{"id":19852,"date":"2020-11-20T16:21:20","date_gmt":"2020-11-20T10:51:20","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=19852"},"modified":"2020-11-20T16:21:22","modified_gmt":"2020-11-20T10:51:22","slug":"abolishing-of-drug-patents-a-boon-or-a-ban","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/abolishing-of-drug-patents-a-boon-or-a-ban\/","title":{"rendered":"Abolishing of Drug Patents: A Boon or a Ban?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Patent rights were initiated in India for the first time in 1856 and in 1970; <strong><em>The Patents Act<\/em><\/strong> was passed that revoked all previous legislations available in India. The Patents Act offers that any invention which satisfies the criterion of novelty, non-obviousness and usefulness can be the subject matter for <em><a href=\"https:\/\/corpbiz.io\/patent-registration\"><strong>Patent Registration<\/strong><\/a><\/em>. India already had a product patent system for all inventions under the <strong><em>Patents and Designs Act<\/em><\/strong>. The government introduced the new <strong><em>Patents Act<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Patent_Act\"><strong><em>[1]<\/em><\/strong><\/a><\/sup> in the year 1970 that barred pharmaceuticals as well as agro-chemical goods from eligibility for patent registration. This elimination was initiated to break away India&#8217;s reliance on imports of drugs in bulks and formulations and also provide for the development of an independent pharmaceutical industry. In this blog we will shed light on Abolishing of Drug Patents.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/abolishing-of-drug-patents-a-boon-or-a-ban\/#Impact_of_the_World_Trade_Organization_on_Drug_Patents\" >Impact of the World Trade\nOrganization on Drug Patents<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/abolishing-of-drug-patents-a-boon-or-a-ban\/#What_is_Drug_Patents\" >What is Drug Patents?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/abolishing-of-drug-patents-a-boon-or-a-ban\/#Abolishing_of_Drug_Patents\" >Abolishing of Drug Patents<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/abolishing-of-drug-patents-a-boon-or-a-ban\/#Impact_of_Indian_Patent_Law_on_the_Local_Pharmaceutical_Industry\" >Impact of Indian Patent Law on\nthe&nbsp;Local Pharmaceutical Industry<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/abolishing-of-drug-patents-a-boon-or-a-ban\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Impact_of_the_World_Trade_Organization_on_Drug_Patents\"><\/span>Impact of the World Trade\nOrganization on Drug Patents<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The establishment\nof the World Trade Organization has led to a remarkable growth in world trade. The\n<strong><em>Trade\nRelated Aspects of Intellectual Property Rights<\/em><\/strong> (TRIPS) agreement was discussed\nduring the Uruguay round that discuss about the <strong><em>General Agreement on Tariffs and\nTrade<\/em><\/strong> (GATT) and one of the primary reasons for integrated intellectual\nproperty issue in the GATT structure was that of drugs industry. India signed\nthe GATT on 15 April 1994, thus making it obligatory to meet the terms of GATT,\nincluding the TRIPS agreement.<\/p>\n\n\n\n<p>India is thus required to meet up the minimum standards prescribed under the TRIPS Agreement with regard to drug patent. India&#8217;s patent law should now contain provisions related to availability of patents for both pharmaceutical drugs and inventions. Patents registration is to be granted for a term of 20 years to any invention of a pharmaceutical drug or process of invention of that particular drug which fulfils the established criteria.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/online-patent-registration-and-filing-process-in-india\/\">Patent in India: Registration and Filing Process<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Drug_Patents\"><\/span>What is Drug Patents?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Pharmacy companies\nspend billions on testing as well as developing drugs. So to help them recover\nthe money spent on the Research &amp; Development, the government grants them\nexclusive Right for their Intellectual Property. Drug patents allow pharmacy\ncompanies to recuperate their investment in inventing a particular drug, invest\nin innovation and push the companies to develop more affordable drugs. <\/p>\n\n\n\n<p>Such drug patents\nfurnish the pharmacy companies with protection, providing them with the exclusive\nmarketing rights and sell those drugs. Once the license is terminated, other\ncompanies can use the published records regarding the process of manufacturing\nof drug and can develop a cheaper version of the drug also known as generic\nmedicines.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What is the Validity of Drug\nPatent in India?<\/h3>\n\n\n\n<p>Around the world, the\nvalidity of drug patents is for 20 years. In India Drug patents is also valid\nfor 20 years after which the manufacturer of generic drug can sell their version\nof the Drug. Expiring of Drug patents provides the generic companies the green\nsignal to begin their marketing and selling thus ending the monopoly. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What is the Benefit of expiring\nof drug patents?<\/h3>\n\n\n\n<p>Expiring of Drug\npatents helps in ending the monopoly over any drug. Once generic medicines hit\nthe market the cost of drugs falls quickly, making the drugs more affordable to\nthe general public. This can also increase as well as encourage the market\ncompetition which leads to more assortment and option for the general public.\nIt also ensures that necessary and life-saving drugs reach the general public\nat a reasonable price. <\/p>\n\n\n\n<p>On the other hand,\npharmacy companies buy the rights to Drug Patents for sale from other business\nand extend their monopoly right over that drug.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Is it right to extend the Drug\nPatents?<\/h3>\n\n\n\n<p>Expiration of Drug\npatents in India brings huge price relief to the general public as competition\nfrom generic versions makes price low. As a result, most of the experts feel\nthat extending drug patents put the general public at a drawback. Therefore,\ngovernment should come out with strict laws that prevent pharmaceutical companies\nfrom extending the drug patents.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Abolishing_of_Drug_Patents\"><\/span>Abolishing of Drug Patents <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Patent protection\nmakes sure that innovation provides pharmacy companies with a commercial enticement.