1) LDCs have exemptions from implementing patents on pharmaceuticals under TRIPS until 2033 to support local production and access to affordable medicines, but most are not reforming laws to utilize this flexibility.
2) Transition periods are important to preserve policy space for LDCs to promote innovation and access without constraints from patents.
3) LDCs are not domesticating transition periods due to inadequate awareness
GSIPA2M, Roundtable 1, TRIPS-minus - Chikosa Banda
1. The Importance of LDC
Transition Periods
Chikosa Banda, Faculty of Law – University of Malawi: Chancellor
College
cbanda@cc.ac.mw
2. Background
• LDCs are exempt from implementing the general provisions of the TRIPS save for
Articles 3, 4, and 5 until 1 July 2021.
• They are also exempt from implementing, protecting, and enforcing patents on
pharmaceuticals until 1 January 2033.
• The waiver is in line with article 66 of the TRIPS Agreement, which recognizes the “the
special needs and requirements of least-developed country Members, their economic,
financial and administrative constraints, and their need for flexibility to create a
viable technological base
• Flexibilities, transition periods, and waivers are “the most important policy options
available to LDCs to facilitate affordable access” to essential medicines.
3. Background
• The transition periods are also a critical policy instrument for stimulating local production
of pharmaceuticals.
• They are meant to ensure that LDCs are not hampered by intellectual property rights “from taking
suitable measures to develop a sound and viable technological base in different industrial sectors” and
from providing essential commodities
• The non-recognition and non-enforcement of patents on foreign products ensures that
imported and locally produced generic pharmaceuticals are not excluded from the market
due to the existence of patents.
• Strong patent protection stifles technological development in LDCs, because poses a barrier to learning
and copying, which are pre-requisites for technological development
4. The need to go beyond rhetoric
• LDCs have thus been presented with an opportunity to take advantage of the transition period and develop
viable local production capacity for pharmaceuticals, and do what India has been doing for some time.
• Including taking Article 31 bis of TRIPS to promote regional production and importation for re-exportation
• One would, accordingly, expect LDCs to take advantage of these transition periods and reform their laws to
exclude pharmaceuticals from patent protection.
• Throughout the past decade there have been intensive discussions regarding how LDCs can reform their laws
take advantage of the transition
• However there has been very little discussion on
• Why transition periods are important for LDCs; and
• how LDCs can make effective use of the transition periods
• Unsurprisingly, the pace at which LDCs are reforming their laws is worrisomely slow.
5. Domestication
• The transition period has generally not been utilised by a majority of African LDCs (esp ARIPO
members)
• Virtually all SADC countries have not taken advantage of the pharmaceutical transition periods and
“permit pharmaceutical patenting.” The only exception is Zanzibar, which excludes pharmaceuticals
from patent protection (Zambia?)
• 3 East African LDCs, Uganda, Rwanda, and Burundi have recently amended their legislation to
take advantage of the transition period and exclude pharmaceuticals from patent protection
• (11 LDCS ARIPO , 11 LDCs OAPI)
• OAPI, which is ARIPO’s counterpart in francophone Africa, has amended its treaty to provide for the non-
applicability of pharmaceutical patents to LDCs. Article 46 of the OAPI agreement provides that
• Member States that are LDCs are not obliged to implement the provisions of Annex 1 regarding
patents consisting of, or related to, a pharmaceutical product, nor to implement the provisions of
Annex VIII regarding confidential information, until 2033 or on the date on which they stop to be
classified as an LDC.
• Most LDCs still maintain patent laws that they inherited from their colonial masters
6. Why should LDCs domesticate and
make use of transition periods
• Transition periods help to preserve the policy
space for LDCs to promote innovation and
promote access to affordable medicines
without being encumbered by patents
• They give LDCs some autonomy to define their
technological development policies in the way
that best suits their circumstances and
priorities
• There is an urgent need for LDCs to create an
environment that is conducive for importation
and local manufacturing – given the increasing
insecurity of international funding for the drug
procurement (UNAIDS)
• It is extremely important for LDCs to
embrace transition periods so that they can
use them when they need them
• The practice of comfort letters brings
uncertainty into the system
• The longer countries take to adopt them the
harder it is for them to argue that they are
important for access to medicines or otherwise
• Do they really need transition periods?
• However, it would be difficult to accelerate the
domestication of TRIPs waivers unless LDCs
see the direct relevance of the flexibilities to
their respective countries.
• At present, most LDCs do not see the direct
implications of failure to incorporate TRIPS
flexibilities for access to newer
pharmaceuticals.
• This is because they have no viable
technological base and are heavily
dependent on donors/India for their
pharmaceutical needs.
7. Why are LDCS not taking advantage
of transition periods
• Failure to accelerate the implementation
of TRIPS flexibilities may be symptomatic
of the fact that LDCs do not consider
implementing TRIPS flexibilities as a
human rights obligation.
• LDC members do not appreciate tangible
benefits of doing so.
• The burden of procuring and providing
medicines has essentially been borne by
development partners
• Overdependence on development partners
for their medicines
• Over-dependence on India as a source of
generic pharmaceuticals
• LDCs have given inadequate attention to
the implications of post-2005 Indian law and
policy reforms on future access to medicine.
• Future access scenario looks bleak
• LDCs believe that compliance with the
TRIPS Agreement can benefit them by
creating incentives for innovation.
• LDCs receive technical advice from
agencies, such as WIPO that emphasises
the benefits of strong patent regimes on
domestic innovation.
• Inadequate awareness of the flexibilities
• Subtle pressure from developed countries
against the use of flexibilities
• The ARIPO Harare Protocol is that it does
not recognize LDC transition periods:
LDCs routinely accept pharma patents
from ARIPO
8. Conclusions and Recommendations
National
• LDCS should make use of the flexibilities and waivers granted to them
and postpone the implementation of the TRIPS
• LDCs would require support in order to effectively implement
TRIPS transition periods.
• There is an urgent need for financial and technical assistance to
enable Members to incorporate transition periods.
• Much of the progress that SADC Members have registered to
date has come from the technical support rendered by the
Southern African Regional Program on Access to Medicines and
Diagnostics (SARPAM).
• This program has since expired, and it is imperative that new
regional vehicles of technical assistance be established to
complete the work that SARPAM started.
• SAPAM/ ARASA etc need to be supported
• Awareness raising on the importance of transition periods critical
Regional level
• The ARIPO system be thoroughly scrutinized.
• The Harare Protocol should exempt the territory of
LDCs from the grant of pharmaceutical patents
(OAPI has done that)
• RECS should amend their Protocols on Health
and Trade in order to incorporate TRIPS-
related access to medicines provisions.
• These provisions should oblige all Member
States to domesticate flexibilities and LDCs to
take advantage of the TRIPS pharmaceutical
waiver.
• African RECs can also take advantage of the
fact that the majority of their members are
LDCs and implement Article 31 bis to
facilitate local/regional production of
pharmaceuticals.