then require member countries to amend their domestic IP laws to implement the waiver. India, as a country leading the TRIPS waiver battle internationally, should have developed a draft model law enunciating how it would implement the waiver. 
• The government failed to get the Indian pharmaceutical industry on board. 
• Pharmaceutical bodies are a divided lot with many Indian companies speaking against the waiver, thus denting India’s global campaign.
• Fourth, India is one of the few countries that has successfully developed a fully indigenous Covid-19 vaccine, Covaxin. 
• Given the involvement of taxpayers’ money in developing the vaccine, India should have unlocked its technical know-how to the world. 
• While technology transfer agreements for Covaxin have been inked with domestic companies, making the vaccine technology available to anyone interested globally, at a minimal price, would have exhibited India’s resolve to walk the talk on the TRIPS waiver. 
• It would have also shamed the developed world.
• Need of the hour is to address the linkage constraints like supply side problems while keeping the focus on containing the pandemic.
• It will help India in demonstrating a good leadership globally and make a sound mark.

Sources : IE

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‘TRIPS Agreement’

Published: 12th Oct, 2020

India and South Africa have presented a draft proposal to the World Trade Organization (WTO)

India and South Africa have presented a draft proposal to the World Trade Organization (WTO) for waiver of some provisions of its TRIPS Agreement on intellectual property (IP) protection to fight the novel coronavirus disease (COVID-19) pandemic; it might be a good move, but begs a few questions.

• On October 2, WTO published the text of a joint submission by the two countries to the WTO TRIPS Council, seeking the waiver for the prevention, containment and treatment of COVID-19.
• It was welcomed by public health activists who have been at the vanguard of the struggle to provide access to medicines.
• They have always held that patents are the major block to providing inexpensive medicines.
• With the SARS-CoV-2 virus wreaking havoc across the world, the World Health Organization had put together the COVID-19 Technology Access Pool (C-TAP).
• It is an initiative of Costa Rica aimed at making vaccines, tests, treatments and other health technologies accessible to all to fight the pandemic.
• Launched at May-end, it garnered the support of 30 countries and a clutch of international partners and institutions. But beyond the high-sounding rhetoric, nothing concrete has come of it.
• The India-South Africa initiative comes as COVID-19 cases are nudging 35.35 million (October 6, 2020) and fatalities have crossed one million.

What is in the Joint Submission?

• The decision to make the joint submission was taken with the objective of making Covid drugs and vaccines “affordable as well as accessible” for developing and least-developed countries or LDCs, as they are referred to in trade parlance.
• The idea is to ensure that Covid drugs and vaccines, once available in the market, should not come under “unnecessary” regulation that delays their procurement.
• Under the joint submission, India has sought removal, or waiver, of Sections 1, 4, 5, and 7 of Part II of the TRIPS Agreement that pertain to copyright, industrial designs, patents and protection of undisclosed information or trade secrets, for drugs and vaccines aimed at Covid-19.

What is the need of waiver?

• There were several reports about intellectual property rights hindering or potentially hindering the timely provisioning of affordable medical products to Covid-19 patients.
• The variation in the price of Remdesivir which costs less than USD 1 but is sold in India between Rs 4,000 and Rs 5,400 as an example of how licenses incapacitate Indian companies to supply in middle-income countries.
• Various initiatives to facilitate access to medical products for Covid-19 responses such as ACT-Accelerator, COVAX facility or CTAP so far failed to ensure technology transfer and local production.
• Instead of facilitating technology transfer, ACT-Accelerator and COVAX Facility reinforce the IP regime and delay the disseminating of technology

TRIPS Agreement

• The TRIPS Agreement has been in force since 1995 and is to date the most comprehensive multilateral agreement on intellectual property.
• The TRIPS Agreement introduced global minimum standards for protecting and enforcing nearly all forms of intellectual property rights (IPR), including those for patents.
• International conventions prior to TRIPS did not specify minimum standards for patents. At the time that negotiations began, over 40 countries in the world did not grant patent protection for pharmaceutical products.
• The TRIPS Agreement now requires all WTO members, with few exceptions, to adapt their laws to the minimum standards of IPR protection.
• In addition, the TRIPS Agreement also introduced detailed obligations for the enforcement of intellectual property rights.

Doha Declaration on the TRIPS Agreement

• In November 2001 , WTO members adopted the Doha Declaration on the TRIPS Agreement and Public Health, which is categorical that every member has the right to grant compulsory licences (CLs) and the freedom to determine the grounds upon which such licences are granted.
• The Doha Declaration did not require any amendment to the text of the TRIPS accord because the grounds for CLs were listed in the original text. The Declaration merely served to reinforce that logic.
• India, as the leader of the developing world, was expected to make full use of these provisions.
• But it has been loath to do so for fear of upsetting the US and other big trading partners.
• After issuing one CL in 2008, it has stepped back and refused to issue any more.
• This is despite the urgent need to provide life-saving drugs at a reasonable cost to a people who are forced to bear the brunt of medical expenses. 

India will have to do some hard-nosed diplomacy here to swing the proposal its way. If accepted, this proposal will be historic and enable countries to access Covid medicines and vaccines easily, as and when they are available.

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TRIPS waiver:

GS Paper 2:

Syllabus: Effects of Policies of developed nations and IP related issues.

A group of non-governmental organisations has written to Prime Minister Narendra Modi, urging him to “proactively engage” with a draught proposal at the World Trade Organization-TRIPS in Geneva to waive intellectual property rights governing COVID vaccines, drugs, and diagnostics, which are mostly controlled by companies in the West.

What’s the issue?

In October 2020, at the WTO’s Trade Related Aspects of Intellectual Property Rights (TRIPS) Council, India and South Africa proposed that the WTO do away with certain provisions of the TRIPS Agreement for the duration of the pandemic to facilitate access to technologies necessary for the production of vaccines and medicines.

Challenges ahead:

A small group of WTO members are “discussing suggestions” to exclude drug manufacturers in India and China — two major, global suppliers of medicine — from prospective waivers to IPR obligations that result from the Trade Related Intellectual Property Rights (TRIPS) which WTO members are committed to uphold.

• Also, Manufacturers want to “limit” any benefits of the waiver only to African countries, and not pave the way for Indian manufacturers who, with their large production capacities, would easily undercut Western competitors.

Why is there an opposition to the waiver? What are the arguments against it?

Waiving of intellectual property rights will neither lead to increased production of vaccines or increased deployment nor practical solutions to fight the virus of COVID-19 vaccines since IP is not the barrier.

Waiving of intellectual property rights could also impact patient safety by opening doors for counterfeit vaccines to enter the supply chain.

Need of the hour:

Our top most priority should be to address the supply side constraints, including IP barriers, to augment the manufacturing of vaccines, therapeutics and diagnostics, essential for treatment, prevention and control of the ongoing pandemic.

