AusBiotech commends Productivity Commission’s draft report on compulsory licensing of patents

AusBiotech has commended the “thorough work of commission and its December 2012 ‘Draft Report’ on Compulsory Licensing of Patents”.

After making a submission in regard to the ‘Issues Paper’ in October 2012, AusBiotech has commended the “thorough work of commission and its December 2012 ‘Draft Report’ on Compulsory Licensing of Patents”.

AusBiotech said it generally supports the report’s draft findings and recommendations, and believes they appropriately support access to patented technology and maintaining the patent incentive to create and protect new technologies.

AusBiotech said it appreciates the commission’s attention to striking a balance between immediate access to technologies and the innovation system that enables them to be developed in the first place and, thus, accessible to the community.

In particular, AusBiotech was pleased to see that the report is supportive of a technology neutral approach to the treatment of intellectual property in Australia and of not creating compulsory licensing exclusions or exceptions for healthcare or a specific regime for public health.

AusBiotech agrees with comments in the report that in the event of compulsory access, an appropriate mechanism is provided to ensure patent owners receive a return commensurate with the commercial and regulatory risks they face. The tests applied must be reasonable and the companies concerned treated fairly in terms of compensation, so as not to discourage innovation.

In June 2012, the Assistant Treasurer, David Bradbury, and the Parliamentary Secretary for Industry and Innovation, Mark Dreyfus, announced the review.  The compulsory licensing provisions in the Patents Act 1990 safeguard against anticompetitive behaviour that might result from the exclusive rights obtained through a patent.

Previous Senate Committee and Australian Law Reform Commission reports on gene patents recommended a review of the operation of compulsory licensing provisions in the Patents Act 1990. The review will examine whether, and how, to ensure access to patented technology while maintaining the patent incentive to create and protect new technology.

Follow these links to the draft report and to AusBiotech’s comments.