WTO Panel Debates EU's Alternative To IP Waiver Proposal

By Tiffany Hu
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Law360 (June 24, 2021, 8:09 PM EDT) -- A World Trade Organization committee on Thursday met to discuss the European Union's proposal aimed at boosting global distribution of COVID-19 vaccines through easing regulatory hurdles rather than suspending intellectual property protections for the vaccines.

Earlier in June, the EU proffered an alternative plan to the Biden administration's support for a temporary waiver on intellectual property protections for the life-saving doses. The EU's proposal instead called for expanding production of the shots, phasing out export restrictions and using the existing flexibilities provided within the WTO's intellectual property rules.

During an informal meeting of the WTO's Council for Trade-Related Aspects of Intellectual Property Rights, or TRIPS, the EU on Thursday said that ensuring vaccine access can be achieved while still maintaining IP protections, according to a Geneva-based trade official.

The EU said the benefit of its proposal is that it can be implemented quickly as it doesn't change the TRIPS agreement, and that governments wouldn't need to negotiate with patent holders — usually the longest process of the compulsory licensing procedure, the official said.

Those in support of waiving IP, including South Africa and India, said the EU's proposal was simply a reiteration of existing rights that members have under the TRIPS Agreement, and asked the EU to explain how it will actually ensure more vaccines, according to the official.

The United States and United Kingdom were among those who welcomed the plan, but also asked for more clarification, the official said.

The Biden administration's about-face in early May supporting the waiver put pressure on other nations that remained opposed.

Supported by more than 100 other WTO members, the waiver would suspend four provisions of the 1995 TRIPS agreement that require members to enact laws protecting intellectual property. The waiver would last for three years, targeting "health products and technologies."

The EU's plan calls on members to ensure that vaccine and treatment products can cross borders freely, to avoid disruptions to global supply chains and to not restrict supplies to COVID-19 Vaccines Global Access, the WTO body designed to provide vaccines to poorer countries.

The proposal also suggested expanding production by increasing manufacturing capacity in Africa and by encouraging vaccine producers to make pledges to increase supplies to vulnerable developing countries.

However, it makes no mention of an effort to lift IP rights for vaccines, led by India and South Africa, in an attempt to speed up worldwide vaccination rates.

The EU proposal instead voiced support for compulsory licensing, in which a government grants a limited license to create vaccines without the patent holder's consent when companies will not agree to voluntarily license the technology.

Compulsory licenses for patents are already authorized under the WTO's Agreement on Trade-Related Aspects of Intellectual Property Rights, or TRIPS, and have been used during previous public health emergencies, including to boost production of AIDS and HIV drugs.

The next informal meeting of the TRIPS Council is scheduled for June 30, according to the official.

--Additional reporting by Britain Eakin, Ryan Davis, Alex Lawson and Grace Dixon. Editing by Amy Rowe. 

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