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The "Trips" agreement is an agreement drafted by the World Trade Organization to ensure that intellectual property rights are respected within international trade. Trips stands for trade-related aspects of intellectual property rights. Member countries of the World Trade Organization (WTO) are signatories to the Trips agreement, and must abide within its rules.
There were however exceptions created as a means to protect national interests such as the health and well-being of a country's citizens. They agreed that countries should be able to manufacture generic drugs made before the 1995 introduction of Trips, and newer drugs under a system called compulsory licensing. Indian patent laws allow applications for the grant of a 'compulsory license' three years from the date a patent has been given. Multinational drug companies rely on the protection of intellectual property for innovation to fund the high cost of research, but India's patent office and courts have been less inclined to defend patents on a number of occasions, contending that prices have to be kept low so the country's vast, and mostly poor, population can afford medicines
This is the reason that generic HIV/AIDS medicine is available from India. Using the same manufacturing processes as the major pharmaceutical companies do, Indian companies such as Cipla, Emcure, and Dr. Reddy's produce generic versions of the same HIV/AIDS drugs you are using everyday.
Some of these companies are already applying for FDA approval for HIV drugs whose patents are about to expire in the U.S. These same companies are evolving into large research and development companies in their own right, and have begun to shift their focus away from producing only generics.
These same companies are also suppliers of API's (active pharmaceutical ingredients). These API's are used to manufacture other products produced by the more well known companies in the market. Many of these API's end up in all forms of prescription medications which are sold everyday in the North American market.