What does the intellectual property waiver for Covid-19 vaccines mean?

The IP waiver might open up space for production of Covid vaccines with emergency use authorisations (EUA) — such as those developed by Pfizer, Moderna, AstraZeneca, Novavax, Johnson & Johnson and Bharat Biotech — on a larger scale in middle-income countries.

• Most production is currently concentrated in high-income countries; production by middle-income countries has been happening through licensing or technology transfer agreements.

What are patents and IP rights?

A patent represents a powerful intellectual property right, and is an exclusive monopoly granted by a government to an inventor for a limited, pre-specified time. It provides an enforceable legal right to prevent others from copying the invention.

Patents can be either process patents or product patents:

• A product patent ensures that the rights to the final product is protected, and anyone other than the patent holder can be restrained from manufacturing it during a specified period, even if they were to use a different process.
• A process patent enables any person other than the patent holder to manufacture the patented product by modifying certain processes in the manufacturing exercise.

Patent regime in India:

India moved from product patenting to process patenting in the 1970s, which enabled India to become a significant producer of generic drugs at global scale, and allowed companies like Cipla to provide Africa with anti-HIV drugs in the 1990s.

• But due to obligations arising out of the TRIPS Agreement, India had to amend the Patents Act in 2005, and switch to a product patents regime across the pharma, chemicals, and biotech sectors.

What is the TRIPS Agreement?

The TRIPS agreement was negotiated in 1995 at the WTO, it requires all its signatory countries to enact domestic law.

• It guarantees minimum standards of IP protection. Such legal consistency enables innovators to monetise their intellectual property in multiple countries.
• In 2001, the WTO signed the Doha Declaration, which clarified that in a public health emergency, governments could compel companies to license their patents to manufacturers, even if they did not think the offered price was acceptable.
• This provision, commonly referred to as “compulsory licensing”, was already built into the TRIPS Agreement and the Doha declaration only clarified its usage.

InstaLinks:

Prelims Link:

• What is TRIPS?
• Indian Patents Act, 2005.
• Patent regime in India.

Mains Link:

Write a note on compulsory Licensing.

Q.4) Consider the following statements:

• TRIPS agreement was negotiated in 1995 at the WTO.
• It requires all its signatory countries to enact domestic law.

Which of the above statements is/are correct?

Sources: the Hindu.

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• TRIPS Agreement

All you need to know about the TRIPS Agreement

This article has been written by Ayush Tiwari , a student of Symbiosis Law School, NOIDA. In this article, the author has covered everything one needs to know about the TRIPS Agreement.

This article has been published by Shoronya Banerjee .

Table of Contents

Introduction

Various intellectual inventions and creativity have a significant impact on the world today. As these innovations and concepts grow more popular and successful, the inventor’s efforts to promote and defend them become increasingly crucial. Beyond just shipping goods across borders, the concept of commerce and what makes trade useful for nations have developed. In today’s international trade, innovation, creativity, and branding account for a significant portion of the value exchanged. How to increase this value and make it easier for the innovation-rich commodities and services to flow across borders have become important factors in development and trade policy. 

The Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement is crucial for promoting trade in knowledge and innovation, resolving intellectual property trade disputes, and ensuring World Trade Organization (WTO) members’ freedom to pursue their domestic goals. The agreement is a formal acknowledgment of the importance of intellectual property and trade relations. Before studying the TRIPS agreement in detail, one should have a brief knowledge about Intellectual Property Rights (IPR).

What are intellectual property rights

“Intellectual Property shall include rights relating to literary, artistic, and scientific works, discoveries throughout all areas of human endeavor, scientific advances, industrial design rights, trademarks, service marks, and commercial names and designations, protection against unfair competition,” states Article 2 of the WIPO (World Intellectual Property Organization) – Central Organization for the Protection of Intellectual Property laws and the UN expert organization.

Intellectual property rights are the rights granted to individuals over the creation of their minds. For a set period of time, they usually grant the creator exclusive rights to use his or her creation. Intellectual property (IP) is a non-tangible asset developed by the human mind. Business organizations may use IP to gain a competitive advantage and drive their growth. Intellectual property ownership interests, like any other property, can be assigned, licenced, or otherwise passed to third parties.

Internationally, intellectual property rights (IPR) are valued and exchanged. The WTO’s TRIPS (Trade-Related Aspects of Intellectual Property Rights) agreement recognises the importance of IP in international trade. The TRIPS Agreement establishes basic requirements for member governments’ IPR protection.

The TRIPS Agreement in detail

How it all started.

As intellectual property grew more significant in commerce, the level of protection and enforcement of these rights varied greatly throughout the world, and these variations became a source of stress in international economic relations. New globally agreed-upon trade standards for intellectual property rights were considered as a method to bring greater order and predictability to the market, as well as a more systematic approach to resolving disputes.

The General Agreement on Tariffs and Trade (GATT) was the only multilateral mechanism overseeing international commerce until the World Trade Organization (WTO) was established in 1995. Under GATT, there were eight rounds of negotiations, the first five of which were solely focused on tariffs, while the sixth round included discussions on anti-dumping measures, which included provisions for member nations to control the dumping of goods into their territory by other nations that could harm their economies.

The Uruguay Round was the last GATT round (1986-1994). It was in this session that the first discussions on trade linked to agriculture, services, and intellectual property rights were conducted. All 123 countries that took part in the Uruguay Round, including India, became members of the WTO. WTO now has 164 members , accounting for about 90% of the world’s countries. The World Trade Organization (WTO) is in charge of negotiating and implementing new international trade agreements. It is also responsible for ensuring that the majority of the world’s trading nations comply with the trade agreements they have signed. The WTO is the legal and administrative framework for managing and growing international connections between its 157 members on a multilateral basis. Its goal is to establish fair and secure international trading arrangements in order to stimulate trade and investment and raise global living standards.

The TRIPS Agreement is one of the most significant WTO accords. The Agreement went into effect on January 1, 1995.

What is the TRIPS Agreement about?

The TRIPS Agreement protects intellectual property in trade-related regions to a large extent and is regarded as a comprehensive new framework for intellectual property standards protection. The TRIPs Agreement also has the distinction of being the first legal agreement to address all areas of intellectual property with a number of specific clauses. 

The three main issues governed by the agreement are:

• Standard – All member states are required to provide a minimum set of criteria for the protection of IPRs in each of the IP categories covered by the Agreement. Each area of IP is addressed in such a way that the major aspects of protection, such as the subject matter sought to be protected, the rights to be granted, and possible exceptions to such rights, as well as the minimum period of protection, are all explicitly stated.
• Enforcement – The second set of clauses focuses on domestic processes and remedies for intellectual property rights enforcement. The Agreement establishes a set of broad rules that apply to all IPR enforcement actions. It also includes rules on civil and administrative processes and remedies, provisional measures, particular border requirements, and criminal proceedings, all of which outline the procedures and remedies that must be provided so that the right holders can successfully exercise their rights.
• Dispute settlement – Disputes occurring between WTO members over responsibilities emanating from the TRIPS Agreement are subject to the WTO’s dispute resolution processes.

