Daily Prelims Notes 18 March 2024

March 18, 2024
Posted by: OptimizeIAS Team
Category: DPN

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Daily Prelims Notes

18 March 2024

Table Of Contents

1. The problem of equity in IPCC reports

Subject: Environment

Section: Int Conventions

Context:

In a study, researchers analysed more than 500 future emissions scenarios the UN Intergovernmental Panel on Climate Change (IPCC) assessed in its latest reports. These scenarios relate to mitigation actions like reducing carbon dioxide emissions from burning fossil fuels and increasing carbon sequestration through forestry.
It found that across all 556 scenarios, income, energy-use, and emissions disparities between developed and developing countries are projected to continue up to 2050.

What are IPCC assessment reports?

IPCC reports comprise three Working Group reports: one on physical science, one on climate adaptation, and one on mitigation action.
One synthesis report consolidates findings from the three Working Group reports.
Then there are thematic special reports.
- Each report assesses climate-related scientific literature to capture the state of scientific, technical, and socio-economic knowledge on climate change.
The IPCC is currently in its Seventh Assessment cycle (AR7).

How does it assess future scenarios?

IPCC employs “modelled pathways” created using Integrated Assessment Models (IAMs) to forecast how to limit Earth’s surface warming.
IAMs are sophisticated models integrating various aspects like human and Earth systems, macroeconomics, energy consumption, land-use changes, and climate evolution through physics laws.
They aim to offer policy-relevant advice for climate action by examining potential future scenarios across different disciplines.
Despite their comprehensive approach, IAMs have limitations, including a focus on least-cost assessments, which may not account for equitable action burden sharing among countries.
Critics suggest that wealthier nations should adopt more immediate and significant mitigation efforts to distribute responsibilities fairly.

What did the new study finds?

The study analyzed556 scenarios from the IPCC’s AR6 report, revealing projected economic and environmental inequities between the Global North and the Global South.
They found that per-capita GDP in regions home to 60% of the world’s population, including Sub-Saharan Africa, South Asia, and parts of Asia, would remain below the global average by 2050.
Additionally, the study highlighted disparities in consumption of goods, services, energy, and fossil fuels, with developing countries expected to rely more on carbon sequestration from land-based sinks and carbon capture and storage (CCS) technologies compared to developed countries.
This implies that poorer nations would shoulder the heavier burden of mitigation actions and carbon dioxide removal.
The authors criticize the scenarios for overlooking the historical responsibility of the Global North and the future energy needs of the Global South for development.

Why does equity matter?

Equity is crucial in addressing climate change as it’s rooted in the principles of the UN Framework Convention on Climate Change (UNFCCC), specifically under Article 3, emphasizing “common but differentiated responsibilities and respective capabilities.”
This means while global action is necessary to combat climate change,wealthier countries should lead the efforts due to their greater capacity and historical emissions.
Current mitigation pathways, often developed through Integrated Assessment Models (IAMs), may not align with these equity principles, focusing instead on global technical and economic feasibility without adequately considering the distribution of responsibilities.
The principle of equity suggests that developed regions should aim for net negative emissions to allocate the remaining carbon budget to less developed regions, supporting their development goals.
However, current scenarios often depict the opposite, with less developed regions bearing a larger share of mitigation actionsand carbon dioxide removal.
The study highlights the need for constructing IPCC scenarios that are both equitable and environmentally sound, advocating for a shift towards modelling and scenario-building techniques that prioritize equity and climate justice, addressing this significant gap in emissions modelling.

Source: TH

2. IceCube: the big, chill neutrino-spotter

Subject: Science and tech

Section: Space sector

Context:

Recently, scientists have made a significant breakthrough by identifying instances of tau neutrino interactions within IceCube’s data spanning from 2011 to 2020, achieving over 99.999999% confidence in their findings.
This discovery underscores the observatory’s invaluable contribution to our understanding of neutrinos and the broader universe.

