Intellectual property rights is a negative right or prohibition, where the owner or creator has right to exploit (Monopoly) his/her inventions, creations in financial terms.
As Nepal is a WTO member and TRIPS (Trade-Related Aspects of
Intellectual Property Rights) agreement signed member, hence, it has to follow the TRIPS agreement. Being a Least developed country , Nepal can exploit the exemption of TRIPS agreement for LMIC.
Reference:
WTO Doha Declaration, on Least developed countries
We reaffirm the commitment of developed-country members to provide incentives to their enterprises and institutions to promote and encourage technology transfer to least-developed country members pursuant to Article 66.2. We also agree that the least-developed country members will not be obliged, with respect to pharmaceutical products, to implement or apply Sections 5 and 7 of Part II of the TRIPS Agreement or to enforce rights provided for under these Sections until 1 January 2016, without prejudice to the right of least-developed country members to seek other extensions of the transition periods as provided for in Article 66.1 of the TRIPS Agreement. We instruct the Council for TRIPS to take the necessary action to give effect to this pursuant to Article 66.1 of the TRIPS Agreement.
WTO Trips General Council Amendment 2015- The obligations of least developed country Members under paragraphs 8 and 9 of Article 70 of the TRIPS Agreement shall be waived with respect to pharmaceutical products until 1 January 2033, or until such a date on which they cease to be a least developed country Member, whichever date is earlier.
Hence, using this clause, Nepali pharmaceutical industry can exploit the TRIPS aggrement and make production of pharmaceuticals which are already in patents.
Example, Bangladesh has been exploiting this term, and many Bangaladeshi companies have made geometric growth and it has supported its National GDP by nearly 2% with 15% CAGR, and it will be around 5.1 Billion industry by 2023 where 20% drugs are patented drugs. Bangladesh is currently an LDC(Least Developed country), as a result of which it is not obliged to recognise patents on pharmaceutical products. This allows the local sector to produce generic versions of drugs patented elsewhere for domestic consumption.
What was the drive to success of Bangladeshi companies?
1. Policy Framework for Pharmaceutical Production in Bangladesh
a. Policy change
b. Enforcement framework
c. Price control
d. Import concession
e. Investment incentives and tax holidays
f. Skills development
g. Technology transfer and export facilitation in the 2009 Industrial Policy
h. Export concessions
2. Integrate Industrial and Drug Policy Visions
3. Embed the Sector in the Local Economy
4. Co-investment and Co-competition by the Government
5. Interpret Policy (and Use Ambiguity) in Favour of Local Firms
Nearly 12 years back, our former Finance secretary Rameshwor khanal had mentioned about this facilities for Nepal and this can be a way to move ahead , but the government system doesn’t seem to be interested.
Main problem with Nepali regulatory agency and pharma industry is lack of attitude on co-invention and co-investment on skill, knowledge, technology and growth.
0 Comments