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Trade-Related Intellectual Property Rights, North-South Trade, and Biological Diversity

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Author Info
Susanne Droege ()
Birgit Soete

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Abstract

In the Trade-Related Intellectual Property Rights (TRIPS) Agreement of GATT (1 January 1995) it was agreed to harmonise intellectual property rights (IPR) on an international level and to include the option for patent protection for all life forms such as plants and animals (Article 27 (3) b). Patenting, however, leads to considerable conflicts between international trade and protection of biological diversity, which can be illustrated by the example of seed production. We make use of a three-stage game to show the strategic incentives for implementation of two different property rights regimes (patents and farmers' rights) on competition and biodiversity. We show that the Southern government has no incentive to acknowledge international patents, even if farmers' rights do exist. The Northern producer will always dominate in the output market if patents are applied, but without farmers' rights biodiversity will not be maintained by the Southern government. Thus total payoff of the northern firm is maximized, if both IPR regimes are implemented. However, if only farmers' rights are valid, biodiversity will be maximal. Copyright Kluwer Academic Publishers 2001

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File URL: http://hdl.handle.net/10.1023/A:1011167017863
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Publisher Info
Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 19 (2001)
Issue (Month): 2 (June)
Pages: 149-163
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Handle: RePEc:kap:enreec:v:19:y:2001:i:2:p:149-163

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Related research
Keywords: biodiversity; farmers' rights; intellectual property rights; North-South trade; TRIPS;

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Deardorff, Alan V, 1992. "Welfare Effects of Global Patent Protection," Economica, London School of Economics and Political Science, vol. 59(233), pages 35-51, February. [Downloadable!] (restricted)
  2. Brander, James A. & Spencer, Barbara J., 1985. "Export subsidies and international market share rivalry," Journal of International Economics, Elsevier, vol. 18(1-2), pages 83-100, February. [Downloadable!] (restricted)
    Other versions:
  3. Wright, Donald J, 1993. "International Technology Transfer and Per-Unit Royalties," Australian Economic Papers, Blackwell Publishing, vol. 32(60), pages 11-19, June.
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  4. Frisvold, George B. & Condon, Peter T., 1998. "The convention on biological diversity and agriculture: Implications and unresolved debates1," World Development, Elsevier, vol. 26(4), pages 551-570, April. [Downloadable!] (restricted)
  5. Maskus, Keith E. & Penubarti, Mohan, 1995. "How trade-related are intellectual property rights?," Journal of International Economics, Elsevier, vol. 39(3-4), pages 227-248, November. [Downloadable!] (restricted)
  6. Vishwasrao, Sharmila, 1994. "Intellectual property rights and the mode of technology transfer," Journal of Development Economics, Elsevier, vol. 44(2), pages 381-402, August. [Downloadable!] (restricted)
  7. Brush, Stephen B., 1992. "Farmer's rights and genetic conservation in traditional farming systems," World Development, Elsevier, vol. 20(11), pages 1617-1630, November. [Downloadable!] (restricted)
  8. Bhat, Mahadev G., 1996. "Trade-related intellectual property rights to biological resources: Socioeconomic implications for developing countries," Ecological Economics, Elsevier, vol. 19(3), pages 205-217, December. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Gatti, J.R.J. & Goeschl, T. & Groom, B. & Timothy Swanson, 2004. "The Biodiversity Bargaining Problem," Cambridge Working Papers in Economics 0447, Faculty of Economics, University of Cambridge. [Downloadable!]
  2. Jungcurt, Stefan & Meyer, Thomas, 2006. "CONSOLIDATION, DELIMITATION AND STALEMATE. Disruptive Interplay and Strategic Incentives in the CBD-TRIPS Relationship," Institutional Change in Agriculture and Natural Resources Discussion Papers 18843, Humboldt University Berlin, Institute for Agricultural Economic and Social Sciences. [Downloadable!]
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