Details of the findings:

Neutrinos, often termed “ghost particles,” are known for their minimal interactions with matter.
The detection of these particles is challenging, with estimates suggesting a human-sized neutrino detector might only encounter a single neutrino interaction per century.
The vast collecting area of IceCube significantly enhances the likelihood of neutrino detection.
When neutrinos interact with the ice near the sensors, they can generate charged particles and radiation, which the sensors detect.
By analyzing the radiation’s properties, scientists can deduce the presence of a neutrino and glean insights into its characteristics.
IceCube is capable of identifying certain types of neutrinos in real-time, while for others, it amasses data over years for subsequent analysis by researchers.

About IceCube Neutrino Observatory:

The IceCube Neutrino Observatory, situated at the South Pole (Amundsen–Scott South Pole Station in Antarctica), is a cutting-edge facility dedicated to detecting neutrinos, subatomic particles known for their elusive interactions with matter.
- Similar to its predecessor, the Antarctic Muon And Neutrino Detector Array (AMANDA), IceCube consists of spherical optical sensors called Digital Optical Modules (DOMs), each with a photomultiplier tube (PMT) and a single-board data acquisition computer which sends digital data to the counting house on the surface above the array.
- IceCube was completed on 18 December 2010.
Managed by the IceCube Collaboration, led by the University of Wisconsin, Madison, and involving numerous global universities, this observatory plays a pivotal role in neutrino research.
Structurally,IceCubecomprises thousands of sensors buried over 1.4 kilometersbeneath the ice surface, alongside additional detectors located above ground.
This extensive sensor network, spread across a cubic kilometre of ice, constitutes the world’s largest neutrino telescope.

Source: TH

3. Where names indicate the order of birth in a family

Subject: Geography

Section: Human geography

Context:

In the Lisu or Yobin community of Arunachal Pradesh, India, the naming convention reflects the birth order of children.
This unique naming practice is a significant aspect of their culture, underlining the importance of family and tradition within the Lisu community.
Recently, Birdwatchers have discovered a new species of wren babblers (bird) in remote northeastern Arunachal Pradesh which has been named as Lisu wren babbler.

Details:

For instance, the eldest daughter’s name includes “Ana,” while subsequent daughters are named “Angyi,” “Acha,” and so forth up to “Apshi” for the tenth daughter.
Boys’ names follow a similar pattern, with “Apu” for the eldest and names like “Adu,””Akhi,” continuing in order.
To avoid confusion in cases where multiple families might have children with similar naming patterns due to their birth order, the Lisu employ a system of prefixes or suffixes.
This customization adds uniqueness to each name, reflecting both the individual’s birth order and potentially their clan affiliation.
Clan names such as Ngwazah, Jeazah, and Michey, among others, are examples of this practice.
This system of naming not only signifies the individual’s position in their family but also connects them to their broader cultural heritage and community identity.

Lisu and Singpho communities:

The Lisu andSingpho communities, part of the Tibeto-Burman ethnic family, share the tradition of using numbered names to indicate birth order within their families, reflecting their ethnic bonds and cultural heritage.
This naming convention is prevalent among the Lisus, who are spread across Arunachal Pradesh, China, Myanmar, and Thailand, and the Singphos, found in 27 countries, including significant populations in India’s Arunachal Pradesh and Assam.
Both communities use specific sequences of names for boys and girls, with additional practices to avoid confusion in cases of similar name counts within families.
These practices can include prefixing or suffixing given names.
Moreover, names can also include clan or ancestral references, further enriching the cultural and familial significance of the naming convention.
This system underscores the communities’ deep-rooted traditions and the importance of family and clan identities.

About Wren Babblers:

Babbler family: There are about 20 species of small Asian birds belonging to the babbler family Timaliidae.
Features:
- They are 10 to 15 centimetres (4 to 6 inches) long, short-tailed and have a rather short and straight bill.
Habitat: Wren-babblers occur chiefly in southern Asia.
Grey-bellied wren babblers: Which are almost similar to this new species are found mostly in Myanmar and in smaller numbers in China and Thailand.

