scholarly journals Ch.12 Control of Restrictive Practices in Contractual Licences

Author(s):  
Correa Carlos Maria

This chapter discusses Article 40 of the Trade-related Aspects of Intellectual Property Rights (TRIPS) Agreement, which is the outcome of a proposal originally made by developing countries, which were concerned about the impact of strengthened intellectual property rights (IPRs) on the conditions of voluntary licenses. Article 40.1 recognizes that some licensing practices pertaining to intellectual property rights which restrain competition ‘may have adverse effects on trade and impede the transfer and dissemination of technology’. Meanwhile, unlike most provisions of the TRIPS Agreement, Article 40.2 does not contain specific obligations. It expressly allows countries to adopt measures to control or prevent certain practices or conditions relating to licensing agreements. Judgement of whether they should be controlled or prevented is based on three elements. Contractual practices or conditions should: be examined in each particular case; constitute an ‘abuse’ of intellectual property rights; and have an ‘adverse effect on competition in the relevant market’.

2003 ◽  
Vol 2 (1) ◽  
pp. 27-53
Author(s):  
Peter Phillips ◽  
Morteza Haghiri

AbstractThe increasing population of developing countries, which creates an increasing demand for food, is severely challenging traditional agricultural practices. Recent scientific developments have introduced biotechnology techniques to agriculture. To increase the benefits from implementing biotechnology, countries need both to continuously invest in research and development in their biotechnology sector and to implement a series of complementary policies. Establishing and enforcing the intellectual property rights of plant breeders are among of these policies. The successful institution of plant breeders' rights is influenced by market institutions and the legal system, which together comprise the environmental structure of the economy. Since property rights are not well established in most developing and developed countries, individual research and innovations cannot be protected from intellectual property piracy. As a result, there is little incentive to continue investment in research and development in biotechnology in those markets. This paper proposes a model of regional intellectual property rights for developing countries where individual intellectual property rights are not enforceable.


2010 ◽  
Vol 3 (3) ◽  
pp. 201 ◽  
Author(s):  
Samuel Adams

What is the impact of intellectual property rights (IPR) protection on foreign direct investment (FDI)? Has the coming into effect of the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) had any impact on FDI inflows in developing countries? This paper answers these questions by the use of panel data for a cross – section of 75 developing countries over a period of 19 years (1985 – 2003). The results of the study indicate that: 1) strengthening IPR has a positive effect on FDI; 2) the impact of patent protection on FDI after the TRIPS agreement is far and above that of the pre – TRIPS era; 3) the degree of openness, growth rate of the economy and investment are also key determinants of FDI. The findings of the study suggest that strengthening IPR is only one component of the many factors needed to maximize the potential of developing countries to attract FDI.


2016 ◽  
Vol 15 (2) ◽  
pp. 168-180 ◽  
Author(s):  
Huiying Zhang ◽  
Xiaohui Yang

Purpose This paper aims to investigate the impact of intellectual property rights (IPR) protection on its ability to enhance domestic export quality. Design/methodology/approach This paper provides a testable framework to explain the impact of IPR protection on export quality. Research and development (R&D) spending and foreign direct investment (FDI) are positively correlated with a country’s export quality. Furthermore, intellectual property protection can induce more FDI and R&D spending. Therefore, the authors expect that there may be an indirect relationship between intellectual property protection and export quality (Figure 1). Findings The empirical results suggest that the influence paths of IPR protection on export quality are different between developed and developing countries. FDI plays a mediating role in the relationship between IPR protection and export quality in developing countries, while this mediating effect in developed countries is dependent on R&D and FDI. In addition, this impact is statistically significant in high-technology industries. Especially, IPR protection plays an extraordinary important role in enhancing the export quality of differentiated high-technology products. Originality/value This paper contributes to the literature in several ways. First, this is the first empirical analysis focusing on the influence path of IPR protection on export quality. The authors find that the hypothesis is supported by the positive and significant interaction coefficients of IPR protection with FDI and R&D. Second, the authors explore that the influence path of IPR protection on export quality may vary with the level of economic development. Third, this paper examines the effect of IPR protection on export quality in different industries.


