Pharma Patent Protection: A Platform for Investment, Markets and Improved Health in the Americas
(Paper presented to Workshop ID, Cartagena, March 1996)
By: Harvey E. Bale, Jr., Ph.D., Senior Vice President International
Pharmaceutical Research and Manufacturers of America
“Without the sense of security which property gives, the land would still be uncultivated. ”
François Quesnay (1694-1774), Maximes Générales (1760)
In this forum on policies affecting development and technology, I highlight the importance of the role of providing strong protection of intellectual property rights. In a study published in 1995 by the World Bank-affiliate — the International Finance Corporation (IFC) — it was concluded that “a country’s system of intellectual property protection seems to have a substantial effect in relatively high technology industries like chemicals, pharmaceuticals, machinery and electrical equipment on the kinds of technology transferred to that country and the amount of direct investment in that country … by Japanese and German, as well as U.S., firms.”
If we consider this fact in light of the global competitive position of the Americas in relation to that other great region where economic development is accelerating –Asia– I am afraid we have to be quite concerned. With the exception of India, all major developing countries in Asia have adopted much stronger industrial property protection — covering patents, trademarks, etc.– than is the case in many countries of the Americas. The effect on investment and technology has been dramatic. Having been in China recently, I have seen the investment enthusiasm that has led to 12 joint-ventures between American and Chinese firms in the pharmaceutical sector following passage of China’s 1992 patent legislation. As the head of China’s Patent and Trademark Law Office said last week, “New technology is the most important thing brought in by external investment and patents are a way to protect that technology.” Unfortunately, in our own hemisphere, there are still forces fighting rearguard actions to protect their privileged position by preventing early action on patent legislation.
On a global plane, there is very little debate today about whether there should be strong intellectual property protection for pharmaceutical products. Debates of the past about the so-called “monopoly” effects of patents on the market place have been resolved in favor of the recognition that adequate patent, trademark, and trade secret protection for pharmaceutical products is absolutely essential for the development of new pharmaceutical compounds. In other words, without adequate intellectual property protection, we would not see the new miracle drugs for mental depression, heart disease, etc. that have benefited patients in recent years. New pharmaceuticals that result from strong patent protection are saving lives, money and improving the quality of life of patients around-the-world.
Read the rest of this report on pharma patent protection.
