Introduction to the TRIPS Agreement 

MODULE

2

ESTIMATED TIME: 3 hours 

OBJECTIVES OF MODULE 2

To introduce the TRIPS Agreement.

At the end of the Module, you will have a better understanding of:

the structure of the TRIPS Agreement;

its general provisions and basic principles;

rules on procedures for the acquisition and maintenance of intellectual property

rights; and

transitional arrangements;

institutional arrangements, including the functions of the TRIPS Council.

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Overview  

I. INTRODUCTION............................................................................................................ 3 I.A. GENERAL ........................................................................................................ 3 I.B. STRUCTURE OF THE TRIPS AGREEMENT.............................................................. 5

II. GENERAL PROVISIONS AND BASIC PRINCIPLES OF THE TRIPS AGREEMENT ........................ 8 T

II.A. OBJECTIVES .................................................................................................... 8 II.B. GENERAL PROVISIONS AND BASIC PRINCIPLES................................................... 8

III. PROCEDURES FOR THE ACQUISITION AND MAINTENANCE OF INTELLECTUAL PROPERTY

RIGHTS ..................................................................................................................... 12 IV. TRANSITIONAL ARRANGEMENTS AND OTHER MATTERS .................................................. 13

IV.A. TRANSITIONAL PERIODS................................................................................. 13 IV.B. PROTECTION OF EXISTING SUBJECT MATTER.................................................... 15 IV.C. TRANSFER OF TECHNOLOGY............................................................................ 15 IV.D. TECHNICAL COOPERATION.............................................................................. 16 IV.E. SECURITY EXCEPTIONS .................................................................................. 16

V. INSTITUTIONAL ARRANGEMENTS ................................................................................. 17 V.A. THE WORK OF THE COUNCIL FOR TRIPS ........................................................... 17

VI. SUMMARY.................................................................................................................. 21

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I. INTRODUCTION 

I.A. GENERAL 

In Module 1 you have already had an introduction to the WTO, its organizational structure and its main

agreements. You have also had an overview of intellectual property in WIPO's Distance Learning Course (001)

that you were advised to take before attempting this course

(http://www.wipo.int/academy/en/courses/distance_learning/catalog/dl001primer.html). That course – which

was not aimed at explaining the provisions of the TRIPS Agreement – gave you a basic understanding, among

other things, of various areas of intellectual property rights (IPRs) and their enforcement.

The purpose of this Module is to help you understand the TRIPS Agreement, in particular its general provisions

and basic principles and other horizontal provisions, as well as institutional arrangement relating to its

operation. Before we turn to this, we need to understand what IPRs are and why they are protected.

I.A.1. WHAT ARE IPRS? 

IPRs are the rights given to persons over the creations of their minds.

IPRs usually give the creator an exclusive right over the use of his creation for a certain period of time.

IPRs are territorial rights, which means that they are valid only in the jurisdiction where they have been

registered or otherwise acquired.

IPRs are customarily divided into two main areas: copyright and rights related to copyright, and

industrial property.

a. COPYRIGHT AND RIGHTS RELATED TO COPYRIGHT 

The rights of authors of literary and artistic works (such as books and other writings, musical compositions,

paintings, sculptures, computer programs and films) are protected by copyright, for a minimum period of 50

years after the death of the author. Also protected through copyright and related (sometimes referred to as

"neighbouring") rights are the rights of performers (e.g. actors, singers and musicians), producers of

phonograms (sound recordings) and broadcasting organizations.

b. INDUSTRIAL PROPERTY 

Industrial property can usefully be divided into two main areas:

One area can be characterized as the protection of distinctive signs, in particular trademarks (which

distinguish the goods or services of one undertaking from those of other undertakings) and geographical

indications (which identify a good as originating in a place where a given characteristic of the good is

essentially attributable to its geographical origin). Trademark protection may last indefinitely, provided

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the sign in question continues to be distinctive. The same is true of a geographical indication that

continues to identify the geographical origin.

Other types of industrial property are protected primarily to stimulate innovation, design and the

creation of technology. In this category fall inventions (protected by patents; in a number of countries,

innovations that could embody lesser technical progress than patentable inventions may be protected

by utility models), industrial designs and trade secrets. The protection is usually given for a finite term

(typically 20 years in the case of patents).

I.B. WHY ARE IPRS PROTECTED? 

a. ENCOURAGE AND REWARD CREATIVE WORK 

The main social purpose of protection of copyright and related rights is to encourage and reward creative work.

This is also relevant to protection in other areas (e.g. industrial designs and patents).

b. TECHNOLOGICAL INNOVATION 

Intellectual property rights are designed to provide protection for the results of investment in the development

of new technology, thus giving the incentive and means to finance research and development activities.

c. FAIR COMPETITION 

The protection of distinctive signs and other IPRs aims to stimulate and ensure fair competition among

producers.

d. CONSUMER PROTECTION 

The protection of distinctive signs should also protect consumers, by enabling them to make informed choices

between various goods and services.

e. TRANSFER OF TECHNOLOGY 

A functioning intellectual property regime should also facilitate the transfer of technology in the form of foreign

direct investment, joint ventures and licensing.

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f. BALANCE OF RIGHTS AND OBLIGATIONS 

It should also be noted that the exclusive rights given to the owners of intellectual property are generally

subject to a number of limitations and exceptions, aimed at balancing the legitimate interests of right holders

and of users.

Turning now to the TRIPS Agreement, as explained in Module 1, the TRIPS Agreement is Annex 1C of the WTO

Agreement of 15 April 1994, which entered into force on 1 January 1995. The TRIPS Agreement is an integral

Part of the WTO Agreement, and it is binding on each Member of the WTO from the date the WTO Agreement

becomes effective for it. However, the TRIPS Agreement gave original Members transitional periods, which

differ according to their stages of development, to bring themselves into compliance with its rules. (See IV.A.4

below for transition period for acceding countries)

The Agreement is administered by the Council for TRIPS, which is open to all Members and reports to the WTO

General Council.

