[Ip-health] China Court Upholds Pfizer's Viagra Patent

[Ira Glazer]

SHANGHAI, China (AP) -- A Beijing court has upheld drug giant Pfizer's
patent for Viagra, ruling against the country's patent review board in a
case considered pivotal for countering piracy of pharmaceuticals.

An official at the Beijing No. 1 Intermediate People's Court on Monday
confirmed the decision but said she could not provide other information.
She refused to give her name, which is common practice among Chinese
bureaucrats.

It was unclear how the patent review board at China's State Intellectual
Property Office would react to the decision. Staff at SIPO in Beijing
said they had no comment. Usually, appeals of Chinese court decisions
must be made within 15 days.

New York-based Pfizer Inc. had appealed in 2004 against a decision by
the patent review board supporting the claims of at least a dozen
Chinese drug companies for the right to make sildenafil citrate, the
main active ingredient in the anti-erectile dysfunction drug Viagra.

Pfizer's situation has been seen as a test of China's willingness to
protect the intellectual property rights of foreign companies.

Most drugs with the "Viagra" label sold in China are counterfeit
versions. Viagra was introduced in China in 2000, and after six months
on the market, state media reported that some 90 percent of Viagra pills
sold in Shanghai were fake.

China is a potentially huge market for the little blue pill, known
locally as "weige," or "great brother" in Chinese, given the country's
tradition of using various substances to boost sexual performance.

Pfizer welcomed the decision to uphold its patent rights, which have
remained in effect pending resolution of the dispute.

"This decision affirms Chinas commitment toward an effective patent
protection environment and boosts the confidence of the business
community in China as an investment location," the company said in a
statement.

"Pfizer believes that this decision will give businesses that critically
depend on intellectual property protection renewed confidence in the
value of a Chinese patent," it said.

The company referred further inquiries to its New York headquarters.

Local drug makers have stepped up patent challenges in hopes of being
allowed to market generic copies without having to pay royalties.

Those involved in the dispute with Pfizer, known as the "Weige
Alliance," were expected to appeal the court's decision.

"We respect the Chinese law and the decision made by the court. But we
may appeal. That's all I can say at the moment," said Qing Liang, a
spokesman for Guangzhou Baiyunshan Pharmaceutical Co., a company seeking
the right to market a generic version of Viagra.

As a part of its agreement when it joined the World Trade Organization
in 2001, Beijing agreed to tighten patent protections and to encourage
its own companies to invest in creating profitable new drugs and other
products. But enforcement of many court decisions in favor of foreign
manufacturers has been weak.