Trips Agreement Investopedia

The TRIPS Agreement is the first international agreement to establish minimum standards for the protection of several areas of intellectual property. It also imposes detailed provisions on the application of intellectual property in civil, criminal and border matters. In addition, it is the first international agreement on intellectual property subject to binding and enforceable dispute settlement. Article 40 of the TRIPS Agreement provides that certain practices or conditions relating to intellectual property rights that restrict competition may have negative effects on trade and impede the transfer and dissemination of technology (paragraph 1). In accordance with the other provisions of the Agreement, Member States may take appropriate measures to prevent or control abusive and anti-competitive IPR licensing practices (paragraph 2). The Agreement provides for a mechanism where by which a country wishing to object to such practices involving companies of another Member State undertakes to consult that other Member State and provides non-confidential information accessible to the public and relevant to the matter in question, as well as other information at its disposal, subject to national law and the conclusion of information both for both parties. to exchange satisfactory agreements on the respect of its confidentiality by the requirement. (paragraph 3). Similarly, a country whose companies are subject to such measures in another Member State may enter into consultations with that Member (paragraph 4). The TRIPS Agreement is an agreement on minimum standards that allows members to guarantee, if they so wish, broader protection of intellectual property. Members are free to determine the appropriate method for implementing the provisions of the Agreement in their own legal and practical order. With regard to application to international agreements, the concept of national treatment means that a State must treat the citizens of other States participating in the international agreement on the same point.

When goods are imported under an international agreement, they must be treated in the same way as locally manufactured products, although this obligation only takes effect when the imported products have entered the foreign market. Since the entry into force of TRIPS, it has been the subject of criticism from developing countries, scientists and non-governmental organizations. While some of this criticism is directed at the WTO in general, many proponents of trade liberalization also see TRIPS as bad policy. The wealth concentration effects of TRIPS (the movement of money from people in developing countries to copyright and patent holders in developed countries) and the imposition of artificial shortages on citizens of countries that would otherwise have weaker intellectual property laws are common bases for such criticism. Other criticisms focused on TRIPS` failure to accelerate the flow of investment and technology to low-income countries, an advantage advanced by WTO members before the agreement was created. World Bank statements indicate that TRIPS has not been able to tangibly accelerate investment in low-income countries, although this has been done for middle-income countries. [33] The long periods of validity of patents under TRIPS have been examined to indicate that they excessively slow down the market entry of generic drug substitutes and competition in the market. . .


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