A New Perspective On Covid: Potential Effects Of The TRIPS Agreement On Pharmaceutical And Innovation Business

• Published date: 22 March 2023
• Subject Matter: Intellectual Property, International Law, Food, Drugs, Healthcare, Life Sciences, Coronavirus (COVID-19), Patent, International Trade & Investment, Biotechnology & Nanotechnology, Operational Impacts and Strategy
• Law Firm: Barnes, Richardson & Colburn
• Author: Hannah B. Kreinik

By letter dated December 16, 2022 United States Trade Representative Katherine Tai requested that the International Trade Commission (ITC) perform a study on the effects of TRIPS flexibilities on Covid-related pharmaceutical innovation and distribution. The Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement was put into effect by the member nations of the World Trade Organization (WTO) in 1995. This multinational agreement established basic policies for intellectual property (IP) in the global trade environment and introduced dispute settlement mechanisms for IP-related disagreements. Although the TRIPS agreement has been in effect since 1995, Covid may be one of the most challenging issues this agreement has faced.

Following the Doha Round of negotiations, the TRIPS agreement was updated to specifically provide for compulsory licensing of pharmaceutical products for public health. The compulsory license allows a government or court to extend patented inventions without consulting the patent owner. This addition to TRIPS was introduced to permit low-income nations and nations with poor pharmaceutical industries to access innovative medicines and other medical necessities. Although a broader provision, TRIPS also contains a clause for public interest in IP developments, such as those necessary to public health. Both clauses in the TRIPS agreement were created to promote innovation that could aid global demand.

Now that Covid has arrived and spread, TRIPS has been put to the ultimate test between promoting innovation and protecting public health. Katherine Tai and the USTR are questioning whether Covid has helped or hindered the current IP...