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Violating A Patent As Moral Choice

kuzmich writes "The Taiwanese government has announced that it will violate patent laws to manufacture a drug that can help fight bird flu virus. In doing so, they have spelled out their reasoning very clearly: 'We have tried our best to negotiate with Roche, it means we have shown our goodwill to Roche and we appreciate their patent. But to protect our people is the utmost important thing'. Not being in Taiwan, this makes me wonder how bad the situation would have to be for some of the other governments to follow a path of violating patent and copyright laws for the benefit of the general population. Are there precedents, procedures for doing so?"

136 of 967 comments (clear)

  1. Not right! by GFLPraxis · · Score: 5, Funny

    Patent laws are far more important than human lives; what gives them the right to do this?

    Just kidding, of course. Good for Taiwan. Patent laws should not cause the death of people.

    1. Re:Not right! by pivo · · Score: 4, Insightful

      One interesting question related to this seems to be, at what point does it become ethical for a country to ignore patent laws to save its citizenry? How many people have to be threatened to make it acceptable?

      Tiwan is acting in the face of a pandemic. What about less widespread, but equally fatal diseases? For example, why isn't it equally ethical for a country to ignore patent laws for cancer drugs? Why hasn't this already been done for AIDS drugs?

      I'm all for this, by the way. I hope this emboldens other countries to do the right thing for its citizens.

    2. Re:Not right! by connect4 · · Score: 5, Informative

      India has tried, WTO wins again.

      http://yaleglobal.yale.edu/display.article?id=5459

    3. Re:Not right! by aka.Daniel'Z · · Score: 5, Informative

      AFAIK Brazil ignores patents for AIDS drugs (or ignored in the past - not sure about what is being done now). Refer to Brazil to Ignore Patent on AIDS Drug, Brazil to Ignore Patent on AIDS Drug

    4. Re:Not right! by bladernr · · Score: 4, Insightful
      Patent laws should not cause the death of people.

      Should a lack of patent laws cause the death of people? Imagine that the entire world declared that for "serious disease" no one had to respect patent laws. Let's say that AIDS was declared such a disease. Would any more private sector research money (by far the most research money spent) go into finding a cure or better treatment for AIDS? Would anyone be able to write a business case to get venture money to start a new bio-tech firm looking at AIDS treatment?

      The problem with patent-law violation reasoning is that it seems to be without regard to the future. It's the same logic that leads to other poor policies (who cares about the environment! It's not messed up today).

      If patent protection isn't required for drug development, where are the "open source" drugs? It only requires a few billion USD to develop drug lines... I'm sure there is plenty of non-profit, non-patent money to fund that, and so we can do away with the entire patent system.

      Oh, and addressing this specifically: if this stands, and other countries follow, no more advances may be made in bird flu research since all private-sector motivation is removed.

      --
      Sarcasm and hyperbole are the final refuges for weak minds
    5. Re:Not right! by netsharc · · Score: 4, Interesting

      Actually, drugs for HIV are so expensive that most people in the poor countries can't afford them, and there's an AIDS epidemy in Africa! There's a doctor from Thailand (Krisana Kraisintu) who's mixed the three main ingredients for the HIV-pill, without paying attention to the patents of the big drugs companies. I've read a magazine article about her where she says she's gotten death threats telling her to stop producing her own version of the pill.

      Talk about being nice..

      --
      What time is it/will be over there? Check with my iPhone app!
    6. Re:Not right! by Ohreally_factor · · Score: 4, Interesting

      I think this falls under the legal concept of eminent domain, which makes it legal for the state to use property for the public good. Usually this applies to real property and construction projects that will benefit the greater public, but I don't see why it wouldn't apply here.

      --
      It's not offtopic, dumbass. It's orthogonal.
    7. Re:Not right! by Waffle+Iron · · Score: 4, Informative
      Oh, and addressing this specifically: if this stands, and other countries follow, no more advances may be made in bird flu research since all private-sector motivation is removed.

      There already is almost no motivation for private sector research into dealing with epidemics. The market for vaccines just isn't very lucrative compared to things like allergy treatments or impotency cures, and the market size is spotty and unpredictable. Without big profits to chase, major funding for significant advances in these areas will have to be driven by government funding anyway, so dropping the patent incentive would be no big loss.

    8. Re:Not right! by Anonymous Coward · · Score: 3, Funny

      where are the "open source" drugs?
      I'm high on all of them

    9. Re:Not right! by Agarax · · Score: 2, Insightful

      Yes but Eminent Domain, at least in this country, requires just compensation.

      So, along with the legal battle, you'd be back to square one.

      --
      Remember folks, slashdot doesn't have a -1 "disagree" moderation!
    10. Re:Not right! by shma · · Score: 2, Insightful

      Should a lack of patent laws cause the death of people? Imagine that the entire world declared that for "serious disease" no one had to respect patent laws. Let's say that AIDS was declared such a disease. Would any more private sector research money (by far the most research money spent) go into finding a cure or better treatment for AIDS? Would anyone be able to write a business case to get venture money to start a new bio-tech firm looking at AIDS treatment?

      And what, exactly, is the benefit of private sector drug development if the drugs aren't sold to the vast majority of the people who need it?

      --
      I came here for a good argument
    11. Re:Not right! by jcdick1 · · Score: 2, Informative

      Actually, the vast majority of research - particularly in potential drug therapies - is done with public (NIH grants) and not-for-profit funds (think March of Dimes, Juvenile Diabetes, Jerry Lewis, William Gates Foundation, etc.) by universities and such. The drug companies then license the new potential product from the schools to manufacture and sell. Admittedly, the drug companies also share a good chunk of change to help in the research, but the majority of their money comes in later, funding FDA trials and reviews, and then, of course, the advertising blitz. You know what I mean, to sell the drug that, if taken as directed, will guarantee you the ability to throw a football accurately.

      --
      What?
    12. Re:Not right! by Red+Alastor · · Score: 2, Interesting
      If Roche doesn't want to play fair, nationalize them. Its been done with other industries. Or expropriate their patent under eminent domain.
      That would be nice. The government is really good at doing research. Unfortunately, they are very bad at producing stuff. But it doesn't matter in this case. They could do just the research, companies would take care of the production.

      The companies who can produce it for cheaper wins. Or they might all specialize in certain fields. The government certifies that what is produced is really what they designed in the first place. The government can pay itself back with a tax on drugs sold. It might still be efficient since nobody is duplicating research made by others that they can't see and no area is blocked by patents.

      The governement research results could be made available to you if you sign a contract forcing you to share back your own research in that domain. So if other countries want to use your drugs as a basis for their own variation of the illness, you get their improvements.

      --
      Slashdot anagrams to "Sad Sloth"
    13. Re:Not right! by 'nother+poster · · Score: 2, Informative

      No need for eminent domain. Just need "37CFR 401.14 Standard Patent Rights Clause" Just look under march-in rights.

    14. Re:Not right! by am+2k · · Score: 4, Informative
      Would any more private sector research money [...] go into finding a cure or better treatment for AIDS?

      Uhm, what incentive is there for a private company to find a cure for a disease? It's much more cost efficient when the patient has to buy the medication in regular intervals for the rest of his/her life (see diabetes, AIDS, asthma, etc etc).

      This is not a theoretical statement, but current practice. I've heard of research projects getting their commercial fundings withdrawn, because they were about to develop a permanent cure instead of a temporal one.

    15. Re:Not right! by mbaciarello · · Score: 5, Interesting

      An editorial in a recent issue of the New England Journal of Medicine, possibly the most authoritative source in the field, pointed out how drug companies spend far more money in marketing than they do in research. Also, drug companies often outsource the pure R&D to little-known laboratories, or buy patents from them, just to re-brand the products. I've been involved in research on levosimendan, created by Finnish Orion Corp., only to be licensed as Simdax® by Abbott Laboratories, Inc.

      I figure that when push comes to shove, there's money to be made even from "open source" drugs. The so-called generic drugs, although not as profitable as your typical anti-depressant or branded statin, are a good, perfectly open source market for many companies.

      Personally, I do believe in using "force" on private companies when emergencies arise. This might entail paying a forfeitary fee (kinda like compulsory licensing in music.)

      Force (of money) is what drug companies use to get (partially connivent) physicians to prescribe one expensive, proprietary drug over a generic one, even if the benefits of the former are unproven.

      Force of marketing (as in "ad bombing") is what drug companies use to get unwitting patients to ask their doctors for Plavix®, even though saving one life with Plavix® may cost millions of dollars which could be spent elsewhere more usefully. That is, especially in countries where resources are limited and the health care system is public, that money could save more lives if used for screening programs and promotion of healthy lifestyle, for example.

      Sheer force of money is also what gets people to buy Aleve (naproxene sodium) over, well... Naproxen sodium in its cheaper, unbranded, but otherwise perfectly equivalent form!

      So be it: fsck them for Greater Good. Granted, a better definition for "Greater Good" would be useful.

    16. Re:Not right! by rgoldste · · Score: 5, Informative

      Actually, the U.S. government wouldn't have to invoke eminent domain if they wanted to do something like this. Most of the basic research that leads to these drugs, vaccines, etc. is paid for by the federal government. The gov't then licenses this technology to biotech and pharmaceutical companies to develop a practical application, like a drug. The private company keeps IP rights to the developed drug/vaccine/whatever.

      In these licensing agreements, however, is a clause that allows the government, in an emergency, to manufacture the drug/vaccine/whatever, or give a license to another manufacturer to increase supply of the product. So they're not invoking eminent domain to seize IP, they're availing themselves of a contractual provision. Among other things, this means the gov't doesn't have to compensate the IP holder.

      See, for example, section 5.04(b) of the Model PHS Patent License Aggreement--Exclusive, available here.

    17. Re:Not right! by bladernr · · Score: 4, Insightful
      After all this, people wonder why poor foreign people tend to dislike the USA. Hello Roche, you are one of the reasons.

      Wow. People hate the USA because people like you are ignorant, and associate everything you don't like with the USA.

      Roche is Swiss.

      I would rather see the drug not manufactured than witheld from needy people.

      That is certainly an option. If we tear down the patent system, perhaps we can insure that many, many drugs never get developed, and so never manufactured. We all die equally.

      Btw, Tiawan can afford the drug. The amount of money in the corruption-fueled grey economy of corrupt officials is more than enough to buy the drugs. Just check out the world-wide corruption studies in The Economist for evidence. It's not about lack of money in Tiawan, but about priorities of spending (bribing MPs is more important than buying drugs - so break the patents).

      --
      Sarcasm and hyperbole are the final refuges for weak minds
    18. Re:Not right! by chaves · · Score: 2, Informative

      Nope, we still do that, when a reasonably fair agreement cannot be reached.

    19. Re:Not right! by Rik+van+Riel · · Score: 5, Interesting

      AFAIK Brazil is not ignoring the patents for AIDS drugs. Instead, they have negotiated a deep discount with the patent holder. IIRC this is done using the (WTO?) rule - that patents can be ignored to save human lives in an epidemic - as a really big bargaining chip. Because of this heavy bargaining chip, the AIDS drug manufacturer sells their drugs really cheaply in Brazil. They still get a profit, probably a decent one too because the drugs are affordable enough that they're actually being sold...

      I believe that Taiwan is doing the right thing, since the manufacturer of the bird flu drugs did not want to sell them the drugs for a price they were able/willing to pay.

      I believe the rules for negotiating price are a bit different when one of the parties can write the law ;)

    20. Re:Not right! by biodork · · Score: 3, Insightful

      This is trotted out every time this discussion comes up...but no one can ever point to any specific "drug" or treatement that has had this happen. It is always this mystical unknown magic cure that is being with held so that the drug companies can make more money....

      Please. Stating this is current practice requires some level of "These guys are doing it with a treatment for disease X". Other wise this statement is no better than me saying I was kidnapped by aliens yesterday.

      --
      Gavin Fischer
    21. Re:Not right! by Lemmy+Caution · · Score: 4, Insightful

      Like you, I winced when the poster (as others have) overlooked that Roche is Swiss, is that this is no place for an anti-American screed.

      However:

      That is certainly an option. If we tear down the patent system, perhaps we can insure that many, many drugs never get developed, and so never manufactured. We all die equally.

      That is ridiculous. Are you suggesting that the fact that virtually all funding and support for military development comes from the public sector, that the US government is the patent-holder on important security technology patents, has led to a moribund pace of innovation in weapons technology? Hardly. There are many, many ways to fund research and distribution, and your belief that only a crude market model is effective is just that - a principle of faith.

    22. Re:Not right! by Cylix · · Score: 2, Insightful

      Maybe once a virus or disease is labeled an epidemic then funding should come directly from the government for said development?

