{"id":7874,"date":"2021-05-19T14:06:26","date_gmt":"2021-05-19T14:06:26","guid":{"rendered":"https:\/\/www.dhenne-avocat.sea-dev-and-sun.fr\/2021\/05\/19\/blog-dhenne-avocats-13\/"},"modified":"2025-02-06T12:48:38","modified_gmt":"2025-02-06T12:48:38","slug":"the-lifting-of-patents-when-demagoguery-takes-precedence-over-reality","status":"publish","type":"post","link":"https:\/\/www.dhenne-avocats.fr\/en\/the-lifting-of-patents-when-demagoguery-takes-precedence-over-reality\/","title":{"rendered":"The lifting of patents: when demagoguery takes precedence over reality"},"content":{"rendered":"<p><em>Although he declared himself against the \u00ablifting\u00bb of patents on 23 April, President Emmanuel Macron made a U-turn by speaking out in favour of the suspension of intellectual property on 6 May, following the US administration's statement in the same vein on 5 May. These contradictory statements have reignited the controversy over lifting patents, which is nevertheless a false good idea that diverts the debate from the real question: how to make the compulsory licensing procedure effective?<\/em><\/p>\n<p>Intended to reward innovation with a temporary 20-year exclusive exploitation of <a href=\"https:\/\/www.dhenne-avocats.fr\/en\/lexique-propriete-industrielle\/invention\/\">inventions<\/a> findings from the research, the <a href=\"https:\/\/www.dhenne-avocats.fr\/en\/lexique-propriete-industrielle\/patent\/\">patent law<\/a> emerges (too much?) rarely from political discourse in France and Europe.<\/p>\n<p>However, since the\u2019<a href=\"https:\/\/www.lemonde.fr\/international\/article\/2021\/05\/05\/l-administration-biden-soutient-la-suspension-des-brevets-pour-les-vaccins-contre-le-covid-19_6079267_3210.html\">Biden administration announcement of May 5<\/a>, which lends its support to the proposal for the suspension of intellectual property rights related to Covid-19, originating at the WTO under the leadership of India and South Africa, the subject of lifting patents has become prominent in public debate, as they will be at the forefront in the event of a suspension of intellectual property related to the pandemic.<\/p>\n<p>It should also be noted that Mrs Merkel, for her part, spoke out against this suspension of intellectual property, which is strange given that a law passed in April 2020 by the German Parliament (Infektionsgesetz, summarised in English here) states exactly the opposite: that patents related to Covid-19 can be deprived of effect at any time if necessary (which is also contrary to Article 31 bis of the TRIPS Agreement, but hey...).<\/p>\n<h2><strong>A salutary reminder to explain (and repeat) to political leaders: the function of patents<\/strong><\/h2>\n<p>Often caricatured as instruments for filling the coffers of \u00abBig Pharma\u00bb shareholders, not least by keeping the secrets of their formulas, patents are, in reality, instruments for incentivising research, particularly for amortising R&amp;D investments.<\/p>\n<p>A patent is indeed a property title relating to an invention, which is granted by an authority (i.e. the\u2019<a href=\"https:\/\/www.dhenne-avocats.fr\/en\/lexique-propriete-industrielle\/inpi\/\">INPI<\/a>which grants, for a period of 20 years, an exclusive right to exploit the invention it discloses. In other words, contrary to what is often heard, a patent does not guarantee secrecy, but allows for the dissemination of research, provided it is public.<\/p>\n<p>Thus, the lifting of patents would discourage private research investment, which is far greater than public research investment. Such discouragement would therefore appear, at the very least, in similar situations (e.g. a pandemic with a variant requiring a new vaccine). Not to mention that in this case, the patents, for the moment, do not concern vaccines as such, but manufacturing methods (like messenger RNA) which were invented before the pandemic and which originated solely from private investment (see a summary here). Finally, patents are very often held by SMEs and not multinational corporations, as is the case with BioNTech or Moderna, for example.<\/p>\n<h2><strong>\u00abLifting of patents and suspension of intellectual property at the WTO<\/strong><\/h2>\n<p>A discussion has been ongoing at the WTO since autumn 2020 regarding a potential suspension of intellectual property rights related to the current pandemic. However, this suspension is not limited to patents, but covers all intellectual property, which must also include know-how, not only secret but especially important for the exploitation of patent teachings. Know-how that is moreover essential for adapting production capacities, particularly for the mRNA technique.