I.C. STRUCTURE OF THE TRIPS AGREEMENT 

ANNEX 1C 

AGREEMENT ON TRADE‐RELATED ASPECTS OF 

INTELLECTUAL PROPERTY RIGHTS 

PART I GENERAL PROVISIONS AND BASIC PRINCIPLES

PART II STANDARDS CONCERNING THE AVAILABILITY, SCOPE AND USE OF INTELLECTUAL PROPERTY RIGHTS

1. Copyright and Related Rights

2. Trademarks

3. Geographical Indications

4. Industrial Designs

5. Patents

6. Layout-Designs (Topographies) of Integrated Circuits

7. Protection of Undisclosed Information

8. Control of Anti-Competitive Practices in Contractual Licences

PART III ENFORCEMENT OF INTELLECTUAL PROPERTY RIGHTS

1. General Obligations

2. Civil and Administrative Procedures and Remedies

3. Provisional Measures

4. Special Requirements Related to Border Measures

5. Criminal Procedures

PART IV ACQUISITION AND MAINTENANCE OF INTELLECTUAL PROPERTY RIGHTS AND RELATED INTER-PARTES PROCEDURES

PART V DISPUTE PREVENTION AND SETTLEMENT

PART VI TRANSITIONAL ARRANGEMENTS

PART VII INSTITUTIONAL ARRANGEMENTS; FINAL PROVISIONS

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I.C.1. GENERAL PROVISIONS AND BASIC PRINCIPLES 

Part I of the TRIPS Agreement sets out general provisions and basic principles of the Agreement, such as

national treatment and most-favoured-nation treatment, and exhaustion of IPRs. These general provisions and

basic principles will be discussed in Part 2 of this Module.

I.C.2. STANDARDS CONCERNING THE AVAILABILITY, SCOPE AND USE OF IPRS 

Part II of the Agreement sets out the minimum standards of intellectual property protection to be provided by

each Member. The areas of intellectual property that it covers are 1) copyright and related rights (i.e. the

rights of performers, producers of sound recordings and broadcasting organizations); 2) trademarks including

service marks; 3) geographical indications; 4) industrial designs; 5) patents including the protection of new

varieties of plants; 6) the layout-designs of integrated circuits; and 7) undisclosed information, including trade

secrets and test data. Part II also contains provisions on the control of anti-competitive practices in contractual

licences. These areas of intellectual property and control of anti-competitive practices will be discussed in

Modules 3-8.

In respect of each of these areas of intellectual property, the main elements of protection are defined, namely

the subject-matter to be protected, the rights to be conferred and permissible exceptions to those rights, and,

where applicable, the minimum duration of protection.

IMPORTANT NOTE:

The Agreement sets these standards by requiring, first, compliance with the substantive obligations of the main

conventions of the World Intellectual Property Organization (WIPO), the Paris Convention and the Berne

Convention in their most recent versions. With the exception of the provisions of the Berne Convention on

moral rights, all the main substantive provisions of these two conventions are incorporated by reference and

thus become obligations under the TRIPS Agreement between Members.

The relevant provisions are to be found in Articles 2.1 and 9.1, which relate, respectively, to the Paris

Convention and to the Berne Convention. Secondly, the TRIPS Agreement adds a substantial number of

additional obligations on matters where the pre-existing conventions are silent or were seen as being

inadequate. The TRIPS Agreement is thus sometimes referred to as a "Berne-plus" and "Paris-plus" agreement.

See Note 2.1 for more details on the Paris Convention and the Berne Convention.

As explained in Module 3, the TRIPS provisions on related rights contain certain references to the Rome

Convention. The Section on the protection of layout-designs of integrated circuits, explained in Module 7,

incorporates most of the substantive provisions of the IPIC Treaty. Article 2.2 of the TRIPS Agreement contains

a safeguard clause, according to which the provisions of the Agreement cannot be understood to derogate from

the existing obligations that Members may have to each other under the Paris Convention, the Berne

Convention, the Rome Convention or the IPIC Treaty.

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I.C.3. ENFORCEMENT 

Part III of the Agreement deals with domestic procedures and remedies for the enforcement of intellectual

property rights. The Agreement lays down certain general principles applicable to intellectual property

enforcement procedures. In addition, it contains provisions on civil and administrative procedures and

remedies, provisional measures, special requirements related to border measures and criminal procedures.

These provisions specify, in a certain amount of detail, the procedures and remedies that must be available so

that right holders can effectively enforce their rights and also provide for safeguards against the abuse of such

procedures and remedies as barriers to legitimate trade. These provisions will be discussed in Module 9.

I.C.4. CERTAIN OTHER MATTERS 

Part IV of the Agreement contains general rules on procedures related to the acquisition and maintenance of

intellectual property rights. These rules are explained in III below.

Part V of the Agreement deals with dispute prevention and settlement. The Agreement makes disputes

between Members about the respect of obligations contained in it, whether in the field of substantive standards

or in the field of enforcement, subject to the WTO's dispute settlement procedures. Dispute prevention and

settlement will be discussed in Module 10.

Part VI of the Agreement contains provisions on transitional periods, transfer of technology and technical

cooperation. Part VII deals with institutional arrangements and certain cross-cutting matters such as the

protection of existing subject matter. These two Parts are covered below in IV of this Module.

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II. GENERAL PROVISIONS AND BASIC PRINCIPLES OF THE TRIPS AGREEMENT 

II.A. OBJECTIVES 

The general goals of the TRIPS Agreement are contained in the Preamble of the Agreement. These goals

include the reduction of distortions and impediments to international trade, promotion of effective and

adequate protection of intellectual property rights, and ensuring that measures and procedures to enforce

intellectual property rights do not themselves become barriers to legitimate trade. The Preamble essentially

reproduces the Uruguay Round mandates given to the negotiators of the TRIPS Agreement in the 1986 Punta

del Este Declaration and in the April 1988 mid-term review decision.

The general goals contained in the Preamble of the Agreement should be read in conjunction with Article 7,

entitled "Objectives". Article 7 reflects the search for a balanced approach to IPR protection in the societal

interest, taking into account the interests of creators and inventors. IPR protection is expected to contribute

not only to the promotion of technological innovation, but also to the transfer and dissemination of technology

in a way that benefits all stakeholders and that respects a balance of rights and obligations. More detailed

information on the Preamble and Articles 7 and 8 are included in Note 2.2.