      If its a threat to a great many people, then perhaps those tax dollars we pay should go to funding a cure for the people.

      Maybe it is a crazy idea, but there should be some way to meet at the middle on this one. You have to balance endangering the industries profits versus the common wealth of the people.

      --
      "You should always go to other people's funerals; otherwise, they won't come to yours." -- Yogi Berra
    23. Re:Not right! by geekee · · Score: 2, Informative

      "Actually, the U.S. government wouldn't have to invoke eminent domain if they wanted to do something like this. Most of the basic research that leads to these drugs, vaccines, etc. is paid for by the federal government."

      got any evidence to support this outrageous statement? Change "Most of the" to "Occasionally." If you don't think pharamceutical companies do basic research, you are crazy.

      --
      Vote for Pedro
    24. Re:Not right! by TapeCutter · · Score: 4, Informative

      "just compensation"

      That doesn't mean they have a right to profit, it's only to claim out of pocket expenses. In this case since it is virtual property that has already paid for it's own research, it has only cost the company potential profit. They should have sold the license for a reasonable amount but they refused, now they get nothing.

      It's about time more goverments took this bargaining approach to make drugs available to those who need them and to stomp on those who see $$$ signs in other peoples misery. Sure we need profitable drug companies, it's not cheap to get a new drug to market. However in return for expenditure by the drug companies, taxpayers contribute serious money to police the quality (and patents) of the drugs.

      Everyone is a victim of a disease at one time or another and lack of sanitation and quality medicines will turn a "simple" illness into a death sentence. In the interests of public health, governments should have an obligation to demand reasonable contributions from patients, taxpayers and drug companies. If patent law gets in the way, change it.

      --
      And did you exchange a walk on part in the war for a lead role in a cage? - Pink Floyd.
    25. Re:Not right! by huiac · · Score: 2, Interesting

      That depends what you mean by 'Taiwan'.

      Bribes are rarely paid either to or by governments, but pass between corrupt individuals and corporations. It takes more than the will of the government to prevent corruption (I'm sure the US is opposed to corruption, but in the past US corporations have made and received bribes; and at least equally so in Britain) and preventing corruption doesn't magically make the money involved available for the public good, although it may (e.g.) reduce defence spending in the medium term by permitting a (more) free and efficient market to develop.

      John.

    26. Re:Not right! by Buran · · Score: 3, Interesting

      Yes but Eminent Domain, at least in this country, requires just compensation.

      Tell that to all the people forced out of homes or businesses for amounts of money that are far below what their property is assesed at when they refuse to sell for the government's ridiculously low offers. They just say "well, tough luck, we're taking it anyway and that's all you're getting, assessments be damned".

    27. Re:Not right! by ozmanjusri · · Score: 5, Informative
      In the case of Tamiflu, the US may decide to threaten Roche with licensing the drug, so they'd be hypocritical to sanction Taiwan.
      In the US, senator Charles Schumer has threatened legislation compulsory to license Tamiflu unless Roche allowed generic producers to boost the number of pills in circulation.
      http://observer.guardian.co.uk/business/story/0,69 03,1598469,00.html
      --
      "I've got more toys than Teruhisa Kitahara."
    28. Re:Not right! by fullpunk · · Score: 4, Insightful
      Taiwan's a global citizen and has to look out for everyone, not just selfishly looking after only their own citizens.

      What about "Corporations are global citizens and have to look out for everyone, not just their already too huge profits."
    29. Re:Not right! by Fulcrum+of+Evil · · Score: 3, Informative

      Condoms cause AIDS. Most of the links I found talk about the Catholic church refusing to consider using condoms in the face of AIDS, but this one quotes a bishop saying the fateful line.

      --
      "We returned the General to El Salvador, or maybe Guatemala, it's difficult to tell from 10,000 feet"
    30. Re:Not right! by ozmanjusri · · Score: 2, Informative

      If the US invaded Taiwan, then China would get involved

      China already has to get involved. The precurser chemical for Tamiflu is shikimic acid, which can only be derived from a plant called star anise. The only sources of significant quantities of that variety of star anise in the world are four provinces in China. One company has contracted to buy the whole crop of star anise.

      Guess which company?

      --
      "I've got more toys than Teruhisa Kitahara."
    31. Re:Not right! by mOdQuArK! · · Score: 2, Insightful
      IP is property, and anyone that says otherwise has never contributed a critical proprietary idea to society.

      IP is NOT property, and anyone who says otherwise has a really inflated idea of how much a "critical proprietary idea" is worth in a free market. Hint: it's not what the SELLER thinks it's worth - it's what the BUYER thinks it's worth.

      If you have a one-in-a-million idea, you deserve to be compensated for it - regardless of the fact that some people may kill for it.

      If you have a "one-in-a-million" idea, and you can't use it to beat competitors in business (even if they copy the idea), or someone else comes up with the same idea independently, then it wasn't really a one-in-a-million idea, was it?

    32. Re:Not right! by Mark_in_Brazil · · Score: 4, Informative

      Just elaborating a bit for those too lazy to RTFAs linked from the parent post...
      José Serra, the Health Minister in the previous administration in Brazil (he unsuccessfully ran for president in 2002, losing in the runoff election to the current president, Luís Inácio Lula da Silva, and is now mayor of the city of São Paulo), was responsible for Brazil's AIDS policy, which has been very successful and is recognized as a model for government AIDS policies worldwide. One major part of the policy included making the best AIDS drugs available to patients free. The problem is that the drug companies were jacking up the prices, and Brazil's AIDS budget was not going to be large enough to be able to continue this critical part of the policy that had been so successful in controlling the spread of AIDS and the number of AIDS-related deaths.
      Serra tried to negotiate with the multinational pharmaceutical companies selling the AIDS drugs in Brazil, but they didn't want to negotiate. Serra showed them that he had the power, in the event of a national emergency, to make a declaration permitting Brazilian companies to break patents. He told them it would not be difficult to make the case of AIDS being a national emergency. One of the two companies decided to negotiate and rolled back some of its price increases. The other (Roche) balked, so Serra went ahead with the process of issuing the permission to break the patent.
      The pharmaceutical companies got the US government to complain to the WTO, but the complaint was eventually dropped. The pharmaceutical companies negotiated with the Brazilian government (the negotiations continued through the change of administrations and are still ongoing, nearly three years after the change) and the Brazilian government continues to buy the drugs.
      FWIW, Serra is very highly respected by health professionals in Brazil. In addition to standing up to the multinational pharmaceutical companies on the AIDS drugs, he also stood up to them on generic drugs. He helped push through a new policy permitting generic drugs in Brazil, greatly reducing the cost of medications for the Brazilian people. The pharmaceutical companies, for obvious (but shameful) reasons, opposed the introduction of generics in Brazil. Brave guy. Lula, the current president, is also man of exceptional bravery, having been one of the founders of Brazil's labor movement when the government of Brazil was a right-wing military dictatorship, but that's another story. In addition to the accomplishments mentioned above Serra was responsible for pushing through a modern organ donation law in Brazil.

      --
      "It is nice to know that the computer understands the problem. But I would like to understand it too." --Eugene Wigner
    33. Re:Not right! by starm_ · · Score: 2, Interesting

      If my understanding of patent law is right, even if taiwan did do its own independent research and made the medication now, it would not be able to use it because it was patented before. With patents the first to make the invention gets all the rights. Do you think that makes sense during a crisis?

    34. Re:Not right! by Jeffrey+Baker · · Score: 2, Insightful

      Tamiflu was developed by Roche, a Swiss company, with research done in the UK, Japan, Switzerland, the USA, and -- quite a surprise to you and those like you, I'm sure -- China. Your muddleheaded jingoism has no basis in fact.

    35. Re:Not right! by king-manic · · Score: 2, Insightful


      You bring up an interesting point. Look at it this way: The Taiwanese government, charged with the protection of their citizens, and taxing them for that very purpose, never saw fit to invest in their own safeguards against plagues like the bird flu. Nor does the Taiwanese government see fit to pay now the cost of such an investment, which Roche made for its own reasons.

      So the Taiwanese government won't save its own citizens, and won't pay someone else to save its own citizens, but will gladly steal the results of someone else's work to save its own citizens. Doesn't it seem like Taiwan is behaving badly?


      You do know that if you life in America and make this arguement you are an immense hypocrite. America was built on patented european invetions that Americans used without renumerations to the appropriate patent holder.

      --
      "There are more things in heaven and earth, Horatio, than are dreamt of in your philosophy."
    36. Re:Not right! by Znork · · Score: 3, Informative

      "in a capitalist economy"

      In a free market capitalist economy competition is what drives improvement. The ability to develop and produce more, cheaper. Kill competition by granting monopolies and you dont get more development, you get less. Take away competetive pressure and companies grow fat and inefficient, just like state-run monopolies. The inefficiencies drive costs and lead to massive wasted resources. Remember, not even 20% of the income of the pharmcorps is spent on R&D. They spend twice what they spend on R&D on marketing and administration.

      The unfortunate economics of monopolies means that it will only get worse; pricing in monopoly fields isnt driven by competition, it's driven by available capital and the cost at which people will do without instead. The more money available in the insurance systems, the more money the pharmcorps will charge. And promptly spend on marketing, convincing doctors to prescribe patented headache pills, instead of generics.

      "in turn we will sacrafice the insentive"

      A monopoly is an extremely inappropriate incentive in a free market, and the likelyhood is it does more damage than good. A vast amount of the medical research is already funded by various states, and something along the lines of granting per-use payments, government contracting for development or tax breaks for patents would be far more in line with other extra incentives in the free market.

    37. Re:Not right! by LarsG · · Score: 5, Insightful

      So the Taiwanese government won't save its own citizens, and won't pay someone else to save its own citizens, but will gladly steal the results of someone else's work to save its own citizens. Doesn't it seem like Taiwan is behaving badly?

      Are you saying that the government of other countries should be denied the same policy choice that the US made in the 1800s?

      --
      If J.K.R wrote Windows: Puteulanus fenestra mortalis!
    38. Re:Not right! by cluckshot · · Score: 4, Informative

      The issue here is complicated because of trade deals the US and other nations have set up. Essentially these deals set the USA up to pay for the research and development costs for drugs for the world. In return the US would bill its consumers very high rates for drugs in order to finance this and provide the "poor" nations of the world with "cheap" drugs. This funky set of deals set up the USA to fleese its sick and elderly as a secret way to assist the "poor" nations populations who by the theory could not afford to finance their own medicine.

      The deals worked for a short time until the "poor" nations started generic production. This bloomed a "cheap" drug market for the world leaving US consumers paying 10 to 20 times the price paid by others in the world. The Big Pharma guys who were going to provide US workers with jobs under this scam promptly went of shore this is why the developments and owners are multinationals. This has shattered the underpenning of Social Security in the USA. It has also left drug development nearly 100% funded by the US Government under contract fictions that appear private or they would violate the trade deals. This is because the trade deals left the US with a "drug monopoly." Of course it is falling apart.

      With all of this corporate and government con game going on, there is no Pandemic. It too is a fiction. Bird Flu is indegenous to the Americas. It in no way fits the profile of a "Pandemic." It is too lethal to be a viable pathogen. It kills itself off. What we are looking at is the last gasp of the Big Pharma guys trying to shake down the taxpayers of the USA for a pile of money while they run off shore with the money . All of this before the USA runs out of cash trying to pay for the retirement situation that is coming in 2015. They all know that any flu epidemic can be contained by a campaign to support hand washing. There is no threat except of stupid people. The fact that a foreign nation is now going to make large quantities of the drug Tamiflu threatens the money in this con game.

      Tamiflu, assuming Bird Flu were to mutate into a dangerous flu "Pandemic", would be of no value. The disease kills in about 9 days. It is symptomatic only 2 of those days. By the time a person knew they were getting sick, getting a prescription would not save them. Its value is probably null anyway as it appears it is ineffective against the disease. Its only value would be prophalaxis and that is questionable. Taiwan is just raiding the money game here.

      This is state sponsored terrorism using a "virus" as a mafia enforcer threat to shake its people down for money. This is because vaccination is also of no value against bird flu as it kills fertile eggs. (The place one would make a vaccine) In reality there is only one defense against the bird flu. It is nothing more nor less than a public campaign for good hygene and hand washing. That program would so devastate the healthcare industry by negating their profits that nobody is going to consider it. Sorry folks it is all about money. Thanks to Taiwan, the international floating crap game has been raided. Maybe the whole US monopoly will come down on this one and we all will be better off including those of us in the USA.

