Not Everyone Can Copy Technology

Bangladesh, along with Haiti, Rwanda, and many other countries, relies on its TRIPS exemption for cheaper medicine and access to the innovation economy (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.

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.