Source: TH

4. Why Karnataka has banned food coloring used in gobi manchurian and cotton candy

Subject: Science and tech

Section: Health

Context:

The Karnataka Government has banned the use of harmful coloring agents in cotton candy and “Gobi Manchurian.

More on news:

Telangana Food Safety officials detect cotton candy laced with carcinogen at Medaram Jatara
On February 17, Tamil Nadu banned the sale of cotton candy or candy floss after analysis confirmed the presence of Rhodamine-B, an industrial dye, in samples lifted from stalls in Chennai.

About Rhodamine-B:

Rhodamine-B is a textile dye, and its use in food has a huge impact on health.
Rhodamine-B is a fluorescent dye used in cosmetics, textile and leather industries. It gives you brilliant pinks, greens and blues.
It is used as a food coloring agent not only in cotton candy but also in the preparation of sweets, various manchurian items and pakoras and in the preparation of sauces for Chinese food.
It is a chemical color used in dyeing clothes, paper, leather, printing, and plastics.
It is used to give red and pink colors.
Long-term consumption can cause allergies that can manifest in the form of irritation of the lip, tongue as well as eyes and also cause upper respiratory allergies.
Studies have shown that Rhodamine-B can cause cell death.
In long-term use, it can damage the cerebellum tissue and brainstem.
There is recent evidence that it damages the kidney, liver and increases the risk of stomach tumor.
It is not a food color but is toxic to the human body and is a carcinogen.
The International Agency for Research on Cancer — the World Health Organisation body that maintains a list of cancer causing agents — says it cannot be classified as carcinogenic to humans, there are some studies on rats that have shown carcinogenic effects.

FSSAI approved food colors:

The natural food colors whose use is allowed includes carotene and carotenoids (yellow, orange), chlorophyll (green), riboflavin (yellow), caramel, Annatto (orange-red, derived from the seed of an American tree), saffron, and circumin (yellow, from turmeric).
The synthetic colors allowed include red from Ponceau 4R, Carmoisine, and Erythrosine; yellow from Tartrazine and Sunset Yellow FCF, blue from Indigo Carmine and Brilliant Blue FCF, and green from: Fast Green FCF.

5. Son’s tribute to father, ‘piece of Gujarat in Delhi’: Story of ChausathKhamba

Subject: History

Section: Arts and Culture

About ChausathKhamba:

ChausathKhamba, also spelled ChaunsathKhamba, is a tomb built during 1623–24.
It is located in Nizamuddin precincts of Sufi Muslim shrines and tombs in New Delhi, India.
The name means “64 pillars” in Urdu and Hindi.
The structure houses the tomb of Mirza Aziz Koka, foster brother of Mughal Emperor Akbar.
It was built by Mirza Aziz Koka, son of Ataga Khan, as a mausoleum for himself, at the time when Mughal Emperor Jahangir ruled from Delhi.
Mirza Aziz Koka had served several times as Jahangir’s Governor of Gujarat before he died in Gujarat.
The tomb enclosure is entered through a lofty arched gateway and has a large sunken forecourt.
The mausoleum is unique on account of it being built entirely of marble, with 25 marble domes supporting the flat roof of the structure.
The plan for ChausathKhamba could have been inspired from the wooden garden pavilions from Persia — such as the ChihilSutun, and in turn, the ChausathKhamba seems to have inspired the architectural design for Emperor Shahjahan’s Diwan-i-Aam, Hall of Audience.
Each facade of the square structure has five marble arches inset with marble jalis or lattice screens, and a doorway in the central arch providing access to the tomb.
The column capitals are intricately carved with simple yet striking pendentives bridging the square floor plan to the circular dome above.
The Aga Khan Trust for Culture along with the Archaeological Survey of India (ASI) undertook the conservation of ChausathKhamba.
The project was co-funded by the Federal Republic of Germany.