<\/p>\n<p>It should also be stressed that the waiver being pushed for by certain countries, spearheaded by India and South Africa, is solely aimed at preventing states from being forced to act at a national level. In other words, it is about avoiding each state having to individually implement the compulsory licensing procedure, and risking driving the pharmaceutical industry away from their territories, in favour of a collective measure to suspend intellectual property.<\/p>\n<p>It should be noted that this change of scale also serves as a pretext to move from the office licence (defined by Article 31 bis of <a href=\"https:\/\/www.dhenne-avocats.fr\/en\/lexique-propriete-industrielle\/agreement-on-the-adpic\/\">TRIPS Agreement<\/a> and in particular subject to royalties proportional to the exploitation of the invention) to a pure and simple suspension (akin to expropriation which will at best be compensated via a per-patent indemnity).<\/p>\n<p>In any case, there is currently no precedent, so each country would have to devise a specific, non-existent procedure whereby the state would identify patents linked to COVID-19 and assess compensation for each one.<\/p>\n<h2><strong>The real ignored problem: the lack of effectiveness of the office licence mechanism<\/strong><\/h2>\n<p>Ultimately, it is difficult to understand why the President of the Republic and, with him, the entire executive branch, limit themselves to opposing or favouring the \u00ablifting\u00bb of patents or the suspension of intellectual property, while pretending to ignore the mechanism of compulsory licensing, which exists in our positive law and could facilitate the manufacturing of vaccines.<\/p>\n<p>Furthermore, it would be entirely conceivable for WTO members to collectively adopt an international declaration of intent, wherein they would commit to implementing the compulsory licensing procedure, without any mention of suspension (and therefore expropriation).<\/p>\n<p>This lack of vision appears particularly damaging as the office licence would offer significant advantages: existing mechanisms and royalties proportional to the exploitation of the invention, thus preserving a balance between the reward that encourages research and the interests of public health.<\/p>\n<p>Even though the office licence is present in our positive law (<a href=\"https:\/\/www.legifrance.gouv.fr\/codes\/article_lc\/LEGIARTI000006279494\">Article L. 613-16 of the Intellectual Property Code<\/a>) and complies with the TRIPS Agreement (Art. 31 bis). It would be up to the State to implement this procedure and negotiate royalties with manufacturers (likely lower than usual), then to grant licences to all manufacturers wishing to produce. The State could thus shift its control from distribution to production by being able to open up manufacturing to all those ready to produce. This type of licence could thus maintain a balance between rewarding research and the public health interest.<\/p>\n<p>However, it should be noted that a bill tabled in the Senate on 8 April, with a view to granting such a licence, could (finally) remedy this regrettable government deficiency.<\/p>\n<p>This article was also published on <a href=\"https:\/\/europeanpatentcaselaw.blogspot.com\/2021\/05\/la-levee-des-brevets-quand-la-demagogie.html\">European Patent Law Blog<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"<p>Bien qu\u2019il se soit d\u00e9clar\u00e9 contre la \u00ab lev\u00e9e \u00bb des brevets le 23 avril dernier, le Pr\u00e9sident Emmanuel Macron a op\u00e9r\u00e9 une volte-face en se pronon\u00e7ant pour la suspension de la propri\u00e9t\u00e9 intellectuelle le 6 mai, \u00e0 la suite de la d\u00e9claration de l\u2019administration \u00e9tatsunienne dans le m\u00eame sens le 5 mai. Ces d\u00e9clarations [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":7866,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8,9,10],"tags":[],"class_list":["post-7874","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-covid-19","category-levee-des-brevets","category-licence-doffice"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>La lev\u00e9e des brevets : quand la d\u00e9magogie prend le pas sur la r\u00e9alit\u00e9 - Dhenne Avocats<\/title>\n<meta name=\"description\" content=\"Lisez l&#039;article : La lev\u00e9e des brevets : quand la d\u00e9magogie prend le pas sur la r\u00e9alit\u00e9 du blog Dhenne Avocats\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.dhenne-avocats.fr\/en\/the-lifting-of-patents-when-demagoguery-takes-precedence-over-reality\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"La lev\u00e9e des brevets : quand la d\u00e9magogie prend le pas sur la r\u00e9alit\u00e9 - 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