      --
      Never Politically Correct ~ I prefer the facts If you don't like what I say, get a life, or comment yourself.
    39. Re:Not right! by masklinn · · Score: 5, Insightful
      Take away competetive pressure and companies grow fat and inefficient, just like state-run monopolies.

      State monopolies are not about efficiency my good sir, they're about high-quality service and providing said service to everyone, even when it's completely inefficient to provide said service.

      State monopolies are about making service available to the most people with the best QoS, they're about reaching 100% or as close as possible, not about reaching the 20% that lead to viable service economically and leaving 80% in the dust because you consider it costs too much to provide them said service.

      State monopolies are about long-term vision, 10+ years when not 50+ years, when most private structures' "long term" is barely 5 years.

      This is why most european rail service actually work at the moment even if they don't bring in much money, while UK rail service blows and is overpriced.

      Now I don't mean that govt/state monopolies shouldn't try to be efficient, it's in fact one of their duties as users of public tax money, they owe it to the whole population of the country (said population more or less being their shareholders), but it's not and should never be their first goals. The first and most important goals of state monopolies should always be quality and reach.

      --
      "The way we can tell it's C# instead of Haskell is because it's nine lines instead of two." -- wadler
    40. Re:Not right! by masklinn · · Score: 3, Interesting

      Because, to quote Dow (buyers of Union Carbide and inheritors of the Bhopal Disaster legacy)

      we have responsibilities to our shareholders and our industry colleagues that make action on Bhopal impossible.
      Dow does not and cannot acknowledge responsibility. If we did, not only would we be required to expend many billions of dollars on cleanup and compensation--much worse, the public could then point to Dow as a precedent in other big cases. 'They took responsibility; why can't you?' Amoco, BP, Shell, and Exxon all have ongoing problems that would just get much worse.

      And I doubt their shareholders will support you (nor will the US govt) since one of the answers to this Dow statement (by a Dow shareholder) was

      I'm happy that Dow is being clear about its aims," said Panaline Boneril, who owns 10,000 shares, "because Bhopal is a recurrent problem that's clogging our value chain and ultimately keeping the share price from expressing its full potential".

      Remember that we're talking about tens of thousands of deaths, still ongoing...

      --
      "The way we can tell it's C# instead of Haskell is because it's nine lines instead of two." -- wadler
    41. Re:Not right! by DerSenfmeister · · Score: 2, Funny

      Like Utah's state-run monopoly on liquor sales?

      Gotta make sure everyone can get their beer...

    42. Re:Not right! by Pig+Hogger · · Score: 4, Insightful
      The Taiwanese government, charged with the protection of their citizens, and taxing them for that very purpose, never saw fit to invest in their own safeguards against plagues like the bird flu. Nor does the Taiwanese government see fit to pay now the cost of such an investment, which Roche made for its own reasons.

      So the Taiwanese government won't save its own citizens, and won't pay someone else to save its own citizens, but will gladly steal the results of someone else's work to save its own citizens. Doesn't it seem like Taiwan is behaving badly?

      Only to a stupid asshat shit-for-brains yankee capitalist like you.

      Jerks like you will put a price in dollars on fucking anything, even your grandmother.

      And you find nothing wrong with this.

      Ever wondered why people are willing to die hurling airliners into your skyscrapers????

    43. Re:Not right! by |<amikaze · · Score: 2, Insightful


      You've been had. Dow did not make that statement. Have a look at the wikipedia entry for more info: http://en.wikipedia.org/wiki/Bhopal_Disaster . In particular, scroll down to the bottom and read about "The Yes Men". The statement you quoted was a hoax.

    44. Re:Not right! by chronicon · · Score: 2, Informative
      Only to a stupid asshat shit-for-brains yankee capitalist like you.

      Jerks like you will put a price in dollars on fucking anything, even your grandmother.

      And you find nothing wrong with this.

      Ever wondered why people are willing to die hurling airliners into your skyscrapers????

      Why is this being modded interesting/insightful? The ad hominem virtually overwhelms any merit to be found in the more relevant (and quite valid) point against the life vs. property/money concept.

      The reference endorsing the 9/11 attacks is particularly appalling and counterproductive. How does that invective increase your position's superiority over the one you are attacking? It doesn't of course. It's simply a vicious, mean-spirited rant--when in fact you do have a worthy point to make--converting life to property/money is an atrocity.

      Leave off the anti-American sentiment and personal attacks. Expand your argument on the salient point. It will bolster your position, and increase your credibility (and then the interesting/informative mods will be validated, IMO). Personal attacks are pointless in rational discussion and generally indicate a losing proposition in a debate.

      Rational discussion, on /.? Whatever am I thinking?

    45. Re:Not right! by Mark_in_Brazil · · Score: 2, Informative

      I guess you are talking about profit here? If their drugs were more profitable they would have incentive to create even more drugs. Is 20 years (a patent term) that long to wait to freely reap the benefits of the research? You are telling me there is something Brazil just can't live without, for free (or for manufacturing costs (generics)) that didn't even exist 20 years ago? All they are doing is assuring that in the future even less drugs becomes available.

      In your kneejerk rush to shill for the multinational pharmaceutical companies and make the "case" for their price gouging, you seem to have confused two separate issues.
      One is generic drugs, which don't violate patents. Generic drugs are available in the USA and many other places. Serra wanted to make them available to Brazilian consumers. The multinational pharmaceutical companies opposed the project to bring generic drugs to Brazil, and that is indeed shameful. They were not protecting patents or other "intellectual property;" they were only protecting the price-gouging they were doing with no viable alternatives available in the market. What Serra did was to bring Brazil's medication market into the modern world, opening up competition. That's how capitalism is supposed to work for consumers. The multinational pharmaceutical companies didn't want to allow legal competition, so they could charge whatever they damn well pleased for drugs in Brazil. What Serra did in helping push through the generic drug legislative project was nothing short of heroic, and I think Milton Friedman would agree that bringing in more competition is a good thing.
      The other issue is the patent breaking for the AIDS medications. The point on that issue is that the medications had already been priced. But then somebody in the pharmaceutical companies saw the large demand in Brazil (because essentially every AIDS patient was being represented in the purchases) and saw in that an opportunity to gouge. So they jacked up their prices. The normal pharmaceutical company argument, that things like R&D costs are built into the prices of the drugs, don't apply in this case, because they had already set a price and sold the drugs for years at that price, then suddenly decided to jack up the prices in Brazil. The Brazilian government was even willing to negotiate reasonable price adjustments, but the outrageous price increases suddenly applied to these treatments would have made Brazil's AIDS policy completely inviable.
      The patent-breaking threat is not a case of Brazil deciding it wanted the drugs for free or even cheaper. Serra tried very hard to get the drug companies to negotiate. In fact, he got one to the table and an accord was eventually reached. But the other decided price gouging on AIDS drugs was an important part of its business plan in Brazil, and so refused to negotiate the size of its unnecessary price increases. Serra (and since Serra left office, his successor in the current government) therefore went ahead with the patent breaking action.
      As for the argument that if drugs are more profitable, that gives the pharmas more incentive to create new drugs, there may be some truth to it. Serra tried to allow these companies to continue to sell their drugs at the previously set prices, allowing even for reasonable adjustments. But the companies thought they saw an opportunity to drastically increase the prices on medications already in wide use, and their profits with it. As a result, they may end up losing all their profits from Brazil. Brazil really has no choice. The government can either continue its policy, probably the best one in the world at containing the spread of AIDS and limiting the number of AIDS-related deaths, but in so doing not allow the pharmaceutical companies to just make up new prices completely out of line with the established and market-accepted prices, or the government can allow the drug companies to jack up their prices at will, which would mak

      --
      "It is nice to know that the computer understands the problem. But I would like to understand it too." --Eugene Wigner
    46. Re:Not right! by lukesl · · Score: 4, Informative

      there is no Pandemic. It too is a fiction. Bird Flu is indegenous to the Americas. It in no way fits the profile of a "Pandemic." It is too lethal to be a viable pathogen. It kills itself off.

      That logic is simply ridiculous, with the high population densities of cities and the speed and frequency with which people travel. You're seriously suggesting that a human-transmissible bird flu wouldn't be a "viable pathogen" because it would kill everyone in Taiwan too quickly to spread? Even if that were true, which is isn't, wouldn't you expect the Taiwanese to be concerned about that?

      The idea that a human-transmissible bird flu would be dangerous has already been demonstrated by the 1918 flu epidemic that killed 20-50 million people. The 1918 virus was recently reconstructed, and it was found to be very similar to the bird flu viruses that are around in Asia today. The actual scientific paper, available here states:

      "Until now, the exceptional virulence of the 1918 pandemic influenza virus has been a question of historical curiosity. Herein, we demonstrate the successful reconstruction of the 1918 pandemic virus in order to understand more fully the virulence of this virus and possibly of other human influenza pandemic viruses. Because the emergence of another pandemic virus is considered likely, if not inevitable (25), characterization of the 1918 virus may enable us to recognize the potential threat posed by new influenza virus strains, and it will shed light on the prophylactic and therapeutic countermeasures that will be needed to control pandemic viruses."

      Tamiflu, assuming Bird Flu were to mutate into a dangerous flu "Pandemic", would be of no value. The disease kills in about 9 days. It is symptomatic only 2 of those days. By the time a person knew they were getting sick, getting a prescription would not save them. Its value is probably null anyway as it appears it is ineffective against the disease. Its only value would be prophalaxis and that is questionable.

      A scientific paper demonstrating Tamiflu's effectiveness against the H5N1 virus is here .

      A paper demonstrating Tamiflu's effectiveness against the 1918 flu virus (which is similar to the virus we fear will emerge) is here.

    47. Re:Not right! by ultranova · · Score: 2, Interesting

      With all of this corporate and government con game going on, there is no Pandemic. It too is a fiction. Bird Flu is indegenous to the Americas. It in no way fits the profile of a "Pandemic." It is too lethal to be a viable pathogen. It kills itself off.

      Of course it kills itself off, eventually. In 1918, the Spanish Flu (a variant of bird flu) took with it about 50 million people. It killed more people than World War I. A repeat of that incident is what everyone is so scared about.

      That said, it is impossible to say how lethal this variant is, since of course only the people who got seriously ill went to hospitals. For all we know, there could be a million people who never got anything worse than a runny nose.

      In reality there is only one defense against the bird flu. It is nothing more nor less than a public campaign for good hygene and hand washing.

      In this you hit the bullseye. Always wash your hands when you come inside. Always wash your hands before eating. That won't guarantee that you won't get the flu, but at least it lessens the chances.

      --

      Forget magic. Any technology distinguishable from divine power is insufficiently advanced.

    48. Re:Not right! by Bush+Pig · · Score: 2, Informative

      Additionally, even if they actually paid for all the research and testing themselves, they'd still spend a lot more on marketing - it's actually the marketing costs that the drug companies want to recoup, not the research costs.

      --
      What a long, strange trip it's been.
  2. I don't blame them. by Pantero+Blanco · · Score: 5, Interesting

    They have their priorities straight. Stopping a potential pandemic is more important than not stepping on a businessman's toes.

    1. Re:I don't blame them. by DoorFrame · · Score: 2, Insightful

      That's sort of true, definitely true in the short term, but you've got to look at the issue from a long term point of view as well. The system we've currently established is that drug manufacturers outlay a truly phenomenal amount of money to develop and test any particular drug. They do this on the assumption that they will, in the future, be able to charge good money for the results of their research. If they can't charge for it in the future, there's no incentive for them to develop new drugs today.

      Now, one country destroying one patent is not going to eliminate the profit incentive for the drug developers. And in a situation where the drugs are badly needed (I don't know how true that is in Taiwan, but my guess is that since the disease doesn't affect people yet the answer is not very) there's a moral calculus that has to go into making this sort of decision. Is it worth it to hand out free drugs today at the possible cost of not having drugs to hand out at any cost in the future?

      You're going to have to look at every individual situation and decide if the tradeoff is worthwhile.

      Do you think the current phantom bird flue pandemic is worth risking future drug development over? I'd say you'd have a much better argument for taking away that patents on AIDs drugs than bird flu drugs.

    2. Re:I don't blame them. by sam_handelman · · Score: 5, Insightful

      This is drug industry propoganda.

        The majority of the expenses associated with new drug discovery are actually made in the public sector - by Universities and so forth. In broad outline the story is very similar to the Internet, also developed at public expense.

        Now, the private sector does contribute significant additional resources to drug development. HOWEVER, these additional resources are a *fraction* of the total increase in drug prices that result from the patents they are awarded (vs. what the same drugs would cost if prices were governed by a free market.)

