TRIPS Agreement: How Global Drug Patents Shape Your Medication Costs

When you hear about the TRIPS Agreement, a global treaty under the World Trade Organization that sets minimum standards for intellectual property rights, including drug patents. It’s also known as the Agreement on Trade-Related Aspects of Intellectual Property Rights, and it’s the invisible force behind why your prescription costs what it does — and why a cheaper version might not be available for years.

The TRIPS Agreement, a global treaty under the World Trade Organization that sets minimum standards for intellectual property rights, including drug patents. It’s also known as the Agreement on Trade-Related Aspects of Intellectual Property Rights, and it’s the invisible force behind why your prescription costs what it does — and why a cheaper version might not be available for years. It forces every WTO member country to grant 20-year patents on new drugs, even if those drugs are life-saving and unaffordable for most people. This means a brand-name drug like Lipitor or Humira can have zero competition for two decades, no matter how many patients struggle to pay. The Hatch-Waxman Act, a U.S. law that created a fast-track pathway for generic drugs to enter the market after patents expire. It’s also known as the Drug Price Competition and Patent Term Restoration Act, and it’s the reason generics exist in America — but only after TRIPS lets them. That’s why you see articles about generic drug approval, patent challenges, and why some drugs spike in price years after launch — it’s all tied to how long the patent clock ticks under TRIPS.

TRIPS also lets countries delay generic entry for public health emergencies — but only if they’re rich enough to fight legal battles. Countries like India and Brazil have used flexibilities in TRIPS to make affordable HIV drugs, but most low-income nations can’t. Meanwhile, in the U.S., the Patent Term Restoration, a provision under TRIPS that lets drugmakers extend patents to make up for FDA approval delays. It’s also known as PTE, and it’s how a drug gets 25 years of monopoly instead of 20. That’s why some medications still cost hundreds of dollars even after the original patent expires — the clock got reset. And because TRIPS doesn’t require countries to make generics affordable, price spikes happen when a few companies control the market — something you’ll see in articles about generic drug prices and market consolidation.

You’ll find posts here about how trademark laws make generics look different, how state laws control pharmacist swaps, and how drug interactions and side effects are studied — but all of it connects back to one thing: the TRIPS Agreement. It’s why you can’t get a cheap version of your medicine right away. It’s why some drugs are safer than others — not because of science, but because of patent timing. And it’s why knowing how long a drug’s patent lasts matters more than you think. Below, you’ll see real examples of how this system plays out — from clozapine monitoring rules to statin muscle pain, from Bactrim’s potassium risks to how DASH diet advice gets published while people wait for affordable meds. This isn’t just policy. It’s your health.