North vs. Southin terms of technology and intellectual propertyrepresenting:: North vs. South in terms of technology and intellectual property representing: SOUTH = developing countries BECKY Rooney EMILIA Caprndova JOHN Kealey


Today Presentation: Today Presentation 1. Our position 2. Definitions 3. WTO agreement and its consequences in relation to the intellectual property and developing world 4. Summary 5. Conclusions


Our position: Our position Our position - SOUTH Supporting the transfer of technology Why should developing countries adopt intellectual property laws having detrimental effects for them? Allowing exceptional conditions for developing countries PATENTS


Developing countries: Developing countries There is no common definition of “developed” or “developing” country. Features of a developing country – lack of capital, investment and production, old technology, poverty, high disease rate, slowly developing economy Developing countries in the WTO are designated on the basis of self-selection. About 100 (70%) of the WTO 144 members are developing countries


List of the LEAST-developed countries: List of the LEAST-developed countries Least-developed countries (LDC) – members of WTO: Angola, Bangladesh, Benin, Burkina Faso, Burundi, Central African Republic, Chad, Democratic Republic of the Congo, Djibouti, Gambia, Guinea, Guinea Bissau, Haiti, Lesotho, Madagascar, Malawi, Maldives, Mali, Mauritania, Mozambique, Myanmar, Niger, Rwanda, Senegal, Sierra Leone, Solomon Islands, Tanzania, Togo, Uganda, Zambia LDC in the process of accession to the WTO: Bhutan, Cambodia, Cape Verde, Laos, Nepal, Samoa, Sudan, Vanuatu and Yemen. WTO Observers: Ethiopia and Sao Tome & Principe


Slide6: Diseases Hunger Pharmaceuticals Agriculture WTO and TRIPS issues


WTO & TRIPS: WTO & TRIPS World Trade Organization = WTO Uruguay 1994 and Doha 2001 rounds (ministerial conferences) Trade-Related Aspects of Intellectual Property Rights = TRIPS Law Economy Morality


TRIPS: TRIPS Created to establish and international intellectual property frame work. All parties must abide with developed world’s standards of IP law – developing countries 2000 or 2005, LDC 2006


Result of TRIPS: Result of TRIPS Due to technological and economic power, developing world must use Multinational owned technologies. Locally produced generic products are prohibited except for emergencies. Local technologies can be patented by companies from the developed countries and sold back to locals at much inflated costs.


IP protection in TRIPS: IP protection in TRIPS Article 28 1. A patent shall give its owner the following exclusive rights: (a/b) where the subject matter of a patent is a product/process, to prevent third parties not having the owner's consent from the acts of: making, using, offering for sale, selling, or importing for these purposes that product/process Monopoly for 20 years


Parallel imports…: Parallel imports… If country A makes a product/process, country B can purchase it at country A’s price. Country B can re-sell this product/ process to developing country C for a much lower price Country A is not losing money, since LDC cannot afford their prices… therefore, there is no logical reason for Country A to cry. Under TRIPS Article 6, this is allowed.. How TRIPS may help developing countries?


How TRIPS may help developing countries?: How TRIPS may help developing countries? Article 6: The principle of exhaustion is sometimes referred to as the first sale doctrine Once the IP owner's rights are exhausted, the purchaser of the good is free to resell the good, even in cases where the reseller competes against the IP owners. Countries have taken a variety of approaches on these matters.


Case – South Africa : Case – South Africa October 31st 1997, SA’s government tried to pass the Medicines and Related Substances Control Amendment Act The Pharmaceutical Manufacturers Association (PMA) + 40 pharmaceutical companies sued SA’s government Because of serious public pressure, the plaintiffs were forced to back down…they withdrew their action.


Case – South Africa : Article 31 TRIPS: governments can issue compulsory licenses to authorize production without the consent of patent holders A measure included in South Africa’s Medicines Act and legal under the present TRIPS agreement is parallel imports This law is in accordance with WTO Case – South Africa


Diseases: Diseases Health crisis in developing countries Factors: poverty, lack of access to health services, water, sanitation, SUPPLY OF EFFECTIVE MEDICINES Lots of drugs are developed on the basis of plants growing in the developing countries


AIDS Threat: AIDS Threat How many more???


Global view of HIV infection : Global view of HIV infection


AIDS FACTS: AIDS FACTS 90% of HIV/AIDS People live in the developing countries 18.8 Million People Dead


Universal Declaration of Human Rights: Article 3: Everyone has the right to liberty and security of person. Universal Declaration of Human Rights LIFE


Slide20: Dr. Jonathan Mann the first director of Global Program on AIDS “AIDS is the worst Plague, businesses must wake up to the fact that human life is far more important than profit.”.


Costs of drugs: Costs of drugs DDI: $180/month US $46/month Brazil AZT: $2.08 Netherlands $0.37 Thailand Fluconazade $7/day Thailand patent $0.67/day generic


AIDS cocktail…: AIDS cocktail… $ 15,000/year


Magic Johnsoninfected: Magic Johnson infected Enough money = Good treatment = LIFE


Other Diseases: Other Diseases Malaria 1 to 1 ½ mil. people die each year Cannot be treated but CAN be prevented Medicine is very expensive Cholera Tuberculosis


Slide25: Drugs are so expensive that people are left to die. Intellectual Property laws are strictly developed with profit in mind and not the salvation of innocent millions. Generic Drugs or Much Reduced Prices can save these people.


Biotech transfers: Biotech transfers


Slide27: “While many biotech companies claim that genetically engineered foods will help alleviate hunger and increase food security, their acts of patenting the knowledge and food that has been developed over centuries itself, may be a threat to food security.” John Robbins, Earth Island Institute


Steps of Biopiracy: Steps of Biopiracy BioTech firm takes indigenous grain or seed. Re-engineers and patents. Forces seed distributors to only carry new seed. Farmers must buy back what is theirs and becomes dependent on product.


Results of Biopiracy?: Results of Biopiracy?


MONOPOLIES: MONOPOLIES


Summary: Summary People in developing countries are suffering from diseases and hunger Patent laws protect inventions including medicine drugs and agriculture products Giving monopolies For 20 years Result: inflated prices Developing countries cannot afford to buy these products Their people are therefore dying


Conclusions: Conclusions EITHER Developing countries should not be made to adopt IP laws because they have detrimental effects for them OR There is a necessity to amend IP laws – to allow exceptional conditions for developing countries Supporting the transfer of technology to developing countries – compensatory measures to counter the effective monopolies of companies owning patents differential pricing parallel trading compulsory licenses Reality – pressure on developing countries not to exercise these rights


Slide33: Please, think how YOU can help us…


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