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Aditya Raj

AN OVERVIEW OF INTELLECTUAL PROPERTY RIGHTS AND THEIR CONSEQUENCES FOR THE PHARMACEUTICAL INDUSTRY

Written by: ADITYA RAJ ,B.A LL.B (HONS.) ,GALGOTIAS UNIVERSITY

ABSTRACT

Ideas, innovations, and creative expressions that the public is ready to grant property status to are considered intellectual property rights, or IPRs. In order to enable the owners of intellectual property to profit commercially from their creations or reputation, intellectual property rights

(IPR) grant the owners of that property certain exclusive rights. Intellectual property is protected under a number of different laws, including patent, copyright, trademark, etc. An innovation that meets the requirements of worldwide uniqueness, non-obviousness, and industrial use is recognized with a patent. Better invention or creativity identification, planning, commercialization, rendering, and protection are all dependent on intellectual property rights

(IPRs). Depending on its area of expertise, each industry should have its own IPR policies,

management style, strategies, and so forth. The IPR strategy used by the pharmaceutical sector

is currently changing, and in the future years, a better emphasis and approach will be needed.


INTRODUCTION

Any original work of human mind, whether it be artistic, literary, technological, or scientific,

is considered intellectual property (IP). The legal right granted to an inventor or creator to keep

their idea or innovation secret for a predetermined amount of time is known as intellectual

property rights, or IPR For a certain amount of time, these legal rights grant the inventor/creator

or his assignee the sole right to make full use of their innovation. The importance of intellectual

property in the modern economy has long been established. Additionally, it has been unequivocally proven that the innovation's intellectual effort deserves recognition in order for

the public good to result from it. The expenses of research and development (R&D) have skyrocketed, and this has led to a corresponding increase in the investments needed to introduce

new technologies to the market. Because technology developers now have very high stakes in

their work, it is necessary to secure knowledge from unauthorized use, at least temporarily, in

order to recover R&D expenses and other related costs and generate enough revenue to fund

ongoing R&D expenditures. Since it gives the creator/inventor an exclusive right to use his

creation for a set amount of time, intellectual property rights (IPRs) are an effective tool for

protecting the time, money, and effort that the creator/inventor has invested in creating an

intellectual property. IPR thus supports a nation's economic development by fostering healthy

competition, industrial progress, and economic prosperity. The current review provides a

concise synopsis of IPR, with a focus on drugs.


BRIEF HISTORY

Europe is where the rules and regulations pertaining to intellectual property originated. The

fourteenth century saw the beginning of the patent granting trend. England was technologically

more advanced than other European nations in several areas, which attracted foreign artisans

on favourable terms. Italy is where copyrights were initially recognized. Venice can be regarded as the birthplace of the intellectual property system because it was here that most legal thought took place, leading to the creation of world's first laws and institutions, which eventually spread to other nations. In India, the Patent Act dates back more than 150 years. The first is the 1856 Act, which established the 14-year patent period and was modelled on the British patent system. It was followed by a number of other acts and modifications.


TYPES OF INTELLECTUALPROPERTIES AND THEIR DESCRIPTION

The phrase "Intellectual Property" currently refers to much more than only patents, trademarks,

and industrial designs, which were the only types of property that were protected under it initially. Technology advancement is enhanced by IPR in the following ways:

(A) It offers a system for dealing with infringement, copying, and unapproved usage.

(B) Because all intellectual property is published, with the exception of trade secrets, it gives

the general public access to a wealth of knowledge. IP protection can be pursued for a range of creative endeavors, such as

(i) Patents

(ii) Features of any form, arrangement, surface pattern, line composition, and colour applied to an object, whether 2-D (such as textiles) or 3-D (such as toothbrushes), are referred to as industrial designs.

(iii) A trademark is any name, mark, or logo that is used to conduct business for any good or service and to identify the supplier or manufacturer. Trademarks are tradable and refundable. A trademark exists only because the goodwill of the good or service it represents exists.

(iv) Copyright pertains to the material manifestation of ideas and covers computer software, audio recordings, theatrical, musical, artistic, and photographic works.

(v) Geographical indications are indicators that designate a good as coming from a country, area, or place within that country, where a certain attribute of the good— such as its quality, reputation, or other attribute—is primarily related to its geographical origin.

