The Impact of the Doctrine of Exhaustion of Intellectual Property Rights on International Trade: The Ethiopian Perspective

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Date

2008-06

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Addis Ababa University

Abstract

Intellectual creations and innovations, collectively known as intellectual property (IP) have been considered for long means to developmental goals of states. They have been inseparable in trade concerns of states too in the sense that they (IP), more often than not, are involved in trade between states seeking protection to intellectual properly rights on one hand and at the same time those others seeking beller benefit in trade terms ji'om trading in goods involving new technology on the other. Their ubiquitous nature on one hand and the territoriality of the mode of legal protection on the other, being contrasting, pose difficulties in the effort of states to effective protection. The place of the doctrine of exhaustion of IPRs is central in a cross-culling mailer in the effort seeking effective IPRs protection and that of ji'eedom of circulation of goods. The doctrine of exhaustion of IPRs sets the limit between ji'eedom of trade and optimal utilization of ones' property embodying IPRs on one hand and that of the person who endeavors in the inventive and creative efforts resulting in some thing of commercial, or otherwise may be of value. Parallel importation of goods also remains a concern closely intertwined with ji'eedom of movement of goods and services as well as the effective protection of IP Rs. The paper as such allempts to provide the nature of intellectual properly, define the doctrine of exhaustiun of IPRs and gives accounts of how it is applied in different countries where the concept is well known and the groundfor such legal mailer isfertilein the industrially advanced trading states. Allempt has also been made to look in to the developments in international trade and the place of exhaustion of IPRs in the international trading system as is revealed through the GATT and other WTO instruments. It also considers the debate on whether the developing states are belter off by adopting international exhaustion and/or allowing parallel imports or not and concludes in the affirmative. The paper has also considered the status of the Doctrine of Exhaustion of IPRs in the Ethiopian legal arena and the experience in the caurts which the researcher cone/udes that the laws lack clear position in some cases and absolute darkness In the courts as far as the concept of exhaustion of IPRs is concerned Finally it is concluded that as accession to WTO is inevitable, sooner or later, the doctrine of exhaustion be given of the top priority with respect to Ethiopia's commitment in TRIPS and other WTO agreements - by taking legislative, judicial and administrative measures creating awareness /0 effective implementation of the doctrineexhaustion in the Ethiopian scenario as it stands in the laws of the country. It is shown that the COUlts are not aware of the concept of exhaustion of rights as it relates to IPRs however no case involving it as an issue appeared before them . The paper finally concludes that the exhaustion of IPRs could be a sign ificant obstacle to international trade if not handled carefully. InĀ· this respect as Ethiopia is on its way to accede to the WTO membership then it is very important this issue is well known in the courts and other organs of government to create an enabling business envirolm1ent and for the country to gain its due from international trade and foreign investment as in the majority of case these involves transfer of teclmology and protection to IPRs.The Impact of the Doctrine of Exhaustion of lPRs on International Trade: The Ethiop ian Perspect ive

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Keywords

IPRs, Rights on International Trade

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