China implements policies to encourage generics

In policy reforms intended to increase the development and availability of generic drugs, China's State Council on Tuesday said it would improve the protection of IP rights for generics and clarify the compulsory licensing path for drug patents. The State Council will also reduce to 15% from 25% the corporate income tax rate for generic drug companies deemed to be high-tech enterprises.

To balance the interests of patent owners with those of the public, China will improve its system that protects IP rights, while enforcing its anti-monopoly law and establishing a patent "early warning" system to prevent generic drug companies from infringing patents. The State Council said it will encourage patent owners to implement voluntary licensing to improve the availability of drugs, adding that companies may submit to the State's IP Office a request for a compulsory license...