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The WTO’s Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) ,

negotiated in the 1986-94 Uruguay Round, introduced intellectual property rules into the

multilateral trading system or the irst time!

Origins: into the rule-based trade system

"deas and #no$ledge are an increasingly important part o trade! %ost o the &alue o ne$medicines and other high technology products lies in the amount o in&ention, inno&ation,

research, design and testing in&ol&ed! 'ilms, music recordings, (oo#s, computer sot$are and

on-line ser&ices are (ought and sold (ecause o the inormation and creati&ity they contain, notusually (ecause o the plastic, metal or paper used to ma#e them! %any products that used to (e

traded as lo$-technology goods or commodities no$ contain a higher proportion o in&ention

and design in their &alue ) or e*ample (randnamed clothing or ne$ &arieties o plants!

+reators can (e gi&en the right to pre&ent others rom using their in&entions, designs or othercreations ) and to use that right to negotiate payment in return or others using them! These are

intellectual property rights! They ta#e a num(er o orms! 'or e*ample (oo#s, paintings andilms come under copyright. in&entions can (e patented. (randnames and product logos can (eregistered as trademar#s. and so on! /o&ernments and parliaments ha&e gi&en creators these

rights as an incenti&e to produce ideas that $ill (eneit society as a $hole!

The e*tent o protection and enorcement o these rights &aried $idely around the $orld. and as

intellectual property (ecame more important in trade, these dierences (ecame a source otension in international economic relations! 0e$ internationally-agreed trade rules or

intellectual property rights $ere seen as a $ay to introduce more order and predicta(ility, and or 

disputes to (e settled more systematically!

The Uruguay Round achie&ed that! The WTO’s TR"2 3greement is an attempt to narro$ thegaps in the $ay these rights are protected around the $orld, and to (ring them under common

international rules! "t esta(lishes minimum le&els o protection that each go&ernment has to gi&e

to the intellectual property o ello$ WTO mem(ers! "n doing so, it stri#es a (alance (et$een thelong term (eneits and possi(le short term costs to society! 2ociety (eneits in the long term

$hen intellectual property protection encourages creation and in&ention, especially $hen the

 period o protection e*pires and the creations and in&entions enter the pu(lic domain!

/o&ernments are allo$ed to reduce any short term costs through &arious e*ceptions, or e*ampleto tac#le pu(lic health pro(lems! 3nd, $hen there are trade disputes o&er intellectual property

rights, the WTO’s dispute settlement system is no$ a&aila(le!

The agreement co!ers fi!e broad issues:

  ho$ (asic principles o the trading system and other international intellectual property

agreements should (e applied

  ho$ to gi&e adeuate protection to intellectual property rights

  ho$ countries should enorce those rights adeuately in their o$n territories

https://www.wto.org/english/docs_e/legal_e/legal_e.htm#TRIPshttps://www.wto.org/english/docs_e/legal_e/legal_e.htm#TRIPshttps://www.wto.org/english/docs_e/legal_e/legal_e.htm#TRIPs

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  ho$ to settle disputes on intellectual property (et$een mem(ers o the WTO

  special transitional arrangements during the period $hen the ne$ system is (eing introduced!

"ndisclosed information and trade secrets

Trade secrets and other types o undisclosed inormation $hich ha&e commercial &alue must (e protected against (reach o conidence and other acts contrary to honest commercial practices!

5ut reasona(le steps must ha&e (een ta#en to #eep the inormation secret! Test data su(mitted to

go&ernments in order to o(tain mar#eting appro&al or ne$ pharmaceutical or agriculturalchemicals must also (e protected against unair commercial use!

#nforcement: tough but fair

a&ing intellectual property la$s is not enough! They ha&e to (e enorced! This is co&ered in

art 7 o TR"2! The agreement says go&ernments ha&e to ensure that intellectual property rights

can (e enorced under their la$s, and that the penalties or inringement are tough enough to

deter urther &iolations! The procedures must (e air and euita(le, and not unnecessarilycomplicated or costly! They should not entail unreasona(le time-limits or un$arranted delays!

eople in&ol&ed should (e a(le to as# a court to re&ie$ an administrati&e decision or to appeal alo$er court’s ruling!The agreement descri(es in some detail ho$ enorcement should (e handled,

including rules or o(taining e&idence, pro&isional measures, inunctions, damages and other

 penalties! "t says courts should ha&e the right, under certain conditions, to order the disposal ordestruction o pirated or countereit goods! Wilul trademar# countereiting or copyright piracy

on a commercial scale should (e criminal oences! /o&ernments should ma#e sure that

intellectual property rights o$ners can recei&e the assistance o customs authorities to pre&entimports o countereit and pirated goods!

Transition arrangements: $% & or $$ years or more

When the WTO agreements too# eect on 1 anuary 199:, de&eloped countries $ere gi&en one

year to ensure that their la$s and practices conorm $ith the TR"2 agreement! ;e&eloping

countries and ???!@east-de&eloped countries had 11 years, until >??6 ) no$ e*tended to >?17 in general, and to

>?16 or pharmaceutical patents and undisclosed inormation!

" a de&eloping country did not pro&ide product patent protection in a particular area o

technology $hen the TR"2 3greement (ecame applica(le to it ???=, it had up toi&e additional years to introduce the protection! 5ut or pharmaceutical and agricultural

chemical products, the country had to accept the iling o patent applications rom the (eginningo the transitional period

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2u(ect to certain e*ceptions, the general rule is that o(ligations in the agreement apply to

intellectual property rights that e*isted at the end o a country’s transition period as $ell as to

ne$ ones!