Article 8, entitled "Principles", recognizes the rights of Members to adopt measures for public health and other

public interest reasons and to prevent the abuse of intellectual property rights, provided that such measures

are consistent with the provisions of the TRIPS Agreement.

II.B. GENERAL PROVISIONS AND BASIC PRINCIPLES 

II.B.1. MINIMUM STANDARDS AGREEMENT 

As discussed above, the TRIPS Agreement sets out the minimum standards of protection to be provided by

each Member. Article 1.1 makes it clear that Members may, but are not obliged to, implement in their law

more extensive protection than required by the Agreement, provided that such protection does not contravene

its provisions. For example, Members may provide for longer terms of protection than that mandated by the

TRIPS Agreement but Members are not required to do so.

Article 1.1 further clarifies that Members are free to determine the appropriate method of implementing the

provisions of the TRIPS Agreement within their own legal system and practice.

II.B.2. BENEFICIARIES 

As in the main pre-existing intellectual property conventions, the basic obligation on each Member is to accord

the treatment in regard to the protection of intellectual property provided for under the Agreement to right

holders and users of other Members. Article 1.3 defines who these persons are. These persons are referred to

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as "nationals" but include persons, natural or legal, who have a close attachment to another Member without

necessarily having the nationality of that other Member. The criteria for determining which persons must thus

benefit from the treatment provided for under the Agreement are those laid down for this purpose in the pre

existing intellectual property conventions of WIPO referred to in the Agreement, applied of course with respect

to all WTO Members whether or not they are party to those conventions. For a clearer understanding of who

the beneficiaries are, please see a summary of the relevant provisions that apply to the different areas of

intellectual property in Note 2.3.

II.B.3. NATIONAL TREATMENT AND MOST‐FAVOURED‐NATION TREATMENT 

You have already been introduced to these two terms in Module 1 as Part of the key principle of

non-discrimination in the WTO. The fundamental rules on national and most-favoured-nation (MFN) treatment

of foreign nationals can be found in Articles 3-5 of the TRIPS Agreement. These rules are common to all

categories of intellectual property covered by the Agreement.1

Article 3 on national treatment requires each Member to accord to the nationals of other Members treatment

no less favourable than that it accords to its own nationals with regard to the protection of intellectual

property. In respect of the national treatment obligation, the exceptions allowed under the four pre-existing

WIPO treaties (Paris, Berne, Rome and IPIC) are also allowed under TRIPS.

An important exception to national treatment is the so-called comparison of terms for copyright protection

allowed under Article 7(8) of the Berne Convention as incorporated into the TRIPS Agreement. If a Member

provides a term of protection in excess of the minimum term required by the TRIPS Agreement, it does not

need to protect a work for a duration that exceeds the term fixed in the country of origin of that work. In other

words, the additional term can be made available to foreigners on the basis of "material reciprocity". For

example if Member A provides for 70 years instead of 50 years in accordance with Article 12 of the TRIPS

Agreement while Member B provides for 50 years, Member A need not protect works from Member B for more

than 50 years.

In respect of performers, producers of phonograms (sound recordings such as CDs) and broadcasting

organizations, this obligation applies only in respect of rights provided under the TRIPS Agreement.

There are some conditions on the use of national treatment exceptions in the case of judicial and

administrative procedures. These can be seen in Note 2.4.

Article 4 on MFN treatment requires that, with regard to the protection of intellectual property, any advantage,

favour, privilege or immunity granted by a Member to the nationals of any other Member shall be accorded

immediately and unconditionally to the nationals of all other Members. For example, if Member A decides to

recognize and enforce the patents granted in Member B from a certain date in the past irrespective of whether

1 Footnote 3 to the TRIPS Agreement says that, for the purposes of Articles 3 and 4, "protection" shall include

matters affecting the availability, acquisition, scope, maintenance and enforcement of intellectual property

rights as well as those matters affecting the use of intellectual property rights specifically addressed in this

Agreement.

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the inventions covered meet the novelty criterion or not, Member A must extend the same advantage to

nationals of other Members.

Where exceptions to national treatment allow material reciprocity, a consequential exception to MFN treatment

is permitted under Article 4(b) and 4(c). Further limited exceptions to MFN are allowed under Article 4(a)

concerning international agreements on judicial assistance or law enforcement of a general nature and under

Article 4(d) concerning international agreements related to intellectual property that entered into force before

1 January 1995.

In addition, Article 5 of the TRIPS Agreement provides that national and MFN treatment obligations do not

apply to procedures provided in multilateral agreements concluded under the auspices of WIPO relating to the

acquisition or maintenance of intellectual property rights.

To explain this further, Article 5 recognizes that certain WIPO agreements, such as the Patent Cooperation

Treaty, the Madrid Agreement Concerning the International Registration of Marks and the Protocol to that

Agreement, and the Hague Agreement Concerning the International Registration of Industrial Designs, provide

for a system of international applications only open to persons that are nationals or residents of signatory

countries or have a real and effective industrial or commercial establishment in those countries.

II.B.4. EXHAUSTION 

The term "exhaustion" refers to the generally accepted principle in intellectual property law that a right

owner's exclusive right to control the distribution of a protected item lapses after the first act of distribution.

In many countries, once the item has been put on the market by or with the consent of the right owner, the

exclusive distribution right is "exhausted" (which is why the principle is referred to in some jurisdictions as

the "first

sale doctrine") and further circulation of that item can no longer be controlled by the right holder. In simple

terms, exhaustion describes the fact that once you have legitimately obtained e.g. a copyright

protected DVD or a patented mobile phone, you are free to further sell, transfer or otherwise distribute it

without further authorization from the right holder. This does not, of course, affect any other exclusive rights

the right holder may enjoy, for example to authorize activities such as reproduction or communication to the

public.