About Urs Mahal:

Urs is the death anniversary of a Sufi saint in South Asia, usually held at the saint’s dargah (shrine or tomb).
Urs Mahal is located in front of the ChausathKhamba and it’s an assembly hall where Qawwali programmes are held on festival days and on the days during Urs of Sufi saint Nizamuddin Auliya.
It is a protected monument (refurbished in 2003).
In most Sufi orders such as Chishtiya, etc. the concept of Urs exists and is celebrated with enthusiasm.

6. What is SIMA, Google Deepmind’s new AI that can play video games with you

Subject: Science and tech

Section: Awareness in IT and computer

Context:

Google DeepMind on March 13 revealed its latest AI gaming agent called SIMA or Scalable Instructable Multiworld Agent, which can follow natural language instructions to perform tasks across video game environments.

More on news:

SIMA points to a future of gaming where AI agents could play a key role.
It also takes us a step closer to AI which can intelligently collaborate with humans not only in games but also in doing tasks in real-world environments.
With an AI robot to help seniors beat loneliness and a fully autonomous AI software engineer released recently, the week has been a busy one for AI enthusiasts.

What is SIMA?

AI research lab Google Deepmind describes SIMA as an AI Agent, which is different from AI models such as OpenAI’s ChatGPT or Google Gemini.
AI models are trained on a vast data set and are limited when it comes to working on their own.
On the other hand, an AI Agent can process data and take action themselves.
SIMA can be called a generalist AI Agent that is capable of doing different kinds of tasks. It is like a virtual buddy who can understand and follow instructions in all sorts of virtual environments – from exploring mysterious dungeons to building lavish castles. It can accomplish tasks or solve challenges assigned to it.
It is essentially a super-smart computer programme that can be thought of as a digital explorer, having the ability to understand what you want and help create it in the virtual world.

How does SIMA work?

SIMA “understands” your commands as it has been trained to process human language. So when you ask it to build a castle or find the treasure chest, it understands exactly what these commands mean.
One distinct feature of this AI Agent is that it is capable of learning and adapting.
SIMA does this through the interactions it has with the user.
The more you interact with SIMA, the smarter it gets by learning from its experiences and improves over time.
Based on the current stage of AI development, it is a big feat for an AI system to be able to play even one game.
This could potentially introduce more helpful AI agents for other environments.

How was SIMA trained?

To expose the AI agent to different environments, Google Deepmind collaborated with eight game studios to test SIMA on nine different video games, including Teardown by Tuxedo Labs and No Man’s Sky by Hello Games.
With every game, SIMA’s portfolio opened a new interactive world along with a range of skills for it to learn, such as simple navigation, menu use, mining resources, flying spaceships, etc.
They also used four research environments, including one built with the cross-platform game engine Unity.
This environment, called Construction Lab, required AI agents to build sculptures from building blocks.
This exercise was done to test the agent’s object manipulation abilities and intuitive understanding of the physical world.

7. T M Krishna conferred Sangita Kalanidhi

Subject: History

Section: Arts and Culture

Context:

Renowned carnatic singer T M Krishna has been conferred the Sangita Kalanidhi for 2024 by the Music Academy.

More on news:

T M Krishna highlighted the non-inclusive nature of the artform and the music season, wherein non-Brahmin musicians and certain art forms such as Pariyattam, Villupattu, Gaana-Pattu and Kuthu were being left out.
He started a music festival in the fishing village of Urur-Olcott Kuppam(Tamil Nadu) in an attempt to unite various art forms.
He also organized a ‘Nadaswaram and Thavil Festival’ in collaboration with Narada Gana Sabha.

About Sangeet Kalanidhi:

Sangeetha Kalanidhi is the title awarded yearly to a Carnatic musician by the Madras Music Academy.
The award is considered the highest accolade in the field of Carnatic music.
The idea of the award was conceived in 1942 by the then Academy President KV Krishnaswami Iyer.
In 1942, it was decided that the musician so invited would be conferred the title of Sangita Kalanidhi, the award comprising a gold medal and a birudupatra (citation).
On 1 January 1943, all musicians who had presided over the annual conferences between 1929 and 1942 were awarded the title.

