A new proposal, this time from the US, on how to open up access to vaccines against COVID-19 by relaxing patent rights, has added to an already complex and fraught debate between the
In early May, the US took the world by surprise when it announced that
This exemption plan is supported by more than 100 countries. It would allow states to bypass the monopoly of IP holders by authorising the production of cheaper generic drugs and other anti-COVID technologies. The waiver would be temporary, until the majority of the world's population developed immunity.
The US-supported exemption is slightly different. It covers vaccines only, maintaining IP protection on other products such as diagnostics, treatments, ventilators, respirators, syringes and refrigerators maintaining low temperatures during storage and transport of doses.
But would the
We believe there are arguments against the waiver. These include the fact that other factors would still stand in the way of easy and quick access to COVID-19 medicines for all countries. But we also argue that the campaign to have a waiver agreed at the
The cons
One argument against the waiver is that it is unnecessary.
The TRIPS already allows flexibilities. Countries seeking access to medicines can grant compulsory licences (that is, without the IP holder's consent) under certain conditions. Some have done so during the pandemic.
In
And the Indian generic manufacturer Natco recently applied for a licence to produce Baricitinib. This is a rheumatoid arthritis drug that can also treat coronavirus. The IP is held by the US pharmacuetical company Eli
States that lack production capacity can, meeting additional conditions, license production abroad with a view to importing the drugs. On 10 May,
However, compulsory licences must meet a host of requirements. These include the payment of fair compensation to the patent holder.
The waiver proposed by
Another argument undermining the waiver is that it cannot benefit generic producers (and patients), because it would not address the lack of production capacity and poor healthcare systems of many countries. Moreover, it could not alleviate the shortage in raw materials and the steep learning curve of manufacturing processes.
Take the
If a TRIPS waiver passes,
Patents can be suspended by law, but confidential information kept by pharmaceutical companies is not easily retrievable. This has become clear in
The pros
Waiving or relaxing IP rights over anti-COVID technologies cannot fix the global pandemic alone. Nevertheless it could remove some roadblocks.
Arguably, the waiver could push pharma companies holding patents to increase the supply of their drugs. For example, the recent Natco application for a compulsory licence over Baricitinib has prompted Eli
So, flexing the muscles via granting compulsory licences sometimes seems to pay off in terms of encouraging patent owners to share their technology. This happened at the beginning of the pandemic. After
Waiver talks might produce a similar effect: convincing companies to focus on technology transfer and training, perhaps at a profit, and letting go of the plan to maximise patent-based revenues.
It could also be argued that a waiver would be a fair move to make given that over
A compromise in sight?
It is still not clear what kind of a waiver
Such compromise could neutralise the refrain of big pharmaceutical companies against any unwelcome relaxation of IP rights. A limited and short suspension of proprietary rights over COVID vaccines would have a lesser impact on innovation incentives.
A game changer in the fight against COVID could be last week's WHO approval of the vaccine produced by the
This vaccine can be stored in a standard refrigerator, and "easy storage requirements" - the WHO pointed out - make it particularly suitable for developing and least-developed countries.
In addition, there's a strong likelihood that
This would benefit people in states which have not been able to access sufficient vaccines and that have recently been hit hard by COVID. These include
Strengthening the global supply of vaccines would provide a major boost to efforts to contain COVID-19. Running in parallel with efforts to ease IP rules could see the balance shifted towards containment.
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