While it is generally accepted that intellectual property rights are exhausted within the jurisdiction where the

first sale took place, are such rights exhausted when the first sale takes place outside the jurisdiction in

question? The answer to this depends on whether a country applies a regime of national or international

exhaustion and thereby prevents or allows so-called parallel importation:

National exhaustion means that the right owner's distribution right is only considered exhausted if he

has put the protected item on the market in that country. His distribution right would not be considered

exhausted with regard to protected items that he had put on the market in another country, so that he

can still control the sale or import of such items into the first country. That means, for example, that in

a country with a national exhaustion regime, the right owner can prevent the importation into that

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country of DVDs which he has sold in other countries. Thus, parallel imports of products first sold on

other markets are illegal in a country with a national exhaustion regime.

In contrast, if a country has an international exhaustion regime, this means that the right owner's

distribution right in that country is exhausted regardless of where the first act of distribution took place.

Thus, the right owner can not use his intellectual property rights to prevent the importation and sale of

DVDs that he has sold in another country. Therefore, in countries with an international exhaustion

regime, parallel imports are legally possible.

Note that the products imported under so-called parallel importation are not counterfeit or pirated goods, but

genuine original products that have been sold in other countries.

Note also that regional exhaustion, which may apply in free trade areas or customs unions, is a variant where

the right owner's IPRs are exhausted once the first sale takes place anywhere within the specified region.

It is generally understood that national exhaustion favours market segmentation, whereas international

exhaustion facilitates parallel importation of the same product sold at lower prices in other countries.

During the Uruguay Round negotiations, Members negotiated a text that left them considerable discretion as to

how to regulate the question of exhaustion. Article 6 of the TRIPS Agreement provides that, for the purposes of

dispute settlement under the TRIPS Agreement, nothing in the Agreement shall be used to address the issue of

the exhaustion of intellectual property rights, provided that the national and MFN treatment obligations are

complied with. This was clarified in the 2001 Ministerial Declaration on the TRIPS Agreement and Public Health.

It confirmed that the effect of the TRIPS provisions relevant to exhaustion of intellectual property rights was to

leave each Member free to establish its own regime for exhaustion without challenge, subject to the MFN and

national treatment provisions of Articles 3 and 4. This Declaration will be discussed further in Module 8.

EXERCISES:

1. Is a Member free to provide higher levels of protection than those required under the TRIPS minimum

standards?

2. What is the main difference between national treatment and MFN treatment?

3. Did the TRIPS Agreement establish a completely new international intellectual property system?

4. Do national and MFN treatment obligations only apply to substantive standards of intellectual property

protection?

5. Does a person need to be a citizen to be considered as a "national" of a Member and thus a beneficiary

under the TRIPS Agreement?

6. Are Members obliged to prohibit the parallel importation of products covered by IPRs?

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III. PROCEDURES FOR THE ACQUISITION AND MAINTENANCE OF INTELLECTUAL PROPERTY RIGHTS 

On the whole, the TRIPS Agreement does not deal in detail with procedural questions concerning acquisition

and maintenance of intellectual property rights. Part IV of the Agreement contains some general rules on these

matters, the purpose of which is to ensure that unnecessary procedural difficulties in acquiring or maintaining

intellectual property rights are not employed to impair the protection required by the Agreement. Certain more

specific rules are to be found in the sections of Part II dealing with individual categories of IPRs and in the

provisions of the Paris Convention and the IPIC Treaty incorporated by reference.

Part IV consists of a single article, Article 62. It allows Members to require, as a condition of the acquisition or

maintenance of rights related to trademarks, geographical indications, industrial designs, patents and

layout-designs, compliance with reasonable procedures and formalities (paragraph 1).

Where the acquisition of an intellectual property right is subject to the right being granted or registered, the

procedures must permit the granting or registration of the right within a reasonable period of time so as to

avoid unwarranted curtailment of the period of protection (paragraph 2).

Paragraph 4 of Article 62 requires that procedures concerning the acquisition or maintenance of intellectual

property rights and, where a Member's law provides for such procedures, administrative revocation and

inter partes procedures such as opposition, revocation and cancellation, must be governed by the general

principles concerning decisions and review set out in paragraphs 2 and 3 of Article 41 of the Agreement. These

general principles requiring that procedures must be fair and equitable will be discussed in Module 9.

Final administrative decisions in such procedures must generally be subject to review by a judicial or quasi-

judicial authority (paragraph 5).

EXERCISES:

7. Does the TRIPS Agreement allow Members to require the compliance with procedures and formalities as a

condition of the acquisition of (i) copyright, (ii) trademarks and (iii) patents?

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IV. TRANSITIONAL ARRANGEMENTS AND OTHER MATTERS 

IV.A. TRANSITIONAL PERIODS 

The TRIPS Agreement gave all Members transitional periods so that they can meet their obligations under it.

The transitional periods, which depend on the level of development of the country concerned, are contained in

Articles 65 and 66. Except for least-developed country Members, these transitional periods have already

expired.

IV.A.1. DEVELOPED COUNTRIES AND NON‐DISCRIMINATION (ALL MEMBERS) 

Developed country Members have had to comply with all of the provisions of the TRIPS Agreement since

1 January 1996. Moreover, all Members, including those availing themselves of the longer transition periods,

have had to comply with the national and MFN treatment obligations as of 1 January 1996 (Article 65.1).

IV.A.2. DEVELOPING COUNTRIES AND ECONOMIES IN TRANSITION 

For developing countries, the general transition period was five years, i.e. until 1 January 2000 (Article 65.2).

In addition, the Agreement allowed countries in transition from a centrally-planned into a market economy to

delay application until 2000, if they met certain conditions (Article 65.3).

The TRIPS Agreement provided special transition rules in the situation where a developing country did not

provide product patent protection in a given area of technology on 1 January 2000. This provision was

especially relevant to pharmaceutical or agricultural chemical inventions. According to Article 65.4, such a

developing country could delay the application of the TRIPS obligations on product patents to that area of

technology until 1 January 2005.

The TRIPS Agreement includes some additional, somewhat complicated, transitional arrangements in the

situation where a country does not yet provide patent protection for pharmaceutical and agricultural chemical

products commensurate with the TRIPS provisions.

In accordance with the "mail-box" provision contained in Article 70.8, the country concerned must provide a

means by which patent applications for such inventions can be filed. These applications do not need to be

examined for their patentability until the country starts applying product patent protection in that area.

