We all have friends or colleagues who appear to inhabit a “parallel universe,” false, divorced from reality, leading to disastrous personal and business decisions. All the more serious is it when an entire organization, in this case the World Trade Organization (WTO), attempts to base negotiations on such “parallel” realities, as it has with the CDB/TRIPS issue.
CBD/TRIPS refers to the relationship between the Convention on Biological Diversity and the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). Throughout the 1990s, development “experts” asserted that WTO/TRIPS obligations conflicted with the CBD, the latter seeking to amend TRIPS patent obligations for genetic resources (GR) and related traditional knowledge (TK). In the current Doha round of trade negotiations, this belief has fueled demands to make disclosure of course and origin of GR (and possibly of TK) a requirement for patent applications and a new trigger for possible patent revocation. It is further being stated that this would be in the interest of developing countries.
Interestingly, thinking has advanced among CBD negotiators who have focused increasingly on how developing countries can create enabling environments to promote sustainable utilization of GR- and TK-related assets for the creation of meaningful benefits. (They realized that benefits can only be shared once benefits are created). Major developing countries recognize their responsibility for—and opportunities in—implementing regimes that facilitate access and promote the sharing of benefits from sustainable commercialization of natural products. At the most recent CBD ministerial meeting, for example, India’s minister for environment and forestry identified a lack of meaningful domestic implementation of CBD disciplines as the single most important barrier to benefit sharing.
Indeed, small- and medium-size enterprises (SMEs) in developing countries share key qualities with large companies, including multinationals: they are risk takers, they are entrepreneurs, they are innovators, and they need reasonable intellectual property protection for their inventions to bring products to market that serve society. They are the new “bio-preneurs.” Particularly in the area of natural products, SME entrepreneurs in developing countries already work much harder than their U.S. or European counterparts in their efforts to protect patents needed to bring their innovative ideas to the market. Their results are impressive in more than one aspect. The progress is undoubtedly best epitomized by the large delegations of Brazil, India, Malaysia, and Thailand, among many other countries, that visit the annual meetings of the Biotechnology Industry Organization (BIO) where they network, meet collaborators and investors and all over the world.
Similarly, at the most recent CBD general meeting, negotiators agreed on a comprehensive road map for work over the next two years to elaborate and negotiate key measures to help states gain meaningful benefits from the sustainable development of biodiversity resources. Appropriately, amending patent regimes were not considered during these discussions.
Surprizingly, none of these positive developments under CDB percolated into the “Geneva environment”, where WTO negotiators are working overtime to dilute and weaken the very patents needed by developing country scientists and bio-preneurs. At latest report, more than 80 WTO members supported amending TRIPS to require new, mandatory disclosure obligations that would reduce the certain title to patents—the same title needed by bio-preneurs all over the world to raise capital and to survive the famous “valley of death” that leads to the demise of most start-up companies.
Any amendment to TRIPS would require changing patent law in most countries, weakening the protections needed by life-sciences companies, large or small, anywhere in the world. Additional disclosure obligations also would further increase costs as well as the risks of “gaming” the patent system, whereby unscrupulous competitors may initiate spurious litigation on the basis of incentives relating to disclosure of source/origin of genetic resources.
Creation of additional, new hurdles to biotechnology patents would increase uncertainty, would discourage commercial activities related to genetic resources, and would not expand or redistribute benefits. New mandatory patent disclosure obligations also adds additional responsibilities to overburdened patent offices that already face increasing backlogs to their effective operations, including those offices in most developing countries and even the U.S. and European offices. Although patent regime reform is urgently needed, any changes will take up to a decade to negotiate and another decade to implement.
At the time of this writing, there seems to be a near consensus that renegotiating TRIPS and weakening the patent regimes is the cost that may lead to a successful conclusion to the Doha round. TRIPS is by no means perfect but the decade since its implementation has shown that developing countries in particular can gain much when they develop national laws, build transparent court systems, and strengthen enabling environments for bio-preneurs. And much more can be done in these areas.
Would it not be cynical to weaken life-science patents at a time when innovative and forward-looking enterprises in developing countries are taking off, in part thanks to the (imperfect though workable) patent regime? This is not to excuse any inappropriate access to germplasm (the so-called biopiracy) or unduly issued patents. It is simply a pragmatic idea. And it echoes the recent Commentary on www.Forbes.com by Susan Finston.
The pause in negotiations may be an ideal opportunity for Geneva negotiators to escape their seemingly parallel universe and pay the real world a visit. WTO negotiators, for example, could travel to Thailand’s BIOTec or Malaysia’s Sarawak Biodiversity Center or Brazil’s Sao Paulo area or Costa Rica’s INBio, to name but a few, and see how their own scientists and SMEs rely on appropriate patent protection for biodiversity resources. And, without wanting to ask too much, they could even bring WTO talks into conformity with those of the CBD—the international organization responsible for the development of international rules for access and benefit sharing (ABS).
Categories: Access and Benefit Sharing (ABS), Agricultural Biotechnology, BioEntrepreneurs, Biopiracy, Cnvention on Biological Diversity (CBD), Events, Intellectual Property, Patent Disclosure, Policy, TRIPS, Traditional Knowledge, World Intellectual Property Organisation (WIPO), World Trade Organization (WTO) | Comments (1)