IP & R&D in Developing Countries Sean Flynn Washington College of Law WIPIP 2007

Monopoly Economics

Monopoly Econ (Simple)

Norway ARV Demand

Profit Maximizing Norway

South Africa

SA ARV Demand

Profit Maximizing SA

Monopoly vs. Competition: AIDS drugs

Other Problems Inefficient R&D investments 2/13 approvals are significantly better Neglected meds Poor consumers Antibiotics Unpooled buyers Marketing costs Corruption of evidence (phrma detailing) Costly IP system Administration, litigation Anticompetitive uses

IGWG Fifty-ninth World Health Assembly 2006 calls for study of needs-driven, essential health research and development proposals 31 Developing countries call for R&D Treaty

Big Idea Global patent pools Essential medical inventions, tamiflu Prize funds for improving health care outcomes [developing countries] Only inventions licensed to the pool are eligible Global agreement to support funding Base on country income Release from TRIPS/IP pressure

S 2210 v. TRIPS Elimination of exclusive right in return for prize based on health outcomes Applies to drugs & biological products Payments for 10 years Remuneration from prize fund in lieu of remuneration from exclusivity 27. patents in all fields of technology w/out discrimination 30: limited exceptions not unreasonably conflict w/ normal exploitation 31: CL- Individual merits, negotiation

Extra Credit Can you argue that S 2210 complies with TRIPS? Limited Normal exploitation As a CL