Prospective of Compulsory Licensing CL does have various perspective ensured including its impact on economy, innovation, competition, market and the pharmaceutical drug development strategies. CL in Developed vs Developing Countries It has been stated in WTO report as well that CL has been mostly being explored in Developed countries as compared to the developing countries. Taking an example, Malaysia is more rely on the drug importation from Indian generic companies in spite of compulsory licensing and well tweeted India has one grant CL till now and the case is same for all the rest countries. The reason being that the Developed countries are more into the innovation and the patent strategy of developed countries including US, Europe etc, emphasizes the concept of ever greening by the incremental patenting.[7] S No. Country Number of CL 1 Canada 613 2 US 1500 3 UK 100 4 Germany 12 5 Israel 1 6 Australia 0 7 South Africa 0 8 India 1 Table1: Number of CL given in countries after 1977 CL impact on Innovation It has been quoted controversially that the forceful permit of assessing the patent by the means of CL would led to the decrease in the interest of the patent holder in the innovation and R&D[6]. But the research being conducted and the papers reported evaluates that the companies which has faced the CL or companies which are suppose to face, are more efficiently working on the innovation by their R&D so that to compete with their companions and also working more on the innovation for the recovery. CL on Competition CL ensures a fair competition to the companies for the sake of consumers where IP protection provides monopoly to the patentee, the CL ensures a fair competition between patent holders and generic companies with ... ... middle of paper ... ...mpulsory licensee and further drug improvement. The case can be understood as the conflict between innovation and necessity where the price of innovation can be stated on the basis of the R&D expenditure, its orphan drug belongingness and safeguards, clinical trials and commercialization of the drug as well as the maintain ace cost of the patent, which can be thus be conflicted with the necessity of the drug to patients to whom the drug should be available in an ethical manner. The 2005 post regime has surrounds the interest of various MNC companies to IP protect their innovated drug in India as well. This flooded the highly priced, non commercial drugs in Indian patent records but non commercial in Indian markets as Indian generic pharmaceutical companies were excluded by the grant. The necessity makes the compulsory license available in the Indian patent system
(7) Hall B. Patents and Patent Policy -. 2007. The 'Secondary' of the 'Secondary' of the 'Secondary' of the 'Secondary' of the 'Secondary' of the 'Secondary' of the 'Secondary' of the Morse H. SETTLEMENT OF INTELLECTUAL PROPERTY DISPUTES IN THE PHARMACEUTICAL AND MEDICAL DEVICE INDUSTRIES: ANTITRUST RULES. Allison JR, Lemley MA, Moore KA, Trunkey RD. Valuable patents. Geol.
“Processor Editorial Article - Antitrust Laws: Not Just For The Big Boys.” Editorial.Processor 19 Nov. 2004: 27+. Processor.com. Web. 29 Nov. 2011 .
The drug manufacturing industry is concerned with the development, production and marketing of drugs which are to be used as medication. This is one of the oldest industries in the world. The first drug stores date back to the middle Ages. Some of today’s pharmaceutical companies have been founded in the beginning of the previous century. Important discoveries have been made in the early 20th century such as insulin and penicillin who became mass produced. More drugs were developed during the 1950s-1960s such as contraceptives and heart drugs. During that time numerous organizations and declarations were established in order to regulate the industry. Until the 1970s the drug manufacturing industry remained relatively small, and then it began expanding quickly. With the development of technologies and the internet research, manufacturing, marketing and sales of drugs became a lot easier.
Doctor Tristram Engelhardt, an American philosopher, argues that the importance of these profits is to acquire resources and to productively make new discoveries. These profits will secure recourses for these companies and that with the extra money, these pharmaceutical companies can be more innovative. With these profits, more effort will be put in to decreasing morbidity and mortality risks. According to Engelhardt, if these companies decrease profits, the amount of resources and energies available to be innovative will also decrease, leading to more risks. However, Stan Frinkelstein and Peter Temin states that we can eliminate the link between drug prices and drug discovery by developing the Drug Development Corporation, that will solve this problem, as mention in the last
...this action will like come at huge cost, considering a few years ago there was a lawsuit against a drug manufacturer that reformulate its product at the end of it patent life. Even though court held the complaints to be void, the case came under public scrutiny at that time.
Lehman, Bruce. 2003. “The Pharmaceutical Industry and the Patent System”. International Intellectual Property Institute. Pages 1-14.
