Intellectual Property Rights

Following the Opinion-Formers’ Conference on Counterfeit Medicines in October 2009, the APG Access to Medicines Workstream and the Wellcome Trust came together on 2 November 2010 to tackle another important issue: intellectual property. Further information is available here.  

IPRs provide patent protection for new medicines for a reasonable period. It is an essential pre-condition for sustained investment in new medicines.

The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), established in 1995 by the World Trade Organisation (WTO), introduced a comprehensive international agreement on intellectual property for medicines.

The poorest, i.e. low income countries, were helped by them not being required to adopt patents until 2016. This date may be extended.

TRIPS also allow a member state, in special circumstances, to make use of a patent without the authorisation of the company holding the patent. This power should only be used judiciously. However, in 2006 and 2007 one middle income country overrode three patents and subsequently announced that it was considering the imposition of compulsory licences on three cancer drugs. The real issue is the precedent set for other middle income countries. The biggest developing markets are Brazil, Russia, India and China. If such countries were to follow the example above, the whole structure of global patent protection would be undermined. Research-based companies, if unable to recover the lost revenue from the developing world, would be forced to cut their research and development substantially.

The APG believes that:

  • The provision of medicines at "differential prices" and in some cases the provision of voluntary licences, should help avoid any need for compulsory licences
  • There must be proper consultation with right holders, within a reasonable period, before compulsory licences are adopted
  • Compulsory licences should be a matter of last resort, not the first. The WTO should be encouraged to set up an institutional framework where the justification for compulsory licences can be properly considered
  • Governments should adopt a more pro-active role. Many governments have long supported IPR as a way of rewarding risk investments and encouraging innovation and, as members of the European Union, many also helped to negotiate the TRIPS agreement.