COVID-19 Vaccine Patent Waivers
By Ishan Bhalla
Alexandria, VA | June 16, 2021
As the global push for more vaccinations moves forward, countries and the pharmaceutical industry have been grappling with the idea of a patent waiver on currently manufactured vaccines. Proponents argue that this would cut the costs of vaccinating large populations and enable a more efficient vaccination process, while opponents believe that waivers violate their intellectual property rights and demotivate pharmaceutical firms to pursue new vaccines.
The United States Patent and Trademark Office (USPTO) grants patents for 20 years once they are filed. This allows the firms that have spent billions of dollars and years of effort to reap 10-15 years of competition-free sales. Pfizer, the multinational biotech giant, spent upwards of $2 billion to develop the first COVID-19 vaccine to be approved in the US.
A patent waiver would come in the form of a multilateral agreement signed by all 164 nations who are member states of the World Trade Organization (WTO). The WTO is the global body for regulating trade between states. If the proposal passes, vaccine makers, such as Pfizer would be instructed to share their manufacturing processes with other international firms in the interest of global safety.
Patent waivers are not unprecedented. During the 2000s, the WTO granted patent waivers to enable poorer nations the ability to import HIV, tuberculosis, and malaria drugs at a cheaper cost. The main advantage of a patent waiver is that it lowers costs as other firms can develop the same medicines with more competitive pricing. This in turn allows poorer countries the ability to get access to the drugs. The main argument for a patent waiver of COVID-19 vaccines is that it would allow countries struggling to battle the pandemic such as India, which has only vaccinated 5% of its 950 million adults, to acquire vaccines quicker and help slow down the rate of infection.
Vaccine-makers and the pharmaceutical industry staunchly oppose patent waivers, citing their enormous research and development costs as reasons for their intellectual property to remain protected. Pfizer, Moderna, and other vaccine-makers have also spent months conducting clinical trials and seeking regulatory approval. Pfizer generated over $3.5 billion in revenue in its first quarter since releasing the vaccine, and that number is forecasted to reach $26 billion by the end of 2021. Opposition for the waiver also stems from the concern that removing protections for these patents will not impact the speed at which the vaccines are distributed as the shortage of vaccines stems from a lack of raw materials, factories, and professionals.
“Undoubtedly, COVID-19 is unprecedented, and thus calls for compassion for the global community. The patent system has developed to allow for social responsibility while being cognizant of the inventors’ interests in advancing science and reaping rewards from their efforts. Patent-waivers should be likened to eminent domain in property law; governmental bodies should bear some costs for their taking.”
–Keth Ditthavong
Partner, Ditthavong, Steiner & Mtlotkowski