        The upshot is that if you look at it over the long run, we would be much better off if we violated all the patents, let the patent-dependent drug companies go out of business, and funded an equivalent amount of research in the public sector, making the results available to anyone who wished to sell the resulting drugs on the market.

        The research I'm citing here was done by a fellow named Dean Baker. I'll dig up an exact ref if you like.

      --
      The good and new comes from no quarter where it is looked for, and is always something different from what is expected.
    3. Re:I don't blame them. by SteeldrivingJon · · Score: 4, Insightful

      But not the marketing costs of the drug.

      And regardless, Big Pharma is enormously profitable, for all their claimed "woes".

      If the profit margin was slimmer, companies would still make pharmaceuticals. If nobody went into business if they weren't guaranteed pharma-class profits, there'd be a lot of industries that wouldn't exist. Grocery stores, for instance, are inherently low-margin businesses. Yet they haven't looked at their 1-2% profit margins and said, "Feh! I quit!"

      --
      September 2011: Looking for Cocoa/iOS work in Boston area Cocoa Programmer Quincy, MA
    4. Re:I don't blame them. by bladernr · · Score: 2, Insightful
      If nobody went into business if they weren't guaranteed pharma-class profits, there'd be a lot of industries that wouldn't exist.

      It's all about risk and value add. Grocery stores (to use the parent's example) take almost no risk and add almost no value. They are distributors.

      I once saw a study comparing the profit margin of Wendy's (a US hamburger chain) and grocery strores, and then looking at all fast-food resturants and all grocery strores. Because of the value-add component of prepared food, profit margins were shown to be higher.

      Go back to Big Pharma. Huge risk. Huge value add. So, huge profit.

      Note I'm not passing judgement one way or the other about whether they deserve huge profit, but you didn't seem to understand why some industries have higher profit than others, so I thought I would tell you what the most recent economic research suggests.

      --
      Sarcasm and hyperbole are the final refuges for weak minds
    5. Re:I don't blame them. by grcumb · · Score: 4, Insightful

      "The system we've currently established is that drug manufacturers outlay a truly phenomenal amount of money to develop and test any particular drug. They do this on the assumption that they will, in the future, be able to charge good money for the results of their research. If they can't charge for it in the future, there's no incentive for them to develop new drugs today."

      You're right that that's the rationale used to justify the state of things today. And if it had any relation to current practice I'd be prone to agree with you. Unfortunately, there are a few minor data points that tend to indicate the reasoning you outline above consists mostly of horse waste:

      • Drug companies spend roughly twice as much on promotion and marketing as they do on research and development. The trend recently has been a reduction in R&D relative to spending on marketing and, interestingly, executive remuneration.
      • Drug companies are notorious for milking the patent system for every dime it can be made to produce. One of the most notorious (ab)uses of the US patent system is the ability to win new patents on existing drugs by demonstrating another use for the drug. Unfortunately, a patent is a patent is a patent, so the drug remains inaccessible to generic drug makers for the original use as well for another X years.
      • The current scandal in the FDA is demonstrating to us that drug companies will go to extreme lengths, including endangering the lives of their customers, in order to sell medications. The FDA has effectively been gutted by 'business-friendly' processes that, among other things. stop FDA scientists from even commenting on the effectiveness of any drug they review.

      Drug research is expensive - nobody argues that. What is arguable, however, is how ethically pharmaceutical companies have acquitted their important social role. On that count, it seems that they've failed miserably, and, just as a criminal deserves to have his legal rights restricted, they deserve to have their patent rights restricted unless they demonstrate that they will not abuse this trust.

      --
      Crumb's Corollary: Never bring a knife to a bun fight.
    6. Re:I don't blame them. by sam_handelman · · Score: 5, Informative

      njyoder - do you have any background in biology or chemistry?
        How were the mechanisms of blood pressure regulation discovered (picking a drug from that list at random)?
        The techniques commonly used to perform high throughput screening of new drugs - who discovered those?
        The synthetic organic chemistry required to actually *make* all these novel compounds? Where do you think that was developed?

        The research in fundamental biology has been absolutely *essential* to the development of modern pharmaceuticals - every bit as vital as DARPAnet was to the creation of the internet.

        Yes, it's true, the public sector does not develop drugs - because when public sector entities get close to developing a drug, they sell their data to a drug company to let the drug company finish the process. However, this is not a law of nature - or even of convenience. It's a massively inefficient mess, with huge amounts of wasted effort and redundant work, driven entirely by the patent system (and the desire by University administrations to secure the profit from those patents.)

        Here are the refs:
      (journal articles)
      "Patent fiction," Health Letter (Washington, DC): vol. 20, iss. 6, Jun 2004; p. 1.
      "A Free market solution to prescription drug crises," Challenge (Armonk, NY): vol. 46, iss. 5, Sep/Oct 2003; pg. 76
      "Medicines and the New Economics Environment," Journal of Public Health Policy (South Burlington, VT): vol. 23, iss. 2, 2002; p. 245.

      (also a policy paper you should read)
      "Bird Flu Fears: Is There a Better Way to Develop Drugs?" Washington, DC: Center for Economic and Policy Research, October 2005
      "Bigger Than the Social Security Crisis: Wasteful Spending on Prescription Drugs", Washington, D.C.: Center for Economic and Policy Research, April 2005
      "The Benefits to State Governments from the Free Market Drug Act," Washington, D.C.: Center for Economic and Policy Research, November 2004

      --
      The good and new comes from no quarter where it is looked for, and is always something different from what is expected.
    7. Re:I don't blame them. by bladernr · · Score: 2, Interesting
      Given the moral hazard in pricing such a product (like cure for cancer), the profit incentive (along with funding) diminishes.

      I hope you get modded +5 insightful. I never thought of this, but it is an interesting line of reasoning. I think you are right, although I've never thought of it. And if you are right, it is scary.

      To say your position another way: Curing cancer is good. However, charging money for the cure is bad. Therefore, no one can fund finding a cure. Therefore, no cure, which is bad. So our own morals have prevented us from doing good (curing cancer) by making a necessary part (funding finding a cure) bad.

      The topic of Tiawan and bird-flu shows you are right. What is the way out though? Can we educate society that profit is not evil, and so allow a cure to cancer to be made a sold profitably?

      This will be a thinker for me this evening (and maybe even a topic amongst my friends).

      --
      Sarcasm and hyperbole are the final refuges for weak minds
    8. Re:I don't blame them. by sam_handelman · · Score: 4, Insightful

      Practicality over ideology, nuggz.

        In many specific cases, corporate decision makers may make better choices than the public sector regarding allocation of resources, I don't want to get into a discussion of this as a general principle - however, you seem to have taken this as a religious creed.

        I'll raise exactly one counter-example: Should fire departments be run as for-profit enterprises, and only purchase fire trucks in jurisdictions where they can make money charging for fire protection services? Drug research is high tech, but it is a question of public health and safety, and the fundamental decisions should be made with that in mind - so it is more like the fire department, and less like high end consumer electronics.

        Beyond that, corporate decision makers are also very corrupt. For example, in the vioxx case, concealing the evidence of deaths, and so forth. In the case of ipods this really isn't a big deal - so the screen scratches now, so what? But when people like that make public health decisions, other people die.

        Shifting all drug control resource allocation to the NIH (or a parallel body structured along the same lines) - would not only make better decisions than corporate power centers, it would also make them a transparent way, subject to the full force of peer review. This isn't a 100% guarantee against fraudulent research, but it's a good start!

        So, we get better decisions and we get them at a huge costs savings - no need even to rock the boat, we can simply hire the entire existing research apparatus of the american drug industry, let them keep their current generous salaries, and we can spend a tiny fraction of the savings giving them government-employee retirement benefits.

        To continue this discussion I'd have to get into the nitty gritty of decisions that pharmaceutical companies have made in the past, and why they have been so disastrous.

        If it makes you feel any better, this is really capitalist solution.

        Which is a greater distortion of the market: granting patents, or increasing (by about two fold) the money the government spends on life sciences research? Certainly, if the government is making free R&D available to anyone who wants it, that is a market distortion of a kind. In the past, similar market distortions have lead to epic disasters like the Internet, also the modern aerospace indudstry, sattelite communications, am I leaving out any other great mistakes of 20th century America? My god, what fools we where, to meddle with the market!

        Anyway, the drugs would still be manufactured by for-profit companies, they'd just be manufactured in a true market, without the market distortions introduced by patents, which is actually a purer form of capitalism, isn't it?

      --
      The good and new comes from no quarter where it is looked for, and is always something different from what is expected.
    9. Re:I don't blame them. by njyoder · · Score: 2, Insightful

      How were the mechanisms of blood pressure regulation discovered (picking a drug from that list at random)?

      You tell me, you're the one asserting that these are all the result of public research. The burden of proof is on you, but you have presented zero evidence, not even for a single drug. Plus, you're also using an absurd line of reasoning. As if we have to attribute every single research that came before us for our current work. Yes, let's attribute modern research to the doctors dissecting cadavers in the 19th century to help us disocover basic anatomy. Give me a break. We're talking about a DIRECT relationship, not an indirect historical relationship with things that happened eons ago.

      The research in fundamental biology has been absolutely *essential* to the development of modern pharmaceuticals - every bit as vital as DARPAnet was to the creation of the internet.

      But that's an absurd line of comparison. We are talking about MODERN research, not 100% of past medical research dating back hundreds of years. While you're at it, why not thank the inventor of the semiconductor too, because we couldn't even have the internet without that? Let's thank Michael Farady, too, who discovered the properties of the capacitor. Let's also go back further and thank Newton for discovering many properties of physics that helped us understand these things. Lets also thank Newton's mother, for raising him right.

      You are talking about basic knowledge which you learn in medical school, stuff that is a basic part of the curriculum, which is no longer considered "research" (because the research on it ended eons ago), it's just accepted as basic knowledge. Do you still consider basic knowledge of how logic gates work "research"? What about concepts of resistors and capacitors, are those base concepts still considered "research"?

      No, and for obvious reasons.

      (journal articles)

      I was only able to get the text of one of these and that one is just a vague summary of a book this guy wrote. This guy is very self-promoting and it doesn't appear that he's written anything for any credible journals, nor written anything for journals other than op-ed pieces.

      "Bird Flu Fears: Is There a Better Way to Develop Drugs?"

      This is basically just another opinion piece, without much of anything in terms of statistics. He doesn't even address how much research is done in the public sector for drug companies in it.

      "Bigger Than the Social Security Crisis: Wasteful Spending on Prescription Drugs", Washington, D.C.: Center for Economic and Policy Research, April 2005
      "The Benefits to State Governments from the Free Market Drug Act," Washington, D.C.: Center for Economic and Policy Research, November 2004


      Both of these are just proposals for reform in govenrment spending on drug research, but don't actually give stats on how much university research went into drugs.

      Look, I'm not going to wade through a bibliography of information, especially considering you've already demonstrated that you can't cite relevent sources. Just give me a *single* good source. Stop wasting my time.

    10. Re:I don't blame them. by sam_handelman · · Score: 2, Interesting

      Experimental build of firefox crashed, so I'm posting all responses here - includes responses to several "cousin" comments.

        No, I am not proposing that we pay the estate of Sir Isaac Newton royalties every time we use newtonian mechanics - but it is equally absurd to pay royalties to any other scientist, given the collaborative and accumulative nature of science. This is an auxillary point, and to cover it in detail we'd have to go into the many ways in which a typical pharmaceutical patent is very different from, for example, patents on components in consumer electronics (which are, I would argue, deserving of patent protection.)

        You say the burden of proof is on me and then you dismiss the three peer reviewed journal articles I provided because you don't like the journals they are published in? I have provided proof - the burden is now on you to debunk it, and if you're only argument is that you don't know anything about economics: that doesn't debunk squat. If you really want copies, Dean Baker can be contacted at his email address, baker at cepr dot net. I'm sure he'll send them to you, and probably fairly promptly.

        Did you even read the piece that you do have access to? It has the most salient point.
      Cost to public, drug patents, per year - approx $150 mil
      R&D expenditures of pharmaceutical industry, per year - approx $41 mil

        The methodology here is pretty transparent.

        As for blood pressure, yes, it was elucidated in public universities. You can easily get a list of thousands of references from medline - tell you what, if you actually care, tell me which journals you have access to (and regard as acceptable) and I can find the relevant publications for you.

        The question *you* didn't answer is - do you know anything about chemistry or biology?

        There's no point in my arguing specifics (e.g. how much of a role did public sector neuroscience research play in the successful development of neurotonin) if you don't know anything about the topic, is there? An argument from authority is hardly satisfying, especially if you don't have access to any journals.

