TRIPs History, Objectives and Functions

The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) is a comprehensive multilateral agreement on intellectual property (IP) that is administered by the World Trade Organization (WTO). It sets down minimum standards for the protection and enforcement of intellectual property rights (IPR) across all WTO member nations with the aim to harmonize the protection of intellectual property on a global scale. The TRIPS agreement covers a wide range of IP, including copyrights, patents, trademarks, geographical indications, industrial designs, and trade secrets. It establishes a framework for the protection of IPR to promote technological innovation and to transfer and disseminate technology, in a manner conducive to social and economic welfare, and to a balance of rights and obligations. TRIPS was negotiated during the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) in 1994 and is a critical component in international trade, affecting how countries legislate and enforce IP laws within their own borders.

History of TRIPs:

The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) was conceived and negotiated during the Uruguay Round of trade negotiations under the General Agreement on Tariffs and Trade (GATT), which took place from 1986 to 1994. The history of TRIPS is closely linked to the broader process of reforming the international trading system and the establishment of the World Trade Organization (WTO), which succeeded GATT in 1995.

Before TRIPS, protection for intellectual property rights (IPR) varied significantly across countries, leading to international discord due to the lack of a unified framework. Many developed countries sought stronger, more uniform standards to protect their IP globally, arguing that inadequate protection in some countries was harming trade and investment. In contrast, developing countries were concerned about the implications of stricter IP standards on their economies, including access to technology and essential medicines.

The negotiations were complex and contentious, reflecting a delicate balance between various interests. Developing countries were initially reluctant to agree to the new standards, fearing that stronger IP protections would limit their access to new technologies and hinder their economic development. However, concessions were made, including transition periods for implementing the agreement’s provisions, allowing developing and least-developed countries more time to adjust to the new standards.

The TRIPS agreement was finally signed in April 1994 as part of the Marrakesh Agreement, which established the WTO. TRIPS came into effect on January 1, 1995, alongside the establishment of the WTO. It marked a significant milestone in global trade policy by integrating intellectual property rights into the multilateral trading system for the first time, aiming to standardize the protection and enforcement of IP across nations while maintaining a balance between the rights of IP holders and the public interest.

Objectives of TRIPs:

• Establish a Comprehensive Standard of Protection:

One of the primary objectives of TRIPS is to establish a comprehensive standard of protection across all forms of intellectual property (IP) that are subject to trade. This includes patents, copyrights, trademarks, geographical indications, industrial designs, trade secrets, and the layout designs of integrated circuits.

• Ensure Effective and Appropriate Enforcement:

TRIPS aims to ensure that effective and appropriate means are available for enforcing IP rights, so that right holders can protect their interests against infringement. This includes civil and administrative procedures, provisional measures, and deterrents against further infringements.

• Facilitate Technology Transfer:

An important objective of TRIPS is to facilitate technology transfer, which is crucial for technological development and economic growth, especially in developing and least-developed countries. The agreement recognizes the need to balance IP protection with the broader goal of promoting technological innovation and transferring technology to the benefit of both producers and users of technological knowledge.

• Promote Mutual Advantages:

TRIPS seeks to promote mutual advantages and a balance of rights and obligations among all members. This includes acknowledging the special needs of the least-developed countries, allowing them flexibility for implementing the provisions of the agreement in a manner conducive to their technological and economic development.

• Resolve Disputes on Intellectual Property:

By incorporating IP into the multilateral trading system, TRIPS provides a framework for the resolution of disputes over IP rights among countries, utilizing the dispute resolution mechanisms of the WTO. This aims to reduce conflicts over IP and contribute to the stability of the global trading system.

• Establish a Minimum Standard of Protection:

TRIPS sets out minimum standards for the protection and enforcement of IP rights, which member countries must incorporate into their national laws. This harmonization of standards is intended to reduce distortions and impediments to international trade.

Functions of TRIPs:

• Harmonizing Intellectual Property Standards:

TRIPS functions to harmonize the minimum standards for the protection and enforcement of IP rights across all World Trade Organization (WTO) member countries. This includes copyrights, patents, trademarks, geographical indications, industrial designs, trade secrets, and the protection of undisclosed information.

• Providing a Framework for IP Enforcement:

The agreement establishes a comprehensive framework for the enforcement of IP rights, outlining the procedures and remedies that must be available so that IP rights can be effectively defended. This includes civil and administrative procedures, provisional measures, deterrents against infringement, and procedures to prevent the abuse of IP rights.

• Facilitating Technology Transfer:

TRIPS aims to facilitate the transfer of technology between countries as part of its broader objectives. By ensuring that IP rights are protected and enforced, the agreement creates an environment that encourages the voluntary transfer of technology, which is essential for technological development and economic growth, especially in developing countries.

• Dispute Resolution:

TRIPS incorporates IP into the WTO’s dispute resolution mechanism, allowing countries to settle disputes over IP rights within an established and structured framework. This helps to prevent and resolve conflicts over IP that could affect international trade, providing a more predictable and secure trading environment.

• Monitoring and Review:

The TRIPS Council, established under the agreement, functions to monitor the operation of the agreement and ensure that members comply with their obligations. This includes reviewing developments in the global IP system and the effects of the agreement on trade and development.

• Technical Assistance and Cooperation:

TRIPS mandates the provision of technical assistance and cooperation to developing and least-developed countries to help them comply with the agreement’s provisions. This includes support for creating and enhancing domestic IP laws and enforcement mechanisms in line with TRIPS standards.

• Flexibilities for Developing Countries:

One of the critical functions of TRIPS is to provide flexibilities for developing and least-developed countries, allowing them time and flexibility to adapt their domestic laws to meet TRIPS standards. This includes provisions related to public health, such as the ability to issue compulsory licenses for essential medicines under certain conditions.

• Promoting Public Health:

TRIPS includes specific provisions aimed at addressing public health issues, recognizing the importance of access to medicines. The Doha Declaration on the TRIPS Agreement and Public Health clarified these provisions, emphasizing the right of member states to protect public health and promote access to medicines for all.