Drug Patents in Brazil

What did the Brazilian government guarantee in 1988? Why?

Due to the growth of public pressure that access to AIDS treatment be guaranteed, the 1988 Constitution guaranteed the right to health and health services, including HIV and AIDS treatment.

What was Brazil’s initial approach to treating the AIDS crisis in the 1990s? What changed that made this approach not affordable?

The World Bank recommended that the Brazil treat the AIDS crisis by prevention instead of treatment since it was more cost-effective. The Brazil government began producing generic ARVs (antiretroviral medicines), but they were no longer able to legally produce these generics when they became subject to intellectual property laws through TRIPS. These new patented treatments and the rising numbers of people seeking treatment led costs to spike.

What is a patent?

A patent it is a property right. It gives the right to exclude others from making, using, or selling the claimed invention. It has limited terms. It is territorial, as the protection only applies in the territory that granted it, there is no worldwide patent.

Why do governments grant patents?

Governments grant the property right in exchange for the disclosure of the invention to the public.

What is the rationale for patents (3 reasons)?

First, patents are a way to promote innovation. Second, instead of keeping your invention a secret which does no one any good, you get monopoly rights in exchange for public discourse. Third, patent monopoly prevents competition and is limited in time.

How do pharmaceutical patents work?

Pharmaceutical patents grant patent holders a monopoly on a drug for a fixed term. The patent holder has the freedom to establish prices.

What is the idea behind or intention of pharmaceutical patents?

They should reward innovation and guarantee that the public benefits from the innovation

What were some (4) of the terms that led to creation of the WTO TRIPS?

Extended trade negotiations, major reductions in tariffs, an agreement to allow full access for textiles and clothing from developing countries, extension of intellectual property rights

Why did developing countries agree to these terms?

Developing countries wanted access to American markets, so they agreed to recognize their intellectual property rights in exchange for the clothing business and tariff reductions

How did Brazil signing onto the WTO TRIPS affect their ability to produce generic drugs?

They gave up their ability to produce generic drugs since they had to recognize patents in the US and Europe. They now had to pay whatever price the company that held the patent demanded, which was much higher than the cost of producing their own generics

How could negative economic outcomes follow from copyright infringement?

It was up to the country itself to enforce patents locally. If a country like Brazil fails to recognize another country like the US’ patent, the US could file a complaint against Brazil to the WTO and Brazil could be subject to penalties

How did WTO TRIPS affect countries without drug industries?

It penalized countries without drug industries by discouraging generics production and reducing their access to life saving drugs since they had to recognize the intellectual property rights in other markets. This divided the world into those who had access to drugs and those who did not.

How was Brazil now caught in a conflict?

Their government had committed to the health of citizens, but had obligations through TRIPS to respect other markets’ drug patents.

What did Brazil do in response to this conflict? What was the result?

TRIPS allows governments to issue compulsory licenses in cases of national public health emergency. Brazil threatened to adopt a compulsory license, which caused other markets to lower their prices so that the drugs were now affordable.

What are 3 arguments FOR disregarding intellectual property laws to gain access to HIV and AIDS drugs at affordable prices?

First, drugs shouldn’t be treated as commodities since they are essential for treating illnesses. Second, disregarding the intellectual property laws would save lives. Third, patents favour higher income countries with more advanced pharmaceutical companies.

What are 3 arguments AGAINST disregarding intellectual property laws to gain access to HIV and AIDS drugs at affordable prices?

First, disregarding intellectual property laws decreases the economic importance of patents and their value to companies. Second, there would be no incentive to invent without patents. Third, Brazil signed international agreements and would be fined.

What did critics say (3 things) about disregarding intellectual property laws to gain access to HIV and AIDS drugs at affordable prices?

First, disregarding patents could lead to less innovation for new drugs, meaning future medicines may be limited. Second, drug companies may only invest in diseases that offer higher profits. Third, disregarding IP laws could disadvantage the innovation of drugs for diseases in developing countries that cannot afford to pay for drugs.