The whole TRIPS Agreement is further divided into seven parts which contain the complex provisions regarding intellectual property: 

Part I- General Provisions and Basic Principles (Article 1 to Article 8)

Part II- This part covers the requirements for the availability, scope, and application of intellectual property rights. (Article 9 to Article 40)

Part III- The enforcement of IPRs is the focus of this part.  (Article 41 to Article 61)

Part IV: This part covers the procedures for obtaining and maintaining intellectual property rights. (Article 62)

Part V: This part deals with the prevention and resolution of conflicts resulting from the provisions of the Agreement. (Article 63 to Article 64)

Part VI: This part is about transitional agreements. (Article 65 to Article 67)

Part VII: This part of the Agreement deals with a variety of institutional arrangements. (Article 68 to Article 73)

General provisions and basic principles

The essential principles on the national and most-favored-nation treatment of foreign persons are found in Articles 3, 4, and 5, and they apply to all kinds of intellectual property covered by the Agreement. These obligations apply not only to substantive standards of protection, but also to issues relating to the availability, acquisition, scope, maintenance, and enforcement of intellectual property rights, as well as issues relating to the use of intellectual property rights that are specifically addressed in the Agreement. While the national treatment provision prohibits discrimination between a member’s own nationals and those of other members, the ‘most-favored-nation’ treatment clause prohibits discrimination between other members’ nationals. The exclusions authorised under the pre-existing WIPO intellectual property treaties are likewise available under TRIPS in terms of the national treatment commitment. Furthermore, governments have the authority to enact legislation to prohibit right holders from abusing IPR or to challenge practises that unfairly restrict commerce or impede the international transfer of technology, all in accordance with the Agreement’s provisions.

Types of intellectual properties

Copyrights and related rights.

The Agreement states that copyright protection only applies to phrases, ideas, techniques, operating methods, or mathematical concepts. Literary, musical, dramatic, photographic, sculptural, architectural, choreography, graphic, motion picture, sound recording, multimedia work, computer programs, and other works are all given copyright. For a certain amount of time, the owner of a copyright has the right to prevent others from duplicating, distributing, making derivative works, performing, exhibiting, or utilising the work covered by the copyright. The essence of copyright is originality, which means that the work was created by the copyright owner or claimant. A work of originality, on the other hand, does not have to be innovative. In copyright law, originality does not entail innovation.

The Berne Convention protects computer programs in both source and object code, and compilations of data in machine-readable or other formats constitute creative works due to the selection or arrangement of their contents and are thus protected by the Agreement. In the case of computer programs and cinematographic works, authors are granted the right to approve or restrict commercial renting of originals or copies of protected works to the public. However, if giving rental rights leads to widespread copying of such works, jeopardising the work’s uniqueness, member governments can revoke such rights. The term of protection extends up to not less than 50 years as per Article 12 of the Agreement.

Article 15 states that any sign, or set of signs, able to distinguish one undertaking’s products and services from other undertakings’, shall be eligible for trademark registration, provided that it is clearly detectable. Such signs, in particular words, characters, digits, figurative components, and colour combinations, as well as any combination of these signs, must be acceptable for trademark registration. According to Article 16, the trademark owner has the exclusive right to restrict third parties from using similar or identical signs for products or services that are similar to those for which the trademark is registered.

Geographical indications

As per Article 22, geographical indications designate a good as coming from a member’s territory, or an area or place within that territory, where the good’s quality, reputation, or other attribute is largely due to its geographical origin. Traditionally, some commercial items have been manufactured in a geographically defined territory. In commercial relations, the geographical indicator becomes the dependable “carrier” of qualifying product features when these items are accredited to certain criteria fundamentally due to their geographical provenance. The purpose and value of geographical indications are subsequently given to trademarks, and they are entitled to legal protection.

Industrial designs

Articles 25 and 26 of the agreement says members must ensure that fresh or unique industrial designs generated independently are protected. The Agreement, which is based on the Paris Convention but goes much beyond it, promises to preserve industrial designs for a minimum of 10 years. When such activities are conducted for commercial objectives, the right holder can ban third parties who do not have the holder’s agreement from producing, importing or selling items that incorporate the protected design.

According to Article 27 of the agreement, a patent is an intellectual property right (IPR) awarded to inventors. The inventor, as the patent owner, has the right to prevent anybody else from creating, using, selling, or importing the patent-protected invention in a specified region for a set length of time.

The basic criterion of patentability is subject to three exceptions. One is for innovations that are against the public good or morals- this includes inventions that are harmful to human, animal, or plant life or health, or that are substantially harmful to the environment.

Members may also exclude diagnostic, medicinal, and surgical procedures for the treatment of people and animals from patentability. 

The length of protection is normally 20 years from the date of filing of the patent application. Member nations could provide specific exemptions to exclusive rights conferred by a patent under Article 21 of the Agreement, given that such exclusions do not unreasonably conflict with a normal exploitation of the patent and therefore do not unreasonably bias the patent owner’s legitimate interests, taking into consideration the legitimate interests of third parties. Furthermore, Article 29 mandates that the patent filing discloses the innovation in a manner that is explicitly clear and complete for a person knowledgeable in the art to carry out the invention. Article 31 of the Agreement contains provisions that allow the government of a member nation to award a compulsory licence for medicines without the patentee’s approval, subject to specific circumstances.

Layout-Designs (Topographies) of Integrated Circuits

Importing, selling, or distributing (for commercial reasons) a secured layout design, an integrated circuit where a secured layout design is implemented, or an article including such a circuit is prohibited under Article 36 of the Agreement. From the date of filing an application for layout designs, the protection offered in this sector of IP is at least ten years. According to Article 37, member countries may limit the length of protection to fifteen years from the date of development of the layout design. 

Protection of undisclosed information 

The information which is undisclosed is referred to as a trade secret. Article 39 of the Agreement requires member states to provide trade secret protection in accordance with the Agreement’s provisions. TRIPS mandates that member countries should create national legislation to prevent such information from being revealed to, obtained by, or used by third parties without the agreement of the person who is lawfully in possession of it, in a manner that is inconsistent with fair trade practises. Such information must be confidential, have commercial value as a result of its confidentiality, and have been subjected to reasonable efforts to keep it hidden in order to be granted protection.

