[e-drug] BMJ: US concedes on cheaper drug production in Brazil

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E-drug: BMJ: US concedes on cheaper drug production in Brazil
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BMJ 2001;323:12 ( 7 July )
News
US concedes on cheaper drug production in Brazil
Scott Gottlieb, New York
In an attempt to stem criticism from AIDS activists and developing 
countries, the Bush administration has dropped its complaint to the World 
Trade Organisation against a Brazilian drugs patent law that was being used 
to provide greater access to medicines for poor people there.

The United States made the complaint in February, arguing that the 
Brazilian law violated international trade rules. In particular, the United 
States said the law infringed the overseas patent rights of multinational 
pharmaceutical companies.

The patent law requires owners of Brazilian patents to manufacture their 
products in Brazil rather than import them. If this is not done, the 
Brazilian government has the right to license the manufacturing rights to 
another producer.

The decision to drop the complaint substantially softens the US stance on 
who may manufacture and sell AIDS drugs in impoverished countries. In 
exchange, Brazil has agreed to give advance notice to American officials 
before going ahead with a provision in its patent law which the United 
States says will put pressure on companies to manufacture their products in 
Brazil. Despite the concession, Brazil will not need to get permission from 
the United States before issuing the licences to manufacture the drugs.

US trade representative Robert Zoellick said that the United States and 
Brazil would now try to set up a group to discuss intellectual property 
rights and AIDS treatment. "I stand four square behind strong enforcement 
of the World Trade Organisation rules on intellectual property," Mr 
Zoellick said in a statement. "However, litigating this dispute before a 
World Trade Organisation dispute panel has not been the most constructive 
way to address our differences."

Brazil distributes cheap generic versions of popular drugs free to anyone 
who needs them. From the start, the complaint by the World Trade 
Organisation has been a public relations debacle for the Bush 
administration.

Brazil is widely known as one of only a few developing countries with a 
successful AIDS treatment programme, and Brazilian officials cite the 
patent law as one of their primary weapons in the fight against AIDS.

While the move is seen as a victory for patients in low income countries 
who cannot afford the high cost of medication, some experts say the erosion 
of patents' rights is leading the pharmaceutical industry to cut back its 
research on new medications.


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