However, at that time, the application must be examined by reference to the prior art as it existed at the time

the application was made (e.g. to assess if the invention was "new" as of that date). If the application is

successful, product patent protection would then have to be granted for the remainder of the patent term

counted from the filing date of the application.

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If a product that has been the subject of such a mailbox patent application in a Member obtains marketing

approval before the decision on the grant of the patent is taken, there is an obligation under Article 70.9 to

grant exclusive marketing rights for a period of up to five years to tide over the gap. This is subject to a

number of safeguards to ensure that the product concerned is a genuine invention: subsequent to the entry

into force of the WTO Agreement, a patent application must have been filed, a patent granted and marketing

approval obtained in another Member for the product in question.

These provisions were addressed in reports adopted by the Dispute Settlement Body in cases India – Patents I

and II.

IV.A.3. LEAST‐DEVELOPED COUNTRIES 

To know more about the determination of LDC status of a country in the WTO, please refer to Note 2.5.

Article 66.1 originally provided LDC Members a transitional period until 1 January 2006, with an extension upon

a duly motivated request.

Pursuant to the Doha Declaration on the TRIPS Agreement and Public Health, the TRIPS Council decided

in 2002 to extend the transition period for LDCs for certain obligations with respect to pharmaceutical products

until 1 January 2016. This Decision can be found in document IP/C/25.

Supplementing this Decision, the General Council adopted a waiver for the same period in respect of the

obligations of LDC Members under Article 70.9 concerning so-called exclusive marketing rights. Thus, LDC

Members availing themselves of the extended transition period are required to provide a "mail-box" if they do

not already provide patent protection for pharmaceutical products, but the obligations in respect of exclusive

marketing rights for such products have been waived until 1 January 2016. This decision can be found in

document WT/L/478.

In 2005, upon a request of LDCs, the TRIPS Council extended the general transitional period for LDCs until

1 July 2013. This Decision calls for enhanced technical cooperation and capacity building by developed country

Members and by the WTO in cooperation with WIPO and other international organizations. It provides that LDC

Members will ensure that any changes in their laws, regulations and practice made during the additional

transitional period do not result in a lesser degree of consistency with the provisions of the TRIPS Agreement.

It is without prejudice to the earlier extension with respect to pharmaceutical products and to the right of LDC

Members to seek further extensions. This Decision is contained in document IP/C/40.

IV.A.4. ACCEDING COUNTRIES 

Any transition periods for acceding countries are set out in their protocols of accession. With the exception of

least-developed countries, newly acceded countries have generally agreed to apply the TRIPS Agreement as of

the date of entry into force of their membership in the WTO.

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IV.B. PROTECTION OF EXISTING SUBJECT MATTER 

IV.B.1. APPLICATION OF THE RULES 

An important aspect of the transition arrangements under the TRIPS Agreement are the provisions relating to

the treatment of subject-matter existing at the time that a Member starts applying the provisions of the

Agreement (e.g. already existing works, inventions or distinctive signs). These rules are contained in

Article 70.

As provided in Article 70.2, the rules of the TRIPS Agreement generally apply to subject-matter existing on the

date of the application of the Agreement for the Member in question (i.e. at the end of the relevant transition

period) and which is protected in that Member on that date, or which is still capable of meeting the criteria for

protection (e.g. undisclosed information or distinctive signs not yet protected as trademarks). The

interpretation of Article 70.2 was addressed in reports adopted by the Dispute Settlement Body on Canada –

Patent Term.

For additional requirements in respect of pre-existing works and phonograms, please see Note 2.6.

IV.C. TRANSFER OF TECHNOLOGY 

Article 7 of the TRIPS Agreement recognizes that the protection and enforcement of intellectual property rights

should contribute to the transfer and dissemination of technology (see II.A above).

Article 66.2 of the TRIPS Agreement requires developed-country Members to provide incentives to enterprises

and institutions in their territories for the purpose of promoting and encouraging technology transfer to

least-developed country Members in order to enable them to create a sound and viable technological base. The

precise nature of such incentives has not been further elaborated upon in the TRIPS Agreement. Examples of

incentives reported to the TRIPS Council by developed countries can be found in the annual reports submitted

under this provision cited in the annual reports of the Council (IP/C/-/- series of documents).

In 2003, pursuant to instructions given by ministers at the Doha ministerial meeting, the Council adopted a

decision on "Implementation of Article 66.2 of the TRIPS Agreement" that put in place a mechanism for

ensuring the monitoring and full implementation of the obligations in question. Under this Decision, developed

county Members shall submit annually reports on actions taken or planned in pursuance of their commitments

under Article 66.2. These submissions are reviewed by the Council at its end of year meeting each year. The

review meetings are intended to provide Members an opportunity to, inter alia, discuss the effectiveness of the

incentives provided in promoting and encouraging technology transfer to least-developed country Members in

order to enable them to create a sound and viable technological base.

This Decision can be found in document IP/C/28. Annual reports submitted pursuant to it are available on the

WTO Documents Online database at http://docsonline.wto.org in IP/C/W/ -series of documents.

More detailed information on the transfer of technology to LDC Members can be found in Note 2.7.

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IV.D. TECHNICAL COOPERATION 

Article 67 of the TRIPS Agreement requires developed country Members to provide, on request and on mutually

agreed terms and conditions, technical and financial cooperation in favour of developing and least-developed

country Members. According to this provision, the objective of such cooperation is to facilitate the

implementation of the Agreement. The Article specifies that such assistance shall include assistance in the

preparation of laws and regulations on the protection and enforcement of intellectual property rights as well as

on the prevention of their abuse, and support regarding the establishment or reinforcement of domestic offices

and agencies relevant to these matters, including the training of personnel.

In order to ensure that information on available assistance is readily accessible and to facilitate the monitoring

of compliance with the obligation of Article 67, developed country Members present descriptions of their

relevant technical and financial cooperation programmes and to update this annually. For the sake of

transparency, intergovernmental organizations, such as WIPO and the World Health Organization (WHO), have

also presented, on the invitation of the Council, information on their activities. The information from developed

country Members, intergovernmental organizations and the WTO Secretariat on their technical cooperation

activities in the area of TRIPS is available on the WTO Documents Online database at http://docsonline.wto.org

in IP/C/W/ -series of documents.

