[Ip-health] Note: EU confirms legality of Thai medicines policy; denies threatening WTO litigation

[Sarah Rimmington]

Briefing Note: EU confirms the legality of Thai generic medicines
policy; denies threatening WTO litigation
March 12, 2008
Sarah Rimmington, Essential Action


Reports have recently appeared in the Thai and international media that
the European Union is planning to file a case against Thailand at the
World Trade Organization (WTO) because of the issuance of seven
compulsory licenses -- which authorize the use of generic copies of
patented medicines -- for important treatments for HIV/AIDS, heart
disease and cancer.[1] French pharmaceutical company Sanofi-Aventis and
Swiss companies Novartis AG and Roche hold five of the seven patents
licensed by the Thais.

European Union representatives say these allegations are untrue.

Asked if the EU was considering a WTO challenge, an EU official stated
that the European Union has made never threatened a challenge, does not
plan a challenge, and acknowledges that Thailand's actions are
WTO-compliant.

The official issued the following comment:

"The Commission has been in constant contact with the Thai authorities
and has stressed that compulsory licensing, while allowed by the WTO
rules, should be regarded as a last resort option and that negotiations
and collaboration with pharmaceutical companies should be sought. The EU
is hoping that this will be the line of the new Government. However, it
is clear that the Commission has never threatened WTO litigation on
compulsory licensing for medicines."

Interested reporters can contact the EU Spokesperson=92s Service in
Brussels. See http://ec.europa.eu/dgs/communication/contact_en.htm for
more information.

Similar reports surfaced in February that the United States was on the
verge of filing an action against Thailand at the WTO because of the
compulsory licenses. On February 29, Inside U.S. Trade reported that the
Office of the United States Trades Representative denied that a case
against Thailand was being considered.[2]


[1] See, for example, "EU to Ask WTO to Rule on Thailand's Drug
Licensing," The Nation (Bangkok), March 10, 2008,
<http://nationmultimedia.com/2008/03/10/national/national_30067692.php>
and "Thailand to maintain patent override policy," PharmaTimes, March
11, 2008, <http://www.pharmatimes.com/WorldNews/article.aspx?id=3D13035>.

[2] "USTR Not Preparing Case Against Thailand For Compulsory Licenses,"
Inside U.S. Trade, February 29, 2008,
<http://www.essentialaction.org/access/index.php?/archives/120-USTR-Not-Pre=
paring-Case-Against-Thailand-For-Compulsory-Licenses.html>.


--
Sarah Rimmington
Attorney
Essential Action, Access to Medicines Project
Washington, DC
Tel: (202) 387-8030
Cell: (202) 422-2687
www.essentialaction.org/access/