The dispute concerns the questions whether the seizure of goods in transit as border measures for enforcement of intellectual property rights is compatible with the TRIPS Agreement and GATT rules on freedom of transit, among others.  Although a request for consultation was made by two complainants, the dispute was amicably resolved between the parties.

A WTO dispute settlement panel ruled that:

(1) Regulatory review exception – that permits competitors to use a patented invention, without the authorization of the patent holder, for the purposes of obtaining marketing approval – is consistent with the Agreement on the Trade-Related Aspects of Intellectual Property Rights (TRIPS);