Implications of the TRIPS Patent Policy Srividhya Ragavan University of Oklahoma Law Center

Objectives of TRIPS Article 7 –Technological innovation To the mutual advantage of producers & users In a manner conducive to social & economic welfare To a balance of rights and obligations. Preamble of TRIPS –Recognizes public policy objectives of national systems –Emphasizes reducing tensions

Social and Economic Welfare Social effect: –Increase in cost of medication –Disease conditions from deprivation of generic drugs –Protests and unrest Economic effect: –Effect of AIDS in South Africa; Swaziland –Effect on International Trade SARS as an example Maskus’ paper and Heald’s reply

(Im)balance of Rights & Obligations Right to good health Patents & Right to life –Developed nations –Developing nations Diseases unique to developing nations are never addressed A right that cannot be accessedObligations Government’s role Acceptance for a postponement of rights –Difference between developing & developed nations

Mutual Advantage of Producers Poverty Penalty –Price Control & Compulsory Licensing Anthrax Indirect Price control –PhRMA v. Maine; & related cases

Effect of Poverty Penalty On Developing Countries –Inability to fulfill national obligations –On local economic conditions Lack of advantage to developed nations –Effect on international trade –Effect on pharmaceutical industry Doha Declaration Loss of markets from legitimization of generic drugs

Can’t We All Get Along Fear of Parallel Importation –Reaction to the fear of parallel importation Agreements in exchange of TOT –Video and computer industry –Onus on government –Better access leads to less price control –Promotion of technology – TRIPS objective