Technology Transfer in the Health Sector: Between Voluntary Licenses and Competition

Article 7 of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) links the protection and enforcement of intellectual property rights (IPRs) to the transfer and dissemination of technology. Yet, the concept of “technology transfer” remains undefined in international law, becoming an all-purpose term often invoked without precision. In the health sector, the urgency of effective technology transfer has intensified, particularly after the COVID-19 pandemic underscored the need to diversify supply chains and promote local manufacturing. The WTO Ministerial Declaration on the Response to the COVID-19 Pandemic reaffirmed the role of the multilateral trading system in expanding and diversifying the production of essential goods. Achieving this objective is impossible without technology transfer. Voluntary licenses, agreements allowing patent holders to authorise others to use, produce, or market patented medicines, remain the most common mechanism. Initiatives such as the Medicines Patent Pool (MPP), the mRNA Technology Transfer Programme, and the Drugs for Neglected Diseases Initiative (DNDi) exemplify efforts to enhance manufacturing capacity and access in developing countries. However, competition policy also matters. Article 40 of TRIPS recognises that licensing practices may impede the dissemination of technology. This chapter examines major health-sector initiatives and explores national measures in Asia to ensure that licensing practices support, rather than hinder, both competition and technology transfer.