<div><br><span class="gmail_quote">From: <b class="gmail_sendername"><a href="mailto:bala@haiap.org">bala@haiap.org</a></b> <a href="mailto:bala@haiap.org">bala@haiap.org</a><br></span></div>
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<p class="MsoNormal" style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center"><b style="mso-bidi-font-weight: normal"><u><span lang="EN-GB"><font face="Arial Narrow">Counterfeit Drugs</font></span></u></b></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center"><i style="mso-bidi-font-style: normal"><span lang="EN-GB"><font face="Arial Narrow">Dr K Balasubramaniam</font></span></i></p>
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<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span lang="EN-GB"><font face="Arial Narrow">A counterfeit drug is a legal and criminal issue which should not be mixed with quality and patient safety.<span style="mso-spacerun: yes"> </span>From a public health point of view, the WHO accepted quality control measures are the only way to ensure the quality, safety and efficacy of a drug. <span style="mso-spacerun: yes"> </span>Strengthening Intellectual Property (IP) will never ensure these.<span style="mso-spacerun: yes"> </span>What HAI has advocated and campaigned for is the strengthening of drug regulatory (DR) systems in developing countries to ensure drugs in the market are safe, effective and of good quality.</font></span></p>
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<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span lang="EN-GB"><font face="Arial Narrow">An effective DR system ensures that a public health focus frames the efforts to prevent the entry of substandard, fake and spurious drugs.<span style="mso-spacerun: yes"> </span>The problem facing developing countries is the lack of effective DR systems.<span style="mso-spacerun: yes"> </span>According to WHO statistics of the 191 member states, only about 20 percent have well developed DR system, about 50 percent have varying levels of developmental and operational capacity and 30 percent have no DR system in place or very limited capacity.</font></span></p>
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<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span lang="EN-GB"><font face="Arial Narrow">The root causes of entry of substandard and fake drugs is the absence of effective DR system and non availability of the required amounts of drugs to meet the total needs.<span style="mso-spacerun: yes"> </span>The rational solution to prevent entry of substandard and fake drugs is development and/or strengthening the DR system and ensure the availability of drugs required to meet total needs.<span style="mso-spacerun: yes"> </span>On the other hand the irrational solution to prevent entry of fake drugs is to strengthen IP enforcement.</font></span></p>
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<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span lang="EN-GB"><font face="Arial Narrow">IP enforcement will be counter productive.<span style="mso-spacerun: yes"> </span>There is at present international debates regarding the negative impact of intellectual property rights (IPRs) on access to knowledge, public interest and development.<span style="mso-spacerun: yes"> </span>This was clearly underscored in the Report of the Commission on Intellectual Property Rights entitled, "Integrating Intellectual Property Rights and Development Policy", and a number of analytical studies published by the South Centre, Third World Network, MSF, Knowledge Ecology International and HAI.</font></span></p>
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<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span lang="EN-GB"><font face="Arial Narrow">The Inter-governmental Working Group of Public Health and Innovation set up by the WHO was to de-link patent protection from innovation in order to improve access to drugs.<span style="mso-spacerun: yes"> </span>If in this scenario where access to drugs is threatened by patent protection, any attempt to enforce IP infringement will further deny people living in the developing countries access to drugs.</font></span></p>
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<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span lang="EN-GB"><font face="Arial Narrow">Why are the US, EU and the multinational drug companies (MNCs) negotiating an Anti-Counterfeit Trade Agreement (ACTA) behind closed doors?<span style="mso-spacerun: yes"> </span>This is a classic example of strategic forum shifting from one forum to another in order to enforce strong patent protection.<span style="mso-spacerun: yes"> </span>When the negative impact of strong patent protection is presented with empirical data in one forum, they shift to another as the following history of forum shifting demonstrates.</font></span></p>
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<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span lang="EN-GB"><font face="Arial Narrow">Till 1995 WIPO was the UN agency mandated to administer the Paris Convention (PC) on Industrial Property Rights.<span style="mso-spacerun: yes"> </span>The PC allowed countries to enact national patent laws which could exclude process and product patents.<span style="mso-spacerun: yes"> </span>The last diplomatic conference on the revision of the PC began in the late seventies and went on to the early eighties in WIPO.<span style="mso-spacerun: yes"> </span>There was a long and protracted debate and consensus could not be achieved on the issue of compulsory licenses.<span style="mso-spacerun: yes"> </span>The US was the only country that voted against a compromise.<span style="mso-spacerun: yes"> </span>The Revision could not proceed.<span style="mso-spacerun: yes"> </span>The US, EU took IPRs to the Uruguay Round of GATT Negotiations in 1987 which ended with the TRIPS Agreement and setting up of WTO in 1995.<span style="mso-spacerun: yes"> </span>Developing Countries supported by several NGOs including HAI showed convincing evidence of the negative impact of TRIPS on access to drugs.<span style="mso-spacerun: yes"> </span>They eventually achieved victory with the adoption of the DOHA Declaration by the WTO Ministerial council in 2001.</font></span></p>