Control of anti-competitive practises in contractual licences

Members of the Agreement believe that some licensing arrangements or restrictions relating to IPR that restrict competition may have a negative impact on trade and impede technological transfer and dissemination. The clause allows for government discussions in cases where there is an infringement of intellectual property rights that has a negative impact on competition. On some occasions, the TRIPS Agreement waives some of the requirements necessary for a compulsory licence of a patent, such as when the government gives the compulsory licence to correct an anti-competitive activity.

Enforcement

Governments must guarantee that IPR can be implemented to prevent or discourage infringement, according to the Agreement. The methods must be just and equal, as well as not overly cumbersome or expensive. They shall not impose unreasonable deadlines or unjustified delays. People concerned must be allowed to request a court review, an administrative decision or appeal a lower court’s judgement. The TRIPS agreement goes into great detail about how to defend intellectual property rights, including requirements for gathering evidence, interim measures, injunctions, damages, and other penalties. It states that courts must have the authority to compel the disposal or destruction of objects that infringe on intellectual property rights under specified situations. On a commercial scale, wilful trademark counterfeiting or copyright infringement must be prosecuted as a crime. Governments must also ensure that holders of intellectual property rights can get assistance from customs authorities to prevent the import of counterfeit and pirated goods.

Prevention and resolution of conflicts resulting from the provision of the TRIPS Agreement

The TRIPS Council is in charge of the provisions relating to dispute resolution and prevention. The common register, which contains a compilation of laws and regulations, final judicial decisions, and other information pertaining to the Agreement, should be established, Article 63 establishes an obligation to notify laws and regulations to the TRIPS Council or the WIPO. Article 64 of the Agreement outlines processes for preventing and resolving disputes. For this aim, the WTO Agreement’s integrated dispute settlement procedure will apply to TRIPS issues.

Transitional agreements

The TRIPS agreement allowed countries to delay the implementation of its terms for various lengths of time. These timeframes specify the period between when the agreement entered into force (on January 1, 1995) and when it got implemented in member countries. The following are the major transition periods:

• Developed countries were given a one-year transition period following the WTO Agreement’s entry into force, i.e. until January 1, 1996.
• Developing nations were given an extra four years (until January 1, 2000) to implement the agreement’s provisions, with the exception of Articles 3, 4, and 5, which deal with broad principles like non-discrimination.
• Transition economies, i.e. countries in the process of transitioning from centrally planned to market economies, could also benefit from the same postponement (until January 1, 2000) if they fulfilled specific additional criteria.
• Least-developed nations were given an additional eleven-year transition time (until January 1, 2006), with the option of an extension. The transition period has been prolonged three times, and now continues until July 1, 2034, or until a member no longer qualifies as a Least Developed Country (LDC), whichever comes first.

Institutional arrangements

Article 68 of the TRIPS Agreement establishes The TRIPS Council. The TRIPS Council oversees the administration of this Agreement, including members’ compliance with their duties under it, and provides members with the opportunity to consult on trade-related aspects of intellectual property rights. It carries out any other obligations that the members delegate to it, including providing any help sought by them in the context of dispute resolution procedures. The TRIPS Council may consult with and obtain information from any source it finds relevant in carrying out its tasks.

Need for the TRIPS Agreement

IP protection was supposed to help not only promote technical innovation but also the transfer and spread of new technology in a way that benefits both its producers and users while maintaining a balance of rights and duties, all with the purpose of increasing social and economic wellbeing. As a result, the TRIPS Agreement’s primary objectives included reducing trade distortions and obstructions by supporting effective and appropriate protection of IPRs, as well as ensuring that measures and processes for enforcing IPRs do not become hurdles to legitimate trade. 

Currently, the rise in IP legislative activity, as well as the quick adoption of TRIPS-covered IP rights, demonstrated the TRIPS Agreement’s centrality in the global trade system. The TRIPS Agreement continues to play a key role in facilitating international trade in knowledge, resolving trade issues over IP, and guaranteeing WTO members the latitude to achieve their domestic objectives, while IP is at the core of attempts to obtain benefits from innovation and creativity in today’s global economy.

Advantages and disadvantages of the TRIPS Agreement

Advantages of the trips agreement.

• Transparency in IP policy was brought to the world’s attention.
• WIPO’s existing international legal system, which was designed and controlled by them, was greatly enhanced by this agreement.
• Trade conflicts over intellectual property concerns were reduced by establishing a clear, rules-based framework for resolving disputes.
• It has aided in the acquisition and exercise of intellectual property rights, as well as providing a solid platform for the trade in knowledge products.
• In developing countries, the number of patent applications is increased

Disadvantages of the TRIPS Agreement

• TRIPS mandates high levels of patent protection.
• Fertilisers, insecticides, pharmaceutical items, and procedures were not protected by patents, resulting in low-cost food and drugs.
• Education and technology transfer were fostered by the lack of copyright protection for informational products.
• Jobs in the local imitative industries were lost.
• In general, increased prices resulted in significant deadweight losses, with minimal stimulation of local innovation.
• Traditional knowledge is not protected in any way. 

TRIPS Agreement : a boon or bane for developing countries

The agreement imposes essential and obligatory requirements on signatory member nations to implement basic levels of intellectual property right protection in all of its elements. However, this Agreement has far-reaching implications for developing nations, as rigid intellectual property restrictions stifle the growth of indigenous enterprises in these areas. Intellectual property rights, although vital, must be implemented with caution in developing nations since they can harm the economy, public health, and so on. The principal consequences of the patent protection regime have a deterring effect on the expansion of local sectors, such as pharmaceuticals. 

Intellectual property should not be used to thwart the interests of developing nations, such as public health, which is already being harmed. As a result, a re-evaluation is necessary. In addition, when the situation demands them, the exceptions to the intellectual property rights shall be implemented effectively and strictly.

The TRIPS Agreement has had a considerable impact on IPR protection in poor nations but has had a little discernible impact on IPR protection in developed countries. This outcome is consistent with the TRIPS Agreements’ requirements being established to be as near as possible to IPR protection systems already in existence in many developed nations. To comply with the TRIPS Agreement, developed nations did not need to make significant changes to their policies. And also the Nations that rely heavily on exports to countries that advocated for the TRIPS Agreement’s inclusion in the WTO (i.e. developed countries) may take the possibility of retaliatory trade penalties seriously since they stand to lose a lot of money in lost exports. This demonstrates the TRIPS Agreement’s effectiveness as a coercive threat in international economic negotiations. 

