Compulsory licensing: A misused and abused international trade law, says PhRMA

To maintain its position as the world’s top biopharmaceutical innovator, the US biopharmaceutical industry needs predictable and reliable intellectual property protections.

Compulsory licensing abuse – along with price controls and other trade barriers – threatens to chip away at our foothold and erode the resources companies can invest in the next generation of medicines, says Jay Taylor on Pharmaceutical and Research Manufacturers of America’s (PhRMA) The Catalyst blog.

In certain instances, such as public health emergencies, trade partners may legally issue a compulsory license – through which a government permits the making, use, sale or importation of patented pharmaceuticals without the patent-holder’s permission. However, some emerging economies are using the threat of compulsory licensing as a negotiating tool to strong-arm American companies and tip the scales. Others are issuing compulsory licenses even when globally-accepted standards are not met.