WTO Strikes down Canadian Patent Rules

Nathan Newman nathan.newman at yale.edu
Sun Mar 5 02:30:54 PST 2000


Here's one more ruling in support of the abolish-the-WTO side of the argument:- NN

WTO Ruling Threatens Canadian Economic Sovereignty Source: CBC Published: 3/4/00

OTTAWA - Canadians may be forced to pay more for some drugs because of a ruling by the World Trade Organization over how long companies have before competitors can copy their ideas.

In an interim decision, the WTO says thousands of patents issued by Canada before 1989 don't last long enough. If upheld, the ruling could mean consumers will have to wait several more years before generic brands of some drugs that were about to be released are made available.

The dispute over Ottawa's patents was taken to the WTO by the United States. The case affects legal protection for all inventions, but patents on generic drugs are expected to be the toughest pill for consumers to swallow.

Until the fall of 1989, Canadian companies were given patents that usually lasted 17 years. After October, 1989, international law forced Ottawa to grant patent protection for at least 20 years.

The U.S. demanded Ottawa extend hundreds of thousands of older patents to conform with the new rules.

After reviewing arguments, the WTO sided with Washington. Although a final ruling isn't expected until April, the organization's interim decisions rarely change. If upheld, Canada could then appeal.

"I think the decision really is about greed," complained Jim Keon of the Canadian Drug Manufacturers Association. He predicted delaying just one generic drug could cost the country an extra $30 million.

But the big outfits that produce more expensive brand-name drugs argue that since generic drug companies don't spend money on original research they should be forced to wait before using competitors' ideas.

Canada's Minister of Trade, Pierre Pettigrew, issued a statement Saturday saying his department is still studying the ruling.

The federal New Democrats say Canada should tell the WTO to mind its own business.

"The Minister of Trade should make a very bold statement right away that he's not going to tolerate outside interference from any agency that would threaten our economic sovereignty to price drugs the way that we need to have them priced," according to NDP MP Pat Martin.



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