Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
As Bangladesh is set to graduate from the Least Developed Country (LDC) category by the end of 2026, many have already raised concerns about the post-graduation shocks. The issue of intellectual property rights (IPR) is one of the key concerns that has drawn less attention so far. Though a lot of work has already been done to devise a strategy to overcome the negative impact of the erosion of preferential market access, no such study exists regarding IP.
All the LDC members of the World Trade Organization (WTO) enjoy two types of flexibility in global IP rules: general and special. All LDCs are generally exempted from implementing most elements of the Trade-Related Intellectual Property Rights (TRIPS) Agreement of the WTO until July 2034. Moreover, LDCs also enjoy special treatment regarding IP protection in the pharmaceutical industry valid up to January 1, 2033. Bangladesh has successfully utilised the special waiver by developing a strong pharmaceutical industry.
When an LDC like Bangladesh finally leaves the category and becomes a non-LDC, the exemptions to implement TRIPS provisions will no longer apply. In other words, the country has to follow the path of other developing nations by gradually implementing various IP rules outlined in the TRIPS agreement. However, a graduated LDC will be eligible for some flexibility applicable to developing countries.
It is to be noted that intellectual property rights (IPRs) are the legal entitlements given to individuals over the creations of their minds. These legal entitlements generally provide the creator's exclusive rights over the use of their creations for a certain period. Two types of IPRs are recognised. One is copyright and rights related to copyright. Another is industrial IPRs, which include patents, trademarks, industrial designs, and geographical indications (GI). WTO TRIPS agreement covers both types of IPRs, and members of the WTO are bound to implement the various aspects of the agreements. The core objective of the agreement is to facilitate trade in knowledge and creativity, promote and protect innovation, and resolve trade-related disputes over IP.
Member countries of the WTO are, thus, required to design their own IP rules and regulations and ensure their enforcement in line with the TRIPS agreement. With the economy's advancement, a country must revise and update its IP and relevant laws. Moreover, the country also needs to enhance IP awareness and contain the use of pirated works and products. Otherwise, both local and global innovations will be discouraged. LDCs are far behind in applications seeking patent, trademark or industrial design rights. For instance, applications for trademarks' average annual filings stood at 2,197 only between 2017 and 2021 in LDCs, against the global average of 26,034 and developing countries' average of 24,789. Trademark is the single most widely used form of IP protection in LDCs.
The importance of IP for graduating LDCs is reflected in a number of global initiatives. World Intellectual Property Organization (WIPO) has developed a Graduation Support Package for LDCs targeting IP-related technical assistance to graduating LDCs to facilitate their preparation for graduation. This package includes support for updating and revising national IP laws, enhancing IP awareness, and building capacity in IP-related issues. Launched in July 2022, the package was developed in response to the requests of the LDC members and the call made in the Doha Programme of Action (DPoA) for enhanced international support measures to graduating and graduated LDCs. DPA was adopted in the 5th United Nations Conference on the Least Developed Countries (LDC5) in 2022 and endorsed by the UN General Assembly.
There are currently 44 LDCs on the United Nations list. Of these, 37 are now members of the WTO. Notably, 15 LDCs are on the path of graduation, of which 10 are WTO members, and Bangladesh is one of them.
The Commonwealth Secretariat and the United Nations Conference on Trade and Development (UNCTAD) prepared and published two reports titled 'Graduating with Momentum: Intellectual Property Issues, Challenges and Opportunities for Least Developed Countries' and 'Harnessing Intellectual Property Rights for Innovation, Development and Economic Transformation in Least Developed Countries' last year. Both reports analyse the role of IPRs in shaping the future of LDCs and explore the potential for LDCs, including those that will soon graduate from the category, to benefit from IPRs. Thus, both publications are largely similar. A background paper titled 'Impacts of LDC Graduation on Trade-Related Aspects of Intellectual Property Rights (TRIPS) in Cambodia, Djibouti, Senegal and Zambia' has been prepared by the United Nations Committee for Development Policy (CDP) in 2023. The study analyses the 'policy and developmental implications for these countries of no longer benefitting from the LDC-specific provisions of the TRIPS Agreement.'
Nevertheless, all the above-mentioned papers provide important input and suggestions for Bangladesh. Use of these studies makes it possible to outline the potential risks and opportunities for the country in terms of IP in the post-graduation period. Updating the IP laws is not enough, and the update needs to be carefully crafted. Prior consultation with different stakeholders is a must. It is also necessary to rigorously review the IP laws of competing countries to understand their strength and weaknesses in this connection. Bangladesh has already updated patent, industrial design, and copyright acts in 2023. More work is needed, however.
Developing a pool of skilled human resources capable of dealing with IP-related issues in the post-graduation period is another significant challenge for Bangladesh. The National IP Policy 2018 underscored setting up a national institute of intellectual property (NIIP) as well as some regional institutes across the country gradually. But no progress has been made in this regard. The National Council for Innovation and IP is yet to be functional. The department of Patents, Designs and Trademarks (DPDT) under the Ministry of Industry is the national IP office of Bangladesh. It requires an adequate workforce, advanced logistics and a transparent communication mechanism to do the work efficiently. The copyright Office under the Ministry of Cultural Affairs also needs to be revamped. A smooth co-ordination with the relevant government and private organisations is also necessary. The role of stakeholders in developing a skilled workforce is crucial. There is a long, tedious and complex path to overcome the post-graduation jolt regarding intellectual property rights, and their contribution is vital.
