trade-related-aspects-of-intellectual-property-rights
trade-related-aspects-of-intellectual-property-rights

Trade-Related Aspects of Intellectual Property Rights (TRIPS)

The Trade-Related Aspects of Intellectual Property Rights, commonly known as TRIPS, is one of the most comprehensive international legal frameworks pertaining to intellectual property rights. TRIPS was established by the World Trade Organization in 1995 and sets a minimum threshold on protection and enforcement of IP rights for all its members. TRIPS covers nearly all types of IP, including patents, copyrights, trademarks, geographical indications, and more, promoting uniformity in global markets.

TRIPS is a vital component of WTO agreements and serves as a crucial instrument that would harmonize intellectual property laws worldwide, strike a balance between the rights of innovators and public interest, and reduce disparities in IP standards to be an instrument that promotes international trade and cooperation in technology while assuming the needs of developing and least-developed countries.

What are Trade Related Aspects of Intellectual Property Rights?

The Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement, established in 1995 under the World Trade Organization (WTO), sets comprehensive minimum standards for the regulation of intellectual property (IP) among its member states.

  • Purpose of TRIPS: Harmonization of IP Laws Globally. TRIPS aims at standardizing IP protection across nations, thereby enabling smoother international trade and minimizing legal uncertainties.

  • Balancing IP Protection and Public Interest: The agreement is supposed to protect the rights of IP holders while making sure that such protection will not obstruct public welfare, especially in the areas of health or education.

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Categories of IP Covered

  • Patents: Ex rights conferred for inventions whereby a patent holder can prevent other people from making use of or selling the invention without permission.

  • Copyrights: Such protections of original works of authorship, which are in the forms of literature, art, and music, give the creator the right to use and distribute his or her work exclusively. 

  • Trademarks: Trademarks are distinctive signs or symbols that represent goods or services to enable consumers to differentiate between products in the market. 

  • Industrial Designs: These are protections for the look and feel that make a product attractive and distinguishable, such as the shape, pattern, and color of a product.

  • Geographical Indications: Signs used on products that have a specific geographical origin and possess qualities or a reputation inherent to that location, like Champagne or Darjeeling tea.

  • Integrated Circuits: Protection for the layout designs of integrated circuits, which are essential components in electronic devices.

  • Trade Secrets: Protection for confidential business information that provides a competitive edge, such as manufacturing processes or proprietary formulas.

Read in detail about Types of Intellectual Property

Key Provisions of Trade-Related Intellectual Property Rights

The Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement, established under the auspices of the World Trade Organization (WTO), outlines several key provisions to harmonize intellectual property (IP) laws globally.

General Principles

  • Members must accord to nationals of other members treatment no less favorable than that accorded to their own nationals concerning IP protection.

  • Any advantage, favor, privilege, or immunity granted by a member to the nationals of any other country must be extended immediately and unconditionally to the nationals of all other members.

  • The accord aims to balance the rights of IP owners with duties to spur technological development and technology transfer in the interest of producers and users alike.

Minimum Standards of Protection

  • Patents: Members must provide patent protection for inventions in all fields of technology, subject to certain exceptions, for a minimum term of 20 years from the filing date.

  • Copyright: Protection should be available for the life of the author plus 50 years. In the case of a work for which the term is not calculated based on the life of a natural person, it should be at least 50 years from the end of the calendar year of permitted publication or creation.

  • Trademarks: Protection should be available for a term of no less than seven years, renewable indefinitely.

Also, Know the Importance of Intellectual Property Rights

Enforcement Mechanisms

  • Domestic Enforcement Provisions: Members are obligated to have under their law mechanisms of enforcement available to enable effective action against any act of infringement of IP rights within the scope of TRIPS. 

  • Dispute Settlement through WTO: A member can seek settlement for any dispute with another member concerning TRIPS obligations through the WTO's Dispute Settlement Understanding, which defines the multilateral procedure for settling such disputes.

Implementation of Trade Related IPR in India 

India's commitment to the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement has brought about great reforms in its intellectual property (IP) laws so that India aligns with international standards.

TRIPS Integration into Indian Law

1. Amendment of the Patents Act, 1970

  • Patents (Amendment) Act, 1999: Provided for making product patent applications in pharmaceuticals and agrochemicals and an arrangement known as "mailbox" for fulfilling the TRIPS obligation.

  • Patents (Amendment) Act, 2002- elongated the patent term to 20 years and included provisions on compulsory licensing in accordance with TRIPS.

  • Patents (Amendment) Act, 2005- provided for product patents in every field. Product patents in drugs helped in "evergreening" cases to be put to an end. A balance between inventive activity and public health was thus ensured.

Also, Get to Know What are the Provisions related to Revocation of Patents under Section 64, Patents Act 1970

2. Geographical Indications of Goods (Registration and Protection) Act, 1999:

Enacted to safeguard the special characteristics of products coming from particular places, including Darjeeling tea and Basmati rice, as the TRIPS agreements require.

3. Trademarks Act, 1999:

Replaced the Trade and Merchandise Marks Act, 1958 to create an all-inclusive legal framework for trademark registration and protection that includes service marks, collective marks and well-known trademarks, in keeping with international TRIPS standards.

4. Copyright (Amendment) Act, 2012:

Copyright Act, 1957 was amended to take care of digital rights management, rights of performers, and alignment with WIPO Copyright Treaty as well as WIPO Performances and Phonograms Treaty, to fulfill the requirements of the TRIPS agreement.

Get to Know What are the Objectives of Intellectual Property Rights

The TRIPS Agreement assumes a prominent role in promoting global IP protection by establishing standardized norms that encourage innovation and creativity. However, its implementation requires flexibility in dealing with developmental disparities among countries. There is an urgent need for balancing protections of IP rights with broader social imperatives, such as access to essential medicines and knowledge. Countries can leverage TRIPS flexibilities to shape IP laws tailored to their needs, thereby ensuring innovation serves the broader public interest.

Trade Related Intellectual Property Rights FAQs

Q1. What is the TRIPS Agreement?

The TRIPS Agreement is an international treaty that came into existence in 1995 in the same group as the World Trade Organization (WTO). Its effects are to establish a minimum standard for the protection and enforcement of intellectual property rights across WTO member countries. The areas that TRIPS deals with include patents, copyrights, trademarks, and geographical indications.

Q2. How does TRIPS affect developing countries?

TRIPS has positive and negative effects to the developing countries. For instance, it fosters innovation and technology transfer due to strong IP protection. Conversely, it means that there will be a hike in prices on staple goods, like medicines, due to patents. TRIPS provisions include flexibilities such as compulsory licensing, which afford countries to take measures in relation to public health.

Q3. Can TRIPS provisions be amended concerning public health emergencies?

Yes, TRIPS has provisions allowing for amendments in response to public health crises. The Doha Declaration on the TRIPS Agreement and Public Health (2001) reasserted members' rights to issue compulsory licenses and establish the circumstances under which compulsory licenses are issued, where the exercise of IP rights shall not stifle members' ability to address public health concerns.

Q4. What are TRIPS flexibilities?

TRIPS flexibilities are provisions within the agreement that allow member countries to adapt IP laws to their specific needs and circumstances. These include: Compulsory Licensing, Parallel Importation, Except for patent rights

Q5. How does TRIPS deal with enforcement disputes?

TRIPS outlines ways of settling or resolving disputes regarding the rights to intellectual property through the WTO's Dispute Settlement Body. The members are allowed to engage in consultation processes and, if need be, request the formation of a panel that will judge the dispute. This ensures that there is equal protection of IP rights among all member countries.

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