U.S. seeks modified compulsory licensing

The U.S. plans on Tuesday to submit a proposed framework to the World Trade Organization to facilitate access by poor countries to drugs for HIV/AIDS, malaria and other public health crises. The proposal seeks to modify existing WTO rules that limit the use of compulsory licensing in health emergencies to domestic manufacturers. Under the proposed rules, which are similar to a European Union proposal unveiled last week, developing nations could export drugs under terms of a compulsory license to countries that cannot manufacture them.

The U.S. plan also calls for WTO members to establish measures to prevent the diversion of such medicines away from intended recipients in poor countries back to higher-income, developed markets. The EU approach puts more emphasis on expanding access to drugs, while the U.S. is stressing IP rights. The European proposal would allow the least developed countries under specific circumstances to unilaterally override patents, while the U.S. wants the WTO to establish a system to grant waivers on a case-by-case basis. ...