      --
      The good and new comes from no quarter where it is looked for, and is always something different from what is expected.
    11. Re:I don't blame them. by BocaJuniors · · Score: 2, Interesting
      Beyond that, corporate decision makers are also very corrupt. For example, in the vioxx case, concealing the evidence of deaths, and so forth.
      Change "corporate" to "government" and "vioxx" to "Tuskegee." There is plenty of anecdotal evidence to sling mud on both sides of the public/private debate.
      If it makes you feel any better, this is really capitalist solution.
      My guess is that you would be hard-pressed to find many economists who support the notion that nationalizing an entire industry is a "capitalist solution."
    12. Re:I don't blame them. by Otter · · Score: 2, Interesting
      100%, without a doubt. No drug company starts from scratch in their research, and no drug company anywhere on Earth has 100,000 chemists following their own ideas on basic research. Drug companies dole out research grants only AFTER there is already some promise shown with a new compound, and that only comes after some assistant professor spends 20 years in the university lab using taxpayer dollars to follow his pet theory.

      As someone who does this for a living -- what you're saying is absolutely, positively, utterly wrong. You do not have the slightest fucking clue what you are talking about.

      But don't take my word for it. Go to the job postings on any pharma company's web site and take a look at what jobs they're filling. Go to PubMed and read their papers.

  3. A Simple Solution by MinutiaeMan · · Score: 5, Informative

    It seems to me that in a case such as this, it would be perfectly acceptable to invoke the principle of Eminent Domain. If this isn't a situation that involved the public's interest, I don't know what is!

    1. Re:A Simple Solution by DoorFrame · · Score: 5, Insightful

      Well, yeah, but with eminent domain you need pay the market value for what your taking. Since there's already a market value for the drug, one which Taiwan refused to pay, you'll need to come up with another justification.

    2. Re:A Simple Solution by cshotton · · Score: 2, Interesting

      Patents are "nationalized" all the time in the defense/intelligence world. If you invent something that gives the US (for example) a technological edge (say a new rocket engine, a directed energy weapon, or some such), it is very likely that the US Government will exempt itself from any protections patent law may afford you. In fact, they may classify your patent and "disappear" it from the public record. This happens all the time. It just happens that in this case, Taiwan's national interests are being served by a anti-viral compound instead of a piece of military technology. The precedents are the same and I'd expect you'd see similar rationale used in the US if it ever became necessary to do so.

      --

      Shut up and eat your vegetables!!!
    3. Re:A Simple Solution by sam_handelman · · Score: 2, Insightful

      That's inaccurate - there is a *monopoly* value for the drug, which Taiwan refused to pay.

        Patents are market distortions - every bit as much as tariffs and trade barriers.

        More traditional exercise of emminent domain recognizes similar principles, by the way - the government gets to set the price, the owners of the property can't hold out for more than market value in the event that there is an emergency and sudden demand.

      --
      The good and new comes from no quarter where it is looked for, and is always something different from what is expected.
    4. Re:A Simple Solution by MinutiaeMan · · Score: 4, Interesting

      Hmm... I'm not saying you're wrong, but can't the government effectively decide/dictate its own "fair" price when invoking eminent domain? I've read a few stories in the past about people whose houses have been condemned for some highway project, complaining that they weren't paid enough for their property. So they can provide some compensation, but not the "market" price (which, let's face it, is decided by the pharmaceutical cartels -- er, I mean, companies -- anyway?). Most medicines are so ridiculously overpriced it's not even funny. (Like my one month's prescription that would cost $480 without insurance...)

      At any rate, at the very least, the government can just take what it wants in the name of national security. It's what the US government did many times with new technologies that were needed for the war effort during World War II...

    5. Re:A Simple Solution by danharan · · Score: 2, Funny
      Since there's already a market value for the drug, one which Taiwan refused to pay, you'll need to come up with another justification.
      Market value with one seller? What drug are YOU on?
      --
      Information: "I want to be anthropomorphized"
    6. Re:A Simple Solution by cshotton · · Score: 2, Informative

      I'm sorry, but I'm under no obligation to make up for your lack of experience and feel no obligation to violate confidentiality agreements just to prove something to you that is common knowledge in the defense and aerospace industry. You always run the risk/likelihood of marketable/patentable technologies being signed over to the government rather than being allowed to patent and pursue them on the open market. It is also part of the normal course of doing business with the federal government for the government to declare a patent or other piece of proprietary information to be in the national interest and require it to be disclosed, licensed, or otherwise made available to the necessary government agencies and/or contractors. This usually only happens if a fair and equitable license or assignment of rights cannot be reached with the party holding the IP but the bottom line is that if the government thinks there is a compelling national interest in a technology, it can take it as it sees fit.

      But again, just because you have no direct experience in this area doesn't mean it doesn't happen. I'd simply ask you why you think this DOESN'T happen? You are quite naive if you think it doesn't, and doesn't happen quite often.

      The US government spends about $200 billion a year on procuring technology just for the DoD alone. That dwarfs the R&D budgets of all the major US commercial technology providers combined by an order of magnitude at least. It's funny that people think companies like Microsoft, Apple, Oracle, etc. are the technology innovators in our economy. The vast, vast amount of technology R&D happens in the context of defense contracts, not the open commercial market. Rest assured that non-trivial amounts of the IP created in those efforts never sees the light of day in the commercial market until long after the technology is no longer state of the art in the defense space.

      --

      Shut up and eat your vegetables!!!
    7. Re:A Simple Solution by njyoder · · Score: 2, Insightful

      Yes, if it's deemed detrimental to national security, but there's no reason to believe that this happens "all the time", which was the original claim made.

    8. Re:A Simple Solution by njyoder · · Score: 2, Insightful

      So of the ~180,000+ patents granted a year, only about 120 or so are made secret? Yeah, that's "all the time."

      Source: U.S. Patent Statistics Chart

  4. Obligatory Monty Python Quote... by Daedalus-Ubergeek · · Score: 5, Funny
    It has also now spread to Europe, with the latest possible case reported in an imported parrot in the UK.


    No no he's not dead, he's, he's restin'! Remarkable bird, the Norwegian Blue, isn't it, eh? Beautiful plumage!
  5. meh by bLindmOnkey · · Score: 2, Insightful

    "laws are a human institution!" sure they'll get in trouble, but why not do what's best for humanity?

  6. Nothing new by Average_Joe_Sixpack · · Score: 4, Interesting

    This happened routinely during WWII in the US with patents and forced licensing agreements for technology deemed crucial to the war effort. Even my own great grandfather's manufacturing business (springs) was confiscated due to his ethnic background.

  7. Without Roche.... by mi · · Score: 2, Insightful
    There'd be now patent.

    And no vaccine...

    --
    In Soviet Washington the swamp drains you.
  8. This has happened before by cowbutt · · Score: 4, Informative
    An Indian company has pledged to manufacture patent-busting Tamiflu, and generic HIV drugs are being made in Brazil in violation of patents.

    Good luck to 'em all, I say; saving lives trumps patents.

    1. Re:This has happened before by cascino · · Score: 2, Informative

      The government of Brazil manufactured generic AZT in the 90's and the United States was on the brink of an ugly lawsuit in protection of the rights of GlaxoSmithKline. (I believe) the rest of the world eventually put pressure on the US to back away and a compromise was reached.

      Given the current climate of fear with respect to the bird flu scare, I would imagine Taiwan will ultimately face little opposition for such a move.

  9. Re:Yikes by SpamSlapper · · Score: 2, Insightful

    What has the United States got to do with it?
    Roche is a Swiss company.

  10. Wikipedia sez... by Mr.Progressive · · Score: 5, Informative

    Wikipedia sez:

    ...an interpretive statement, the Doha Declaration, was issued in November 2001, which indicated that TRIPs should not prevent states from dealing with public health crises. Since then PhRMA, the United States and, to a lesser extent, other developed nations, have been working to minimise the effect of the declaration. TRIPs provides for "compulsory licencing", which allows a national government to issue a licence for the production of drugs without the consent of the patent owner as long as those drugs are primarily for the domestic market. A 2003 agreement loosened the domestic market requirement, and allows developing countries to export to other countries where there is a national health problem as long as drugs exported are not part of a commercial or industrial policy [1]. Drugs exported under such a regime may be packaged or colored differently to prevent them from prejudicing markets in the developed world.

    --
    Okay, so a philosopher, a philologist, and a philatelist walk into a bar...
  11. Government at its finest by dada21 · · Score: 3, Insightful

    First they make you spend tens to hundreds of millions of dollars in regulatory rescosts to pass their tests.

    Then they allow tort laws to get out of control, letting you get sued for billions.

    They make you wait a decade for approval (or not).

    They offer you a monopoly on your invention.

    Then they take it back so their friends and family in pharmaceuticals can make it with zero of your costs involved.

    1. Re:Government at its finest by danharan · · Score: 3, Interesting

      Oh, it's even more convoluted than that. They also subsidize research and buy most of your medicine. Push and pull at the same time. Government is schizoid, lavishly giving with one hand while taxing with the other.

      But you're confusing the Taiwanese government and the US. The above applies to the Americans- what the Taiwanese has done is perfectly understandable and akin to what people have said about AIDS drugs.

      Some profit is acceptable. At what point do you tell a company to just fuck off? How much higher profit can they have before you start thinking they're asking just too much? They're already making much better margins than many other industries.

      And morally/ethically: how much are you willing to give to a foreign company to potentially save your countrymen and women's lives?

      --
      Information: "I want to be anthropomorphized"
    2. Re:Government at its finest by Waffle+Iron · · Score: 4, Funny

      Yeah, with those burdens, the drug companies sure have been having a hard time making ends meet lately. Maybe we need to set up a relief fund for them.

  12. Blown out of all proportion... by InsaneLampshade · · Score: 2, Insightful

    "Bird flu has killed at least 60 people in Asia since December 2003" Sixty people died in two years, oh no, if we don't cure it soon we'll all be dead!!! No offence, but is this really something we need to be worrying about?? Doesn't normal flu kill more people per year?

    1. Re:Blown out of all proportion... by cplusplus · · Score: 2, Informative

      From wikipedia - "In May 2005, scientists urgently call nations to prepare for a global influenza pandemic that could strike as much as 20% of the world's population." The flu the World Health Organization and CDC fear the most right now is bird flu. Specifically one similar to the H5N1 virus that was mentioned in the article. It has "a mortality rate of over 50%". I guess Taiwan is taking them seriously.

      --
      "False hope is why we'll never run out of natural resources!" - Lewis Black
  13. Re:Yikes by smchris · · Score: 5, Funny

    Roche is Swiss. I'm sure China, mainland or Taiwanese, quakes in fear at the thought of the Swiss navy launching an assault.

  14. Re:Yikes by Pantero+Blanco · · Score: 2, Interesting

    Yes, but as the US tends to be the world policeman of IP law, retribution might come in the form of threats to stop defending them. There are, however, a couple of reasons the US probably wouldn't do this, which I described in a response to the parent post.

  15. "Eminent Domain" for "Intellectual Property" by Speare · · Score: 5, Insightful
    Personally, I think that governments (including the USA) should be more ready to stake logical claims for the betterment of their populations over the betterment of the "owners" of intellectual property. This includes copyright, trademark, patent, and trade secrets.

    Now, the US Constitution guarantees reasonable compensation for seized property. This doesn't have to be cash. It can be some other equitable consideration.

    For example, if Disney would surrender almost all of their old television cartoons and theatrical movies into the public domain (where they should have lapsed years ago), the US could reciprocate and give a *permanent* protection for a few of their most prized revenue source characters: Mickey Mouse and Disney's Ariel (the Little Mermaid). The population could make whatever artistic mashup they wanted from the footage, but they couldn't claim the Mouse as theirs or claim the Mouse speaks for them. If I understand, this is somewhat like the protection Britain has given Peter Pan: it's a special cultural treasure and is handled different from other properties.

    Another example is for pharmaceuticals: break an effective AIDS drug patent, and we'll let you keep a certain lifestyle drug like Viagra for a longer period.

    Unfortunately, Disney and Pfizer have bought enough Senators to choke the Panama Canal, and so the trade in all of their products will be protected nearly forever anyway, even without surrendering the cultural feedstock and the life-saving inventions to society as a whole.

    --
    [ .sig file not found ]
    1. Re:"Eminent Domain" for "Intellectual Property" by headLITE · · Score: 2, Funny

      Unfortunately, Disney and Pfizer have bought enough Senators to choke the Panama Canal

      That is not the worst suggestion concerning what to do with some Senators I have heard by far.

