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Introduction - The primary function of patents: to meter inventions in arelatively accurate manner (as compared to trade secrets and public subsidies)1

1. The two best known explanations of the functions of patents: the reward and the prospect theories2

a) Primarily, patents are not rewards2

b) Primarily, patents do not serve to prospect the market6

2. The evolution of the patent system: from public subsidies (awards, privileges, and monopolies) to modern individual property rights (patents)8

a) Awards8

b) Privileges and monopolies10

c) Patents: mechanisms of private appropriation of inventions11

3. Trade secrets and patents: competing appropriation devices15

a) Patents are more socially efficient than trade secrets insofar as they provide for a better quantification of technology and a better qualification of rights: the metering function of patents16

b) Injunctions issued to enforce trade secret protection: a problem of uncertainty resulting from the lack of a predetermined term18

c) Pro-competitive effects of patent disclosure19

d) The residual social value of trade secret protection19

4. The metering function of patents in a nutshell20

PREAMBLE23

1. The scope, the nature and the function of the TRIPS Agreement24

a) The scope of the TRIPS Agreement24

b) The dynamic dimension of the TRIPS Agreement27

c) The nature and the function of the Agreement28

(ⅰ) The first objective of the TRIPS Agreement: to reduce distortions and impediments to international trade31

(ⅱ) The second objective of the TRIPS Agreement: to protect private property rights32

2. TRIPS-intellectual property and trade35

a) TRIPS and the GATT38

b) The WTO and WIPO43

3. Intellectual property and economic development46

PART I-GENERAL PROVISIONS AND BASIC PRINCIPLES53

Article 1 - Nature and Scope of Obligations53

1. The TRIPS Agreement: a minimum standards agreement54

2. Method of implementing the provisions of the TRIPS Agreement57

3. Implementation59

4. The scope of TRIPS obligations61

Article 2 - Intellectual Property Conventions64

1. The objective of the Paris Convention: the articulation of national patent systems64

2. The national treatment principle under the Paris Convention65

3. The principle of priority67

4. The principle of independence67

5. Article 5 of the Paris Convention and trade protectionism69

6. From the Paris Convention to the TRIPS Agreement69

7. The relationship between the TRIPS Agreement and the Paris Convention70

Article 3 - National Treatment75

1. The "no less favourable treatment" standard of the TRIPS Agreement asopposed to the "same treatment" standard of the Paris Convention75

2. Two GATT Panel Reports on the national treatment principle and Article XX(d) of the GATT 194778

3. Scope and reach of the footnote to Article 381

Article 4 - Most-Favoured-Nation Treatment84

1. The most-favoured-nation treatment principle84

2. The mfn principle and the national treatment principle: a rule of thumb85

3. Scope of the mfn principle86

4. Exemptions from the mfn principle86

Article 5 - Multilateral Agreements on Acquisition or Maintenance of Protection91

1. The scope of the exemption under Article 591

2. An example of an admissible exemption92

Article 6 - Exhaustion94

1. The meaning of Article 694

2. Exhaustion97

3. The legal implications of international exhaustion102

Article 7 - Objectives109

Article 8 - Principles118

Paragraph 1119

1. The conditions for the application of Article 8.1119

2. The necessity test119

3. Article 8.1 and non-violation complaints120

4. The TRIPS Agreement and public health121

5. The Doha Declaration on the TRIPS Agreement and Public Health125

Paragraph 2132

1. The scope of Article 8.2132

2. Patents,their metering function,ang competition policy133

a) Patents and monopolies134

b) Abuses of patent rights138

PART Ⅱ - Standards Concerning the Availability, Scope and Use of Intellectual Property Rights141

SECTION 5: PATENTS141

Article 27 - Patentable Subject Matter141

Paragraph 1141

1. The precedents of Article 27141

2. Prohibition against discrimination143

3. Article 27 and Article 1145

4. Article 27.1 ang the metering function of patents145

a) Inventions and discoveries146

b) Patentable subject matter147

(ⅰ) Computer software148

(ⅱ) Business methods149

(ⅲ) Second uses150

5. Substantive examination152

6. Conditions of patentability: a minimum or a maximum? Formal and substantive requirements. The requirement to disclose the origin of genetic resources and prior informed consent of the use of traditional knowledge in patent applications153

