GIMMUN 2018

Committee:WorldHealthOrganization

Issue:TheQuestion of PreventingPatented Medicine Monopilies of PharmaceuticalCompanies

CommitteeChair:Marko Vrabič

Introduction

Everyday, newdiseasesappear in theworld, some throughmutationsandothersthroughaccidents in laboratories. Because of thatdoctorsandscientiststry to createnewmedicinesanddrugs to combattheseillnesses.

To protecttheirintellectualproperty, pharmaceuticalcompanies patent theirmedicines, meaningthatfor alimited time ( approximately 20 years), theygetexclusiverights of developinganddistributingthemedication. Theserights are in accordancewithinternationalagreements.

But theycanalso set thepricesand in turncreate a hugemonoplywhen it comes to treatmentoptionsforcertaindiseases.

That is whypatentinglawsformedicalproductsshould be revised in a waythatbenefitsthepatients, eventhosefrompoorereconomicbackgrounds.

Definition of KeyTerms

Patent – anofficialright to be theonly person to make, useorsell a productoraninvention; a documentthatprovesthis (Oxford Learner'sDictionaries)

Monopoly – thecompletecontrol of trade in particulargoodsorthesupply of a particularservice; a type of goodsor a servicethat is controlled in thisway (Oxford Learner'sDictionaries)

Pharmaceutical – connectedwithmakingandsellingdrugsandmedicines (Oxford Learner'sDictionaries)

Intellectualproperty – anidea, a design, etc. thatsomebodyhascreatedandthatthelawpreventsotherpeoplefromcopying (Oxford Learner'sDictionaries)

Drug – a substance used as a medicine or used in a medicine (Oxford Learner'sDictionaries)

Generic drug – a pharmaceutical drug that is equivalent to a brand-name product in dosage, strength, route of administration, quality, performanceandintendeduse, butdoes not carrythebrand name (Wikipedia)

History

Patenting medicine startedonlyafterthe 19th century, as it wasconsideredunethicalfor most of that time. In July 1844, France passed a lawthatprohibitedthepatenting of pharmaceuticals, but it waslaterrevised to allowthepatenting ofthe procedure, not theproductitself.Germanyhashad a similarlaw in place since 1877.

The USA is anexception, however. Theirlawsallowedthepatenting of pharmaceuticalproductsfromthe start, even in the 19th century.

Lawsresembelingthose of France andGermanywerepresentthroughoutthat time period in Europe

The modern era of patenting began in 1883 withtheConvention of the Union of Paris, whichfollowedtheViennaConference in 1873.

The 20thcentury

Most countriesstillhadlaws in place fromthe 1800s, prohibitingthepatenting of medicationsandpharmaceuticals. But afterthe 1950s, when France introducedlimitedpatentsformedications as products, otherssoonadoptedsimilarlaws.

In 1970, the Patent CooperationTreatywassigned in Washington (PCT). It filedforstronger patent protection of medicalproducts. It waslaterexpandedupon in 1973, 1975 and 1978 withmanyconventionsandhasbeenimplemented bythe EU since 1992.

More recently, in 2001, theWorldTradeOrganizationadoptedtheDohaDecleration , whichaffirmedtherightforgovernments to protectpublichealthandallowedlessdevelopedcountries not to grantproductpatents of newmedications.

KeyIssues

Researchcosts

Themainissuewith medicine patentsthemeselves are theresearchcosts of developingnewmedication. It is mucheasier to simplybuytherights to drugssomeoneelsedevelopedandraisethepricesthan to invest in researchanddevelopment of newmedications.

Also, generic drug companieseagerlywaitforthe patent exclusivety to expire, because it is cheaper to recreatemedicationonceyou know itsmolecularstructure. That is whypharmaceuticalcompanieswant to keepthe patent protection of theirproductfor as long as possible.

