The Biden administration has backed an initiative by India and South Africa at the World Trade Organization (WTO) to temporarily waive patent rules on COVID-19 vaccines. 

It is seen as a breakthrough in the global fight against the deadly pandemic by potentially expanding the supply of the vaccines and more affordable doses for less wealthy nations.

What is the proposal about?

• In October 2020, India and South Africa submitted a proposal suggesting a waiver for all WTO members on the implementation, application and enforcement of certain provisions of the TRIPS agreement in relation to the prevention, containment or treatment of COVID-19.

• It said the waiver should last for an unspecified time period, with an annual review until it terminates, and call for unhindered global sharing of technology and know-how.

• The Biden administration took such a major decision despite stiff opposition from major pharma companies and US Chambers of Commerce, which argued that this will impact their intellectual property.

• With the US backing the initiative, experts suggested the member countries of the WTO to immediately start negotiations on the text to finalise the proposal as COVID-19 infections are increasing.

• If approved, the waiver would allow production of vaccines to be ramped up and provide more affordable doses for less wealthy countries.

• However, experts say it could take months for the WTO to hammer out any deal. WTO decisions are based on consensus, so all 164 members must agree.

What is TRIPS agreement?

• The agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) came into effect on January 1, 1995. 

• It is a multilateral agreement on intellectual property rights (IPR) such as copyright, industrial designs, patents and protection of undisclosed information or trade secrets.

• TRIPS incorporates and builds upon the latest versions of the primary intellectual property agreements administered by the World Intellectual Property Organisation (WIPO), the Paris Convention for the Protection of Industrial Property, and the Berne Convention for the Protection of Literary and Artistic Works, agreements that go back to the 1880s.

• It establishes minimum standards of protection and enforcement that each government has to give to the intellectual property held by nationals of fellow WTO members.

• Each of the main elements of protection is defined, namely the subject-matter to be protected, the rights to be conferred and permissible exceptions to those rights, and the minimum duration of protection.

• Under the TRIPS agreement, WTO members have considerable scope to tailor their approaches to IP protection and enforcement in order to suit their needs and achieve public policy goals. 

•The agreement provides ample room for members to strike a balance between the long term benefits of incentivising innovation and the possible short term costs of limiting access to creations of the mind. 

• Members can reduce short term costs through various mechanisms allowed under TRIPS provisions, such as exclusions or exceptions to intellectual property rights. 

• The agreement deals with domestic procedures and remedies for the enforcement of intellectual property rights. It lays down certain general principles applicable to all IPR enforcement procedures.

• When there are trade disputes over the application of the TRIPS agreement, the WTO’s dispute settlement system is available.

The TRIPS agreement covers five broad areas:

1) How general provisions and basic principles of the multilateral trading system apply to international intellectual property.

2) What the minimum standards of protection are for intellectual property rights that members should provide.

3) Which procedures members should provide for the enforcement of those rights in their own territories.

4) How to settle disputes on intellectual property between members of the WTO.

5) Special transitional arrangements for the implementation of TRIPS provisions.

• India has a well-established legislative, administrative and judicial framework to safeguard intellectual property rights (IPR), which meets its international obligations while utilizing the flexibilities provided in the international regime to address its developmental concerns. 

• India has a TRIPS compliant, robust, equitable and dynamic IPR regime.

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