Affidavit of James Love.

Statement of Information by Consumer Project on Technology Concerning an Alleged Prohibited Practice in Terms of Section 49B(2)(a) of the Competition Act 89 of 1998.

Additional documents relating to this case can be found at the Treatment Access Campaign's Webpage on this Case.

"Turning compulsory license provisions into feasible policy options means creating a legal structure suited to developing countries. Five recommended features:

1. Administrative approach. Any system that is overly legalistic, expensive to administer or easily manipulated is of little use; the best option is an administrative approach hat can be streamlined and procedural.
2. Strong government use provisions. The TRIPS agreement gives governments broad powers to authorize the use of patents for public non-commercial use, and this authorization can be fast-tracked, without the usual negotiations. No developing country should have public use provisions weaker than German, Irish, UK or US laws on such practices.
3. Allow production for export. Legislation should permit production for export when the lack of competition in a class of drugs has given the producer global market power h at impedes access for alternative drugs, or when the legitimate interests of the patent owner are protected in the export market - as when that market provides reasonable compensation.
4. Reliable rules on compensation. Compensation needs to be predictable and easy to administer; royalty guidelines reduce uncertainty and speed decisions. Germany as used rates from 2-10%, while in Canada the government used to pay royalties of 4%. Developing countries could award an extra 1-2% for products of particular therapeutic value and 1-2% less when research and development as been partly covered by public funds.
5. Dispute demand disclosure. The onus should fall on the patent holder to back up claims that the royalty rate is inadequate. This will help promote transparency and discourage intimidating but unjustified claims."