Opinion: What a week for patents – and not a good one

Managing IP is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Opinion: What a week for patents – and not a good one

patent-image-600-min.jpeg

In countries from the US to Brazil, patents have come under fire for all the wrong reasons

The Biden administration dropped the bombshell last Wednesday, May 5, that it was supporting a waiver of all intellectual property rights, including patents, to COVID-19 vaccines. Just a day later, the Brazil Supreme Court removed the guarantee of a 10-year minimum term for successful pharmaceutical patent applicants.

It goes without saying, therefore, that it’s been a tough week for IP – and patents in particular – not just in the Americas but more generally too. Public understanding of the need for IP can be shaky at the best of times, but it’s really been put to the test in the past few days.

Related stories:

Let’s start with the Biden decision, which has made front-page news globally. The administration announced via its trade representative Katherine Tai that it backed a waiver proposal being discussed at the World Trade Organization (WTO).

Many commentators and armchair IP experts have since weighed in, often conflating the distinct issues of supply chains and production capabilities on one hand with IP and patents on the other.

By doing so, they conveniently support the anti-IP narrative and fail to recognise why IP exists in the first place – to incentivise the kinds of life-saving research that vaccine makers and other drugs companies undertake.

What’s more, many commentators haven’t really considered (or been aware) that trade secrets are just as relevant to the issue as patents are. Nor has anyone really asked how, from a practical perspective, companies would even be forced to hand over their confidential information if they were told to.

In the heat of a pandemic, facts and practicalities can be easily forgotten.

What’s concerning about the Biden decision is that it buys into and perpetuates the anti-IP rhetoric, even if inadvertently. Biden seems like a wholly reasonable politician, and I’m sure he’s trying to do the best for the global population. But clearly he has been misinformed or is just mistaken that the solution to vaccine shortages is to waive IP rights.

Perhaps his decision is just a consequence of whomever happens to have his ear.

It would seem the US pharma industry doesn’t fall into this category right now, and those within it will be concerned that it has lost some of the large influence that many presumed it had (not to mention the good faith it has accumulated during the pandemic response).

This is important in the context of any future drugs or patents-based legislation. OK, you could argue that the waiver is merely a temporary fix during an exceptional time of our lives, but you could just as easily say it sets a worrying precedent that IP and pharma concerns are not important – that they can be easily done away with. Just hours after Tai’s announcement, Representative Alexandria Ocasio-Cortez tweeted, “Let’s do insulin next”.

Other patent-heavy industries may be just as worried; if pharma is vulnerable, what about them?

Then there is the Brazil decision, which means patents held up by long waiting times at the country’s IP office could have their terms significantly cut. The Supreme Court will come together again this Wednesday, May 12, to decide whether the ruling should have retroactive effect.

Brazil already has a notoriously long backlog of patent applications (although it’s getting better), and the decision is likely to add to pharma companies’ worries over IP protection. It hardly sends a message that pharma innovation is critical, particularly during a pandemic.

Pharma innovators in Brazil will be watching with bated breath to see how the justices rule this week. Many could see their patent portfolios hugely devalued if the judges find that the ruling has retroactive effect and previously granted patent rights can be reduced in term.

At least they will take some comfort from the fact that Brazil, unlike the US, opposes the COVID IP waiver.

Crucially, Germany is also in opposition. Chancellor Merkel’s triumphant backing of IP and her slap-down of Biden’s move will bring some relief to the IP community, who need respected international leaders on their side in these testing times. Merkel will be seen as the jewel in the crown as WTO discussions around the waiver continue.

Although these talks could last for weeks, if not months – and even though they could be largely symbolic rather than anything more concrete – IP stakeholders will hope discussions stay behind closed doors before being firmly ushered out the exit.

If not, they are going to have a serious battle on their hands.

more from across site and SHARED ros bottom lb

More from across our site

Exclusive data and analysis reveal how firms can differentiate themselves when it comes to costs and value
The Berlin office will mark the firm’s fourth German base and tenth overall
As we build up to another busy year for the IP STARS rankings and Managing IP Awards, we give a rundown of some of the major IP firms and trends in the UK
Three firms have received at least 13 nominations, while a further three have 12 nominations each
Harish Daiya discusses the value of IP monetisation, the benefits of a carefully structured day, and how to fit several coffee meetings into the working week
Directors at the firm explain how the drafting tool works, and why they may need to strengthen their team post-launch
A diversity pledge for in-house IP lawyers and well-known trademark recognition for Taj were also among the top talking points this week
Counsel are expecting policies that are favourable to patent owners and say the fear factor over applying for patents may diminish
Douglas Carsten says he is keen to increase fee earner headcount in the firm’s San Diego office, which opened this week
The deal could mean that hundreds of licensees in the pool would have access to a broader range of VVC patents
Gift this article