[Ip-health] India - Generics face patent barrier - (First to Brazil - now Peru)

[Sangeeta]

Generics face patent barrier
11 Feb 2009, 0053 hrs IST, Rupali Mukherjee, TNN

NEW DELHI: The generic industry is in trouble again, and the issue is
now becoming a major non-tariff barrier against developing countries
like India.

Two large drug consignments of generic major Cipla were seized in
Netherlands by its customs authorities recently. The two drugs on the
way to Peru are generic versions of blockbuster medicines used in mental
health Rivastigimine (manufactured by Novartis), and Olanzapine (by Eli
Lilly).

Confirming this, when contacted, Cipla joint managing director Amar
Lulla said: "Big Pharma is in extreme distress, and is working on a
multi-pronged strategy to keep generics out. These include defining
legitimate generics as counterfeit and various litigations".

The drugs while in transit to Peru were held at Rotterdan port because
they infringed patents in EU.

Sources said that recently many essential drugs have been held at
European ports on way to Africa or Latin America from India, by EU
customs for intellectual property (IP) infringement or labelling them
"counterfeits."

Recently, customs authorities in Netherlands seized big consignments of
legitimate generic medicines by Dr Reddys and Ind-Swift, which were also
in transit.

India is a source of affordable life saving medicines for many African
and developing countries, and companies use the established trading
route passing through EU ports for supplying essential medicines to
millions across the world.

It is learnt that the government has raised objection on the issue to
the Dutch authorities as it has a major impact on trade.

Experts believed that drugs are being seized because of certain EU
regulation. Europe had passed regulations in July 2003 authorising
custom action against goods on grounds of intellectual property
infringement. The regulation says "concerning customs action against
goods suspected of infringing certain intellectual property rights and
the measures to be taken against goods found to have infringed such rights".

It adds "Customs authorities should also be able to take action against
counterfeit goods, pirated goods and goods infringing certain
intellectual property rights which are in the process of being exported,
re-exported or leaving the Community customs territory".

Lulla added, "There has been a lot of noise on the issue. So it may get
resolved soon as there is a rethink on the issue".

Experts say that it is not only a humanitarian issue where access of
medicines gets affected, but also become a non-tariff trade barrier to
block legitimate generics from developing countries.

Brazil, along with India and some other southeast countries, recently
raised the issue at the World Health Organisation executive board when
Dr Reddy's consignment (headed to Brazil) was held.

http://timesofindia.indiatimes.com/Business/India_Business/Generics_face_pat
ent_barrier/articleshow/4108713.cms