  16. Re:Yikes by cytoman · · Score: 2, Funny

    Imagine that! The Swiss army armed with those deadly Swiss Army Knives!!!

  17. Brazil did it by Tuego · · Score: 2, Interesting

    Brazil broke the patents for some anti-aids drugs. First, we negotiate the prices with the labs, they refuse to provide an acceptable price, then the patent were broke for the sake of thousands of people. "Under World Trade Organization (WTO) rules, a nation can break drug patents if there is a national emergency." At the time, we receive nice comments from leaders from all over the world, including Tony Blair in an MTV program. read more on: http://news.bbc.co.uk/2/hi/health/4059147.stm http://archives.cnn.com/2001/WORLD/americas/08/22/ aids.drug/ This is my first comment, and sorry about the poor english.

  18. allowed by WTO/TRIPS by akb · · Score: 4, Informative

    The WTO Trade-Related Aspects of Intellectual Property Rights (TRIPS) allows compulsory license of medicines for public health reasons. The Wikipedia entry gives a decent overview in the "access to essential medicines" section.

    This is a hot topic in the international trade community for developing countries, especially in relation to AIDS drugs.

  19. Re:Basic Principle Of Government by emarkp · · Score: 2, Insightful
    The most fundamental purpose of a government is to manage the country for the benefit of the people.

    Spoken like one truly ignorant of history.

    The fundamental purpose of government is to protect the rights of citizens. And if you think life is more important than rights, you're outvoted daily by the thousands who risk their lives to leave governments who don't protect their rights.

  20. This oughta be good by heinousjay · · Score: 2, Insightful

    You've piqued my curiosity - if the drug industry doesn't foot the research bill, who does?

    --
    Slashdot - where whining about luck is the new way to make the world you want.
    1. Re:This oughta be good by tomhudson · · Score: 4, Insightful
      1. Taxpayers through university research
      2. Private funds (look at all the money raised by fund-raising for AIDS, breast cancer, MS, etc)
      3. Charities, philanthropy, etc.
      The drug companies have a much lower efficiency in terms of money spent per researcher in their labs vis. the people doing research at universities for their post-docs, so when you factor that in, the inbalance is even greater towards the public sector.
    2. Re:This oughta be good by billsoxs · · Score: 2, Informative

      Yup. I think that NIH (National Institutes of Health (US Gov)) has a budget in the neighborhood of 28.6 Billion dollars this year. Yes that is billion with a 'b'. That is double what it was ~12 years ago. The jump started under Clinton and has continued under Bush. see http://www.hhs.gov/budget/testify/b20040421.html for more info.

      --
      This message was brought to you by "Lack of Sleep."
  21. Nothing new here.... by msauve · · Score: 4, Interesting
    They're not violating any US Patent, as they'll presumably be producing in Taiwan. They're only "violating" the Taiwanese patent, if any. But then again, "they" are the Taiwanese government and people.

    It doesn't appear that Taiwan honors foreign patents via treaty: http://www.bpmlegal.com/pctco.html http://www.wipo.int/treaties/en/ip/plt/ , but I may be wrong.

    The US has done basically the same thing with US patents which have "national security" implications. In the US, the Constitutional authority for patents lies in Congress, so Congress is perfectly free to decide whether patent protection should/is offered for such things. I don't profess to know such specifics about Taiwan.

    --
    "National Security is the chief cause of national insecurity." - Celine's First Law
    1. Re:Nothing new here.... by fishbowl · · Score: 3, Informative

      >It doesn't appear that Taiwan honors foreign patents via treaty

      This is particularly sticky because some countries buy the Chinese party line that Taiwan is a province of the PRC, and others superficially (few officially) recognize Taiwan as sovreign. Taiwan didn't sign the Berne Convention on copyrights (not patents, I know the difference), and Taiwan isn't a WIPO member.

      Does Switzerland or the EU formally recognize Taiwan as distinct from the PRC?

      --
      -fb Everything not expressly forbidden is now mandatory.
  22. Patents are at the pleasure of the Sovereign by HighOrbit · · Score: 2, Insightful

    A Patent is a grant of property from the Sovereign (i.e. the legal state, whether that be the "People" or the "Crown" or the "Republic"). Most people define "property" as having a set of legal (usually exclusive) rights to possess, enjoy, and dispose of some thing. All property flows from the Sovereign. The Sovereign either grants it directly (as in a patent for land or intellectual property) or he recognizes it through enacting laws. The "Real" in real estate does not mean true, but litteraly "Royal". You may like to think that its *your* property because of some moral reason (like you earned it or made it yourself), but legally it is only yours because the Sovereign says so through his laws.

    Since property and patents are at the pleasure of the Sovereign, the Sovereign is free to revoke it at any time. This is called escheat. In fact, if you die without an heir, your property automatically escheats to the Sovereign.

    So, a Soveriegn of a State, can legally revoke any patent of his own granting at any time. Other than because of a treaty obligation, a Sovereign State need not recognize or allow a Patent granted by another state.

    Here in the US, our Founders were well aware (and sometimes the personal victims) of the abuses and escheats at the hands of the British Sovereign. So all the above was modified by our constitution which says that property may not be seized except with "due process of law". The Congress has also set up horrible "patent and copyright" laws. Obviously, Taiwan has different laws.

  23. Re:Pish post by tombeard · · Score: 2, Funny

    Excuse my ignorance, I'm from the US. What is this "benefit of the general population" you speak of?

    --
    The reason we subjugate ourselves to law is to better procure justice. If law does not accomplish this purpose then it m
  24. Marketting vs R&D by nuggz · · Score: 2, Informative

    Yeah marketting is expensive look at the annual reports.

    On page 60 of Mercks 2004 annual report

    2004 Merck spent
    $4.9B on Materials and Manufacturing
    $7.3B on Marketting & Administration
    $4B on R&D

    To be fair the administration expenses should be a large part of that expense, but it seems clear that more money is spent on researching and producing the drugs than selling them.

  25. Re:Yikes by fishbowl · · Score: 2, Insightful

    "Risky move, considering the support of the United States is what keeps them from being a province of China..."

    The US seems to play both sides of this. USA has no embassy in Taiwan. Unless I missed something, Taiwan is not a UN member. If China actually took action the world, not just the US, would do nothing, just as they did nothing for Tibet and nothing for Hong Kong, just as nobody raised any opposition over the US in Iraq.

    --
    -fb Everything not expressly forbidden is now mandatory.
  26. Who is John Galt? by thegmann · · Score: 2, Interesting

    Ayn Rand would love this one.

  27. Re:Yikes by DECS · · Score: 2, Insightful

    The US defends the interest of corporations, not people.

    American corporations have interests aligned with patent law.

    Get it?

  28. Two Problems by Agarax · · Score: 3, Insightful

    Drug research costs a lot of money. I know Drug companies can get greedy at times, but even if you were running at cost you would be spending tens of millions on research.

    If this was a one shot magic bullet cure for cancer, aids, ect I think few would object to the suspension of the normal rules.

    Unfortunatly, Aids gets resistant rapidly to the current generation of drugs, so you have to have a constant ammount of research going into it (more money).

    But if the drugs are outragiously expensive, people die.

    If no one pays the drug companies for the research, they might abandon it and more people would die.

    I think a balance needs to be struck, either with government funding or an agreement to sell the current drugs nearer to what they actually cost the companies.

    --
    Remember folks, slashdot doesn't have a -1 "disagree" moderation!
    1. Re:Two Problems by Max+von+H. · · Score: 2, Interesting

      Oh, come on, don't be so naive. Pharma companies such as Roche have developed drugs that are extremely efficient against many forms of cancer, yet those drugs don't exist on the market for the sole reason there's not enough profit to be made. Not that they'd lose money over it (ever seen big pharma posting losses?), just that the profit margin wouldn't be big enough. Instead, the molecules end up in veterinary drugs that improve productivity (the case for one of Roche's molecules primarily developed for a certain -an severe - kind of ovarian cancer) or in a sealed envelope at the bottom of vault, never to be seen again, a complete and utter loss of knowledge.

      The same goes for research. For instance, did you know several pharma companies barred researchers from developing any kind of AIDS vaccine for the past 20 year? If such a vaccine existed, it'd have to be mass produced as a generic in the face of the epidemic, which is now killing millions in under-developed (read poor) countries. Instructions were given to only develop treatments as long and expensive as possible to maximize profit.

      My ex-wife works for one of Roche's competitors and she told me of several efficient drugs being shelved because the marketing dept decided the profit forecast was too slim. Thousands of people (obviously not enough) with multiple sclerosis, Crohn's disease or AIDS are being left aside dying and/or suffering on the altar of profit and (I guess mostly) shareholders' dividends.

      Pharma companies are truly evil, probably a lot more than all other industries put together. The welfare of human beings definitely isn't one of their objectives and hasn't been for quite some time now. Remember they have no interest whastoever to see us fit and healthy!

      Cheers,

      --
      -- It's always darker before it goes pitch black.
    2. Re:Two Problems by maxpublic · · Score: 2, Insightful

      Pharma companies such as Roche have developed drugs that are extremely efficient against many forms of cancer, yet those drugs don't exist on the market for the sole reason there's not enough profit to be made.

      Cites? Sources? Empirical studies published in accredited, peer-reviewed journals? Sounds like X-Files garbage to me.

      Thousands of people (obviously not enough) with multiple sclerosis, Crohn's disease or AIDS are being left aside dying and/or suffering on the altar of profit and (I guess mostly) shareholders' dividends.

      A rational person would need evidence for this that goes beyond whatever anecdotal hogwash your ex-wife happened to feed you.

      Max

      --
      My god carries a hammer. Your god died nailed to a tree. Any questions?
  29. Two evils... What is Right? by HunterSun · · Score: 2, Interesting

    What you have here is a case of two evils. To ignore patent law to save people, or to ignore people to give into greed. The drug companies are out to make money. Not something anyone should readily discourage. However, its also a fact that many companies are doing so at the great expanse of lives or what value there drug really has.

    Point in fact, for any specific drug. There is generally as much marketing money spent as R&D money spent. Often times quieting the facts of studies made or of even the true effectiveness of said drugs.
    As well, often times the base research for said patents comes from Tax dollars.

    Now, evils aside of the "Innocent" victims.

    Bird Flu and it's variants is feared to be a global killer should it ever make it into the population at large. To not allow it to be reigned in early on would be a crime committed by all and any soverign nation. How would you like to see 1/10th of the US nationality wiped out because we wouldn't allow anyone access to such drugs? (Probably an over dramatization, but historically has happened)

    Also, would research really go away??? The answer is Hell No. Research will still go on, by those who care. It went on before there where Biological Patents. It would go on after too. Penecillan didn't come about because of potentially making a multi millionairre out of the CEO.

    Our Patent system is currently extremely innaccurate on what its true purpose is, which is just compenstaion. There should be a feasibilty limit on what anyone can charge for a patent in relation to its true development costs and difficulty of Idea.

  30. It's OK to "steal" to preserve life by Jedi_Knyghte · · Score: 3, Interesting
    Are there precedents, procedures for doing so?

    Yes. St. Thomas Aquinas addresses this in ST II-II.66.7. "It is not theft, properly speaking, to take secretly and use another's property in a case of extreme need: because that which he takes for the support of his life becomes his own property by reason of that need." Although this would not be a "secret" taking (it's in the headlines!), the principle still replies. IF (and I stress the "if" because I have no idea what the price tag was) Roche is truly being unreasonable in their demands, and IF (ditto) the need to act now is truly extreme, then the Taiwanese government does have the right to act in violation of the patent.

  31. Re:I Agree, but... by omega_cubed · · Score: 4, Informative
    RTFA:
    Taiwan will produce six kg of its version of Tamiflu - enough, according to the government, to renew its stocks.

    The government has said it will not market the drug commercially.
    According to TRIP, such use should be allowed (if I am interpretting it correctly). Scroll down to 10th paragraph in the "Patents" section.
    --
    Engineers also speak PDE, only in a different dialect.
  32. dear /. eds. - it's "infringement" , not violation by indaba · · Score: 2, Insightful
    You violate a person, you infringe a copyright or a patent

    That's the language all English speaking jurisdictions use. So why choose such an emotionally laden word like violation ??

    Australia
    PATENTS ACT 1990 (Cth)
    Chapter 11--Infringement
    http://www.scaleplus.law.gov.au/html/pasteact/1/54 5/top.htm

    USA
    CHAPTER 28--INFRINGEMENT OF PATENTS
    http://www.law.cornell.edu/uscode/html/uscode35/us c_sup_01_35_10_III_20_28.html

    UK
    s60 - s71 Infringement
    http://www.jenkins-ip.com/patlaw/index.htm

  33. Eminent Domain? by monk · · Score: 2, Insightful

    IANAL, but this sounds like an appropriate use of eminent domain.