8. Shrinking Board Sizes and Corporate Governance: Key Insights

Subject: Economy

Section: Financial market and money market

Trend in Board Size:
- In recent years, corporate boards are facing scrutiny over governance issues, leading to a trend of shrinking board sizes.
- A new report by Excellence Enablers, backed by former SEBI Chairman M Damodaran, reveals the evolution in board sizes.
- In FY18 and FY19, the range of board members varied from 4 to 22, but by FY23, the maximum board size has reduced to 16.
Committee Requirements:
- With the mandatory establishment of five board committees, it is crucial to have an adequate number of members for effective functioning.
- The aim is to ensure proper constitution of committees, avoiding scenarios where the same members serve on multiple committees.
Definition of Good Governance:
- The essence of good corporate governance lies in doing the right things, at the right time, and for the right reasons.
- Entities that proactively practice good governance for stakeholder interests often influence the creation of laws and regulations.
Companies Act, 2013:
- Section 149 (1) of the Companies Act, 2013, mandates a board of directors with specific minimum and maximum director requirements.
- Public companies must have a minimum of three directors, private companies require a minimum of two, and one-person companies need at least one director.
- The Act sets the maximum limit for directors at fifteen, with additional provisions for independent directors in listed public companies.
Optimal Board Composition:
- Effective boards often boast a balanced mix of executive and non-executive directors, providing diverse insights and experiences.
- The report emphasizes the importance of this mix for better decision-making and governance effectiveness.
Concerns on Combined Roles:
- The report raises concerns about combining the roles of Chairman and MD/CEO, which may compromise corporate governance principles.
- When both positions hold executive responsibilities, it could hinder the oversight and checks expected in good governance practices.
Non-Mandatory Separation:
- It is noted that the separation of Chairperson and MD/CEO roles is not mandatory, posing challenges for maintaining governance standards.
- The report highlights the need for this separation to ensure adequate checks and balances within corporate structures.
Conclusion:
- As corporate governance continues to evolve, the focus on board sizes, composition, and role separation remains crucial.
- The ongoing scrutiny underscores the importance of aligning board structures with best practices to uphold transparency, accountability, and stakeholder interests.
- The report calls for a deeper examination of these governance aspects to drive sustainable and responsible corporate conduct.

Section 149 (1) of the Companies Act, 2013

Minimum Number of Directors:
- Every company incorporated under the Companies Act, 2013, is required to have a board of directors.
- The section specifies the minimum number of directors that different types of companies must have.
Public Company:
- In the case of a public company, the minimum number of directors required is three.
Private Company:
- For a private company, the Act mandates a minimum of two directors.
One Person Company (OPC):
- In the case of an OPC (One Person Company), which is a unique type of company designed for single entrepreneurs, the requirement is for at least one director.
Maximum Number of Directors:
- The section also provides for the maximum number of directors a company can have, setting the limit at fifteen directors.
Requirement for Independent Directors:
- Additionally, the Act stipulates that every listed public company must have at least one-third of the total number of directors as independent directors.
- This requirement ensures a level of independent oversight and governance in listed companies.

In summary, Section 149 (1) of the Companies Act, 2013, establishes the foundation for the composition of boards of directors in Indian companies.

It sets out the minimum and maximum numbers of directors based on the type of company, ensuring a structured and balanced governance framework. Additionally, it emphasizes the inclusion of independent directors in listed companies to enhance transparency and accountability.

Corporate Governance and Recent Controversy at NSE

Corporate Governance encompasses a comprehensive set of rules governing the affairs of a corporation. A lapse in governance not only impacts investors but also stakeholders, the public, and the government.

Corporate Governance as the system by which companies are directed and controlled. It involves a set of rules, practices, and processes governing a firm.

Balancing Stakeholder Interests: Corporate Governance ensures a balance between the interests of stakeholders such as shareholders, management, customers, financiers, and the community.

Ethical Business Conduct: It ensures that business operations are ethical, compliant with laws, regulations, and industry best practices.

