H.E. Ambassador Dr Lansana GBERIE

Indonesia

7 NON-VIOLATION AND SITUATION COMPLAINTS

129.   Indonesia's position remains unchanged from the previous meeting regarding the extension of the moratorium of non-violation and situation complaints (NVSC) to the upcoming MC13. We would also like to reiterate on the negative impact of such complaints, particularly its linkages with the development issue. 130.   As we all know, the NVSC provision allows a WTO Member to file a complaint with the WTO's Dispute Settlement Body even if the measures at hand do not technically violate the TRIPS Agreement. While this provision can be important for protecting intellectual property rights, it is prone to misuse and can create uncertainty for businesses and investors. That is why Indonesia believes it is important to maintain the moratorium on NVSCs. This moratorium has been in place since the TRIPS Agreement came into force in 1995, and it provides a degree of stability and predictability in the international trade system. It is especially important for developing countries, which often have weaker economies and less bargaining power in international trade negotiations. 131.   By maintaining the moratorium on NVSCs, developing countries and LDCs will have a degree of protection against potential trade disputes with more powerful countries. This will allow them to focus on implementing their development objectives and promoting innovation, without the threat of costly legal challenges.

31. The Council took note of the statements made and agreed to revert to this matter at its next meeting.

26. The Chair recalled that the examination of scope and modalities for non-violation and situation complaints under TRIPS was in line with the initial mandate in Article 64.3 of the TRIPS Agreement, which had required recommendations to be submitted to the Ministerial Conference in 1999.
27. He recalled that at the 12th Ministerial Conference, Ministers had adopted a Decision on TRIPS non-violation complaints (document ), which directed the Council for TRIPS to continue its examination of the scope and modalities for non-violation and situation complaints, and to make recommendations to the 13th Ministerial Conference. The Decision also provided that, in the meantime, Members would not initiate such complaints under the TRIPS Agreement.
28. He said that, during recent meetings of the Council for TRIPS, a few delegations had signalled openness to return to substantive discussions in this area. In March 2021, his predecessor had suggested that Members could identify areas of agreement in the non-violation discussions. Identifying such areas or elements of agreement regarding the nature of non-violation and situation complaints could help delegations focus their engagement on the areas of disagreement and thus make at least some progress in framing the relevant questions for discussion.
29. The Chair inquired whether delegations were more at ease now to consider this or any other approach that might help identify common ground, in order to get some movement in this longstanding debate.
30. The representatives of South Africa; Bangladesh; Tanzania, on behalf of the African Group; India; Kenya, on behalf of the ACP Group and Indonesia took the floor.
31. The Council took note of the statements made and agreed to revert to this matter at its next meeting.

IP/C/M/107, IP/C/M/107/Add.1