The TRIPS Council has agreed that each developed country Member should notify a contact point for technical

cooperation on TRIPS, in particular for the exchange of information between donors and recipients of technical

assistance. These notifications are being circulated in IP/N/7 –series of documents, which are available on the

WTO Document Online database.

IV.E. SECURITY EXCEPTIONS 

In line with other WTO Agreements, Article 73 permits Members certain actions under security exceptions.

EXERCISES:

8. Which Members can still avail themselves of transitional periods under the TRIPS Agreement and for how

long?

9. What specific incentives does the TRIPS Agreement call for in relation to the transfer of technology?

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V. INSTITUTIONAL ARRANGEMENTS 

V.A. THE WORK OF THE COUNCIL FOR TRIPS 

V.A.1. GENERAL 

You will recall from Module 1 that the Council for TRIPS is one of the three sectoral Councils operating under

the General Council. It is the body, open to all Members of the WTO, responsible for the administration of the

TRIPS Agreement and in particular for monitoring the operation of the Agreement. The Council meets in

Geneva formally some four times a year as well as informally as necessary.

The basic provision on the role of the TRIPS Council is contained in Article 68 of the TRIPS Agreement. It

should be read together with the provisions of the WTO Agreement concerning the structure and operation of

the WTO that were discussed in Module 1.

Below we will look at some of the main functions and working methods of the TRIPS Council.

V.A.2. NOTIFICATIONS 

The TRIPS Agreement obliges Members to make certain notification to the Council for TRIPS. These

notifications facilitate the Council's work of monitoring the operation of the Agreement and promote the

transparency of Members' laws and policies on intellectual property protection. In addition, Members wishing to

avail themselves of certain flexibility provided in the Agreement that relate to the substantive obligations have

to notify the Council.

Article 63.2 of the TRIPS Agreement requires Members to notify the laws and regulations by which they give

effect to the Agreement's provisions. The Article specifies that the purpose is to assist the TRIPS Council in its

review of the operation of the Agreement.

The Council has agreed that laws and regulations should be notified without delay as of the time that the

corresponding substantive TRIPS obligation starts to apply. Also any subsequent amendments should be

notified without delay. These procedures can be found in document IP/C/2.

Given the difficulty of examining legislation relevant to many of the enforcement obligations in the

TRIPS Agreement, Members have undertaken, in addition to notifying legislative texts, to provide information

on how they are meeting these obligations by responding to a Checklist of Issues on Enforcement. This

questionnaire can be found in document IP/C/5.

Articles 1.3 and 3.1 allow Members to avail themselves of certain options in regard to the definition of

beneficiary persons and national treatment, provided that notifications are made to the Council for TRIPS.

Article 4 on MFN treatment provides that, with regard to the protection of intellectual property, any advantage,

favour, privilege or immunity granted by a Member to the nationals of any other country shall be accorded

immediately and unconditionally to the nationals of all other Members. There are certain exceptions to this

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obligation. According to sub-paragraph (d) of that Article, exempted from this obligation are any advantage,

favour, privilege or immunity accorded by a Member deriving from international agreements related to the

protection of intellectual property which entered into force prior to the entry into force of the WTO Agreement,

provided that such agreements are notified to the Council for TRIPS and do not constitute an arbitrary or

unjustifiable discrimination against nationals of other Members.

Article 69 of the Agreement requires Members to establish and notify contact points in their administrations for

the purposes of cooperation with each other aimed at the elimination of trade in infringing goods.

A number of notification provisions of the Berne and Rome Conventions are incorporated by reference into the

TRIPS Agreement but without being explicitly referred to in it. A Member wishing to make such notifications

has to make them to the Council for TRIPS, even if the Member in question had already made a notification

under the Berne or the Rome Convention in regard to the same issue.

All of the notifications referred to above are circulated in IP/N –series of documents that are available at the

WTO Documents Online database at http://docsonline.wto.org.

We will discuss notifications pursuant to Article 6ter of the Paris Convention as incorporated into the

TRIPS Agreement below.

V.A.3. REVIEW OF NATIONAL LAWS AND REGULATIONS 

One of the key mechanisms for monitoring is the examination of each Member's national implementing

legislation by other Members, in particular at the end of its transition period. The notifications made pursuant

to Article 63.2 discussed above form the basis for these reviews. The procedures for these reviews provide for

written questions and replies prior to the review meeting, with follow-up questions and replies during the

course of the meeting. At subsequent meetings of the Council, an opportunity is given to follow up points

emerging from the review session which delegations consider have not been adequately addressed. The

records of these reviews are circulated in IP/Q –series of documents, which are available on the WTO

Documents Online database at http://docsonline.wto.org.

V.A.4. CONSULTATIONS 

The TRIPS Council constitutes a forum for consultations on any problems relating to the TRIPS Agreement

arising between countries, as well as for clarifying or interpreting provisions of the Agreement.

V.A.5. FORUM FOR FURTHER NEGOTIATION OR REVIEW 

The WTO constitutes a forum for negotiations among its Members concerning their multilateral trade relations

in the area of intellectual property, as in other areas covered by the WTO Agreement. Certain specific areas of

further work are called for in the text of the TRIPS Agreement. These areas include: the negotiation of a

multilateral system of notification and registration for geographical indications for wines; the review of

Article 27.3(b) (which concerns the option to exclude from patentability certain plant and animal inventions);

and the examination of the applicability to TRIPS of non-violation complaints under the dispute settlement

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process. Furthermore, the Doha Ministerial Declaration and the Declaration on the TRIPS Agreement and Public

Health, both adopted in 2001, and certain subsequent ministerial declarations have given specific tasks to the

Council's regular and special sessions. Past and ongoing work on such matters will be discussed in the

subsequent modules in the context of the substantive area concerned.

V.A.6. COOPERATION WITH WIPO 

To facilitate the implementation of the TRIPS Agreement, the WTO concluded with WIPO an agreement on

cooperation between the two organizations, which came into force on 1 January 1996. As explicitly set out in

the Preamble to the TRIPS Agreement, the WTO aims to establish a mutually supportive relationship with

WIPO. The Agreement provides for cooperation in three main areas, namely (1) notification of, access to and

translation of national laws and regulations; (2) implementation of procedures for the protection of national

emblems; and (3) technical cooperation.

