TRIPS and TRIMs

1. Trade Related Intellectual Property Rights (TRIPS):

The WTO agreement on trade-related aspects of Intellectual Property Rights (TRIPs)

lays down minimum standards for most forms of intellectual property regulation within
all member countries of the WTO. The TRIPs Agreement pertains to the protection of
following categories of intellectual property rights:

(i) copyright; (ii) trademarks; (iii) geographical indications; (iv) industrial designs; (v) patents
(vi) integrated circuits (vii) trade secrets.

Regarding Copyright’s it is specified that the Berne convention should be complied for the
protection of literary, artistic works including computer programming. The owner of the
registered trademark possesses exclusive rights for its use. The geographical indication
relates to the identification of a product originating in the territory of the member state; and it
should be legally protected. Industrial designs, are to be protected for at least 10 years and
patents for 20 years. Patents shall be available for any inventions whether products or
processes, in all fields of technology, provided they are new, involve an inventive step and
are capable of industrial application.

The requirements of TRIPs require member states to provide strong protection for intellectual
property rights. For example, under TRIPs:

(i) Copyright terms must extend to 50 years after the death of the author (although films and
photographs are only required to have fixed 50 and 25 year terms respectively.

(ii) Copyright must be granted automatically, and not based upon any 'formality' such as
registrations or systems of renewal.

(iii) Computer programs must be regarded as 'literary works' under copyright law and receive
the same terms of protection.
2. Trade Related Investment Measures (TRIMs):

Like subsidies, certain investment measures are regarded as a 'form of protection' which
enhance inefficient investment. TRIMs provide for abolition of all such restrictions, measures
and conditions imposed on foreign investors. Thus, TRIMs are investment related
measures proposed by WTO to ensure free flow of investment all over the world. In
these measures, foreign investment is treated as per with domestic investment. It will
abolish all terms of protection to domestic investment.

The main features of TRIMs are:

(i) Foreign investors are to be treated at par with domestic investors.
(ii) abolition of restrictions imposed on foreign capital.
(iii) No limitation or ceiling on the quantum of foreign investment, i.e., foreign equity to be
allowed upto 100 percent.
(iv) No restrictions on any area of investment.
(vi) No force on the foreign investors to use the total products or materials.
(vii) Granting of permission without restrictions to import raw materials and
other components.
(viii) Restrictions on repatriation of dividend, interest and royalty will be
removed.
(ix) Phased manufacturing programme will be introduced to increase the
domestic content of manufacture.