Numerous objections have been leveled against the TRIPS Agreement’s validity and efficacy, particularly in relation to poor nations. Even famous free-trade proponents like Martin Wolf have criticised TRIPS for its “hypocrisy” viewing it as a rent-seeking device from many poor nations, with potentially disastrous consequences for education, public health, and economic growth. Even among nations that appear to benefit the most from the agreement, gains may only go to certain segments of society, implying that the actual beneficiaries from TRIPS are not developed nations, but rather the major businesses that pushed for its adoption. TRIPS has also failed to address policymakers’ concerns, since trade balances have continued to deteriorate, and the current emphasis on private rights may, in the long run, contribute to stifling innovation and knowledge dissemination in developed nations. While Archibugi & Filippetti warned against misrepresenting TRIPS’ impact, it is clear that the agreement does not work as intended. It would have been better to establish a tiered structure that provided more meaningful special and differential treatment based on nations’ developmental requirements. Given that TRIPS is already firmly established inside the WTO system, it is unclear if major revision of the agreement is possible for the sake of developing nations.

This article might be concluded by stating that, despite the importance of the TRIPS Agreement, the developing countries have highlighted a number of concerns and flaws in the treaty. Despite these issues, the TRIPS Agreement is often regarded as the most comprehensive mechanism for protecting intellectual property rights. It enhances and manifests the previous IPR conventions, the most important of which were first drafted at the end of the nineteenth century. Certainly, these agreements were revised on a regular basis, to permit a gradual international control of intellectual property and copyrights. However, in comparison to the results of previous revision exercises, the TRIPS Agreement constitutes a tremendous conceptual leap that profoundly transforms not only how IPRs are seen internally, but also how they are implemented and disputes are resolved.

• https://www.wto.org/english/thewto_e/whatis_e/tif_e/agrm7_e.htm
• https://www.wto.org/english/tratop_e/trips_e/intel2_e.htm
• https://www.e-ir.info/2013/12/23/the-arguments-for-and-against-the-trips-agreement/
• https://www.wto.org/english/tratop_e/trips_e/tripfq_e.htm

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Intellectual Property Rights (IPR) - Meaning, Types, Importance, Objectives

Sub-Categories:

Science and Technology

Prelims:   Current events of National & International importance.

Mains: Awareness in the fields of IT, Space, Computers, robotics, Nano-technology, bio-technology and issues relating to intellectual property rights.

Intellectual property rights (IPR) are the legal privileges granted to the inventor or creator to safeguard their intellectual work (in the arts, sciences, literature, etc.) for a specific period of time. These legal rights grant the inventor or creator, or his assignee, the sole right to fully exploit their invention or creation for a specific amount of time. These Intellectual property rights are outlined in Article 27 of the Universal Declaration of Human Rights, which grants the right to gain protection for one's material and moral interests as a result of the authorship of works of science, literature, or the arts.

The significant body that oversees the global protection of IPRs is the World Intellectual Property Organisation (WIPO). It oversees the first international treaties to acknowledge the significance of intellectual property, which were the Paris Convention for the Protection of Industrial Property (1883) and the Berne Convention for the Protection of Literary and Artistic Works (1886).

Objectives of Intellectual Property Rights

The term "intellectual property" (IP) refers to any original work of the human mind, including those in the arts, sciences, literature, technology, or other fields. Intellectual property rights are granted by considering the following objectives:

• Allowing people to profit financially or gain popularity from their inventions and creations
• to promote an environment where creativity and innovation can thrive by striking a balance between the interests of innovators and the larger public interest
• To protect traditional knowledge

Types of Intellectual Property Rights

Traditionally, the two main categories of intellectual property rights are copyright and rights associated with copyright and industrial property. Industrial property includes trademarks, geographical indications, industrial designs, and trade secrets.

Patent in Intellectual Property Rights

When an invention satisfies the requirements of general novelty, non-obviousness, and industrial or commercial application, a patent is granted.

• Products as well as processes are eligible for patent protection.
• A patent gives the owner the authority to decide whether or how others may use an invention.
• In exchange for this privilege, the holder of the patent publishes technical details about the invention in the patent document for public consumption.

The legal term "copyright" is defined as the ownership rights of authors and artists over their creative works.

• The works protected by copyright can include computer programs, databases, advertisements, maps, and technical drawings, in addition to books, music, paintings, sculptures, and films.
• Copyright protects the author's rights to literary and artistic works for at least 50 years after the owner's death.
• The rights of performers (such as actors, singers, and musicians), phonogram producers, and broadcasting organisations are all safeguarded by copyright and related rights.

A trademark can be defined as a symbol that can be used to separate the products or services of one company from those of another company. 

• Trademarks have existed since the earliest days when artisans would sign or "mark" their creations.

Industrial Designs

Industrial design represents the decorative or aesthetic component of an object. The designs can include two-dimensional elements like patterns, lines, or colours and three-dimensional elements like the shape or surface of an object.

Geographical Indications

Geographical indications and appellations of origin are labels applied to products that have a particular geographical origin and that have qualities, a reputation, or other characteristics that can primarily be linked to that location of origin.

• The name of the location where the goods were made is most frequently included in a geographical indication.

Trade Secrets

Trade secrets are intellectual property rights on private information (about a product, like Pepsi) that can be licensed or sold.

• It is considered an unfair practice and a breach of trade secret protection when others obtain, use, or disclose such secret information without authorization in a way that is inconsistent with honest commercial practices.

International Bodies/Conventions on Intellectual Property Rights

To safeguard intellectual property rights, the international community has come up with various conventions and established bodies, as listed below.

World Intellectual Property Organisation (WIPO)

The promotion of the global protection of intellectual property rights is the responsibility of the WIPO. It also supervises the following treaties and conventions.

• It was the first significant action taken to assist creators in making sure that their intellectual property was protected in other nations.
• The provision of national treatment was established by this convention.
• Berne Convention for the Protection of Literary and Artistic Works (1886): It is a convention that governs copyright internationally. The Convention covers the rights of authors as well as the protection of works.
• Budapest Treaty : On the International Recognition of the Deposit of Microorganisms for the Purposes of Patent Procedure.
• It accomplishes this by defining a set of restrictions and exclusions from conventional copyright law.
• It focuses on making the world accessible, streamlining the process of meeting various formality requirements, delaying the significant costs related to international patent protection, and providing a solid basis for patenting decisions.

TRIPS (Trade Related Intellectual Property Rights) Agreement, 1994

The TRIPS Agreement is one of the most significant agreements of the WTO. 

• Copyright and related rights (the rights of performers, record companies, and broadcasting organisations);
• trademarks, including service marks;
• geographical indications, such as appellations of origin;
• industrial designs;
• patents, which protect novel plant varieties;
• integrated circuit layout-designs; and undisclosed information, such as trade secrets and test data.
• The subject matter to be protected, the rights to be granted, the permissible changes from those rights, and the minimum length of protection are all defined as the essential components of protection.
• The agreement establishes a few broad guidelines that apply to every IPR enforcement process.
• It also includes detailed provisions on criminal procedures, special requirements related to border measures, interim measures, and civil and administrative procedures and remedies.
• Dispute settlement: According to the Agreement, differences amongst WTO Members regarding observance of the TRIPS obligations are resolved through the WTO's dispute resolution processes.
• Furthermore, the agreement stipulates fundamental concepts like national and most-favored-nation treatment.

