At this very moment the TRIPS Council is discussing possible solutions
to the "paragraph 6 problem" of the Doha Declaration on TRIPS and
Public Health. There are a number of delegations, including the EC,
that support a solution based on Article 31. There seems to be a
significant lack of understanding however of the public health
consequences of solutions based on Articles 31 on one hand and Article
30 on the other. Also there is a lot of emphasis on achieving an
"expeditious" solution. This must not come at the expense of a
practical and effective long term solution. This note aims to clarify
the most important issue.
One fundamental disadvantage of an Article 31 solution is that a
decision needs to be taken before a compulsory licence can be granted
and export can take place. The supply of a medicine to a country in
need could either be held up (for example if negotiations with the
patent holder take place in the process of application for a
compulsory licence) or stopped altogether (an application for a
compulsory licence is no guarantee that it will be granted and can be
refused, sometimes for good reasons, sometimes not).
Put yourself in the position of someone suffering from a lethal
disease and in need of medicines that are unaffordable under patent.
Your government has acted and issued a compulsory licence for import
to your country. Would you prefer that the medicines you need could be
produced and supplied to your country (a) automatically; or (b) after
somebody in a different country has eventually come to a decision
that, in this case, it would be allowed?
The decisions in answer (b) could have life and death consequences for
millions of people. Answer (b) is the preferred option of those who
favour an Art 31 solution even though it is the less swift and sure
option. The best option, answer (a), is instead the Article 30
solution.
An Article 30 mechanism works in a different way from a compulsory
licence. Under Article 30 of the TRIPS Agreement, certain activities
can be defined under national law as exceptions to the rights of the
patent holder. Performing these "excepted" activities needs no
permission from the patent holder, as they are not infringements of
the patent. Well known exceptions cover "experimental use" and
"regulatory review" (the so-called "Bolar" exception). A "production
for export" exception under Article 30 would mean that the necessary
production for export could take place without being an infringement
of the patent. Since the production for export would not then be an
infringement, there would be no need to obtain the grant of a
compulsory licence.
This means in practice that there would be no extra procedural step
required in the exporting country, and no chance that permission to
produce for export could be refused or delayed.
Providing a real and effective solution to the problem of paragraph 6
through an Article 30 mechanism would mean that countries without the
capacity to produce their own pharmaceutical products could make just
as effective use of compulsory licensing as if they had production
capacity themselves. It will therefore also help them to make
effective use of compulsory licensing as a credible threat in price
negotiations. Crucially, only an Article 30 solution will help to put
all WTO Members on the same footing in providing effective access to
medicines for their populations.
Ellen 't Hoen
Coordinator, Globalisation Pillar
Médecins Sans Frontières
Access to Medicines Campaign
Telephone: 0033140212836
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