1. Carnegie Institution of Washington
How to frame a global trade agreement that promotes R&D, and which is consistent with our notions of efficiency and fairness.
James Love
The Trans Atlantic Consumer Dialogue (TACD) Committee on Intellectual Property meeting on the Impact of Intellectual Property Rules on Consumers of Health Care Services
October 31 and November 1, 2002
Carnegie Institution of Washington
Washington, DC.

2. Why is TRIPS inadequate as a trade framework for R&D?
TRIPS does not address the problem of free riding for the creation of global public goods, such as research that enters the public domain.
Strong IPR protections can lead to access problems, and barriers to research.
There are insufficient private incentives to invest in many important R&D projects.
Exclusive rights on R&D may not be the most efficient mechanism to finance R&D.

3. What are the models for R&D treaties?
The Treaty of Europe
R&D as a development tool
Landmine treaty
Humanitarian demining technologies
Koyto Climate Treaty
Energy efficient technologies G8
Negotiations over funding vaccines and drugs for neglected diseases
Human Genome Project
Clinton/Blair Agreement

4. Components of an R&D treaty
Agreement on appropriate levels of funding R&D
Based upon ability of contribute
Rules for transparency of investment follows
Permit a variety of mechanisms
Strong IPR and high prices
Public sector funding
Research mandates
Allow countries to consider marginal cost pricing of products, contingent upon sufficient lump sum or public sector payments for research.

5. Possible approaches
Requirements for minimum contribution to vaccine and DND research and other global public goods.
Technology transfer and capacity building as objective of treaty.
Demonstration of a minimum share of GNP devoted to R&D allows waiver of TRIPS provisions.

6. Aventis Radical IPR Scenario #1
No IPR protection
RND treaty requires minimum national contribution to R&D
In US, savings from elimination of R&D is given to intermediaries, who make investments in R&D, and compete against each other for new allocations, based upon success

7. Or more incremental approach
On research for DND ?
On transparency?
On funding of public goods?

8. Parallel trade and pricing issues
TRIPS rules on exhaustion of patent rights need to be changed to allow selective exhaustion based upon country income or level of development
Pricing as an R&D issue
Reference pricing
World Health Organization or other non-WTO body for treaty or resolution on restrictions on the use of reference pricing.
US/Korea agreement on pricing
Korea must use average of G7 Prices

9. WTO type issues for R&D treaty
Subsidies
National Treatment
Performance Requirements
Market Access
Investment

10. Strategies to move the debate forward
Get R&D Treaty on agenda of NGO and Academic meetings on IPR, access to medicine or drugs for neglected diseases.
Organize meetings that exclusively deal with the structure of an R&D treaty.
Find an official fora of have discussions about an R&D Treaty