As regards notification of, access to and translation of national laws and regulations, the WTO Secretariat

transmits to the WIPO Secretariat copies of the laws and regulations it has received from Members under

Article 63.2 of the TRIPS Agreement. The International Bureau of WIPO places such copies in its paper

collection. WIPO makes laws and regulations contained in its collection available to the public in various ways,

including in its Collection of Laws for Electronic Access (CLEA), available at:

http://www.wipo.int/clea/en/index.jsp.

Note 2.8 provides further information on the notification requirements related to the Paris and Berne

Conventions.

As regards the implementation of procedures for the protection of national emblems under Article 6ter of the

Paris Convention for the purposes of the TRIPS Agreement, the cooperation agreement provides that the

procedures relating to communication of emblems and transmittal of objections under the TRIPS Agreement

shall be administered by the WIPO Secretariat in accordance with the procedures it applies under Article 6ter of

the Paris Convention. See Note 2.9 for more details.

As regards technical cooperation, the agreement provides that the WIPO and WTO Secretariats are to enhance

cooperation in their legal-technical assistance and technical cooperation activities relating to the

TRIPS Agreement for developing countries, so as to maximize the usefulness of those activities and ensure

their mutually supportive nature. The assistance they make available to the members of their own organization

will be made available also to the members of the other organization.

An example of this cooperation is the WIPO WTO Joint Initiative on Technical Cooperation for Least-Developed

Countries that was launched in 2001. It is aimed at helping LDC Members of the WTO comply with their

obligations under the TRIPS Agreement and make best use of the intellectual property system for their

economic, social and cultural development. It is open to other LDCs as well.

The TRIPS Council Decision on the extension of LDCs' transition period discussed above calls upon the WTO to

seek to enhance its cooperation with WIPO and other relevant international organizations.

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EXERCISES:

10. Is the functioning of the TRIPS Council regulated exhaustively in Article 68 and other relevant provisions

of the TRIPS Agreement?

11. What material forms the basis of the TRIPS Council's reviews of national implementing legislations?

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VI. SUMMARY 

INTRODUCTION TO THE TRIPS AGREEMENT

The TRIPS Agreement is an integral Part of the WTO Agreements, and it is binding on each Member of the

WTO.

The Agreement contains certain general provisions and basic principles, such as national and most-favoured-

nation treatment, and exhaustion of rights.

The areas of intellectual property that the TRIPS Agreement covers are: copyright and related rights (i.e. the

rights of performers, producers of sound recordings and broadcasting organizations); trademarks including

service marks; geographical indications; industrial designs; patents, including the protection of new varieties

of plants; the layout-designs of integrated circuits; and undisclosed information, including trade secrets and

test data.

In respect of each of these areas of intellectual property, the Agreement sets out the minimum standards of

protection to be provided by each Member. 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. The standards build on those in the main pre-existing WIPO

Conventions, substantive provisions of which are incorporated into the Agreement by reference.

The second main set of provisions in the Agreement lays down requirements for national procedures and

remedies for the enforcement of these intellectual property rights (IPRs): general principles applicable to all

IPR enforcement procedures; civil and administrative procedures and remedies; provisional measures;

special border enforcement measures; and criminal procedures. These procedures and remedies must

enable right holders to enforce their rights effectively and also provide for safeguards against the abuse of

such procedures and remedies as barriers to legitimate trade.

The Agreement contains some general rules to ensure that procedural difficulties in acquiring or maintaining

IPRs do not nullify the substantive benefits that should flow from the Agreement.

The Agreement makes disputes between Members about the respect of TRIPS obligations subject to the

WTO's integrated dispute settlement procedures.

The TRIPS Agreement gives Members transitional periods, which differ according to their stages of

development, to bring themselves into compliance with its rules. Least-developed country Members continue

to benefit from extended transitional periods. It also contains provisions on transfer of technology and

technical cooperation.

The Agreement is administered by the Council for TRIPS, open to all Members, which reports to the WTO

General Council.

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IMPORTANT NOTES

NOTE 2.1

Unless otherwise indicated, in this training package "Paris Convention" refers to the Paris Convention for the

Protection of Industrial Property (the Stockholm Act of 14 July 1967); "Berne Convention" refers to the Berne

Convention for the Protection of Literary and Artistic Works (the Paris Act of 24 July 1971); "Rome Convention"

refers to the International Convention for the Protection of Performers, Producers of Phonograms and

Broadcasting Organizations, adopted at Rome on 26 October 1961; and the IPIC Treaty to the Treaty on

Intellectual Property in Respect of Integrated Circuits, adopted at Washington on 26 May 1989. You can access

these and other WIPO-administered treaties on the WIPO website at http://www.wipo.int/treaties/en/.

NOTE 2.2

The Preamble and Articles 7 and 8 express the general goals, objectives and principles of the Agreement. As

recognized by WTO dispute settlement panels, they are to be borne in mind when the substantive rules of the

Agreement are being examined. It might also be noted that paragraph 5(a) of the Doha Declaration on the

TRIPS Agreement and Public Health provides that "[i]n applying the customary rules of interpretation of public

international law, each provision of the TRIPS Agreement shall be read in the light of the object and purpose of

the Agreement as expressed, in particular, in its objectives and principles".

NOTE 2.3

Industrial property (similar for layout-designs of integrated circuits)

Pursuant to Articles 2 and 3 of the Paris Convention, protection is granted in the case of industrial property to

natural or legal persons who are either:

nationals of a Member;

are domiciled in a Member; or

have real and effective industrial or commercial establishments in a Member.

Pursuant to Article 5 of the IPIC, similar criteria for determining eligible beneficiaries are applied in relation to

layout-designs or integrated circuits.

Copyright

Pursuant to Articles 3 and 4 of the Berne Convention, protection is granted to authors of literary or artistic

works who:

are nationals of a Member;

have their habitual residence in a Member;

whose works are first (or simultaneously) published in a Member;

are authors of cinematographic works the maker of which has his headquarters or habitual residence in

a Member; or

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are authors of works of architecture erected in a Member or of other artistic works incorporated in a building or

other structure located in a Member.