Intellectual Property Rights in India

Since the inception of intellectual property rights, India has been committed to their preservation in domestic as well as international frameworks.

• This programme will raise appropriate awareness among students and faculty of higher education institutions about the value of filing IP, the processes involved, and the laws governing IP filing in India and worldwide.
• Being a member of the World Trade Organisation, India is committed to the Agreement on Trade-Related Aspects of Intellectual Property (TRIPS Agreement).
• India is also a member of the World Intellectual Property Organisation.

Legal Provisions

The legal provisions for various types of intellectual property rights are:

• The Indian Patent Act is administered by the Office of the Controller General of Patents, Designs, and Trade Marks, or CGPDTM.
• Its major amendment was in 2005.
• Design Act of 2000: The act's protections support innovation and serve to safeguard both manufacturers' and consumers' interests.
• Trademarks Act of 1999 and its amendment of 2010: It has unique clauses associated with trade mark registration internationally. Within eighteen months, an international application may be filed in India to extend protection to the specified nations.
• Also, there are various guidelines related to patents, trademarks and geographical indications.

Cell for IPR Promotion and Management (CIPAM)

CIPAM was established in order to advance the implementation of the National Intellectual Property Rights (IPR) Policy 2016.

• It operates under the Department for Promotion of Industry and Internal Trade (DPIIT) ensures targeted action on IPR-related issues and attends to the policy's seven stated objectives.
• In addition to taking action to promote IPR awareness, commercialization, and enforcement, CIPAM helps to simplify and streamline IP processes.

National IPR Policy 2016

It unifies all IPRs on one platform. It establishes a formal system for implementation, oversight, and evaluation. Importantly, it also seeks to incorporate and modify best practices from around the world for the Indian context.

• In addition, it gives communities more power to advance their traditional knowledge, regulate its uses, and profit from its commercial exploitation.

Advantages of Intellectual Property Rights

The main advantage of intellectual property rights (IPRs) is to encourage and protect the creation, distribution, and offering of new goods and services that are based on the development and use of inventions, trademarks, designs, creative works, and other intangible assets.

• IPRs can generate income not only from direct marketing but also by licencing them to third parties.
• Fostering of culture: Copyright allows authors, performers, producers, and other creators to receive an economic reward for their works that enrich cultural heritage, enhance cultural diversity, and benefit society as a whole. These creative industries include publishing, music, and film.
• Technical information dissemination: Any member of the public, including researchers, can use patent information even when a company, university, or research institution does not intend to use its own patented inventions.
• Impetus to fair competition: By allowing consumers to make informed decisions about various products and services, the protection of IPRs such as distinctive signs aims to encourage and ensure fair competition as well as to protect consumers.
• It facilitates the innovations and production of new technology, like a new formula of drugs against any life-threatening disease.
• This new technology/formula, after the patent period, helps a large population (for example, through the development of generics). Thus, it serves the social purpose of IPRs.
• With no contractual obligation to use a single vendor, its benefits include reduced startup costs, quicker project launches, quicker iterations, more adaptable software development processes, strong community-driven support, and simpler licence management.
• It's important to note that a typical GPL actually depends on IPRs since it is generally a copyright licence that is only valid as long as certain requirements are met.
• The financial industry, particularly knowledge-intensive SMEs, depends heavily on the valuation of intangible assets, such as patents.

Disadvantages of Intellectual Property Rights

Here are a few disadvantages to intellectual property rights:

• Extra Charges for Creators: It might be a bit costly to obtain protection for the first time, especially if the product is complex and includes methods, designs, and processes.
• Piracy: Sometimes it becomes difficult to stop someone from copying the inventory work, even after obtaining IP protection. It becomes disadvantageous for the original creator of the patent.
• Decreasing Quality: As time goes on, the quality of intellectual property degrades along with the rights to it.
• Worldwide Inequities: The laws governing intellectual property are sometimes different. Different IP laws in different nations can result in unequal access to innovations and technologies, which disproportionately affects and impedes the development of developing nations.
• Costly nature of patented products: Due to high prices for patent registration, research and development, and evergreening of patents, the price of patented products like pharmaceuticals has skyrocketed. It harms the interests of the general public, as they rely on these drugs.

Issues regarding Intellectual Property Rights in India

With advantages and disadvantages regarding intellectual property in India, the issues that persist are,

• This indicates that the Indian Patent Act forbids the evergreening of patents. This has caused issues for the pharmaceutical companies.
• For foreign investors who bring technology, compulsory licencing presents a challenge because they worry that CL will be abused to copy their products.

PYQs on Intellectual Property Rights

Question 1: How is the Government of India protecting traditional knowledge of medicine from patenting by pharmaceutical companies? (UPSC Mains 2019)

Question 2: With reference to the 'National Intellectual Property Rights Policy', consider the

following statements: (UPSC Prelims 2017)

• It reiterates India's commitment to the Doha Development Agenda and the TRIPS Agreement.
• Department of Industrial Policy and Promotion of the nodal agency for regulating intellectual property rights in India.

Which of the above statements is/are correct?

• Both 1 and 2
• Neither 1 nor 2

Answer: (c)

Question 3: India’s Traditional Knowledge Digital Library (TKDL), which has a database containing formatted information on more than 2 million medicinal formulations is proving a powerful weapon in the country’s fight against erroneous patents. Discuss the pros and cons of making this database publicly available under open-source licencing. (UPSC Mains 2015)

FAQs on Intellectual Property Rights

What is intellectual property.

The term "intellectual property" (IP) refers to any original work of the human mind, including those in the arts, sciences, literature, technology, or other fields.

What are intellectual property rights?

Intellectual property rights (IPR) are the legal privileges granted to the inventor or creator to safeguard their work for a specific period of time. These legal rights grant the inventor or creator, or his assignee, the sole right to fully exploit their invention or creation for a specific amount of time.

What are the advantages of intellectual property rights?

The advantages of intellectual property rights include facilitating indirect income, fostering culture, technical information dissemination, the impetus to fair competition, research and development, and the collateral used to secure financing.

What are the disadvantages of intellectual property rights?

The disadvantages of intellectual property rights include extra charges for patented material, piracy of IPR property, and decreasing quality of IPR property.

Why are Indian IPR policies criticised?

The Indian IPR policies are criticised for the obstacles to the evergreening of patents and compulsory licencing.

India is part of which international Bodies/Conventions on intellectual property rights?

Being a member of the World Trade Organisation, India is committed to the Agreement on Trade-Related Aspects of Intellectual Property (TRIPS Agreement). India is also a member of the World Intellectual Property Organisation (WIPO) and the Paris Convention for the Protection of Industrial Property.