When an invention meets the requirements of worldwide uniqueness, non-obviousness, and

industrial or commercial applicability, it is granted a patent. Patents may be issued for both

goods and procedures. A patent had a 14-year duration from the date of filing under the Indian

Patent Act of 1970, with the exception of procedures for making drugs and food, for which the

period was either 7 years from the date of filing or 5 years from the date of the patent, whichever

came first. Food and medicine products did not receive any product patents. Without the

requirement for registration, a copyright created in one of the Berne Convention's member

nations is immediately protected in all of the member nations. India has excellent copyright

laws on par with those of any other nation, and it is a signatory to the Berne Convention.

However, in nations that are not signatories to the Berne Convention, copyright will not always

be granted. As a result, copyright might not strictly speaking be regarded as a territorial right.

IPR may be given, sold, or transferred just like any other property.


ROLE OF UNDISCLOSED INFORMATION IN INTELLECTUAL PROPERTY

Though it is arguably the most significant type of protection for businesses, R&D centres, and

other organizations involved in IPR, the protection of concealed knowledge is least well-known

to and discussed by IPR participants. Generally referred to as trade secrets or confidential

knowledge, undisclosed information encompasses any formula, pattern, compilation, program,

device, method, technique, or procedure. Protection of trade secrets and confidential

information is nothing new to humans; throughout history, people have developed strategies to

keep valuable information private, usually by sharing it only with close relatives. There is no

distinct legislation in India that protects trade secrets, confidential information, or concealed

knowledge, despite the fact that laws pertaining to all forms of intellectual property are being

implemented at varying stages.

From the 1950s to the 1980s, there were few globalization or internationalization pressures,

and many nations—including India—managed to get by without implementing robust

intellectual property rights (IPR) laws. The chemical, pharmaceutical, electrical, and IT

industries have propelled globalization, which has led to significant R&D expenditure. The

product cycle is shortened throughout this process, and there is a significant chance that rivals

will reverse engineer it. Businesses realized that trade secrets were insufficient to protect

technological advancements. Benefiting from breakthroughs was challenging without

standardized laws and regulations governing copyright, patents, trademarks, and other related

matters. IPR gained significance within the World Trade Organization (WTO) in this way.


RATIONALE OF PATENT

Intellectual property rights (IP) in inventions are recognized by patents, which are awarded for

novelty and utility after rigorous review and opposition procedures. While most nations have

national IP protection frameworks in place, patents are only enforceable in the jurisdiction in

which they are sought. An innovation is primarily patented in order to profit from exclusivity,

which may be used by the inventor or their assignee to market the creation or provide a license

to a third party. Certain inventions, though, such as those that are frivolous or against natural

law, scientific ideas, mathematical techniques, or materials derived by mixing, do not qualify

as patents. Inventions pertaining to agriculture, medicine, atomic energy, and traditional

knowledge are among the other non-patentable categories of inventions.


RATIONALE OF LICENSE

In a license agreement, the licensor grants permission to the licensee to carry out specific tasks

that would be illegal otherwise. A patent license is legal since the licensor gives the licensee

specific rights over the patent. Additionally, "know-how," such as technical or business

knowledge, may be licensed by the licensor. The licensor gains from breaking through barriers

in international marketplaces, creating income, and expanding into new areas. Savings on

R&D, speedy market exploitation, and the newest products are advantages for the licensee.


MANAGEMENT OF INTELLECTUAL PROPERTY IN PHARMACEUTICAL INDUSTRIES

Drugs and pharmaceuticals are the technology sector that most closely fits the definition of

globalization and so require a robust intellectual property regime. Given that bringing a new

drug to market might cost a business anywhere from $300 million to $1000 million, not to

mention all the dangers involved throughout the development phase, no business wants to take

the chance of its intellectual property becoming publicly owned without sufficient profits.

Intellectual property (IP) creation, acquisition, protection, and management need to become

corporate activities on par with resource and money raising. We can be certain that the coming

knowledge revolution will require that intellectual property be given significant consideration

and standing during the entire decision-making process.

Scientific knowledge, not industrial expertise, drives competition in the global pharmaceutical

sector, and a company's success will mostly depend on its research and development (R&D)

activities. Consequently, the pharmaceutical business invests a hefty portion of its overall

sales—up to 15%, according to reports—in research and development. Managing creative risks

while trying to obtain a competitive edge over competing firms is one of the major problems

in this field. Pharmaceutical research and development carries a significant risk of failure, with

promising medications that fail to fulfil strict safety criteria sometimes having their

development put on hold after years of investment. After the molecule is first produced, it takes

approximately 8 to 10 years for a drug to overcome development obstacles. Drug businesses

will need to refocus their R&D efforts from developing innovative techniques for

manufacturing well-known medications to developing novel drug molecules and new chemical

entities (NCEs) when product patents become the primary means of IP protection. Following

a phase of effectively treating numerous short-term disorders, research and development efforts

began to concentrate on long-term (chronic) diseases in the 1980s. One must make sure that

standards from various regulatory authorities are met when searching for a worldwide market.


