Some losses brought out by the WTO agreement for TRIPs
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2002-05-24
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Flôres Junior, Renato Galvão
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The WTO established two rules concerning the international protection of the TRIPs - trade related intellectual property rights, which includes patents and copyrights. One of these rules is the non-discrimination, which has shown to be efficiency-enhancing in the context of trade tariff reductions. The other is the national-treatment commitment rule. We develop in this paper a simple framework to show that the extended version of this rule - which is nowadays being imposed to members - brings out a loss of economic efficiency and a reduction in the levels of protection of intellectual property rights worldwide. As a consequence, it tends to reduce the investments on Research and Development throughout the world. This exactly contradicts the objectives of the Agreement.