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LATEST NEWS UPDATES | Fight Covid with compulsory licensing -Amitendu Palit

Fight Covid with compulsory licensing -Amitendu Palit

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published Published on May 8, 2021   modified Modified on May 12, 2021

-Financial Express

If patents continue to determine global access to vaccines and drugs, then fighting Covid-19 will remain a distant dream for most countries

Vaccines are badly required by the world, as are drugs like Remdesivir and Tocilizumab, and medical equipment like ventilators and oxygen concentrators. A large number of countries, particularly low- and middle-income ones, are struggling to access vaccines, drugs and equipment.

There cannot be a more important occasion than the current circumstances for issuing compulsory licences for producing patented health products.

The Covid-19 crisis underpins the importance of flexible global trade rules. Particularly important in this regard are rules linking ownership of intellectual property (IP) to cross-border movement of products involving IP, such as vaccines and medicines. The WTO’s rules insist on IP rights being protected in cross-border trade. An implication of the insistence is that health products like vaccines can move from one country to another only after ensuring their developers, i.e. pharmaceutical companies, are commercially compensated for proprietary knowledge. This explains why rich and higher-income countries have been much ahead of others in obtaining vaccines and inoculating their people.

If patents continue to determine global access to vaccines and drugs, then fighting Covid-19 will remain a distant dream for most countries.

Global trade rules need to back off from insisting on patent obligations. This doesn’t mean that drug and vaccine development becomes a philanthropic exercise. The current global health crisis and high demand for drugs and vaccines means their producers have enough countries and customers to supply to. The large volumes would ensure that they are able to recover the costs on their scientific investments. But what drug developers must avoid is the tendency to make profits by exploiting the helplessness of countries. And profits are indeed pouring in for companies like Pfizer, who have been among the earliest to make vaccines and sell to rich countries through advance purchase agreements.

One of the most effective ways in which global trade rules can contribute to better access of vaccines and medicines is by enabling compulsory licensing. The WTO’s rules allow countries to issue compulsory licences to domestic producers for manufacturing patented drugs and other products. This is allowed under situations of serious public health concern.

India’s Patents Act of 2005 provides for issue of compulsory licences in public health emergency. In the past, the provision was used for allowing Indian drug-maker Natco to locally manufacture Nexavar, a patented product of the German pharmaceutical firm Bayer, for treating kidney cancer patients. The licence also involved paying royalty to Bayer.

Under normal circumstances, compulsory licences are issued after detailed consultations with the patent holder. Such consultations are lengthy and take time to conclude. The Covid-19 conditions do not allow such luxury on time. Compulsory licences need to be issued fast for enabling Indian companies to make patented vaccines and critical drugs.

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Financial Express, 8 May, 2021, https://www.financialexpress.com/opinion/fight-covid-with-compulsory-licensing/2248068/


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