STRATEGIC MANAGEMENT ASSIGNMENT
The concept of product patent for pharmaceutical products is likely to make life saving medicine beyond the reach of the poor and deprived section of the society around the world. A number of African countries have been the worst hit by the spective of AIDS. CIPLA an Indian Pharmaceutical Company has offered to market ant aids medicine at one length the cost at which it is sold by global pharmaceutical firm. However due to the product patent, law, substantial controversy has been generated around the globe on ethical grounds
As a business management, strategist discuss and advice on how to deal with this Issue.
A patent is a legal document that is granted to the first person to invent a particular invention” states Nicholas Godici, former Commissioner of Patents at the United States Patent and Trademark Office (USPTO). “It allows them to exclude others from making, using or selling the invention that’s described in the patent for a period of twenty years from the date that they first filed the application.”
The term patent originated from the Latin term literae patentes (letters patent) which means ‘open letters’. The origin of patent law in India can be traced back to the law and practice on patents in the United Kingdom. The Indian Patents Act of 1970 was modeled on the British Patents Act of 1949 as amended. However there exists a stark difference between the Indian Patents Act of 1970 and the British Patents Act of 1949 in the sense that the Indian Act granted product patents for food, medicines and chemicals only from January 1st 2005 unlike the British Act which provided such patents under the 1949 Act and continue to do so.
The term Patent has been defined under Section 2(m) of the Indian Patents Act of 1970. A patent confers on the patent owner or the patentee a negative right to exclude others from working or operating the invention for a limited period of time and hence grants the patentee exclusive monopoly rights over his patented invention. The term of a patent under the Indian Patents (amendment) Act, 2005 is for a period of 20 years after which the invention falls into the public domain and anybody can make use of the invention. It is then said to have become a part of prior art in the existing field. A patent right being a creation of a statute is territorial in extent. Hence the patent which has been granted in one country cannot be enforced in another country unless it has been enforced in that country also
Cipla is one of India's top five pharmaceutical manufacturers. Although Cipla's primary market is India, the company sells its products worldwide. Cipla's line of more than 400 drugs include anti-asthmatic, anti-cancer, anti-inflammatory, anti-depressant and anti-AIDS medications. Over the years, the company has developed strong research and marketing capabilities. In recent times, Cipla has attracted considerable media attention because of its efforts to offer AIDS drugs globally at very low prices. But in its quest to capture this market, Cipla faces the might of global multinational corporations, who are doing all they can to protect and enforce their patent rights. The case deals with all these issues in detail.
The Indian Pharmaceutical industry is one of the largest in the developing world and is ranked as the fourth largest in terms of production and 13th largest in terms of domestic consumption value. Over the past 30 years Indian drug industry has emerged from almost non-existent to a world leader in the production of generic drugs. With the changes brought about by the patents act of 1970, Indian drug manufactures became experts in the field of reverse engineering and increased its supply of less expensive copies of the worlds best-selling patent protected drugs. This could only be possible because there was no product patents system for drugs and medicines. While the patent act of 1970 in...
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