The compulsory licensing question

By The Nation
Published on August 11, 2008

One of the biggest challenges facing newly appointed Public Health Minister Chaovarat Chanweerakul is deciding whether the ministry should implement compulsory licensing or suspend patent rights for certain life-saving drugs. Compulsory licensing would naturally be welcomed by the poor because the suspension of exclusive rights for certain pharmaceutical products should substantially lower prices. Therefore when the government imposed compulsory licensing for HIV/Aids, heart-disease and cancer drugs last year to cut the prices of these essential drugs for more than 100,000 patients, the decision was welcomed by the patients and activist groups.

However, compulsory licensing is a controversial issue. Pharmaceutical companies could claim the government imposes it arbitrarily and that they have to sell drugs at a higher price to recoup high value and years of investment. Besides, compulsory licensing does not help the country attract investment. Some pharmaceutical companies have threatened to suspend their investment in the country for fear their rights are not being protected.

Thus the government has to consider the issue with great care before imposing compulsory licensing on any pharmaceutical products in the future. The government should clearly spell out when it is necessary to impose compulsory licensing.

The desirable solution is for both sides to sit down and discuss a reasonable way to allow poor patients to have access to life-saving drugs. After all, the objective of the development of new pharmaceutical products is the well-being of mankind. So the drugs should be available to those who need them at prices they can afford.

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The compulsory licensing question

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