Pharmaceuticals are arguably one of the most contentious of all goods and services traded in the market. While medicines are as much a necessity as foods and water, they require more technical expertise and official approbation in the manufacture. Above all, they carry a moral weight that most market products do not (The Economist, 2014). This idea of moral can be linked to the recurring debate over whether a good health (which is represented by medicines, in this case) should be considered a basic human right, or just a normal commodity. A large portion of such controversy actually lies in an existence of drug patents: should we promote for longer-lasting patents or should we have their duration shortened?
Main Issue In 2000, Rich Kender, Vice President of Financial Evaluation and Analysis at Merck & Company was discussing the opportunity of investing in licensing, manufacturing and marketing of Davanrik, a drug originally developed to treat depression by LAB Pharmaceuticals. LAB proposed to sell the rights of all the future profits made from the successful launch of Davanrik at the cost of an initial fee, royalty payments and additional payments as the drug completed each stage of the approval process. Merck & Company's organizational goal is to constantly refresh its drug development portfolio and reach as many customers as possible during the patented period. So there was not only the potential of financial gain or quantitative aspect of the offer, but also the qualitative value which will be added by getting better positioning in the risky pharmaceutical industry.
Threat of new entrants is relatively high. Companies forming alliances are potential rivals. Even if earlier such company was not considered to be a threat, after merging with some research and development company or forming alliance with another pharmaceutical company it would become a rival to Eli Lilly. The threat is however weakened by significant research and development costs necessary to successfully enter the business. Eli Lilly’s focus on a relatively narrow market of sedatives and antidepressants weakens the threat of new entrants, but other products that form lesser part of company’s sales such as insulin and others are exposed to high threat of new entrants. The need of obtaining certificates and licenses also weakens the threat of new entrants. Discussed above leads to the conclusion that threat of new entrants is medium.
Phatak, A. (1998 йил 01-01). The pharmaceutical industry and the medical profession. Retrieved 2012 йил 19-01 from Indian Journal of Medical Ethics: http://www.ijme.in/064cr131.html
Patents have always represented a mutually beneficial a relationship between inventor and public. The inventor gets 17 years of basic monopoly on his invention so that he ...
When a drug does make it to market and is successful, companies need to make up for the money spent in development as well as the cost of drugs which did not make it to market. After all investments are taken care of, there is still the need for profit. Some are concerned that if the United States government implements control over prescription drug costs, then private firms will be less motivated to invest in pharmaceutical development, fearing they will not make their investment back. This would supply pharmaceutical companies with less finances for the research and development process. According to the information collected by Abbott and Vernon, a drop in the price of pharmaceuticals would result in significant loss in investment in research and development (Abbott and Vernon).
PROBLEM STATEMENT Teva Pharmaceuticals, the first multinational pharmaceutical company in Israel, has become a successful global giant in the industry of generic drugs. After experiencing a long period of success and growth in the generic drug industry against some big western pharmaceuticals, the company had acquired many well known pharmaceutical companies and had achieved its goal of $1 billion. theory seemed to be in trouble in building a new strategy and vision to compete with the rapidly growing generic industry. They confronted two big issues as key hurdles in their way.
Because of its intangible nature, and particularly the increase of the digital domain and the internet as a whole, computers and cyber piracy make it easier for people to steal many forms of intellectual property. Due to this major threat, intellectual property rights owners’ should take every single measure to protect their rights. Unless these rights are either sold, exchanged, transferred, or appropriately licensed for use in exchange for a monetary fee, they should be protected at all cost. In order to protect these rights, the federal and states governments have passed numerous laws and statutes to protect intellectual property from misappropriation and infringement. “The source of federal copyright and patent law originates with the Copyright and Patent ...
Pharmaceutical patents are patents for inventions within the pharmaceutical industry. Patents give exclusive rights for an invention for a product or a process of making a product [1]. There are many aspects to patents in the pharmaceutical industry that are both pros and cons; it just depends on what industry you are in. Pharmaceutical companies take out patents so they can regulate the market and restrict competition from other companies. By obtaining patents pharmaceutical companies also attract investment. In addition to this pharmaceutical companies can also regulate the price of the drug as they will be the only company selling that drug. However these aspects of patents can adversely affect the generics industry. The generics industry cannot make or sell drugs that are patented but once a patent licence expires, both the generics industry and the WHO see increased benefits as drugs become more widely available around the world (i.e. developing countries) at a lower price. Here we will discuss the pros and cons of patents from the point of view of the pharmaceutical industry, generics industry and the WHO.