7. Discrimination as to the place of invention160

8. Discrimination as to the field of technology161

9. Discrimination as to the local of production: the local working requirement162

Paragraph 2168

1. Exclusions from patentability: technical, economic and ethical grounds168

2. Morality and "ordre public"170

3. The two-step necessity test171

4. Exclusions from commercial exploitation as opposed to other forms of exploitation173

5. Article 27.2 and Article 4quarter of the Paris Convention173

Paragraph 3(a)175

Paragraph 3(b)177

1. Plant variety protection. The UPOV178

a) The farmers' exemption182

b) The breeders'exemption184

2. The relationship between the TRIPS Agreement and the CBD185

a) The precautionary principle and the TRIPS Agreement188

b) Article 8(j) of the CBD and the TRIPS Agreement190

(ⅰ) A working concept of traditional knowledge191

(ⅱ) Elements of a "sui generis" system for the protection of traditional knowledge195

(ⅲ) The first "sui generis" database system for the protection of traditional knowledge ever adopted: the Portuguese Decree-Law No.118, of April 20,2002197

(ⅳ) The legal and economic reasons for protecting traditional knowledge198

c) Article 15 of the CBD and Articles 27 and 28 of the TRIPS Agreement200

d) Article 16 of the CBD and the TRIPS Agreement203

e) Article 18 of the CBD and the TRIPS Agreement205

f) In a nutshell, there is no necessary conflict between the CBD and the TRIPS Agreement206

3. The relationship between the TRIPS Agreement and the FAO International Treaty on Plant Genetic Resources for Food and Agriculture208

4. Conclusion211

Article 28 - Rights Conferred212

Article 29 - Conditions on Patent Applicants217

Article 30 - Exceptions to Rights Conferred220

1. The three conditions for the application of Article 30221

2. Article 30 and Article 27.1226

3. Examples of exceptions to rights conferred; the problems with exhaustion, manual handling of pharmaceutical preparations and prior user exceptions226

4. Article 30 and the implementation of Paragraph 6 of the Doha Declaration on the TRIPS Agreement and Public Health228

Article 31 - Other Use Without Authorization of the Right Holder230

Paragraph230

Subparagraph (a)233

Subparagraph (b)234

Subparagraph (c)238

Subparagraph (d)238

Subparagraph (e)239

Subparagraph (f)240

Subparagraph (g)245

Subparagraph (h)246

Subparagraphs (i) and (j)247

Subparagraph (k)247

Subparagraph (1)249

Article 32 - Revocation/Forfeiture252

Article 33 - Term of Protection257

Article 34 - Process Patents: Burden of Proof262

SECTION 7: PROTECTION OF UNDISCLOSED INFORMATION267

Article 39, paragraph 3267

1. The scope of Article 39.3267

2. Unfair commercial use269

3. Exclusive test data protection as opposed to protection of secrecy271

4. Fair commercial use272

5. Compulsory licensing of test data273

6. New chemical entity274

7. Term of protection of test data275

PART V - DISPUTE PREVENTION AND SETTLEMENT277

Article 64 - Dispute Settlement277

1. Objectives and nature of the Dispute Settlement Mechanism277

2. The new features of the Dispute Settlement Mechanism278

3. Conciliatory steps280

4. The outcome of the Dispute Settlement Mechanism281

5. Specific issues concerning the withdrawal of concessions in the TRIPS Agreement282

6. Non-violation complaints283

7. Patent-related disputes287

8. Lessons from the Dispute Settlement Mechanism290

a) First lesson: good intentions do not count290

b) Second lesson: more (protection) is always better than less291

PART VI - TRANSITIONAL ARRANGEMENTS293

Article 65 - Transitional Arrangements293

Article 66 - Least-Developed Country Members296

Article 70 - Protection of Existing Subject Matter303

Paragraph 1303

Paragraph 2305

Paragraph 3307

Paragraph 4307

Paragraph 6308

Paragraph 7309

Paragraph 8 (mailbox)309

Paragraph 9 (exclusive marketing rights)312

Index315