1. Economic Justifications for Open Access to Essential Drug Patents Sean Flynn Washington College of Law WIPIP 2007

2. Context TRIPS (1994) Globalization of pharmaceutical patents (India 2006) Access to Medicine Movement (north/south) 2001: SA competition complaint against GSK and BI

3. Monopoly vs. Competition: AIDS drugs

4. Monopoly Econ (Simple)

5. Convex Demand

6. South Africa

7. SA ARV Demand

8. Norway ARV Demand

9. Profit Maximizing SA

10. Profit Maximizing Norway

11. Application: SA Competition Law unlawful for dominant firm to “engage in an exclusionary act... if the anti-competitive effect of that act outweighs its technological, efficiency or other pro-competitive gain” unlawful for a dominant firm to “refuse to give a competitor access to an essential facility when it is economically feasible to do so” -South African Competition Act Sec. 8(c)

12. Concluding Questions Is open licensing better than price discrimination (Danson vs. Scherer) Is open licensing better than price control (Watal)? Complexifying the model: fixed costs, marginal costs, marginal revenue.

13. Deadweight Loss