22 November 2001
The Fourth Ministerial Conference of the World Trade
Organization, which was held in Doha, Qatar, adopted on 14
November 2001 by consensus a Declaration on the TRIPS
Agreement and Public Health (copy attached).
The purpose of the Declaration is to respond to the
concerns that have been expressed about the possible
implications of the TRIPS Agreement for access to drugs. The
TRIPS Agreement enshrines in public international law the
right of countries to take various kinds of measures which can
qualify or limit intellectual property rights, including for
public health purposes. However, some doubts had arisen as to
whether the flexibility in the TRIPS Agreement was sufficient
to ensure that it is supportive of public health, especially
in promoting affordable access to existing medicines while
also promoting research and development into new ones:
The special Declaration responds to these concerns in a
number of ways. First, it emphasizes that the TRIPS Agreement
does not and should not prevent Members from taking measures
to protect public health and reaffirms the right of Members to
use, to the full, the provisions of the TRIPS Agreement which
provide flexibility for this purpose. These important
declarations signal an acceptance by all WTO Members that they
will not seek to prevent other Members from using these
provisions.
Second, the Declaration makes it clear that the TRIPS
Agreement should be interpreted and implemented in a manner
supportive of WTO Members' right to protect public health and,
in particular, to promote access to medicines for all.
Further, it highlights the importance of the objectives and
principles of the TRIPS Agreement for the interpretation of
its provisions. Although the Declaration does not refer
specifically to Articles 7 and 8 of the TRIPS Agreement, which
are entitled, respectively, "Objectives" and "Principles", it
should be noted that developing country Members attach
particular importance to these provisions. These statements
thus provide important guidance to both individual Members
and, in the event of disputes, WTO dispute settlement bodies.
Third, the Declaration contains a number of important
clarifications of some of the flexibilities contained in the
TRIPS Agreement, while maintaining Members' commitments in the
TRIPS Agreement. It makes it clear that each Member is free
to determine the grounds upon which compulsory licences are
granted. This, for example, is a useful corrective to the
views often expressed in some quarters implying that some form
of emergency is a pre-condition for compulsory licensing. The
TRIPS Agreement does refer to national emergencies or other
circumstances of extreme urgency in connection with compulsory
licensing, but this is only to indicate that, in these
circumstances, the usual condition that first an effort must
be made to seek a voluntary licence does not apply. The
Declaration makes it clear that each Member has the right to
determine what constitutes a national emergency or other
circumstances of extreme urgency and that public health
crises, including those relating to HIV/AIDS, tuberculosis,
malaria and other epidemics, can represent such circumstances.
In regard to the exhaustion of intellectual property
rights, and therefore a Member's right to permit parallel
imports, the TRIPS Agreement states that a Member's practices
in this area cannot be challenged under the WTO dispute
settlement system. There has been much debate about what
exactly this means in regard to a Member's freedom to choose
its own regime for exhaustion and parallel imports. The
Declaration makes it clear that the effect of the provisions
in the TRIPS Agreement on exhaustion is to leave each Member
free to establish its own regime without challenge - subject
to the general TRIPS provisions prohibiting discrimination on
the basis of the nationality of persons.
While WTO Members have clarified the flexibility in the
TRIPS Agreement and Members' right to use it to the full, it
should not be forgotten that it is not the TRIPS Agreement but
each country's domestic law that has direct legal force in
regard to acts relating to intellectual property on its
territory. Thus, the Declaration does not obviate the need
for each country to take the necessary steps at the national
level to avail itself of this flexibility where necessary to
secure the availability of medicines at affordable prices.
In regard to the least-developed country Members of the
WTO, the Declaration accords them an extension of their
transition period until the beginning of 2016 in regard to the
protection and enforcement of patents and rights in
undisclosed information with respect to pharmaceutical
products. Therefore, in the meantime, these countries are
exempt from these TRIPS obligations and need not occupy
themselves with any of the concerns mentioned above.
An issue which arose in the work on the Declaration was
that of the ability of countries with limited manufacturing
capacities to make effective use of compulsory licensing. It
is not in dispute that Members can issue compulsory licences
for importation as well as for domestic production. However,
the concern that has been expressed is about whether sources
of supply from generic producers in other countries to meet
such demand will be available, particularly in the light of
the provision of Article 31(f) of the TRIPS Agreement which
states that any compulsory licences granted to generic
producers in those other countries shall be "predominantly for
the supply of the domestic market of the Member" granting the
compulsory licence. This concern may become greater as
countries with important generic industries, such as India,
come under an obligation to provide patent protection for
pharmaceutical products as from 2005. In this regard, the
Declaration recognizes the problem and instructs the Council
for TRIPS to find an expeditious solution to it and to report
on this before the end of 2002.
It should also be noted that, while emphasizing the scope
in the TRIPS Agreement to take measures to promote access to
medicines, the Declaration also recognizes the importance of
intellectual property protection for the development of new
medicines and reaffirms the commitments of WTO Members in the
TRIPS Agreement.
* Message sent by Adrian Otten
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