AIDS patients’ treatment endangered by drug patent monopolies
A possible solution is taking a different approach to patents
New rules surrounding patent law have fuelled exorbitant price hikes for medicines, with potentially disastrous results in particular for AIDS patients in third world countries. Researcher Ellen 't Hoen argues for alternative approaches to patents in her book The Global Politics of Pharmaceutical Monopoly Power.
New rules surrounding patent law have fuelled exorbitant price hikes for medicines, with potentially disastrous results in particular for AIDS patients in third world countries. Researcher Ellen 't Hoen argues for alternative approaches to patents in her book The Global Politics of Pharmaceutical Monopoly Power.The World Trade Organization (WTO) introduced the TRIPS (Trade-Related Aspects of Intellectual Property Rights) Agreement in 1994. This document sets out the rules protecting intellectual property such as patents. In 2005 the obligation to register patents for new health products such as medicines and vaccines was also made to apply to developing countries. The negative consequences for people in those countries are slowly becoming apparent, according to Ellen 't Hoen, research fellow at the Amsterdam School for Social Science Research (University of Amsterdam).
How was the production of medications in developing countries organised in the past?
‘Counties that had no drug patents could "imitate" every new product with a generic version. This meant these countries nearly always had a cheaper, but good alternative to expensive brand name products and there was competition between label pharmaceutical companies and generic producers. This kept prices in check.'
Pharmaceutical companies have been able to apply for patents for their new drugs since 2005. What are the consequences of this?
‘This creates patent monopolies, as the company now has the sole right to produce and sell a certain medicine for 20 years - and is able to ask whatever price it likes for the drug.'
You claim that this particularly affects patients in developing countries.
‘That's right, especially AIDS patients, because antiretroviral medications are relatively new and therefore fall under the new patent regime. Perhaps a price hike from € 85 to € 850 per patient per year doesn't seem like much, but because we're dealing with such large numbers of patients, this sort of price-rise creates enormous problems. At the moment many patients can still take generic medicines, but because of the way their disease progresses, they will soon need a new generation of drugs. The threat that these drugs might be unavailable to them is very real.'
You say that the pharmaceutical industry is reacting strongly against countries taking measures to break the patent monopoly.
‘A number of countries, including Thailand, have used compulsory licenses to ensure they can import generic drugs from other countries, in spite of the patent. Pharmaceutical companies responded by instituting court proceedings or simply by threatening to no longer supply certain other medicines. Conflicts like this can even result in political riots.'
You propose setting up an international patent pool where patents are made available to others for a fee so they can make inexpensive generic medicines and develop new, adapted tablets. But that means the generic producers would still have to pay for using those patents.
‘That is right, but the price-rise would be lower than with only one company that holds the patent monopoly.'
How has the pharmaceutical industry reacted to your proposal?
‘Initial reactions have been positive. Don't forget that this only concerns developing countries. Existing patent laws will continue to apply in Western countries - the part of the world where the pharmaceutical industry makes the most money. Pharmaceutical companies also want to show their generous side - they are often maligned in the news and that is not good for their image.'
How long before the patent pools are created?
‘I hope to see action within one year because we have both politicians and the pharmaceutical industry on our side, and, most importantly, because the need is enormous. This ought to be enough to get this proposal off the ground.'
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