Medicine, software will cost more after TICFA signing

Prices of medicine, software and other IT products may increase in the local market as under the recently-signed TICFA the local manufacturers may have to pay royalty for US patented products.
Pharmaceuticals and software industry experts said, though just after signing of the agreement the commerce minister said TICFA will not affect the WTO facilities but it is uncertain.
They said nothing is clearly written in the agreement, but verbally the officials are saying the agreement will not affect the facilities accorded to Bangladesh by WTO as an LDC member.
After signing of the TICFA the commerce minister in a press conference said, in the agreement it was ensured that it would not affect the facilities that Bangladesh is currently enjoying.
But other sources said as there is no clear mention in the agreement so it is uncertain whether to pay royalty against manufacture or copy of patented products or not.
Bangladesh Association of Pharmaceutical Industry (BAPI) former secretary Nazmul Hassan said, "Under the TRIPS transitional period of the WTO we are getting the benefits of manufacturing any country's patented drugs without paying royalty."
But if in the TICFA it is said that Bangladesh has to obey the Intellectual Property Rights (IPR) as per agreement then it is mandatory to pay royalty against manufacture of the US patented drugs which may lead to increase of medicine prices in the local market.
He said but it is still not apparent what may happen until a clear picture is made available to the public.
The former BAPI secretary, also a ruling party lawmaker, said the TICFA impact would be noticeable after a few days as well as when Bangladesh would start exporting medicines to the US market.
Ministry of Information and Communication Technology (MoICT) secretary Nazrul Islam Khan told the FE that the TICFA would not seriously affect the current prices of different US-origin products in the country.
He said, "As our purchasing power is not strong and market is small so US may not strictly follow the IPR regarding software and other IT products."
Mr. Khan said, "Besides we do have our own intellectual proper rights and anti piracy laws. So it is already covering the TICFA agreement."
He said, "If US asks Bangladesh to strictly maintain the IPR and it overlaps WTO rules, then prices of ICT and other services would increase in the local market."
Mr. Khan said strict maintenance of IPR in the agreement may boost local software export as the firms would have to keep up compliance which would enhance quality of Bangladeshi products.
A Bangladesh Association of Software and Information Services (Basis) source said, "We feel that if the US is strict on IPR then prices of products and services will increase."
An apex trade body expert said medicine and software would be costlier following the signing of TICFA.
He said, "I do not know whether the WTO issues are mentioned clearly in the agreement or not but it should be made clear to the people."
He said though the commerce minister has said nothing will affect the WTO facilities but the minister did not say it is written in the agreement or not.