The second part of the ON TRIPS agreement deals with different types of intellectual property rights and their protection. The aim is to ensure that minimum standards of protection are organised in all WTO members. The starting point is the commitment of the main international agreements of the World Intellectual Property Organization (WIPO) that existed before the creation of the WTO: unlike other IP agreements, TRIPS have an effective enforcement mechanism. States can be disciplined by the WTO dispute settlement mechanism. The agreement includes three main areas, the TRIPS agreement of which is a minimum model agreement that allows members to more broadly protect intellectual property protection on demand. Members are free to determine the appropriate method of transposing the provisions of the agreement into their own legal and practical order. The Agreement on Trade-Related Intellectual Property Rights (“TRIPS” is the first WTO agreement that requires members to establish relatively detailed material standards in their national legal systems and to compel them to define enforcement measures and procedures that meet minimum standards. The ON TRIPS agreement is sometimes described as the first WTO agreement that imposes a “positive right.” This alone could lead to more than typical controversies, given that, in many cases, Members face quite significant changes in their national legal systems. Prior to the Uruguay Round (1986-1994) negotiations, which resulted in a well-concluded agreement on trade-related investment measures (“TRIMs”), few international agreements offered disciplines for measures to limit foreign investment and limited guidance on country content and coverage.
The OECD Code on the liberalisation of capital movements, for example, obliges MEPs to liberalise restrictions on direct investment in a wide range of areas. However, the effectiveness of the OECD code is limited by the many reservations of each Member. In addition to the basic intellectual property standards set out in the TRIPS agreement, many nations have committed to bilateral agreements to adopt a higher level of protection. This collection of standards, known as TRIPS or TRIPS-Plus, can take many forms.  Among the general objectives of these agreements are: The IP sections covered by this agreement are: a 2003 agreement eased the requirement of the internal market and allows developing countries to export to other countries where there is a public health problem as long as exported drugs are not part of a trade or industrial policy.  Drugs exported under such regulations may be packaged or coloured differently to prevent them from affecting the markets of industrialized countries. As in the General Agreement on Tariffs and Trade (GATT) and the General Agreement on Trade in Services (GATS), the starting point of the ON-TRIPS agreement is the basic principle. As in the other two agreements, non-discrimination plays a major role: national treatment (which does not treat foreigners less favourably than its own nationals) and the MFN (non-discriminatory among nationals of trading partners). The issue is also a key principle in other IP agreements outside the WTO.
It is an agreement on trade-related investment measures, which sets out the rules applicable to national rules applied by a country to foreign investors. The agreement applies to all members of the World Trade Organization (WTO). The agreement was formalized in 1994 and came into force in 1995. Article 40 of the TRIPS ON Agreement recognizes that certain practices or licensing conditions related to intellectual property rights that limit competition can have negative effects on trade and impede the transfer and dissemination of technology (paragraph 1).