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Tech

Rich Countries to Developing Economies: Not Everyone Can Copy Technology

Expiration of the waiver would keep these countries under the economic boot heel of more powerful international economic interests.
BANGLADESH, ALONG WITH HAITI, RWANDA, AND MANY OTHER COUNTRIES, RELIES ON ITS TRIPS EXEMPTION FOR CHEAPER MEDICINE AND ACCESS TO THE INNOVATION ECONOMY. IMAGE VIA ORANGEADNAN/FLICKR
Bangladesh, along with Haiti, Rwanda, and many other countries, relies on its TRIPS exemption for cheaper medicine and access to the innovation economy. Image via Orangeadnan/Flickr

Americans and much of the rest of the developed world seem to take their technological invention and innovation for granted. By contrast, technologically under-developed countries, known as “least developed countries” (LDCs), are trying to play catch-up and build their technologies and economies from the ground up.

That is why the The World Trade Organization's TRIPS waiver, which allows LDCs to exempt themselves from enforcing intellectual property restrictions, is so vital to these countries. Initially it was designed to last from 1995 to 2005, and was subsequently extended to July 1, 2013, as LDCs continued to play economic catch up. They argue that being forced to comply with IP laws, which are often frivolous, stifles innovation in small, cash-poor markets. Because of that, the WTO's recent informal negotiations on the waiver threaten to derail technological and economic progress in LDCs if another extension isn't reached.

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Why is this of any concern to Americans? Well, for the same reason that companies like Google oppose legislation like SOPA and PIPA: the intellectual property regulations can be innovation killers. And not just for developing countries, but for everyone.

For the unfamiliar, TRIPS stands for Trade-Related Aspects of Intellectual Property Rights, and is part of the WTO. The TRIPS council is currently chaired by Alfredo Suescum of Panama, and the parties involved in deciding the waiver's fate involve the United States (naturally), European Union, Japan, New Zealand, Canada, Australia and Switzerland.

Let's say a tech start-up in a poor country decides to launch their own version of YouTube or DailyMotion, but it's way better. Right now, they can do just that without having to worry about lawsuits over intellectual property. But come July, if the waiver expires, they may end up open to legal actions, which would mean either licensing IP or developing workarounds.

Expiration of the waiver would keep these countries under the economic boot heel of more powerful international economic interests.

It's important to note that IP restrictions haven't actually stopped companying in countries compliant with the TRIPS agreement from swiping each other's ideas. Battling over patents is simply the way tech business is conducted now, and in multiple cases, including Samsung-Apple and the Monsanto soybean case, billions of dollars have been spent on legal battles. Developing countries can't afford to step into the ring, which is a large part of why patent warfare is kiling innovation.

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Watchdog groups LDC Watch and Our World Is Not For Sale (OWINFS) are trying to raise awareness about the unfair informal negotiations, but aren't getting the time of day in mainstream media. The American media is, not surprisingly, silent on the matter. (Unwrapping acronyms like TRIPS involves a bit too much thinking than most modern American tube addicts and internet surfers can handle.)

“Historically, technological development in rich countries has come about by copying and adapting advanced technologies invented elsewhere,” LDC Watch International co-ordinator Dr. Arjun Karki said in a release. “So it is totally unprincipled that now they are imposing IP compliance on the LDCs who are the most poorest and vulnerable segment of the international community.”

The LDCs only want to extend the waiver until they've graduated from their current status to something more economically and technologically robust. The US, EU and other players in positions of power—no doubt spurred by corporate interests—don't see it that way. And, what is more, these least developed countries are being blocked out of informal negotiations on the waiver extension. They don't even have a say in the matter. Supporters around the globe are also being shut out of talks.

“The Council Chair, Ambassador Suescum is… depriving LDCs of their allies,” wrote LDC Watch and OWINFS in an open letter to the WTO, accusing the Council Chair of trying to “overwhelm the negotiating capacity” of the poorest WTO member countries.

In other words, expiration of the waiver would keep these countries under the economic boot heel of more powerful international economic interests. In an ideal world, LDCs would be able to innovate just like the US and EU. Eventually, they might even export some of their technological innovations, forcing foreign companies to in turn innovate, thus benefiting everybody in the process. It's called the free market.

As it stands, though, the expiration of the TRIPS waiver would create a barrier of entry to technological development, which is not a recipe for healthy, innovative economies.