\nBig Pharmacy companies feel no desire to experiment and develop new drugs if no\ncommercial incentives are involved. The patent system for drugs inspires an\ninterest in R&amp;D and also safeguards the interests of the researchers.<\/p>\n\n\n\n<p>Whereas the system\nmay not be perfect but doing\naway with it could lead to a halt in research. If we abolish drug patents then\nno one will even try to come up with new drugs in fear of getting exploited. Hence\nthe system does have its troubles; the best solution would be restructuring and\nnot abolishing drug patents.<\/p>\n\n\n\n<p>Governments should\nalso aim for a thoughtful balance between novelty and reasonable pricing.\nThough it is essential we provide drug manufactures a profit motive but it\nshould not come at the cost of bankrupting customers. Laws should be put in\nplace to avoid corporations from not spending on research and just purchasing drug\npatents for sale. The patent system should move forward for innovation and not support\nprofit maximization.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Impact_of_Indian_Patent_Law_on_the_Local_Pharmaceutical_Industry\"><\/span>Impact of Indian Patent Law on\nthe&nbsp;Local Pharmaceutical Industry<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The impact of Indian Patent Law on Local Pharmaceutical Industry are bifurcated into the following-<\/em><\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/image-54-1024x768.png\" alt=\"Impact of Indian Patent Law\" class=\"wp-image-19882\" width=\"538\" height=\"404\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/image-54-1024x768.png 1024w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/image-54-300x225.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/image-54-768x576.png 768w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/image-54.png 1200w\" sizes=\"(max-width: 538px) 100vw, 538px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Rejection of Product Patent<\/h3>\n\n\n\n<p>The&nbsp;Report on\nthe Revision of the Patent Law&nbsp;that was submitted by the Patent Law Commission\nin 1959 that was led by Justice N. Rajagopala Ayyangar stated that in the year\n1959 foreigners held 80% to 90% of India\u2019s patents. Out of which 90% of the products\nwere not manufactured in the Indian Territory. <\/p>\n\n\n\n<p>Foreign companies\nused to block the manufacturing of their patented drugs in India causing lack\nof activity in the Indian pharmaceutical industry. The Commission considered that\nthe patent system had been used by multinational company to dominate the Indian\nmarket particularly in the pharmaceutical, food and chemical industries. <\/p>\n\n\n\n<p>Market monopoly\nhas led to high product prices. Hence, the Commission also recommended that\nonly method or processes in the aforesaid fields should be patentable, contradictory\nto the Indian Patents and Designs Act 1911 that granted patent to both product\nand process patent in the pharmaceutical sector.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Mailbox Application Mechanism<\/h3>\n\n\n\n<p>The mailbox\napplication mechanism was available during the transition period which allowed\nIndia to meet the TRIPS necessities and also to comply with India\u2019s own\ndevelopment needs. India\u2019s transition period to fulfill with the TRIPS requirement\nregarding pharmaceuticals was for a period of 10 years starting from 1995. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Compulsory Licensing System<\/h3>\n\n\n\n<p>The compulsory\nlicensing system generates more chances of voluntary licensing conciliation\nbetween the Indian pharmaceutical companies and multinational company.<\/p>\n\n\n\n<p>According to\nIndian Patent Act, after the termination of three&nbsp;years from the date of\ngranting of patent, any person interested can compose an application to the\nController of the Patent. The applicant is required to procure a voluntary\nlicense from the patentee before applying for a compulsory license. It should\nbe done within 6&nbsp;months from the primary request; the applicant is permitted\nto file for a compulsory license.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Abolishing of Drug Patents in India helps in ending the monopoly of big pharma companies over any drug. So, according to the aforesaid things, abolishing Drug Patent is good for the general public as the prices of drugs decreases. The government of India should aspire to maintain a balance between originality and rational pricing. Although it is essential to provide drug manufactures a profit motive but not at the cost of bankrupting the customers. Laws should be provided to avoid companies from not spending on research and just purchasing drug patents for sale.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/process-of-patent-registration-india\/\">Detailed Process of Patent Registration in India<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Patent rights were initiated in India for the first time in 1856 and in 1970; The Patents Act was passed that revoked all previous legislations available in India. The Patents Act offers that any invention which satisfies the criterion of novelty, non-obviousness and usefulness can be the subject matter for Patent Registration. India already had [&hellip;]<\/p>\n","protected":false},"author":18,"featured_media":19856,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[282],"tags":[1231],"acf":{"service_id":"20"},"authorName":"Sakshi Srivastava","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/IMG-20180130-WA0007.jpg","authorDescription":"Sakshi has pursued B.B.A.LL.B.(IPR Hons.). She is an avid reader and is keen to gather and share her knowledge on the subjects relating to IPR, Company Law and GST. Priorly she has worked as a legal researcher and vide her articles she aims at improving the core knowledge of the subjects to the masses.","postViews":5786,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/19852"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=19852"}],"version-history":[{"count":6,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/19852\/revisions"}],"predecessor-version":[{"id":19884,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/19852\/revisions\/19884"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/19856"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=19852"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=19852"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=19852"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}