Structure of Corporate Governance in India

Companies Act 2013: Provides a formal structure with provisions for Independent Directors, Board Constitution, General and Board Meetings, Audit Committees, etc.
Other Legislations: Acts like the Competition Act 2002, Foreign Exchange Management Act 1999, and Industries (Development and Regulation) Act 1951 impact corporate governance.
SEBI Guidelines: Mandates adherence to best practices through various guidelines for investor protection.
ICAI Accounting Standards: Accounting standards and mandatory financial disclosures are issued by the ICAI.
Listing Agreement: Stock exchanges have listing agreements with detailed provisions on audits, disclosures, and annual statements.
ICSI Secretarial Standards: Standards on board and general meetings issued by the ICSI also contribute to governance.

Committees for Improving Governance

Rahul Bajaj Committee (1995): Developed the ‘Desirable Corporate Governance’ code.
Kumar Mangalam Birla Committee (2000): Focused on investor protection and transparency.
Naresh Chandra Committee (2002): Covered corporate audits and auditor-company relationships.
Narayana Murthy Committee (2003): Reviewed and recommended improvements in corporate governance.
Uday Kotak Committee (2017): Proposed measures to enhance governance, including gender diversity on boards.

Conclusion

Robust Corporate Governance is essential for restoring trust, preventing scams, and ensuring investor protection. India needs a concerted effort to enhance governance practices, making them inclusive, efficient, consensus-oriented, and rule-based. These steps are crucial for fostering a healthy corporate environment and attracting both domestic and foreign investments.

Uday Kotak Committee Recommendations on Corporate Governance

The Uday Kotak Committee, constituted by SEBI, focused on improving Corporate Governance practices. Its mandate included:

Independence of Independent Directors: Enhancing the independence and active involvement of independent directors in the company’s functioning.
Related Party Transactions: Improving safeguards and disclosures concerning related party transactions.
Investor Participation: Addressing issues faced by investors regarding voting and participation in general meetings.
Board Evaluation: Enhancing the effectiveness of board evaluation practices.
Disclosure and Transparency: Suggesting measures to improve disclosure and transparency practices.

Key Recommendations

Separation of Roles:
- Chairman and MD Roles: Listed firms should separate the roles of Chairman and Managing Director. Chairmanship should be limited to non-executive directors only.
Minimum Board Strength:
- Board Size: Increase minimum board size to 6 members.
- Gender Diversity: At least one woman to be appointed as an independent director.
- Board Meetings: Listed firms should conduct at least five board meetings annually (up from the current four).
- Discussion Topics: The board should discuss succession planning and risk management at least once a year.
Independent Directors:
- Proportion: At least half of the board members should be independent directors in listed companies.
- Attendance: All directors must attend at least half of the board meetings.
- Age Limit: Public shareholders’ approval required for non-executive directors above 75 years of age.
Shareholder Meetings and Disclosures:
- Webcasting: Top 100 firms by market capitalization should webcast shareholder meetings.
- Cash Flow Statements: All listed firms should disclose cash flow statements every six months.
- Quarterly Earnings: Mandatory disclosure of quarterly consolidated earnings by listed firms.
Credit Ratings:
- Transparency: Listed entities should provide an updated list of all credit ratings obtained in one accessible place for investors.
Minimum Remuneration:
- Independent Directors: Minimum remuneration of Rs 5 lakh per annum.
- Board Meeting Fees: Sitting fee of Rs 20,000-50,000 for each board meeting.
- Approval: Public shareholders’ approval required for annual remuneration of executive directors from promoter families exceeding specified limits.
Risk Management and IT Committee:
- Cyber Security: Top 500 listed companies should have a risk management committee focused on cyber security.
- IT Committee: Listed entities must constitute an IT committee focusing on digital and technological aspects.

These recommendations aim to strengthen governance, enhance transparency, and align practices with global standards, ultimately benefiting investors and ensuring sustainable corporate growth.

