US Drops Brazil Patents Case, Paves Way for Low-Cost Drugs

Gustavo Capdevila and Mario Osava

GENEVA/RIO DE JANEIRO, Jun 25 (IPS) - The United States has withdrawn the patent complaint against Brazil it filed with the World Trade Organisation (WTO) Dispute Settlement Body, a move that could open the way for other developing countries to legally copy and manufacture certain patented medications.

Ellen ’t Hoen, of Medicins sans Frontieres (MSF, known also as Doctors without Borders), said that other nations could follow the example of the "successful Brazilian policy," which proved able to slash the price of AIDS drugs by 80 percent.

Other developing countries could exercise their rights to utilise WTO-approved measures such as compulsory licensing and parallel imports, pointed out Cecilia Oh, spokeswoman for the Third World Network (TWN).

The United States and Brazil issued a joint statement Monday that Washington would withdraw the WTO complaint against the South American country, an indication of the political strength of Brazil’s policy to ensure appropriate and cost-accessible treatment for all HIV/AIDS patients.

The provision - free of charge - of the "cocktail" of medications has allowed Brazil to drastically reduce its national AIDS mortality rate. In 1995, 10,592 Brazilians died from AIDS- related causes, compared to just 1,700 last year.

To ensure supplies of the combination of drugs to some 100,000 HIV/AIDS patients, Brazil produces seven of the 12 medications involved, most manufactured by the Rio-based company Farmanguinhos.

Praised by United Nations secretary-general Kofi Annan, the free distribution of AIDS drugs in Brazil is a model now being discussed at the UN Special Session on HIV/AIDS, this Monday through Wednesday, as international delegates draft a global action plan against the deadly disease.

In exchange for dropping the case, Brazilian authorities agreed to hold previous consultations with the United States prior to implementing compulsory licensing measures for pharmaceuticals.

NGOs involved in the debate on poor countries’ access to low- cost medications had long held that Washington originally filed the complaint against Brazil due to pressure from its pharmaceutical industry, a sector that moves some 350 billion dollars annually.

For the second time in barely two months, however, a patent- related lawsuit has unfolded in favour of developing countries.

The trend particularly benefits Africa, where governments are demanding interpretations of bilateral trade accords that respect their national health policies, especially those concerning treatment of their populations with HIV/AIDS.

Of the estimated 36 million people around the world who are HIV- positive, 25 million live in Africa.

In April, 39 pharmaceutical transnationals withdrew their case against the government of South Africa in that country’s national courts, a lawsuit involving the same questions of patent rights over AIDS drugs.

An international campaign, launched by organisations like MSF, Oxfam, TWN and Consumers International, has mobilised public opinion against the corporate criteria of "putting profits above health."

There is "growing global consensus" that governments should be able to take measures toward obtaining access to low-cost drugs in poor countries, said MSF’s ’t Hoen.

At the World Health Conference last month, the World Health Organisation (WHO) officially recognised access to medications as a human right, a proposal sponsored by Brazil with backing from more than 20 countries.

In addition, a WTO council on trade and patents met last week in a special session, with delegates agreeing to clarify multilateral rules so that they do not stand in the way of poor countries’ access to necessary medications.

The meeting of the Council on Trade-Related Aspects of Intellectual Property Rights (TRIPS) made that very clear, commented ’t Hoen.

During that debate, which involved representatives from the WTO’s 140 member nations, the United States was very isolated, she pointed out.

The Brazilian Foreign Ministry’s Assistant Secretary of Economic, Trade and Integration Affairs, Jos Alfredo Gra a Lima, denied that there had been pressures on Washington and Brasilia to hammer out an agreement to avoid the WTO lawsuit.

He did acknowledge that "reactions arising from various sectors certainly influenced the attitudes of the two countries." Gra a Lima described the agreement as "a victory for both sides and a victory for the international community."

For her part, ’t Hoen called it a triumph for the people of Brazil, especially for those who benefit from the successful health policy that permits the production of AIDS medicines inside that country.

Third World Network activist Oh said she believes the international campaign contributed to the US decision, but, she added, this victory is also due to Brazil’s firm stance in upholding its health policies.

The NGOs announced that they would pursue their campaign until the WTO ministerial conference, to be held in Qatar in November, clears up the TRIPS rules so that developing countries can implement health policies without fear of being sued in local or international courts. (END/IPS/tra-so/pc/ff/ld/01)