TRIPS and the Balance between Private Rights and Public Welfare: The Case of Pharmaceutical Sector

This paper tries to analyse the effects of TRIPS on public welfare in the context of the pharmaceutical sector. It takes a closer look at the policies of some developing countries and their usage of the flexibilities that TRIPS allows. The cases of China, India and Brazil (three major players in the global pharmaceutical industry) are studied. China, which has not used the TRIPS flexibilities, has benefited from appropriate technology transfer and Foreign Direct Investment in Research &Development. The need for FDI in R&D in India and Brazil as potential destinations of research on neglected tropical diseases (NTDs) is brought out. The paper concludes that the effects of TRIPS on public welfare are critical for countries which do not have the ability to use the flexibilities.