It is acknowledged that within the past ten years, the number of documents required to be

submitted to regulatory bodies has nearly tripled. Furthermore, it now takes regulatory bodies

a lot longer to approve new drugs. As a result, the duration of patent protection is shortened,

necessitating greater work in order to generate sufficient revenue. For medications created by

biotechnology, particularly those that make use of genes, the situation might be more dire. It's

conceivable that the developed world will soon begin advocating for extended medication

safety. To achieve public objectives, it's also conceivable that numerous governments would

implement increasing amounts of price regulation. This would highlight the need for lower

costs associated with drug development, manufacture, and marketing, but it would also make

lower profit margin planning necessary in order to recover expenses over an extended period

of time. It follows that the pharmaceutical sector must navigate a maze of contradictory

regulations. Over the past ten to fifteen years, a wide variety of solutions for cost containment

and trade advantage have emerged. Among these include contracting out R&D work, creating

strategic alliances, and building R&D collaborations.


NATURE OF PHARMACEUTICAL INDUSTRY


Drug development's economics have changed as a result of the rush to unravel the human

genome, which has resulted in an explosion of scientific knowledge and new technology. It is

anticipated that biopharmaceuticals would offer customized medications, with physicians

depending on the data contained in chips. One significant IP concern is the safeguarding of

databases containing personal information. New strains are deposited with international

depository authorities in accordance with the Budapest Treaty, and the microbial strains

utilized in the development of pharmaceuticals or vaccines must be disclosed in patent filings.

Before disclosing their work, companies ought to file a patent application. R&D partnerships

can be established for a number of reasons, including pooling resources for production

facilities, marketing networks, and R&D know-how. Formal contracts addressing matters such

as intellectual property ownership, cost sharing, trade secrets, bookkeeping, and stronger IP

portfolio are recommended. The pharmaceutical sector is confronted with unjust practices that

compromise customer welfare and competition. Antitrust law must be utilized to address tactics

such patenting tiny components of outdated medications, reformulating ideas for new patents,

and developing advertising and brand names, even though legislative improvements and new

legislation can be helpful. With a $60 billion global market, traditional medicine, which uses

natural botanical items, plays a key role in providing healthcare to people. Traditional

knowledge-based medications are not patentable, although businesses and researchers

frequently assert intellectual property rights (IPR) over biological resources and/or traditional

knowledge. This trend is demonstrated by the rapid increase of patent applications pertaining

to herbal medicine.


SOME SPECIAL ASPECTS OF DRUG PATENT SPECIFICATION

Writing patent specifications is a specialized talent that calls for expertise in science,

technology, and law. The main component of a patent is its claims, which serve to safeguard

the invention. Although the finding of novel qualities in an existing material is not patentable,

an invention may be created if a useful application is found for it. If a chemical shows novel

results when combined with other well-known substances, it may be patented together. If two

known compounds can be combined to create a useful product and have a working relationship,

this could be covered by a patent. With 62% of applications having a medication or

pharmaceutical component, they are the most common uses.


CONCLUSION

It is clear that managing intellectual property rights (IPR) and intellectual property (IP)

involves a variety of tasks and techniques that must be in line with international treaties,

national laws, and best practices. It is no longer solely motivated by a national viewpoint. IP

and related rights are significantly impacted by market demands, consumer reaction, the price

of converting IP into a business enterprise, and other factors. To put it another way, trade and

commerce factors play a significant role in IPR management. distinct IPR types necessitate

distinct approaches, management, preparation, and tactics, as well as the involvement of

experts in several fields, including science, engineering, medical, law, finance, marketing, and

economics.


Depending on its area of expertise, each industry should have its own IP policies, management

style, strategies, etc. The IP approach used by the pharmaceutical sector is currently changing.

Antitrust law must therefore intervene to ensure that invalid rights are not being unlawfully

asserted to build and sustain illegitimate, albeit limited, monopolies within the pharmaceutical

business, given the greater likelihood that some IPR may be invalid. Many issues in this context still need to be handled.

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