Compulsory Licensing for COVID Drugs – A Complete Analysis

Compulsory Licensing for Covid Drugs
Karan Singh
| Updated: Feb 19, 2022 | Category: Patent

Because of this Covid-19 pandemic, there are a huge amount of people need medication to fight this pandemic. There have been many cases or instances where people have lost their loved ones or family member due to the non-availability of drugs or medicines required for treatment. The IDMA or Indian Drug Manufacturer’s Association has several times wished the Government to announce the Compulsory Licensing System recommended by the WTO or World Trade Organisation for the drugs manufactured for Covid-19. With the huge demand and less supply of these vital medicines in the market, people are ready to buy these at any cost to save their loved ones, which gives rise to black marketing of such products and duplicate or fake such products are being produced. Scroll down to check more information regarding Compulsory Licensing for Covid Drugs.

Compulsory Licensing for Covid Drugs – An Obligatory Necessity

First of all, Compulsory Licensing is a license granted by a state authority to a Government Agency, a company/another party to use a Patent without the approval of the Patent owner. With the increase in cases or instances in the country, people are facing many problems because of the lack of medicines or drugs for treatment. The black marketing of drugs or medicines that are being performed or carried out common people in a burden to either purchase medicines from these unauthorised sources or lose their family members. The crucial need by the people’s side is to cap the prices of the medicines at least till any permanent option is not to be formed.

With the rise in black marketing for the crucial injections & medicines, people have no other option but to buy the drugs at a much costlier than the cost of the actual medicine. The requirement for introducing Compulsory Licensing by WTO was to limit black marketing and tackle the kind of possibility which leads to black marketing of drugs. Even the Government from different nations should adopt this strategy to stop the due business that is running against the law.

There are many examples of hospitals reporting the lack of injections & drugs for emergency patients as well. It was mentioned by the High Court of Delhi in the matter of Government of National Capital vs Rakesh Malhotra (2020) that the state should seek into the case of Voluntary or Compulsory Licensing by the manufacturers for the production of the medicines & also tell the manufacturing companies or entities to speed up the production of the medicines as it’s the urgent requirement of the country.

Upsurge in Drugs Black Marketing

During a pandemic, many people help others and find verified or authorised resources for oxygen, beds, and medicine; there are people involved in not only illegal or unauthorised but also immoral acts. An act or a move that is against humanity that is making a profit by selling such black marketed drugs to the needy by charging triple or double even more than that of the actual cost. Out of the many problems which the medicines production by uncertified, unlicensed is leading one out of the bulk is the upsurge in black marketing.

The Supreme Court, in this case, also stated that black marketing of medicines & drugs in itself is exploitation, and with the current pandemic, it’s dangerous for people who are taking undue benefit of the unhappiness of people. To which the Court has also directed or guided the centre to take actions into such instances and build a team for recognising and prosecuting such offenders. The Apex Court also directed or guided on imposing a protocol on ambulances for not charging huge amounts of price from patients, and also the centre must look into a portal for easy reporting and dissolution of such instances. The bench of the said case was headed by Justice DY Chandrachud. The bench also observed that various drugs of high demand & significance like Remdevisir and Tocilizumab are being sold out at huge prices or even forms just to gain profits by using the people in need. The Court cited that this is a condemnable attempt to use people’s unhappiness and gain profits from their helplessness which must be looked at and worked upon as a quick solution to limiting such black marketing.

What are the Benefits of Compulsory Licensing for Covid Drugs?

Compulsory Licensing grants various benefits, and while it creates reasonable security for the product, it also makes it open for huge distribution and production at a reasonable price. Following are the benefits of Compulsory Licensing for Covid Drugs:

  1. Flexibility: With Compulsory Licensing, the patented medicines could be manufactured locally under reliable sources and also will lead to saving various costs that are involved in importing the manufactured drugs from other places. This will definitely benefit the nations to whom getting access to a patented drug in such a health emergency has become excessive. Also, diluting the power given by a Patent to some drugs will aid them to make copies of the same.
  2. Break-up Monopoly: Compulsory Licensing for Covid Drugs[1] will lead to a range of producers in the marketplace working towards the manufacturing of the drugs & supplying the same to the people and Government. This will lead to breaking the market monopoly, which is now only restricted to certain manufacturers in the sector and will aid in maintaining the price at a reasonable level.
  3. Cap on the Drugs Price: If not executed, Compulsory Licensing will cause monopoly of manufacturers, importing of drugs due to high demand and less production, more middle man connection involved in transportation, strengthening of the black markets and many more consequences which will progressively lead to people paying high for such medicines. If licensing is made mandatory, it will cap the drug prices by lessening all the above costs.
  4. Reduction in Black Marketing: The primary cause of black marketing is the fear of people losing their family members or their loved ones. Once the drugs or medicines are available in the market and are accessible to common people who require them at a reasonable price, people would instantly choose to buy them legally rather than going via the black market caps.

Conclusion

After discussing Compulsory Licensing for Covid Drugs, it is clear that executing Compulsory Licensing has many benefits as considering the situation or condition we are in right now, but also it’s a harmful act that leads to the delusion of the rights of the Patent owner. One has to choose from the two, as per the demand of the situation, and it can be reasonably argued that Compulsory Licensing for Covid Drugs is the need of the hour and helps to make sure rights of patients in this pandemic.

Read our Article:How to Get Patent for Startup Idea? – An Overview

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Karan Singh

A legal writing enthusiast, a wanderer, and a zealous reader. After gaining a lot of knowledge about the diverse legal topics and developing research skills, Karan joined the league of legal content writers to deliver quality-rich blogs.

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