India's Lack of Intellectual Property Protection Hurting U.S. Companies
Jul 02, 2014 | 1853 views | 1 1 comments | 3 3 recommendations | email to a friend | print

India's Lack of Intellectual Property Protection Hurting U.S. Companies

Weak Patent Rights Damaging Trade Relations: NCPA Report

Dallas, TX (July 1, 2014) -- India's lack of intellectual property right enforcement strains the pharmaceutical trade relationship between India and the United States, explains Research Associate Clinton Ritchey in a new study from the National Center for Policy Analysis (NCPA).

Over the past two years, the Indian government has engaged in a series of policy, regulatory and legal decisions that undermine internationally recognized intellectual property rights. U.S. pharmaceutical companies have had issues keeping their patents protected in India. For example:

  • India issued a compulsory license for the cancer drug Nexavar. The license waived Nexavar’s patent protection and allowed a domestic Indian pharmaceutical company to create a generic version and sell it at nearly one-thirtieth the cost.
  • The Indian Patent Office rejected a patent application for an upgraded version of Gleevec, a leukemia cancer drug, stating it was not a significant improvement to the older version. Gleevec’s latest version has been approved in more than 40 countries.
  • Indian generic drug companies opposed granting a patent for Sutent, a late-stage kidney cancer drug developed by Pfizer, claiming there was no originality in its invention. Sutent’s patent has been approved in over 90 countries.

Without the certainty of patent rights, drug companies have little incentive to research and develop new drugs because the financial reward is limited. Patents ensure that companies will earn back the money they invest in the development of new drugs.

The United States hopes to influence India to reform their intellectual property practices without resorting to trade sanctions or restrictions.

For an interview or more details on the study, NCPA Senior Fellow John R. Graham is available.

India’s Weak Patent Rights Hurt Pharmaceutical Trade with the United States: http://www.ncpa.org/pdfs/ib145.pdf

Coming soon:

  • The NCPA is preparing to release a major health care study by NCPA Senior Fellow and former Medicare Trustee Thomas Saving and will hold a Capitol Hill briefing this month to report the projections of accelerated health care spending over the coming decade. Date TBD.
  • Ron Paul will speak October 31 in Dallas as part of the NCPA’s Hatton W. Sumners Distinguished Lecture Series.
  • The seventh annual Four Star Leadership program will take place in Edmond, Oklahoma on July 13-19. The NCPA co-sponsors the summer leadership institute for exceptional high school students, along with the General Tommy Franks Leadership Museum, The Oklahoma Council on Public Affairs, and Oklahoma Christian University.

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apac biotech
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July 04, 2014
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