Author(s):  
Kamini Shanmugaiah

The impact of intellectual property rights in particular patent relating to public health has posed numerous challenges faced by developing countries who are members of World Trade Organisation (WTO). This paper examines the impact of TRIPS Agreement (Trade Related Intellectual Property Rights) in relation to developing countries in general with specification made to India. Significant changes brought about by the TRIPS flexibilities in particular usage of compulsory licensing and Bolar provision have to a certain extent benefited the developing countries in the field of public health during national emergency. The TRIPS flexibilities by way of amendment have helped countries that (do not possess manufacturing capacities) to import medicines. Some developing countries even utilised TRIPS flexibilities in an aggressive manner to enforce their right to have access to medicines from other countries for the benefit of their citizens. Further, TRIPs flexibilities have helped developing countries to manufacture generic products to make it affordable to the people. This paper specifically examines the impact of the TRIPS Agreement on Indian generic pharmaceutical industry and the legal challenges faced by Indian pharmaceutical industry after the implementation of product patent regime effective from 1 January 2005. The Patent Amendment Act 2005(India) will be looked into especially on the controversy in respect of Section 3(d) of the Patent Amendment Act 2005(India) on the requirement of patentability. The new Section 92A of the Patent Amendment Act 2005(India) on the grounds to invoke compulsory licensing will be analysed to see whether Indian government has applied restrictive or broad approach, as compulsory licensing is certainly an important legal


2020 ◽  
Vol 5 (Special) ◽  
pp. 154-162
Author(s):  
Mohammad Abdulmahdi Amin Alfaouri

In the last few decades, the developing countries have witnessed a remarkable increase in the infringement of intellectual property rights thus conventions and treaties were held to reduce these infringements, in particular, the TRIPS Treaty (Trade-Related Aspects of Intellectual Property Rights).This study attempts to explain the causes of intellectual property rights infringements and the efficient means for intellectual property rights protections by taking Jordan as an example. The study finds that TRIPS Treaty, which is the latest international action to enhance the protection level, consumer's ethical attitude, development expenditure, economic policies, weakness of law enforcement, and low-income in developing countries are important factors to explain the level of IP protection. Because of all of these, the infringements became a phenomenon in developing countries that firstly need amendments in their intellectual property laws to apply the criminal sanctions jointly by civil remedies, owing to the fact of the shock value or general deterrence to enhance the commitment to the law and to remit this phenomenon, furthermore, the state will follow up on the cost of prosecution without involving the owners of the rights personally in many cases. On the other hand, literature revealed that the infringements of IPRs became a phenomenon because the TRIPS Treaty prepared for the benefits of the large companies, thus the developing countries' legislation, economic and consumer's ethical attitude got affected negatively. In addition, the developed countries threatened them by sanctions if they didn't make retroactively amendments on their legislation, which also led to prevent them to adopt the necessary measures that mitigate the negative impact on their economic and social life. Regarding the applied research method, this paper used secondary data sources and applied the descriptive and comparative analytical legal approaches to illustrate the most important points and findings on the topic.


2008 ◽  
Vol 34 (2-3) ◽  
pp. 395-421
Author(s):  
Radhika Bhattacharya

The goal of the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement is to harmonize the intellectual property rights of World Trade Organization (WTO) member countries to a certain minimum standard. As a WTO member, the organization required India to enact legislation that enforces TRIPS by 2005. Part of India's motivation to pass its 2005 Patents Act stemmed from its obligations as a WTO member nation, as well as the government's desire to stimulate greater foreign investment, innovative research and economic growth.India's implementation of the TRIPS Agreement has generated a great deal of controversy. Disagreement exists about whether the Indian Patents Act overzealously protects intellectual property rights and whether the Patents Act goes beyond the spirit of the TRIPS Agreement. Many health officials and non-governmental organizations (NGOs) are seriously concerned about what the Patents Act implies for people suffering from diseases in less developed countries. Nonprofit and some World Health Organization officials argue that the new law prevents India from producing and supplying generic drugs within its borders and to other developing countries.


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