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<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span lang="EN-GB"><font face="Arial Narrow">The DOHA Declaration underscored the rights of WTO member countries to make full use of the safeguard provisions in the TRIPS agreement such as compulsory licensing and parallel importing to protect and promote public health and to enhance access to drugs.</font></span></p>
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<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span lang="EN-GB"><font face="Arial Narrow">Having failed in the WTO the forum shifted back to WIPO.<span style="mso-spacerun: yes"> </span>Developed countries introduced the Patent Agenda into WIPO's work programme.<span style="mso-spacerun: yes"> </span>Developing member states argued that the Patent Agenda completely ignored the rights and interests of consumers and governments of developing countries.<span style="mso-spacerun: yes"> </span>The patent agenda focused attention to solve the problems faced by patent owners (the MNCs) and administrators in national IP offices.<span style="mso-spacerun: yes"> </span>The developing countries supported by NGOs succeeded in introducing the Patent Development Agenda into WIPO's work programme.</font></span></p>
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<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span lang="EN-GB"><font face="Arial Narrow">The objective of the Patent Development Agenda is to ensure that developmental considerations form an integral part of WIPO's work.<span style="mso-spacerun: yes"> </span>When finally adopted in October 2007, WIPO General Assembly also adopted a set of 45 recommendations to enhance this development dimension of WIPO activities.<span style="mso-spacerun: yes"> </span>In addition, the Member States approved a recommendation to establish a committee on Development and Intellectual Property (CDIP).<span style="mso-spacerun: yes"> </span>Thus the US, EU and MNCs failed in the WIPO.</font></span></p>
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<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span lang="EN-GB"><font face="Arial Narrow">The present focus on counterfeit drugs and the Anti-counterfeit Trade Agreement (ACTA) is the latest in the strategic forum shifting by the US, EU and the multinational drug industry to ensure strict enforcement of intellectual property rights (IPRs).<span style="mso-spacerun: yes"> </span>The US and EU are planning to use ACTA to evaluate IP enforcement in developing countries against counterfeiting and piracy based on estimated losses that their industries claim to exist according to their own surveys.<span style="mso-spacerun: yes"> </span>But there is, infact, a lack of reliable information and objective data as well as a universally accepted definition of counterfeits and piracy that would allow a proper quantification of the magnitude and impact of international trade in counterfeit drugs and pirated medicines and an adequate assessment of the problem it poses.<span style="mso-spacerun: yes"> </span>In order to assess this problem the WHO has developed the following definition of counterfeits.<span style="mso-spacerun: yes"> </span>"A medicine which is <b style="mso-bidi-font-weight: normal">deliberately</b> <b style="mso-bidi-font-weight: normal">and fraudulently mislabelled</b> with respect to identity and /or source. Counterfeiting can apply to both branded and generic products and counterfeit products may include products with correct ingredients or with the wrong ingredients without ingredients, with insufficient active ingredients, or with fake packaging".</font></span></p>
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<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span lang="EN-GB"><font face="Arial Narrow">In the WHO definition, counterfeits clearly apply only to <b style="mso-bidi-font-weight: normal">"mislabelling"</b> of medicines and only to those situations in which the mislabelling is carried <b style="mso-bidi-font-weight: normal">"deliberately"</b> and <b style="mso-bidi-font-weight: normal">"fraudulently".</b><span style="mso-spacerun: yes"> </span>Thus it excludes those situations in which there are legitimate disputes about the trade mark status of a label and the burden of proof is with the accuser.<span style="mso-spacerun: yes"> </span>On the other hand IMPACT (International Medical Products Anti-counterfeiting Task Force) a WHO initiative, gives "new definition" of counterfeit medical product.<span style="mso-spacerun: yes"> </span>A medical product is counterfeit when there is a false representation in relation to identity, history or source.<span style="mso-spacerun: yes"> </span>This applies to the product, its container or other packaging or labelling in formations.<span style="mso-spacerun: yes"> </span>Counterfeits can apply to both branded and generic products.<span style="mso-spacerun: yes"> </span>Counterfeit may include products with correct ingredients/components, with wrong ingredients components, without active ingredients with incorrect amount of active ingredients or with fake packaging", by avoiding the terms, "deliberately and fraudulently" relieving the investigators of the onus of proving voluntary possession of counterfeit medical products and transferring the burden of proving their good intentions on those found in possession of counterfeits.<span style="mso-spacerun: yes"> </span>This is a traversity of the normal forms of justice where the guilty person has to prove he is innocent and not guilty.<span style="mso-spacerun: yes"> </span></font></span></p>
