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Intellectual Property Rights and Technology Transfer: Opportunities and Challenges for Developing Countries
Developing and least developed countries (LDCs) can achieve a balance between protecting intellectual property (IP) and promoting access to technology by strategically utilizing the flexibilities under the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).
Article 31 of TRIPS permits compulsory licensing, allowing states to authorize use of a patent without the consent of the rights holder in the public interest.
For instance, in Bayer Corporation v Natco Pharma Ltd (2013) 56 PTC 277 (IPAB), India granted a compulsory licence for the cancer drug Nexavar, significantly reducing its cost and enhancing public access.
Similarly, Brazil issued compulsory licences for antiretroviral drugs to address the HIV/AIDS crisis, strengthening domestic production capabilities and negotiating lower prices from foreign pharmaceutical companies.
China’s incremental IP strategy also provides an instructive example: it initially focused on technology absorption through joint ventures before gradually reinforcing IP protection to encourage indigenous innovation.
Under Article 66.2 TRIPS, developed countries are obliged to facilitate technology transfer to LDCs; however, its practical implementation remains limited.
Initiatives like WIPO’s Technology and Innovation Support Centers (TISCs) have begun bridging this gap by providing access to technical and patent information.
Thus, sustainable development requires an adaptive IP framework one that protects innovation while ensuring equitable technology diffusion to build long-term economic resilience.
