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Today’s Agenda

IP and FTAs: Significant Issues in Current Negotiations and their Relation to US IP Laws Workshop on IP, FTAs, and Sustainable Development M. Fabiana Jorge MFJ International, LLC February 27, 2006 Washington, DC. Today’s Agenda. FTAs as tools for Maximizing Profits

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Today’s Agenda

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  1. IP and FTAs: Significant Issues in Current Negotiations and their Relation to US IP LawsWorkshop on IP, FTAs, and Sustainable DevelopmentM. Fabiana Jorge MFJ International, LLCFebruary 27, 2006Washington, DC

  2. Today’s Agenda • FTAs as tools for Maximizing Profits • TRIPS PLUS; “US PLUS = Health – MINUS” (beyond the flexibilities) III. Harmonization Efforts IV. US Patent Reform V. US: Unreliable Trade Partner?

  3. I. FTAs as tools for Maximizing Profits • These agreements are about Money! • Using trade agreements as tools to change the laws of countries • While traditionally trade agreements have sought to open new markets to competition and lower prices, IP agreements do exactly the opposite.

  4. I. FTAs as tools for Maximizing Profits • US Exports of Pharmaceuticals 1997: $6 billion 2004: $19 billion

  5. I. FTAs as Tools for Maximizing Profits World Pharmaceutical Sales 2003 Source: IMS Total Sales: $467.9 bn

  6. I. FTAs as Tools for Maximizing Profits Source: GPhA

  7. I. FTAs as tools for Maximizing Profits URA TRIPS Green: agreements completed Yellow: negotiations in process Pink: future agreements NAFTA South Korea Dom.Rep. UAE Oman Ecuador EAI Vietnam FTAA Singapore CAFTA Australia Israel Jordan Malaysia Panama Chile SACU Egypt Peru Morocco Colombia Bolivia Bahrain Thailand

  8. II.TRIPS +; US + = Health -

  9. II.TRIPS +; US + = Health -

  10. II.TRIPS +; US + = Health -

  11. III. Harmonization • Global Negotiations • Regional Negotiations • Bilateral Negotiations

  12. III. Harmonization Interaction between domestic and international strategy Harmonization G B R

  13. III. Harmonization • WIPO (Standing Committee on the Law of Patents-SCP) • USPTO with other Patent Offices from developed countries

  14. IV. US Patent Reform HR 2795: - Drops “best mode” from US legislation; - Changes the standards for inequitable conduct Senator Hatch (Sept.2005): It “is one of the most significant IP issues currently in Congress”. Its goals are: - Goal 1: Increasing patent quality; - Goal 2: Increasing international harmonization; - Goal 3: Decreasing unwarranted or abusive patent litigation.

  15. US: Unreliable Trade Partner? • TRIPS Implementation: US pressured other nations not to implement TRIPS flexibilities • TPA/Respect for Doha Declaration: USTR negotiated multiple restrictions of flexibilities • US track record: it is becoming an unreliable trading partner. This has led to increasing opposition to trade agreements

  16. Conclusion • FTAs have become tools to maximize profits by extending monopolies. • FTAs: lack of balance between rights of patent holders and those of consumers. • General objective: change laws in US partners to increase patent holders’ power. • Ultimate objective: change US patent law increasing monopoly power also in largest global pharmaceutical market.

  17. Thank you! mfjorge@mfjint.com

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