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Can someone explain what this compulsary license is? How can it be used to by-pass patents of drugs?
Compulsory licensing is when a government allows someone else to produce the patented product or process without the consent of the patent owner. It is one of the flexibilities on patent protection included in the WTO’s agreement on intellectual property — the TRIPS (Trade-Related Aspects of Intellectual Property Rights) Agreement.
WTO | intellectual property (TRIPS) - TRIPS and public health: Compulsory licensing of pharmaceuticals and TRIPS
This is theft of German IP pure and simple. Bayer is fighting this theft.
Only you guys would brag about this.
Thanks to car thief, I bought a New stolen Porsche for $1, 000. I will give rightful owner $20.
Ridiculous.
LOL
The more apt analogy would be that there is only one well in desert on someone's property.The person takes advantage of it and price water at $ 10000 per gallon.The village council intervenes and orders either he should bring down his rates to saner level or they would dig another well in the neighbourhood.
And it may be too difficult for a Bank clerk to understand but what India is doing is perfectly legal under TRIPS agreement of WTO.
According to article 31 of TRIPS, A government could issue compulsory license of a drug on fulfilling certain conditions
1.Prior to issuing, an effort should be made to obtain patent at reasonable commercial terms and such efforts should have failed within a reasonable amount of time.
2.Adequate compensation should be paid to the company taking in account economic value of authorisation.
3.Company should have judicial recourse.
4. There scope and duration should be limited.
The TRIPS Agreement
Article 31
Other Use Without Authorization of the Right Holder
Where the law of a Member allows for other use of the subject matter of a patent without the authorization of the right holder, including use by the government or third parties authorized by the government, the following provisions shall be respected:
[…]
(b) such use may only be permitted if, prior to such use, the proposed user has made efforts to obtain authorization from the right holder on reasonable commercial terms and conditions and that such efforts have not been successful within a reasonable period of time. This requirement may be waived by a Member in the case of a national emergency or other circumstances of extreme urgency or in cases of public non-commercial use. In situations of national emergency or other circumstances of extreme urgency, the right holder shall, nevertheless, be notified as soon as reasonably practicable. In the case of public non-commercial use, where the government or contractor, without making a patent search, knows or has demonstrable grounds to know that a valid patent is or will be used by or for the government, the right holder shall be informed promptly;
(c) the scope and duration of such use shall be limited to the purpose for which it was authorized, and in the case of semi-conductor technology shall only be for public non-commercial use or to remedy a practice determined after judicial or administrative process to be anti-competitive;
[…]
(f) any such use shall be authorized predominantly for the supply of the domestic market of the Member authorizing such use;
[…]
(h) the right holder shall be paid adequate remuneration in the circumstances of each case, taking into account the economic value of the authorization;
[…]
(k) Members are not obliged to apply the conditions set forth in subparagraphs (b) and (f) where such use is permitted to remedy a practice determined after judicial or administrative process to be anti-competitive. The need to correct anti-competitive practices may be taken into account in determining the amount of remuneration in such cases. Competent authorities shall have the authority to refuse termination of authorization if and when the conditions which led to such authorization are likely to recur;
[…]
WTO | Intellectual property (TRIPS) - fact sheet - pharmaceuticals - 2