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<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span lang="EN-GB"><font face="Arial Narrow">Member States should ask the WHO why IMPACT, changed its original definition.<span style="mso-spacerun: yes"> </span>The new definition is designed to assist MNCs to get their IPRs strongly protected.<span style="mso-spacerun: yes"> </span>On the other hand the developing countries will face more problems to get access to life saving drugs.</font></span></p>
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<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span lang="EN-GB"><font face="Arial Narrow">WHO appears to initiate IP enforcement through its initiative IMPACT which is supported by the International Federation of Pharmaceutical Association (IFPMA), representatives of WTO, WIPO, OECD and Interpol.<span style="mso-spacerun: yes"> </span>Conspicuously there are no representatives from G77, the grouping of developing countries and civil society organizations.<span style="mso-spacerun: yes"> </span>IMPACT tends to be industry oriented and to blurs the distinction between counterfeits on the one hand and generics, parallel trade and compulsory licensing which are legitimate business practices, on the other.<span style="mso-spacerun: yes"> </span>This is similar to the drug industry argument that compulsory licensing, is patent theft, piracy or counterfeit whereas compulsory licensing is legal under national legislation and TRIPS Agreement.</font></span></p>
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<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span lang="EN-GB"><font face="Arial Narrow">The strategy behind the whole issue seems to be to casually mix every thing together including piracy, compulsory licensing, parallel imports and generics under the single banner of the emotive term "counterfeit" use it to frighten consumers, harness the power of public health safety concerns, link it with IP protection and enlist public sector support in enforcing private rights meaning that taxpayers dollars would be used to protect private rights</font></span></p>
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<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span lang="EN-GB"><font face="Arial Narrow">This is illustrated in the presentation Dr V Reggie of WHO Geneva gave to WHO/SEARO, New Delhi on 7<sup>th</sup> August.<span style="mso-spacerun: yes"> </span>The presentation was entitled "Counterfeits Kill!"<span style="mso-spacerun: yes"> </span>The graphic shows a venomous hooded cobra ready to strike!<span style="mso-spacerun: yes"> </span>This will certainly frighten consumers.<span style="mso-spacerun: yes"> </span>However, it is not factually correct.<span style="mso-spacerun: yes"> </span>The two definition of "Counterfeit" given in the presentation includes medicines with the correct ingredients.<span style="mso-spacerun: yes"> </span>These counterfeits will certainly not kill.<span style="mso-spacerun: yes"> </span>Therefore a sweeping title is misleading; another statement refers to "the 'perfect copy' myth without defining what a perfect copy is.<span style="mso-spacerun: yes"> </span>This is blatant thinly veiled attempt to equate generics with "perfect copy" and thereby call quality and safety of generics into question.<span style="mso-spacerun: yes"> </span>Another department in the WHO actively promoted the use of generics.<span style="mso-spacerun: yes"> </span>When experts within WHO disagree where do the general public go?</font></span></p>
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<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span lang="EN-GB"><font face="Arial Narrow">The presentation quite correctly, states that not all substandard drugs are counterfeit.<span style="mso-spacerun: yes"> </span>Therefore a system to monitor infringement of IPRs and to strictly enforce patent protection to keep counterfeits out of the market can never weed out all substandard drugs from this market.<span style="mso-spacerun: yes"> </span>It is also accepted that strict enforcement of IPRs will reduce access to life saving drugs.<span style="mso-spacerun: yes"> </span>Implementation of ACTA will, therefore lead to two dangers (i) Inability to remove all substandard drugs from the market (ii) reduce access to life saving drugs.</font></span></p>
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<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span lang="EN-GB"><font face="Arial Narrow">To remove counterfeits, the best solution is to remove the cause.<span style="mso-spacerun: yes"> </span>In developing countries, counterfeits enter the market because of the lack of required drugs.<span style="mso-spacerun: yes"> </span>The solution to counterfeit is, therefore, for the government to ensure the availability of the required supply of needed drugs at affordable price by implementing the new WHO Global Strategy and Plan of Action on Public Health Innovation and Intellectual Property approved at the WHA in May 2008.<span style="mso-spacerun: yes"> </span>This should be the priority for the WHO not to redefine counterfeit and call counterfeit a killer.</font></span></p>
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