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Marrakesh Agreement: 30 years of WTO

Last updated on April 26, 2024 by ClearIAS Team

The Marrakesh Agreement, established in 1994 and coming into effect on January 1, 1995, marked a significant evolution in global trade structures. It’s been 30 years since the agreement gave birth to WTO. Read here to learn more about the agreement.

The Marrakesh Agreement establishing the World Trade Organization was signed by 123 countries on 15 April 1994, leading to the birth of the WTO on 1 January 1995.

Over the past 30 years, the WTO has helped to bring about a major expansion in global trade, raising living standards, increasing employment and promoting sustainable development.

From the early days of the Silk Road to the creation of the General Agreement on Tariffs and Trade (GATT) and the birth of the WTO, trade has played an important role in supporting economic development and promoting peaceful relations among nations.

Table of Contents

Marrakesh Agreement

It is the founding treaty of the World Trade Organization (WTO), which was created during the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) negotiations.

The agreement fundamentally reshaped the international trading system by introducing a more robust and comprehensive structure for trade relations.

Here’s an in-depth analysis of its components, objectives, and impact:

Objectives of the Marrakesh Agreement

The primary goal of the Marrakesh Agreement is to reduce trade barriers and ensure a smoother flow of trade between countries, ultimately promoting economic growth and development. Its objectives include:

• Promoting Fair Competition : The agreement aims to level the playing field by setting commonly agreed standards for international trade.
• Ensuring Full Employment and Broad Increase in Effective Demand : It links trade with employment and demand expansion.
• Expanding Production and Trade : Particularly of goods and services.
• Ensuring Optimal Use of World Resources : Promoting sustainable development through optimal trade practices.
• Protecting and Preserving the Environment : The preamble of the agreement acknowledges the need to protect the environment while promoting economic development.

Key Features of the Marrakesh Agreement

Establishment of the WTO

• The Marrakesh Agreement established the WTO as the global international organization dealing with the rules of trade between nations.
• The WTO encompasses a larger set of previous agreements under GATT, expanding the scope from just trade in goods to include trade in services (General Agreement on Trade in Services, or GATS) and intellectual property (Agreement on Trade-Related Aspects of Intellectual Property Rights, or TRIPS).

Dispute Settlement

• One of the groundbreaking features of the WTO under the Marrakesh Agreement is its mechanism for dispute resolution.
• The Dispute Settlement Understanding (DSU) provides a detailed process for resolving trade disagreements between countries, which is legally binding and enforceable.

Trade Policy Review Mechanism

• This mechanism was institutionalized under the WTO to ensure transparency of trade policies across countries.
• It involves a periodic review of national trade policies to ensure compliance with WTO rules and norms.

Impact of the Marrakesh Agreement

Trade Liberalization

• Since its inception, the Marrakesh Agreement has contributed to a significant reduction in tariffs and other trade barriers.
• This has facilitated increased trade flows, integration into the global economy, and economic growth, particularly for developing countries willing to open their markets.

Economic Development

• By providing more predictable trading terms, the agreement has helped countries attract investment and improve their economic standing globally.
• The rules-based trading system helps to reduce the risk associated with international trade.

Criticism and Challenges

• The WTO and the Marrakesh Agreement have faced criticism for favouring wealthier nations due to their greater negotiating power and for promoting policies that sometimes conflict with the economic interests and developmental needs of poorer countries.
• Issues such as agricultural subsidies remain highly contentious.

Environmental and Social Concerns

• There are ongoing debates about the impact of liberalized trade on the environment and social structures.
• Critics argue that trade liberalization can lead to environmental degradation and worsen working conditions in industries moved to countries with less stringent regulations.

30 years of WTO: A timeline

April 1994: The Marrakesh Agreement establishing the WTO is signed.

January 1995: The WTO is born on 1 January.

May 1995: Renato Ruggiero (Italy) takes office as WTO Director-General.

December 1996: WTO holds its first ministerial conference in Singapore.

December 1997: The Information Technology Agreement (ITA) enters into force, slashing tariffs on IT goods.

May 1998: The Second Ministerial Conference in Geneva marks 50 years of the GATT.

November 2001: The 4th Ministerial Conference in Doha, Qatar, sees the launch of a new round of trade negotiations, known as the Doha Development Agenda.

• China becomes the WTO’s 143rd member.

September 2003: The 5th Ministerial Conference in Cancún, Mexico, welcomes Cambodia and Nepal as the first least-developed countries to join the WTO since its establishment.

December 2005: 6th Ministerial Conference in Hong Kong, China, sees the launch of Aid for Trade initiative.

January 2010: “WTO Chairs Programme” launched to support trade-related work of universities in developing economies.

November 2012: Historic signing ends 20 years of EU-Latin American banana dispute, the longest-running dispute in WTO history.

December 2013 : The 9th Ministerial Conference in Bali, Indonesia, sees the conclusion of negotiations on the landmark Trade Facilitation Agreement.

December 2015: 10th Ministerial Conference results in “Nairobi Package”, including the abolition of agricultural export subsidies and expansion of ITA.

January 2017: Amendment to the TRIPS Agreement enters into force, easing access to medicines.

February 2021: Dr Ngozi Okonjo-Iweala becomes the first African and first woman to become WTO Director-General.

The Marrakesh Agreement represents a landmark in the evolution of the global trade system, establishing a framework that supports international trade while attempting to address economic disparities.

However, the dynamics of global trade continue to evolve, and the WTO faces ongoing challenges, including disputes over its rules, the rise of trade protectionism, and the need to adapt to new economic realities such as digital trade and sustainability concerns.

The future of the Marrakesh Agreement and the WTO will likely involve navigating these complex issues while striving to maintain a balance between free trade and fair-trade practices.

Related articles:

• WTO and developing countries
• WTO, trade facilitation agreement and Indian stand

-Article by Swathi Satish

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Trade Related Investment Measures

The agreement on Trade-Related Investment Measures or “TRIMs” acknowledges that investment measures can control and twist trade. This states World Trade Organisation members might not apply any measure that differentiates or leads to quantitative restrictions, both of which disobey any fundamental WTO rules.

A list of restricted TRIMS is a part of this agreement. The TRIMS Committee looks after the operation and execution of this agreement and allows members the chance to consult on any appropriate matters.

Agreement on TRIMs resulting from Uruguay recognises that certain investment measures may cause restrictive effects on international trade in goods.

Objectives of Trade-Related Investment Measures

TRIMs believe that there is a strong connection between trade and investment. The goal of trade-related investments measures is to give fair treatment to all investing members across the world.

As the TRIMs deal says, members have to inform the World Trade Organization (WTO) council to buy and sell various services and goods of their current TRIMs that are incompatible with the agreement.

