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The Earth Times | Posted November 12, 2001


WORLD TRADE ORGANIZATION, FOURTH MINISTERIAL MEETING
US, Swiss defend stand on drug patents
> BY JAY NEWTON-SMALL
Copyright © 2002 by The Earth Times. All rights reserved

DOHA, Qatar-Asked Monday if American pharmaceutical companies were participating in the debate over proposed language on Trade Aspects of Intellectual Property rights (TRIPS), a ranking American diplomat said, "we try to keep the pharmaceutical industry informed of what we do, as we do for all interested industries and other groups."

And it is in the pharmaceutical area that some of the most heated debates occur, usually surrounding the patent rights held by American and Swiss companies for drugs used internationally. Language under study in Doha this week could put "public health" ahead of intellectual property rights.

"We understand the right to clarify certain rules, but people are really hitting below the waterline," said Brian P. Ager, Director General of the European Federation of Pharmaceutical Industries and Associations. "The whole thing is a rules based system, with this language you get nothing; no rules, a blank slate. That's not clarifying, that's obscuring. There has been no balance. There's a group of countries who are pretty negative to intellectual property rights including Brazil, India and Africa."

All three of these countries have gone head to head with the pharmaceutical companies before. Brazil had a WTO case brought against it concerning its patent and local working requirement laws. Brazil agreed to phase out the local working requirement law as did all the other mostly Latin and South American countries that had similar legislation on their books.

The law said that a foreign producer had the right to export to Brazil a new product for up to three years. If at the end of three years that product was not being produced in Brazil, Brazil then had the right to give local production to a local manufacturer, effectively commandeering the product. It was originally designed to induce businesses into building factories in Brazil.

On the other hand, "Fifty percent of HIV/AIDS mortality rates have been reduced due to such domestic policy measures," said Jagjit Plahe, Policy and Campaigners Officer of World Vision, an international nongovernmental organization (NGO).

The dispute brought against the Brazilians two years ago had nothing to do with AIDS drugs, but actually a patent involving a vacuum that sucked the air out of grain silos.

"Brazil had a very clever Minister of Health," said Shannon S. S. Herzfeld, Senior Vice President International Affairs of the Pharmaceutical Research and Manufacturers of America.

"Brazil hadn't illegally produced AIDS drugs, so the case was misleading," she said. "The US would have won the case, but they didn't want to go through another 18 months of pain with Brazil screaming AIDS drugs, so they withdrew the WTO case and entered into bilateral talks."

India, the largest producer of counterfeit drugs in the world, with 23,000 generic companies working in the largest country without patent laws in the world, will, as a signatory to TRIPS, have to create patent laws no later then 2005. But those laws, like all WTO laws, would be only forward looking, and not affect currently disputed sales.

"India is copying HIV medications but they're not being sold to anybody but the rich," said Harvey Bale, International Federation of Pharmaceuticals Manufacturers and Associations. "They're not altruists, they're out to make money."

The US government has claimed that the proposed language would allow India to declare a heath crisis in just about anything and be able to compulsory license any drug it wanted. To void this the pharmaceutical companies are pushing to include a reference to AIDS in the paragraph, rather then just the term "health crisis."

"What developing countries are saying is that it doesn't have to be limited to AIDS. Malaria, and tuberculosis are also serious problems in many countries," said Jim Redden, an Australian delegate. "There should be a right to public health as a key guarantee for any nation state," he said. "Developing countries only comprise 20 percent of the total global market for drugs and medicines," Redden said.

Most of research and development is focused on diseases that are prevalent in the developed world, said Plahe. "Therefore the argument that option one within the TRIPS declaration will drastically affect the profits of pharmaceutical companies is false. They do not spend much money on diseases prevalent in the third world in any case."

"That is the risk," said Herzfeld. "We don't want to say that we are walking away but there's a hesitancy and a clear decline, versus a healthy growth of research in other anti-viral research. There is definitely a hesitancy being felt now in the industry."

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