[Ip-health] Lamy in the FT on cimpulsory licensing

[Ellen T HOEN]

WTO head flags trade rules as way to reduce drug costs


By Andrew Jack in Geneva


Published: October 12 2006 03:00 | Last updated: October 12 2006 03:00


The head of the World Trade Organisation on Wednesday urged developing
countries to issue "compulsory licences" to overturn pharmaceutical patents
to make medicines for Aids and other killer diseases more affordable for
the poor.


Pascal Lamy told the annual meeting of the International Federation of
Pharmaceutical Manufacturers' Associations in Geneva that developing
countries should use the so-called trade-related aspects of intellectual
property provisions (Trips) already agreed in the Doha trade round.


He said the WTO had not received a single notification of a developing
country issuing a compulsory licence, while stressing that the very threat
of their use may have been enough to persuade patent-holding companies to
cut prices on their drugs.


"To be frank, I see that as a problem," he said, arguing that it was cited
by some as proof that the current flexibilities were too complex to be used
in practice.


He said compulsory licences were among the measures that "can make an
important difference in saving life and ensuring more people can afford
medical treatment. We need to offer protection to the weaker victims of
globalisation."


His comments are at odds with the pharmaceutical industry, which argues
that patents need to be protected and that its programmes to make drugs
available at reduced prices or at cost in poor countries mean there is no
incentive for generic drug manufacturers receiving a compulsory licence to
produce medicines.


His comments came as Unitaid, the French-led international drug purchase
facility, made conciliatory statements to the IFPMA, seeking a partnership
in spite of earlier plans to encourage the use of compulsory licences.


Mr Lamy also welcomed efforts to waive tariffs on the import of essential
drugs in the developing world - often to protect domestic pharma producers.


However, he ruled out any new standalone negotiations on drug tariff
waivers.


Copyright The Financial Times Limited 2006


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Sheila Shettle
Communications Officer
M=E9decins Sans Fronti=E8res
Campaign for Access to Essential Medicines
Rue de Lausanne 78
1211 Geneva
Switzerland
+ 41.22.849.8403
sheila.shettle@geneva.msf.org
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