Introduction, implications and characteristics of the Economic Model

CLICK HERE FOR AN EXPLANATION OF THE ECONOMIC MODEL.

The model proves that the hypothetical system of TRIPS PLUS ULTRA is comparatively more efficient, in an economic sense.

• This model proves in a very simple way that developing countries are comparatively more disadvantaged and contribute less to the overall reward to innovators than the developed world. For an interaction of this analysis with the exhaustion regimen see also this paper at JIPEL, 119-125, just after the model is explained.
• This model does not seek to establish the equilibrium or the optimal period of extension for patents (many models provide different theoretical takes on optimal periods of protection, but none have been uncontested), although it might by itself induce this optimal period of protection as commented on here. This model just leads to the general and static conclusion, true under the ceteris paribus described in it and therefore subject to the limitations it entails, that exchanging one year of protection within a poor country with one year of protection within a rich country will produce overall less deadweight loss.
• The first justification for TRIPS PLUS ULTRAis that it will be an equitable burden sharing system, which is additionally clearly supported by the conclusion of this model (the poorer the country the more they are hurt if the burden of innovation is 20 years for all countries, as set by the status quo). Efficiency is an additional very interesting feature, which addresses the objectives of many academics, as well as the interests of developed countries and developing countries.
• One of the biggest limitations of the economic model (which heavily supports the TRIPS PLUS ULTRA proposal because it is an objective economic conclusion) is that it statically compares this dynamic “kingside casting” of one year in a poor country for one year in a richer country, but in this way, it gains a lot in simplicity. This simplicity helps convey to lay audiences, not expert in economics, in a simple an elegant manner the effect the TRIPS PLUS ULTRAproposal would produce. The model finds many virtues in its simplicity, nonetheless it rests on a very deep analysis of the current system.
• For a short plain language explanation of the model´s implications, please click here.

NOTE: When talking about this economic conclusion, we use the word efficient and not effective, here and in the bibliography that inspires the TRIPS PLUS ULTRA proposal, to clearly distinguish efficiency, addressed in this model, from the term used to address compliance (effectiveness).