Abstract:
With the foundation of WTO in the 1/1/1995 the agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) came into force. It obliges all WTO members to implement a minimum standard for the protection of intellectual property rights, which closely corresponds to the standards of industrialized countries. The strengthening of international intellectual property rights with respect to the patenting of medicines has given rise to a widespread discussion on the consequences of the TRIPS for the provision of pharmaceuticals in developing countries.
Background was, on the one hand, the rapid spreading of HIV/AIDS in developing countries combined with a high price level of patented pharmaceuticals used for the treatment of the disease. On the other hand the lack of effective drugs against neglected infectious diseases like malaria or tuberculosis became apparent in many developing countries. Advocates of the TRIPS stressed, that effective intellectual property rights are an essential prerequisite for constant development of innovative pharmaceuticals. Critics of the TRIPS argued that, strengthening pharmaceutical patent protection will increase pharmaceutical prices in low-income regions. As a consequence the already poor access of many developing countries to life saving drugs will worsen.
This paper analyses theoretical and empirical evidence on potential economic consequences of the TRIPS for the provision of pharmaceuticals in developing countries with a special focus on infectious diseases.
With respect to medical access, the consequences of the TRIPS are empirically examined by the development of absolute and relative mortality rate of HIV/ADIS in Sub Sahara Africa, South America and South-East Asia between 1997 and 2005.
The impact of the TRIPS on pharmaceutical innovation is analysed on the basis of the number of new pharmaceuticals against neglected infectious diseases developed either by private companies or philanthropic organisations until 6/30/2008.
Taking into account the short-term observation period the results of the analysis allow the conclusion that the TRIPS is no barrier for the provision of pharmaceuticals against infetious diseases in developing countries.