Abstract:
The introduction of pharmaceutical product patents in India and other
developing countries is expected to have a significant effect on public health and
local pharmaceutical industries. This paper is an attempt to draw implications
from the historical experience of Japan when it introduced product patents in 1976.
In Japan, narrow patents and promotion of cross-licensing were effective tools
to keep drug prices in check while ensuring the introduction of new drugs.
Combined with a specially conceived health insurance scheme, this allowed the
emergence of drugs for diseases that particularly affect the Japanese population.
While the global pharmaceutical market surrounding India today differs
considerably from that of the 1970's, the Japanese experience offers a policy option
that may profitably be considered by India today. The Indian patent system
emphasizes the patentability requirement in contrast to the Japanese patent policy
which relied on narrow patents and extensive licensing. R & D by local firms and
the development of local products may be promoted more effectively under the
Japanese model.