    --
    [-- Trust the Monkey --]
  34. USA did this once. by JustMy2 · · Score: 2, Interesting

    The USA did this to Bayer in the early 20th century (WWI?) with aspirin. IIRC, Bayer held German and US patents on the drug. The US gummint decided that the drug was vital to national security and directed other folks to manufacture it. Bayer was never compensated for its loss, and came close to closing. Bayer never regained US market share, either.

  35. Re:Yikes by gorbachev · · Score: 2, Insightful

    Well, no, but Roche might feel less inclined to import their drugs to Taiwan in the future. That's not necessarily great for Taiwan.

    --
    In Soviet Russia, I ruled you
  36. Fallacies by tabdelgawad · · Score: 2, Interesting

    "The majority of the expenses associated with new drug discovery are actually made in the public sector - by Universities and so forth."

    Private R&D spending on pharmaceuticals exceeds public R&D spending. This is actually true for R&D in general ($132 billion federal vs. $190 billion industry), and it's true for pharmaceuticals ($30 billion federal vs. $49 billion industry). For the first 3 figures, see here:
    http://www.aaas.org/spp/rd/rd06main.htm [chapters 2 & 4]
    For the last figure, see here:
    http://www.phrma.org/publications/publications//20 05-03-17.1145.pdf
    The last is an industry organization, but r&d spending is part of companies' public SEC filings and the figures are in line with the aggregate numbers.

    It's a fallacy that public and private pharmaceutical r&d are substitutes. Public r&d tends to focus on basic science while private r&d focuses on specific drug development and testing. Here it is from the horse's mouth:

    http://ott.od.nih.gov/Reports/211856ottrept.pdf

    The public sector would be just as good at developing drugs as it would be at making cars and televisions (see Union, Soviet).

    "these additional resources are a *fraction* of the total increase in drug prices that result from the patents they are awarded"

    If patents over-compensate drug companies, then we'd see a lot more entry into the (apparently very lucrative) drug business by new firms until these extra-ordinary returns are competed away. Even with patent protection, lucrative business models attract entry by competitors until excess profits are competed away.

    --
    Imposing Libertarian views on everyone online since 1992.
    1. Re:Fallacies by sam_handelman · · Score: 3, Interesting

      Gah, I can't sleep. I didn't even notice this response and it's the best among the lot.

        When I said "public" I meant to include non-profits as well as "private" universities; non-indutry would be a better term - in my lab this equals about 20% of federal funding, which is probably about typical, although in cancer research is it much, much higher.

        I would say that you should also include a variety of tax-breaks - often at the State level - which are given in some way theoretically conditioned on R&D, as non-industry funding. State governments, or funds that pass through state agencies in one way or another (from tuition, etc.) also pay, indirectly, a varying but sometimes significant portion of the cost for research at some state universities, the accounting is not transparent so this is much more difficult to tally. So the State share is non-zero, but hard to say how big it really is.

        Industry also spends a significant amount on R&D actually located in Universities, but I'm pretty sure they include that in their filing. My lab gets hardly any industry money but my Dad gets a fair amount.

        On the other hand, Columbia (my institution) in particular makes a fair amount of money from patent income, and it would be highly disingenuous of me to include that in the "non-industry" R&D total, given what I am proposing.

        Finally, the federal number has not grown as much as I would have expected, I haven't actually seen these numbers for a few years, I'm pretty sure that the Federal pharma R&D was bigger when last I looked.

        Anyway, thank you for the correction, but you can change "most" to "comparable amounts" in my original post it doesn't really change anything.

        Your prediction is simply not holding up to recent history - my evidence here in anecdotal, but when a scientist develops a new drug, they start up a little company - so that they can sell the patent to Pfizer. For them to actually make the drug themselves depends on assumptions regarding low cost of entry which simply do not hold in this case. The result of this is that we have a sustained oligopoly which will not fix itself through competition, and is in fact becoming more entrenched.

      --
      The good and new comes from no quarter where it is looked for, and is always something different from what is expected.
  37. What makes you think R&D Costs Alot? by whogben · · Score: 2, Interesting

    Drug companies like to whine about how much money they spend in R&D for a given drug - but they don't spend that much money. The money goes into marketing, and into profit. Developing a fancy shmancy drug might involve a 6 million dollar large scale surveys, it might involve 20 senior scientists and 40 assistants for 2 years. If the senior scientists make 200,000 a year and the assistants make 100,000 lets say R&D salary is 16 million then. Perhaps there are 20 million in facilities costs, property taxes on those facilities, which is a one time cost for the company as they can reuse their facilities. being enormously generous, and factoring in lots of mishaps, lets say there is a 10 million dollar budget for materials - including buying time on electron scanners, glassware, test monkeys, cable TV for the break room, etc, This still all adds up for a startup R&D cost of 52 million dollars, and a running cost of 32 million dollars. Ive probably overlooked lots of costs, and been naive about others, lets jump the R&D cost up to 100 million dollars just to be safe - this still doesn't require 40 years of price gouging patent control to be profitable. Rather, companies skimp on the R&D and spend on the advertising. Their ultimate goal is to sell drugs - whether those drugs are better or worse than the competition is 80% in the mind of the consumer. If a new class of drugs comes out, to compete, they can just buy a patent from a smaller group. The money goes into competitive advertising, the R&D that sells drugs is in the minds of the consumer. GJ Thailand!

  38. We're dying under the current system by HangingChad · · Score: 4, Insightful
    We all die equally.

    We are now. I know many older Americans skipping or cutting down on their meds because they can't afford them. People without insurance can't afford brand name drugs as it is. The reality is people are dying now because they can't afford insurance and proper health care, including some of those 500 dollar prescriptions.

    Perhaps you meant "many, many drugs for people who have insurance will never get developed." Which might be true. All in all, I think having fewer drugs more widely affordable would be a step ahead of where we are today.

    If those windfall profits were actually going into R&D, I'd have more sympathy for the big name drug makers. But the bulk of those profits are going toward enhancing shareholder value, making rich people even more rich. Otherwise how can drug makers ship drugs to Canada who then sells them back to our own citizens for less than we can buy them here? Canadian pharmacies are still making a profit. The only way that math works is the certain knowledge that we're getting boned on drug prices.

    What you say is true from one narrow perspective but not on the macro scale. Drugs are likely only to be the first patents ignored on the world market. Technology might be next. Perhaps you've noticed the really hot tech doesn't premiere here anymore. The new buzz phrase is "No word on when it will be available in the US." Maybe never.

    As our patent system becomes ever more litigious and retarded more countries are going to be tempted to bust technology patents for use in their own country.

    And, of course, we can't take on patent reform without first making sure all those people in bankruptcy because of catastrophic medical expenses go to credit counseling and pay back their credit card bills and that we shield those poor gun makers from legal liability. Those are obviously hugely important compared to poor people dying, and old people we're almost dead anyway, but I'm sure our Republican servants of the people will get to that patent thing just any day now.

    --
    That's our life, the big wheel of shit. - The Fat Man, Blue Tango Salvage
    1. Re:We're dying under the current system by SQL+Error · · Score: 2, Insightful

      Otherwise how can drug makers ship drugs to Canada who then sells them back to our own citizens for less than we can buy them here?

      Simple.

      U.S. sales are subsidising Canadian sales.

    2. Re:We're dying under the current system by Pecisk · · Score: 2, Insightful

      Bullshit. They are not "subsiding" nothing (they still sold FOR profit). They just make sure that companies have *huge* profits instead of *good* profits. Because, hey, you in US, you don't mind at all :)

      You want to know how much real percent of cost of developing and manufacturing drugs is? Maybe 35%-40%. All the rest is pure profit.

      It is called lack of competition.

      --
      user@ubuntubox:~$ stfu This server is going down for shutdown NOW!
  39. USA also threatened to ignore patent by call+-151 · · Score: 3, Informative

    Charles Schumer, the senior senator from NY, has been big on this in the last month (and has been big on affordable drug policies for years...) First he said it was inexusable that Roche was putting their profits ahead of widespread safety, and last week said that Roche was being unreasonable in refusing to take steps to make the drug more widely available (not stepping up production, not meeting with other potential producers). Schumer threatened Congressional action to ignore the patent if there was no action from Roche in 30 days. Now it sounds like Roche relented, at least a little in the US market, and has agreed to step up production and at least talk with other potential producers about licensing.

    --
    It's psychosomatic. You need a lobotomy. I'll get a saw.
  40. You know, I actually asked this once. by Grendel+Drago · · Score: 3, Informative

    I was told that Barry Marshall and Robin Warren's discovery that peptic ulcers could be frequently cured by antibiotics instead of maintained with proton-pump inhibitors was suppressed until some major patent or another ran out and the discovery was no longer a threat to someone's monopoly.

    But that's a rather weak case, so never mind.

    --
    Laws do not persuade just because they threaten. --Seneca
  41. It's FAR worse than that... by alexhmit01 · · Score: 2, Insightful

    The drug would be affordable for Taiwan to treat the DISEASE, but that isn't what they are looking for.

    So far this "epidemic" has claimed 60 lives. While it is tragic for those families, it isn't a return of the plague.

    The disease is not currently jumping from bird -> human except in cases of HEAVY contact, and there is no human -> human jumping.

    In previous "bird flu" epidemics, illegal versions of the drugs were used to treat birds by poor farmers rightfully fearing losing their livelihood. As a result, the remaining disease was resistant to the treatment, and previous treatments were no longer valid. There is an article in this month's Fortune on the issue...

    Basically, if you keep the price high, people (or their governments) will pay for it to save lives, but not over use it to the point of treating birds...

    It's not simple, and that's without debating the merits of our current private sector drug industry...

    Alex

  42. Proportion? by coastwalker · · Score: 2, Insightful

    You mention the need for patents in order to protect "the future"

    I think you are underestimating the possibilities of this bird flu.

    it could wipe out world stock markets for a decade.

    Its in your interests for all governments to catch this one early and effectively, whatever methods they use.

    If it appears, then there will be desperate attempts to stop it, for example you can be sure that any country that has a pandemic and is isolateable will have anything that moves over its boarders terminated with extreme predudice. Maybe the rest of the world might agree to wipe the place out with nuclear weapons.

    Unfortunately if a human transmissible version of this virus appears then even this will be pointless. Only half a million Americans died in the 1918 pandemic and 50 million worldwide. There was no air travel at the time so it wouldnt be suprising if these figures were a hundred times higher for a pandemic today, it would be everywhere within a week.

    The USA is not exactly shining with glory over its disaster preparedness planning since the debacle in New Orleans. I hope that the federal government that many seem to so despise is prepared to manufacture a flu vaccine for you personally. In the UK the government has just announced contracts to make 120 million doses of vaccine, of course they wont be able to make them all for the first wave, but it should be three months before the second wave and that should allow time for at least the surviving medical staff, army and police to get a dose.

    Mind you life is full of risks, the media delights in scaring us with the latest one.

    Some we live with and over time grow complacent about. Californians have the next big earthquake, New Orleans have had their Leves breached and the Kashmiris have their earthquake. It is instructive to compare the effect of catastrophe on different places, a thousand deaths in Louisiana, 45 thousand in Pakistan and few if any from the little quakes in California.

    The thing that appears to have made a difference in these cases is the degree of preparedness. Californian building codes verses Pakistani ones (admittedly they couldnt afford much better ones) and New Orleans mostly got out in time. Also the tsunami which would have had much less effect if people had an hours warning to walk inland.

    A bird flu inflenza is a very real threat, by this time next year a third of us could be dead.

    Pandemic illnesses and in fact most viral illnesses have been found to have come from cross species transmission, their danger comming from the fact that they have slowly mutated in an animal species into something that the human immune system knows nothing of. The virus itself may once have transfered from human to bird. So when it crosses the interspecies boundary we have no remembered defence, this is the case with bird flu. Up to a third of the individuals who have caught it directly from birds have died. All that remains is for an individual to be carrying a normal easily transmitted human virus to catch bird flu and for the two kinds of virus to exchange components and you get a human influenza that carries the nasty behaviour of bird flu. try a google search for antigenic drift or just have a look at CDC.

    I dont know what the risk is of the two virii cross pollinating in this way - but the microbiologists seem worried that this will happen. You would have to find out what the probability of this is before you can say whether a pandemic is imminent and I dont think anybody has reliable figures on this. Governments seem to think it inevitable.

