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Only when nations approach the developmental frontier do local industries agitate successfully for higher levels of IP protection TRIPs is forcing less developed countries to increase IP protections prematurely Good or bad?
Major Positions
1) High levels of patent protection mandated by TRIPS are bad for all countries
a) As compared to no patent protection b) As compared to more moderate levels of patent protection c) As compared to alternative means of stimulating innovation
2) Developing countries have been hurt by TRIPS, and their injuries are greater than the gains reaped by developed countries 3) Developing countries have been hurt by TRIPS, but their injuries are more than offset by advantages to developed countries
a) Other concessions to developing countries in Uruguay Round still left them, on balance, worse off b) Other concessions to developing countries in Uruguay Round = transfer payments sufficient to achieve Pareto superiority
Major Positions
TRIPS Reduced Global Social Welfare
1) High levels of patent protection mandated by TRIPS are bad for all countries
a) As compared to no patent protection b) As compared to more moderate levels of patent protection c) As compared to alternative means of stimulating innovation
2) Developing countries have been hurt by TRIPS, and their injuries are greater than the gains reaped by developed countries 3) Developing countries have been hurt by TRIPS, but their injuries are more than offset by advantages to developed countries
a) Other concessions to developing countries in Uruguay Round still left them, on balance, worse off b) Other concessions to developing countries in Uruguay Round = transfer payments sufficient to achieve Pareto superiority
Reichman (1996 & 1998) argues that the best balance will be achieved if developing countries aggressively use the wiggle room left by various TRIPS provisions