Performers

Pursuant to Article 4 of the Rome Convention, protection is granted to performers whose:

performance takes place in another Member;

performance is incorporated in a phonogram as defined below; or

performance is covered by a broadcast as defined below.

Producers of phonograms

Pursuant to Article 5 of the Rome Convention, protection is granted to producers of phonograms:

which are nationals of another Member;

if the phonogram was first fixed in another Member; or

if the phonogram was first published in another Member.

Please note: In accordance with the provisions of Article 5(3) of the Rome Convention as incorporated into the

TRIPS Agreement, a Member may declare that it does not apply either the criterion of fixation or that of

publication. The criterion of nationality may not be excluded.

Broadcasting organizations

Pursuant to Article 6 of the Rome Convention, protection is granted to broadcasting organizations:

whose headquarters are situated in another Member; or

when the broadcast was transmitted from a transmitter in another Member.

Please note: In accordance with the provisions of Article 6(2) of the Rome Convention as incorporated into the

TRIPS Agreement, a Member may declare that it will protect broadcasts only if both relevant conditions are

met, i.e. that the headquarters of the broadcasting organization is situated in another Member and the

broadcast was transmitted from a transmitter situated in the same Member.

NOTE 2.4

Article 3.2 of the Agreement places two conditions on the use of national treatment exceptions in the case of

judicial and administrative procedures. The conditions are that such exceptions are necessary to secure

compliance with laws and regulations which are consistent with the TRIPS Agreement and that the application

of such practices would not constitute a disguised restriction on trade.

NOTE 2.5

For the purposes of determining the LDC status of a country, the WTO uses the United Nations list of

least-developed countries.

NOTE 2.6

Additional requirements in respect of pre-existing works and phonograms

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In respect of copyright and the rights of producers of phonograms (sound recordings) and performers in

existing phonograms, there is an additional requirement to comply with Article 18 of the Berne Convention, not

only in respect of the rights of authors but also in respect of the rights of performers and producers of

phonograms in phonograms (Articles 9.1, 14.6 and 70.2 of the TRIPS Agreement). Article 18 of the Berne

Convention includes the so-called rule of retroactivity, according to which the Agreement applies to all works

which have not fallen into the public domain either in the country of origin or the country where protection is

claimed through the expiry of a term of protection. The provisions of Article 18 allow some transitional

flexibility where a country is, as a result, taking subject-matter out of the public domain and putting it under

protection, to safeguard the interests of persons who have in good faith already taken steps on the basis of the

material in the public domain (for example, a film producer that has already invested in the making of a film

using a work that is brought under copyright). The application of Article 18 of the Berne Convention to the

rights of producers of phonograms and performers in existing phonograms was addressed in two dispute

settlement complaints on Japan – Measures Concerning Sound Recordings (DS28 and DS42). Both cases were

settled bilaterally without panel reports.

NOTE 2.7

Transfer of technology to LDC Members is also addressed in the 2003 Decision on Implementation of

Paragraph 6 of the Doha Declaration on the TRIPS Agreement and Public Health and the 2005 Protocol

Amending the TRIPS Agreement. This will be discussed in Module 8 – Chapter III.E.

NOTE 2.8

Parties to the Paris and Berne Conventions are required to notify their relevant laws to the WIPO Secretariat.

The Assemblies of the Paris and Berne Unions have decided that the requirements under these conventions to

communicate national laws to the WIPO Secretariat can be fulfilled by communication of such laws through the

WTO Secretariat. WIPO also makes available to developing countries assistance for translation of their laws and

regulations.

NOTE 2.9

Article 6ter of the Paris Convention, as incorporated into the TRIPS Agreement, provides for the communication

of emblems and of objections thereto among Members. The TRIPS Council has decided to recognize that their

communication through the WIPO Secretariat would be considered as communications for the purposes of the

TRIPS Agreement.

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PROPOSED ANSWERS:

1. Yes, under Article 1.2 of the TRIPS Agreement Members may, but are not obliged to, implement in their

law more extensive protection than required by the Agreement, provided that such protection does not

contravene its provisions. They still need to respect the national and MFN treatment obligations.

2. The national treatment clause forbids discrimination between a Member's own nationals and the nationals

of other Members. The MFN treatment clause forbids discrimination between the nationals of other

Members.

3. No, the TRIPS Agreement builds on the main pre-existing WIPO conventions, in particular the Berne and

Paris Conventions. It incorporates by reference their substantive provisions, and makes certain additions

and clarifications.

4. No. These two principles apply to all aspects of intellectual property protection. They cover not only the

substantive standards of protection, but also matters affecting the availability, acquisition, scope,

maintenance and enforcement of intellectual property rights as well as those matters affecting the use of

intellectual property rights specifically addressed in the Agreement.

5. No. Nationals include natural or legal persons who have certain links to a Member without necessarily

being citizens.

6. No. Members are free to decide their national policy on the issue of exhaustion of IPRs and thus on

parallel importation.

7. Article 62 of the TRIPS Agreement allows Members to require the compliance with procedures and

formalities as a condition of acquisition of industrial property rights, such as a trademark or a patent,

provided that such requirements are reasonable. However, this does not apply to copyright and related

rights and to undisclosed information. As will be explained in Module 3, Article 5(2) of the Berne

Convention as incorporated into the TRIPS Agreement provides that copyright protection may not be

subject to any formality.

8. The TRIPS Council has extended LDC Members' transition period until 1 July 2013. For certain obligations

with respect to pharmaceutical products, they may delay the application of the TRIPS Agreement until

1 January 2016.

9. Under Article 66.2, developed country Members have committed themselves to provide incentives to

enterprises and institutions in their territories for the purpose of promoting and encouraging technology

transfer to least-developed country Members in order to enable them to create a sound and viable

technological base.

10. No. You have to read Article 68 and other relevant provisions of the TRIPS Agreement together with the

provisions of the WTO Agreement concerning the structure and operation of the WTO.

11. The laws and regulations notified pursuant to Article 63.2 of the TRIPS Agreement, including the

responses to the Checklist of Issues on Enforcement.

25