Main Features of TRIMs

• It only applies to investment measures related to goods trade.
• This doesn’t apply to service trade.
• It doesn’t regulate the entry of foreign industry or investment.
• It is about the discriminatory treatment of imported/exported products.
• Concern measures were applied to both foreign domestic firms.
• A transition period of 2 years in the case of developed countries, 5 years in the case of developing countries and 7 years in the case of LDCs, from the date this agreement came into effect, which is 1st January 1995.

The main obligation contained in this agreement is that members shall not apply any trade-related investment major that is inconsistent with Article III (national treatment) or Article XI (general elimination of quantitative restrictions) of the GATT .

A few related links are as follows:

The TRIMs agreement has directly restricted the following.

• Local Content Requirement

Local content requirement is the measure that if a developed country wants to trade their products in a developing country. Then the developing country wishes to agree on that deal if and only if it uses one of the domestic items on their product. It means that the growth of domestic products will increase.

For example, suppose a mobile brand wants to sell its products in India. However, India agrees if only the brand uses the battery made in India. If that mobile brand agrees to this agreement, the value of ‘made in India’ batteries will increase gradually, which is India’s benefit.

However, that mobile brand doesn’t get proper profit because of purchasing those domestic products or using those products. In other words, a developing country is restricting developed countries from trading their products.

• Trade Balancing Requirements

Trade balancing measures require that an enterprise’s purchase of imported products is equivalent to the quantity or worth of exported products. In simple words, someone from India has a business of desi ghee, and they export it in foreign.

However, they want to expand their business and import foreign cheese. Then, Indian government gave them the condition that they could import the same amount of foreign cheese as the amount of desi ghee they export. Basically, balancing the import and export amount of product or trade is called Trade Balancing .

However, the government is restricting the individual as per the TRIMs agreement.

• Foreign Exchange Restrictions

These include measures restricting importation by limiting access to foreign exchange.

• Domestic Sales Requirements

By using domestic sales requirements, many nations restrict the export of domestic products and distort trade. Because of this, the value of those products gradually decreases. As a result, the production of those products is highly available in the market.

Developing countries are permitted to retain Trade-Related Investment Measures by virtue of the economic development needs of developing countries. In TRIMs, some restrictions are overlooked for the developing countries’ economic needs.

Aspirants can visit the linked article and get details about the upcoming government exams that comprise current affairs and general awareness as an important topic in the syllabus.

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Frequently Asked Questions on Trade Related Investment Measures

What are trims’ instructions.

TRIMs demand that WTO members can not apply any measures that violate foreign investment that are against basic WTO principles.

Is India a part of TRIMs?

No, India does not have any commitment as per the TRIMs agreement.

What is the full form GATT?

The full form of GATT is General Agreement on Tariffs and Trade, which was established in 1947.

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What Is the Philadelphi Corridor, and Why Does It Matter?

An eight-mile-long strip of land between the Gaza Strip and Egypt is the latest focus of the Israeli assault on Hamas.

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By Matthew Mpoke Bigg

• May 30, 2024

Israel’s announcement on Wednesday that its forces had gained control over a strip of land that runs along the Gaza Strip's southern border suggested that it had fulfilled one of the goals of the country’s war against Hamas, but it portends further isolation for Palestinians in the enclave.

Here’s a look at the importance of the border strip to Israel, to Palestinians and to Egypt:

What is the border strip?

It is land around 100 yards wide that runs roughly eight miles from Israel’s border to the Mediterranean. The new border, which divided the city of Rafah, was set up under the Egypt-Israel peace treaty of 1979. To the northeast is Gaza, while Egypt lies to the southwest. Egyptian border guards have been policing the land under an agreement with Israel made in 2005 when Israeli forces withdrew from Gaza. The Israelis used the code name Philadelphi for the strip, while Egyptian officials call it Salah Al Din.

Why does it matter to Israel?

Senior Israeli officials had set control of the strip, which in Israel is called the Philadelphi Corridor, as a military objective. Hamas had dug tunnels beneath the strip — some wide enough for trucks, according to military experts — and used them to smuggle weapons and personnel into Gazan territory.

“This is the way they can get in and out without asking the Israelis,” said Ahron Bregman, a political scientist and expert in Middle East security issues at King’s College in London, who is a former Israeli military officer. Unless the tunnels are blocked, he said in a previous interview, Hamas could rebuild its military capacity after the war.

Why does it matter to Egypt?

During other regional conflicts, Egypt has opened its borders to refugees, but the government of President Abdel Fattah el-Sisi fears that if Palestinian civilians crossed the border to escape the war they could destabilize the country and become a drag on its economy.

The government also sees Hamas as an adversary and does not want to give it a foothold in Egypt. Hamas began as an offshoot of the Muslim Brotherhood, an Islamist movement that was closely linked to the government that Mr. el-Sisi overthrew in 2013. His government has suppressed the Muslim Brotherhood since taking power.

Egypt has warned Israel to avoid doing anything that might force Gazans across the border or threaten a landmark peace agreement signed by the two countries in 1979.

For decades before the war, Egypt stationed guards along the Gaza border. It reinforced those forces after the Oct. 7 Hamas-led assault on Israel that set off the current fighting in Gaza.

Why does it matter to Palestinians?

Egypt is the only country other than Israel that borders Gaza, so Israel’s control of the corridor is likely to be viewed by Palestinians as a sign of increasing isolation.

At the same time, the tunnels have been used by Egyptian and Palestinian merchants to bring food and other goods into Gaza. Israeli control of the strip will likely halt that underground trade.

Matthew Mpoke Bigg is a London-based reporter on the Live team at The Times, which covers breaking and developing news. More about Matthew Mpoke Bigg

Our Coverage of the Israel-Hamas War

News and Analysis

Two of Prime Minister Benjamin Netanyahu’s far-right partners threatened to bring down his government  should Israel agree to a cease-fire deal that would end the war in Gaza without eliminating Hamas.

Netanyahu has been put on the spot by President Biden’s announcement  outlining a proposal for a truce. Now the Israeli leader faces a stark choice .

Israel defied ominous warnings from Egypt and took control of a buffer zone on the Egypt-Gaza border. But the reaction from Cairo has been muted .

A Debate at Holocaust Museums: The Israel-Hamas war has also forced Holocaust museums to confront one of the most emotional and divisive issues within the Jewish community: how to discuss the Israeli-Palestinian conflict .

In the West Bank: Since the war in Gaza began, armed Jewish settlers in the Israeli-occupied territory, often accompanied by the army, have stepped up seizures of land long used by Palestinians .

A Fateful Encounter: In an Israeli prison infirmary, a Jewish dentist came to the aid of a desperately ill Hamas inmate. Years later, the prisoner became a mastermind of the Oct. 7 attack .

Getting Relatives Out: For Americans racing to evacuate their family members from Gaza, the closure of the Rafah border crossing into Egypt — the only way out for civilians — has thrown an already complicated system into disarray .