Accessibility

Anotherissuewithmedication patent monopolies is thefactthatthepricescan be increased as much as thecompaniesneedthem to be to make a profit. Andwithresearchbeingexpensivethesepricescan be up to 500% higherthan a genericversionwiththe same qualityandeffects.

Because of that, most peoplecannotaffordthesemedicines, leavingthem to either take bank loans to coverthebillorsearchforcheaperillegaloptions, whichcanhave severe sideeffects.

Major PartiesInvolved

USA – thecountyhasverypermissivelawswhen it comes to filing a patent for a medicine, allowingnewpatentsforslightlyalteredexistingdrugs. Theyalsoencouragethattheexclusivity of patents last for as long as possible. Thisallowsthem to raisetheprices of medications far abovethepricewhich is necessary to coverresarchcosts. But politicians like Bernie Sanders are attempting to changethis in the future.

UK – thePharmaceuticalPriceRegulationScheme is in charge of settingresonablepricesformedications in accordancewithEuropeanregulations.

France – like otherEuropeancountries, theFrenchgovernmenthas some controlwhen it comes to settingtheprices of medicinesandthuslimitigthechancethata compaygains a monopoly on pharmaceuticals.

WTO – in aneffort to protecttheinterest of thepeople, WTO allowedthegovernments to protectpublichealth, whichincludeslimitingtheprice range of patentedmedicines.

Timeline

1844 – France allowsproceduresforcreatingmedicines to be patented

1877 - Germanyitroducesthelawthatallowsbothchemicalandpharmaceuticalprocedures to be patented

1891 – Germanyextended patent protectionto productsobtained via patentedprocess

1883 – thecontemporary era of patenting beganwiththeConvention of the Union of ParisfollowingtheViennaConference of 1873

1907 –Switzerlandadoptspatentsforprocedures of creating medicine

1954 –Switzerlandextendedthelength ofpatentsfrom 10 to 18 years

1959and 1966 – France itroduceslimitedpatentsforpharmaceuticalproducts

1967 – general patentability of chemicalandpharmaceuticalproducts is introduced inGermany

1970 – the Patent CooperationTreatywassigned in Washington

1973 – TheMunichConvention,laterimplemented, definesthenotion of a“European Patent”

1977 – Switzerlandintroducespatentsforproducts

1978 – Italyliftsprohibition on pharmaceuticalpatents

1978 – France completelyliftsprohibition on pharmaceuticalpatents

1984 – theDrug PriceCompetitionand Patent Term RestorationAct(theHatch-WaxmanAct) is introduced in the US to compensateforregulatoryrequirementsthatdelaytheintroduction of newdrugs

2001 – theWorldTradeOrganizationadoptedtheDohaDecleration

Evaluation of PreviousAttempts

To resolvetheissue, a propositionhasbeenmade to swich to publiclyfundedresearch. Eventhough it would be benefitial, manyexpertsbelievethat it would not be able to coverall of thecosts of R&D of medications, which is why it is stillonly a preposition. But publiclysupportedresearchcouldreach a profit of severalbilliondollarsannually.

PossibleSolutions

Anysolutionthatwould be passedshouldaddressthefollowing:

  • Setting a fair maximumpriceforpatented medicine
  • Educatingthepeopleaboutthesituation of patented medicine monopolies
  • Sanctioncompaniesthat set unreasonablyhighpricesforessentialmedication
  • Considerpubliclyfundedresearch of newdrugs

Bibliography

  • A free market solutionforprescription drug crises:
  • Boldrin & Levine: AgainstIntellectualMonopoly, Chapter 9:
  • End Patent Monopolies on Drugs:
  • Patent PolicyProducesHigher Drug Costs: Study:
  • The Global Politics of PharmaceuticalMonopolyPower. Drug Patents, Access, InnovationandtheApplication of the WTO DohaDeclaration on TRIPS andPublicHealth:
  • Why Patent Protection In The Drug Industry Is Out Of Control:

Appendices