9. India’s Proposal on Moratorium on Customs Duties for E-Transmissions

Subject: Economy

Section: External Sector

Background:
- The moratorium on customs duties for e-transmissions has been receiving temporary extensions at the World Trade Organisation (WTO) since 1998.
- India aims to redefine the scope and definition of this moratorium, particularly regarding digitized goods like e-books, e-music, and video games.
Recent Developments:
- At the 13th WTO ministerial conference in Abu Dhabi, India agreed to a two-year extension of the moratorium.
- However, India indicated that further extensions may require a consensus on the scope, definition, and impact on development.
- The country wants discussions to continue at the WTO general council to reach an agreement before the current extension ends.
Need for Reexamination:
- India, along with developing countries like South Africa, emphasizes the need to reexamine the moratorium.
- The global e-commerce sector has evolved significantly since its introduction, with many physical goods now digitized.
Scope of the Moratorium:
- India argues that the moratorium should apply to the transmission of signals rather than the content itself.
- The goal is to clarify what exactly the moratorium would cover to make an informed decision before the current extension expires in March 2026.
Urgency of Discussion:
- The official emphasizes the need for serious discussions at the general council to avoid delays.
- With the digital revolution ongoing and technologies like additive manufacturing, data analytics, and AI expanding, the implications of the moratorium need re-evaluation.
Balancing Concerns:
- While the extension of the e-transmission moratorium has been linked to the moratorium on non-violation and situation complaints (NVSCs) under the TRIPS Agreement, India stresses the greater benefits of clarifying the e-transmission moratorium.
- The potential gains for developing countries outweigh concerns about the lapse of the NVSC moratorium.
Conclusion:
- India seeks a thorough discussion at the WTO general council to define the moratorium’s scope, considering the evolving digital landscape.
- The country aims to ensure a balanced approach that supports digital innovation while addressing concerns about customs duties on digitized goods.

Non-Violation and Situation Complaints (NVSCs) under the TRIPS Agreement

Background:
- The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) is an international agreement administered by the World Trade Organization (WTO).
- It sets down minimum standards for many forms of intellectual property (IP) regulations.
Non-Violation Complaints:
- NVSCs are a unique feature of the TRIPS Agreement.
- They are complaints brought to the WTO when a member believes that another member’s actions have nullified or impaired benefits that it would have reasonably expected to accrue to it.
- These complaints can be filed even if the actions of the accused member do not violate specific provisions of the TRIPS Agreement.
Situation Complaints:
- Situation complaints are similar to non-violation complaints but are related to situations where there is no violation of the specific rules of the agreement.
- Instead, a member claims that another member’s actions or policies have created a situation that nullifies or impairs benefits that would otherwise be accrued under the agreement.

Key Aspects

Legal Basis:
- NVSCs are based on the understanding that the TRIPS Agreement should not just prevent violations but also address situations where the essence of the agreement is undermined.
- They are not about proving a violation of the TRIPS Agreement but about addressing instances where the expected benefits of the agreement are nullified.
Scope of Complaints:
- NVSCs can cover a wide range of issues, such as changes in domestic laws or practices that have an adverse impact on the expected benefits under the TRIPS Agreement.
- They allow members to challenge actions or situations that affect the essence of the agreement, even if those actions do not constitute a clear violation of specific provisions.
Challenges:
- NVSCs have been subject to debate and controversy within the WTO.
- Some members argue that they create uncertainty in the interpretation and application of the TRIPS Agreement.
- Critics also point out that NVSCs can potentially lead to trade disputes based on abstract legal concepts rather than clear violations of agreed-upon rules.
Examples:
- A member might file an NVSC if another member introduces new IP laws that, while technically compliant with TRIPS, substantially diminish the market access or economic benefits expected under the agreement.
- Another example could be a complaint about a member’s use of compulsory licensing, arguing that it undermines the expected value of patent protection.

Non-Violation and Situation Complaints under the TRIPS Agreement represent a nuanced aspect of international trade law, aiming to uphold the principles of fair trade while ensuring that the expected benefits of intellectual property protections are realized.