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The Trips Agreement Was Designed To Quizlet

WTO Director-General Supachai Panitchpakdi called the decision a “historic agreement” in a press release. Mr Panitchpakdi added: “This proves that the WTO can handle both humanitarian and trade issues. This particular issue has been particularly difficult. The fact that WTO members have managed to find a compromise on such a complex issue is a testament to their goodwill. (5) The Heads of State and Government of the industrialized countries referred to this decision as a spectacular development of international intellectual property law. UN Secretary-General Kofi Annan said: “Intellectual property protection is the key to advancing new medicines, vaccines and diagnostic devices that urgently need the health of the world`s poorest people. The United Nations fully supports the TRIPS Agreement, including the protective measures it contains. (13) Article 31 of the TRIPS Agreement (6) provides that the rights of patent holders may be circumvented in certain situations. Specifically, member governments have the power to license a party willing to commercialize a patented invention without the agreement of the patent owner. In the absence of a `national state of emergency`, the proposed licensee is required to make the necessary efforts to apply for a voluntary licence (6). If the patent holder refuses to grant a license, a non-exclusive license may be issued by the government. Subject to other provisions of the TRIPS Agreement, compulsory licensing therefore allows generic manufacturers to manufacture patented medicines and sell them at a fraction of the price that patent holders would pay, since only the costs of manufacturing the medicine are to be recovered and not the costs of research and development. Critics of the compulsory licensing provisions refer to paragraph (f) under the same article, which states that compulsory licences must be used `primarily to supply the internal market of the Member authorising such use` (6).

Critics argue that this clause makes it extremely difficult for developing country governments to issue compulsory licenses to combat public health crises, as it would require medicines to be manufactured in developing countries where the infrastructure to support this highly developed industry is limited (7). While the WTO agreements entered into force on 1 January 1995, the TRIPS Agreement granted certain transitional periods to WTO members before being required to apply all its provisions. Members of industrialized countries have been given one year to ensure that their laws and practices are in line with the TRIPS Agreement. Developing countries and countries with economies in transition (under certain conditions) were granted a period of five years, until the year 2000. The least developed countries were initially 11 years old, until 2006, and generally until 1 July 2021.