    However consider the known risk factors that the media get excited over that we all live with eg Nuclear power station melt down, heart disease, cancer, food dyes, various slightly suspect chemicals in products we come in daily contact with (that give a rat cancer if you feed the rat its own body weight of the chemical), pesticides, being run over by a bus, being struck by lightning etc

    - none of these are likely to destroy our

    --
    Facts are history now plebs have politics for religion on social media.
  43. Hey, patents are NOT property! by argoff · · Score: 2, Insightful

    FYI, patents are a personal monopoly granted by the government, not a natural law property right. They are not anything like regular property that has natural physical limits in supply and demand and no expiration date. Properties are about controlling limited resources, not about controlling people. They are not a valad property right any more than slaves on the plantation in 1850, and considering all the people they kill by locking out cures for diseases, and life saving innovations that were likely to happen in natural progression of things anyhow, they are agruably worse.

    The most crazy part is that people say they promote R&D when patents really kill it. Patnets skew R&D so that researchers don't collaberate, and so that cheap inexpensive pratical cures to diseases are shuned and even attacked.

    Seriously, if you steal my car I think I would be very violated and deprived of my transportation, but if you make a copy of it - hell have 10! The notion that copying and immitation is a form of stealing is bullshit morality, and the people who impose it are really the ones who are immoral.

  44. Canada did this recently by mike.newton · · Score: 2, Informative

    During the 'anthrax scare' our health minister bought a load of generic anthrax vaccine, even though it was patented by another company. The news was talking earlier in the week about the possibility of doing it again in this case. They mentioned an Indian company that's already manufacturing a generic version of Tamiflu. But they also said that Roche is loooking at licensing their drug to generic drug manufacturers so they can still make a buck (or 50 million) even though they can't manufacture enough of the drug.

  45. Let's be realistic by LookingFondlyForward · · Score: 2, Interesting
    This bird flu stuff is scary shit. The last time a virus similar to it (the 1918 flu) mutated into its human form, tens of millions of people died. When (not if) the bird flu mutates into its human form, that many, and more, are at risk of death from it.

    This is not an abstract statistic. Real people, your friends and family included, will get the virus, have fever, cough blood and die within a few days... simple as that. I've heard that 98 of 100 will survive the bird flu pandemic... seemingly not bad, but do you realize what that means? Think of a hundred people you know about (I'm sure you can) now think of the bird flu randomly killing any two of those people... are you ok with that? This is the future we are going to be dealing with all too soon.

    This is why any discussion as to what incentive there is for drug companies to develop vaccination to the bird flu seems so ridiculous to me. First off, bird flu (when it happens) will only last for one season... no matter how you slice it, there could never be any real market (as there is with AIDS) to continuously fend off bird flu long-term... it is an immediate, one-time emergency. Second, with the first point in mind, there doesn't always have to be a financial benefit to making a life-saving vaccine. There are plenty of ways of making money on other drugs that do provide continuous streams of revenue (like heartburn pills, anti-depressants... almost anything, really). Here's an idea for the drug companies: relinquish your patent, work with the government willingly to save lives from this global pandemic. Let taxes offset the cost of production and offset the rest of the production by jacking up the prices on your other, non-critical drugs. I'm not sure about everyone else, but I'd gladly welcome a kick in my taxes and pay an extra $10 per box of Prilosec (or whatnot) to know that my loved ones and I will be safe from this coming pandemic.

    Food for thought: The children and the old people will be the safest from the bird flu because of their weaker immune systems. It will be people in the prime of their lives who will die the most quickly and violently because the bird flu attacks the lungs and a healthy immune system, in trying to kill the bird flu, will also attack your lungs! This is a gruesome prospect, the likes of which the most of us have (hopefully) never before had to deal with.

    I sincerely believe that we as a people can prepare for and prevent this, but first we have to make the decision to do so.

  46. The Taiwan Corruption Budget by Principal+Skinner · · Score: 2, Funny

    "Tiawan can afford the drug. The amount of money in the corruption-fueled grey economy of corrupt officials is more than enough to buy the drugs....It's not about lack of money in Tiawan, but about priorities of spending"

    I just wish they would fix those priorities. Someday, I hope to hear the following exchange in a session of parliament in Taiwan:

    "All right guys, we've got a serious crisis on our hands; we need to reset our budget priorities. Here's our priority list from last year:

    1. Defense.
    2. Corruption.
    3. Social Security
    4. Education

    Now, the drug company is asking for a lot of money for this bird flu drug, and the money is going to need to come from somewhere. Personally, I'd like to see us cut back on our current Item Number Two a bit. Who's with me?"

    [An awkward silence.]

    "Come on guys, I know we all really like buying big houses for our friends and such, but could we maybe just, you know, ease up on it for a year or two? We'll just get this bird flu thing knocked out of the way and we can get back to business before you even notice anything's happened."

    A murmur runs through the room. It grows louder. Heads shake, people are seen scribbling things on notepads. Finally, Li Fau-Ching, the oldest, most respected MP, stands up, and says, "I'd like to propose a 30% cut in corruption!" Gasps are heard on the floor. Another MP stands up, and says "I'll second". Another stands, and another. Somewhere, an upbeat pop tune starts playing. The bird flu drug advocate, a dashing young freshman with a doctor girlfriend, smiles. Maybe Taiwan can change, he thinks. Maybe.

    --
    one hundred twenty
    is just enough characters
    to write a haiku
  47. Good, Bad, I'm the guy with the dope by billcopc · · Score: 2, Interesting

    I just want to be clear on this: are pharmaceutical megacorps good or bad ? The way I see it, they are effectively imposing a ransom on health. Why are drugs so expensive ? Because they are in demand. It's basically like saying "If you don't pay, you're gonna die. So exactly how much money have you got ?" And they jack up the price accordingly.

    Health care and medicinal research should either be government-communized so everyone can have access to proper treatment and medicine, or shot to hell so as to skim off the weak and purify the breed through natural selection.

    Now I still hate humans and wish most of them would die a horrible death for my primal amusement, but I think I'd rather see fully subsidized health care for all, and toss these glorified drug dealers back into the ranks of the working poor.

    The less rich people there are, the less poor people there are. Now I'm not saying to swing into full-on communism, but maybe as a modern society we could find an efficient mix of various ideologies in order to benefit humankind as a whole. Capitalism at the expense of lives only breeds more hatred.

    --
    -Billco, Fnarg.com
  48. money not the problem. supply doesn't make demand by pikine · · Score: 2, Interesting
    Tiawan can afford the drug. The amount of money in the corruption-fueled grey economy of corrupt officials is more than enough to buy the drugs. ... It's not about lack of money in Tiawan, but about priorities of spending.

    Taiwan does have the money, but the BBC article failed to point out that Roche has been insufficient in supplying Tamiflu to meet worldwide demand. Taiwanese government plans to address the supply issue by manufacturing the drug in solutions. This has at least two benefits:

    1. Solutions are much quicker to make than pills.
    2. Ingredients can be stored longer, which reduces replenishing of the stock due to drug expiry.


    Beyond meeting the supply, Taiwanese government does plan to compensate Roche for what Tamiflu is worth. As I understand it, a negotiation is still going on, but it is true that Taiwanese government has went ahead to produce the drug. BBC does not make it clear either.
    --
    I once had a signature.
  49. Re:must be done carefully though, in both cases by Jeffrey+Baker · · Score: 4, Informative

    Do you know why Roche, and so many other pharmaceutical companies, are based in Switzerland? Because when they were founded there Switzerland had no intellectual property laws and did not recognize any such foreign laws. So Roche, Ciba, and the rest set themselves up in Switzerland ripping off patented formulas from the UK and elsewhere.

    Now that Roche have got themselves a nice protectionism program going with the patent system, they don't think any other company, or nation in this case, should do to them what they did to their UK competitors. If any of the founding bandits were still haunting the boardroom at Roche, they would recognize the supreme justice of the current situation.

  50. But what about the biotech inventors? by DrCJM · · Score: 4, Interesting

    What is particularly unfortunate is that many drugs (including tamiflu and the superior inhaled drug relenza) were invented by relatively small biotechs. (OK, Gilead isn't small any more, but Biota is *tiny*). Small biotechs are absolutely reliant on the fees and royalties they generate through licensing their inventions to Big Pharma, who have the money to get them through the FDA approval process and marketed.

    Break a patent for Roche or GSK, they'll be annoyed but hardly notice the change in cash-flow. The biotech, however, will lose its sole cash-flow life-line. Biota are collaborating with Japanese pharma Sankyo to produce a second-generation antiviral for influenza that looks like being needed once-weekly for both prophylaxis and treatment. Be a real pity to destroy promising biotech-level research like that by cutting profits at the Big Pharma end of town.

    Disclaimer: Yes I work for a biotech - own shares in them too.

  51. breaking the tamiflu patent by dargon · · Score: 2, Interesting

    So far as I understand it, the reasoning isn't to take profit away from Roche. The problem is that while Tamiflu is very effective at preventing the flu, there simply isn't enough should H5N1 mutate into a human -> human transferable virus. A single dose of Tamiflu will protect a single person from contracting the flu for a single day. Given that the typical flu season is roughly 100 days, give or take, each person would need 100 doses to protect themselves. Right now, the Canadian gov't has stockpiled approximately 22 million doses. As of July of this year, Canada's population, according to the CIA world factbook, is 32,805,041 people, that's less than 1 dose per person. Canada alone would need 100x the current amount to protect the majority of it's population from a pandemic of H5N1, let alone the rest of the world. The patent would be broken to allow for more companies to create the drug, rather than Roche alone who simply can't meet the current demand.

  52. No Sympathy for the drug companies. by Gel214th · · Score: 2, Interesting

    They are some of the most unethical businesses around. DOes anyone realise that legally a drug company could have found a good cure for HIV, or Cancer, and decide through profit analysis that it is worth more to them to keep treating the disease rather than cure it. They patent the procedure/enzyme/Gene and then no one else has access to their research, or can produce a product based on that patent. I wonder what sort of negotiations Taiwan put forward which were rejected by Roche. I wonder what price they put on the drug? Could they not have agreed under very specific circumstances to allow the creation of the drug? Is it that if there IS a pandemic too bad for the rest of the world if Roche can't produce enough of this drug, at the end of the pandemic they'll make billions so good for them? Is that what it's about? Human lives too often become reduced to numbers on a profit-loss chart. I say good for Taiwan.

    --
    -Gel214th
  53. Re:What industry? by maxpublic · · Score: 2, Insightful

    Now, the NIH has made a great many mistakes, but if you think the NIH even *approaches* the corruption and incompetence of the drug industry, you're from Mars.

    A government agency is more competent than private industry? You've never worked for government, have you?

    at the same time, government financing of R&D should, as a policy question, be expanded to take up the slack.

    So, instead of the funding being voluntary (through private industry research) you want it to be involuntary (through tax dollars). Thanks, but I think government taxing authority is far too out of control as it is; I certainly don't want to give them more of my paycheck.

    *is it* a capitalist solution, or not?

    Of course it isn't. That's obvious on its face.

    I stand by my statement that public financing of R&D is less of a market distortion than are patents, and therefore is more capitalist. Why and in what way am I wrong?

    That's a contradiction in terms. Capitalism requires voluntary transactions; government taxes at the point of a gun, an inherently involuntary transaction. Worse, no market forces of any sort are used to decide the distribution of resources, including manpower (your bureaucrats certainly aren't going to be the best people for the job).

    Max

    --
    My god carries a hammer. Your god died nailed to a tree. Any questions?
  54. Fortune Magazine Commentary by icbkr · · Score: 2, Interesting

    Fortune ran an article this month on this very subject. Had a nice scientific angle to it, rather than just an emotional-political bias. Also illustrates that lovely topic "natural selection" or "evolution" to be perfectly rude.

    The gist of it is, if you dump Tamiflu into the environment to save a bunch of chickens, which is what the Asian governments are discussing [not, as you might think, to save a few sidereal infected humans] you're going to destroy Tamiflu's effectiveness. To put this in perfect perspective for you, if THEY push Tamiflu into the environment when the virus hasn't even crossed over to a human pandemic state, the virus will adapt, and by the time it's crossed over and YOU are SICK AND DYING, Tamiflu will have zero affect on the virus, and YOU will have no defense, making your chance of death about 25% based on historical projections. So Monday, when you get to work, look around, and imagine 1/4 of those people not there because some fucking QUACK in ASIA had to save some DUCKS.

    Some cultural suffering v. My survival = ROAST DUCK Here's more background material from Foreign Affairs, written by some smart people that may shed additional light on the subject.

  55. Re:Yikes by StikyPad · · Score: 2, Funny

    We do, when we need a laugh.

    -The Military