The Mayor Inc. is a company incorporated under the laws of United States of America (U.S.A.) consequent to its Research and Development (R&D) activities the company invented and developed its patented drugs to enable
CS Professional · Intellectual Property Rights - Laws and Practices · PYQS · December 2021
The Mayor Inc. is a company incorporated under the laws of United States of America (U.S.A.) consequent to its Research and Development (R&D) activities the company invented and developed its patented drugs to enable its administration to human beings. On successful invention of the patented drug in 1999, the company applied for a patent in U.S.A. Thereafter, on 12 July, 2000 the company applied for an international patent under the Patent Co-operation Treaty (PCT) and on 5th July, 2001 applied in India for grant of the patent to the patented drug in India. On March, 2008 the office of the Controller granted the company's application dated 5th July, 2001. This patent granted in India on 3rd March, 2007 corresponded to the patent granted to this patented drug in over 45 countries of the world. The patented drug is used in the treatment of patients sufferintg from Kidney cancer i.e. Renal Cell Carcinoma (RCC). The aforesaid patented drugs acts more as palliative i.e. relieves patients from the pain and to an extent also slows down the spread of cancer by restricting the speed with which the cancer cells grow. As a consequence of being granted a patent, the company had exclusive right to make, manufacture, use and sell the patented drug either by itself or through its licensee to the exclusion of others for a period of 20 years from the date of its application. Thus, the company had exclusive right to prevent third parties from making/manufacturing, using, selling or importing the patented drug in India without the company's permission/license. The company Mayor Inc. sells this drug under a brand KCWIN which is registered Trademark in India USA, Europe, China, Russia, Japan and New Zealand. Mayor Inc. through its subsidiary Mayor India Ltd. sells the drug in India. The drug was found to be very effective and the doctors worldwide appreciated the result of the drug. M/s. Kipla Pharmaceuticals established in the year 1930, located in Mumbai, Maharashtra, India is a manufacturer of various generic drugs. Owing to the huge demand for the drug, which was nearly about 20 lakh units and the failure of Mayor Inc. to meet the growing demand due to the import restrictions since their manufacturing units is in Washington, Kipla Pharmaceuticals approached Mayor Inc., for technical assistance and license manufacturing of their patented drug KCWIN in India on 20th January, 2012. However, Mayor Inc. declined to grant the license of manufacture for reasons best known to them. As per the records available, Mayor Inc. had supplied only 2 lakh units against the huge demand in India at the rate of ₹ 2.4 lakhs per month. Kipla on other hand manufacturing the same drug at ₹ 10,000 per month. In the 2012, the Mayor India came to know that exact copies of their product KCWIN is being manufactured by M/s Kipla Pharmaceuticals. Immediately, thereafter, a Cease and Desist notice was issued by Mayor Inc. to Kipla Pharmaceuticals for infringing the Patent of Mayor Inc. Taking the plea that pharmaceutical companies spend billions of dollars on research. It is estimated that, of every thousand potential drugs screened, only 4-5 reach clinical trials and only one is actually approved for marketing. Pharmaceutical companies patent the drugs that they develop and thereby obtain exclusive marketing rights. Further at the time of expiry of its Patent on KCWIN the The Mayor Inc. came with a minor change in the effectiveness and quality of KCWIN and de-novo applied for Patent before the controller of Patents, who rejected to grant the patent on the ground that it does not result in the enhancement of the known efficacy of that substance or the mere discovery of any new property or new use for a known substance or of the mere use of a known process, machine or apparatus. Based on the above facts, answer the following: (d) Critically examine the act of Mayor Inc. to evergreen its pre-existing patent for its pre-patented product and validity of the rejection-order of the controller of patents in the light of provisions of the Patent Act, 1970 and relevant case law.
Answer & Explanation:
The act of Mayor Inc. to evergreen its pre-existing patent for its pre- patented product is not according to law and the rejection-order of the controller of patents is valid in the light of following provisions of the Patent Act, 1970 and relevant case law mentioned below: Section 3(d) of Indian Patents Act, 1970 says that the mere discovery of a new form of a known substance which does not result in the enhancement of the known efficacy of that substance or the mere discovery of any new property or new use for a known substance or of the mere use of a known process, machine or apparatus unless such known process results in a new product or employs at least one new reactant, is not patentable. This section provides that the new form of the substance shall not be considered as patentable unless it shows enhancement in efficacy. For instance, new use of Aspirin for treatment of the cardio-vascular disease, which was earlier used for analgesic purpose, is not patentable. However, a new and alternative process for preparing Aspirin is patentable. For instance, the paracetamol has antipyretic property. Further discovery of new property of paracetamol as analgesic can not be patented. Similarly, ethyl alcohol is used as solvent but further discovery of its new property as anti knocking, thereby making it usable as fuel, can not be considered patentable. In order to distinguish the invention from the prior art, relevant prior art is also required to be given in the specification. It is always essential to analyze the invention in the light of what is described and the prior art, in order to identify the contribution to the art and hence determine whether this advancement resides in, or necessarily includes technological features and technical application or is solely intellectual in its content. Section 3(d) of the Indian Patent Act restricts grant of patent for "incremental innovations" in many drugs unless it provides significant therapeutic advantages to existing molecules. The Supreme Court's judgment in Novartis A.G v. Union of India [AIR (2013) SC 1311] whereby it dismissed the patent application filed by Novartis for a drug used to treat a type of blood cancer, was a much awaited decision for the patients. Even, in 2006, the Madras Patent Office refused the patent application of Novartis for its drug Glivec stating that the said drug did not exhibit any major changes in therapeutic effectiveness over its pre-existing form, which was already patented outside India. The said decision was based on Section 3(d) of the Indian Patents (Amendment) Act, 2005 which provides a known substance can only be patented if its new forms exhibit "enhanced efficacy". The Patent Office did not find any enhanced efficacy in the drug Glivec and, therefore, considered it incapable of patentable under Section 3(d) of 2005 Act. Countries in order to attain development while taking care of the needs of its citizens must go through a paradigm shift, now more than ever. And in order to maximize achievements of developmental goals, health is a parameter of utmost importance; healthy citizens can lead to overall growth of an economy. India is till present categorized as a developing nation owning a naïve Intellectual Property Law regime in contrast to a swiftly germinating population ranked second largest globally. But this disparity does not settle the classic case of commercialism versus larger public good in the form of human rights. The Indian law since long followed a 'process patenting system which was brought to a stop with TRIPS Agreement of the World Trade Organization (WTO) in 1995 that made 'product' patenting mandatory; thus opening a disputable area in India between the giant pharmaceutical sector and the larger goal of public health. The Apex Court rejected the contention stating that in the case of medicines, efficacy means "therapeutic efficacy" and these properties while they may be beneficial to some patients do not meet this standard. The Supreme Court also held that patent applicants must prove the increase in therapeutic efficacy based on research data in vivo in animals. The Supreme Court held that the true intention to enact section 3(d) was to prevent the concept of evergreening and thus if the invention does not fulfil the test of Section 3(d), it cannot be granted a patent. The court further specified that this case should not be interpreted to mean that Section 3(d) bars all incremental inventions. It is with regard to the field of medicine especially in cases of life-saving drugs, a great acre and caution needs to be taken so as to protect the right to life of the masses This section plays an important role to protect public health of teeming millions of our country. This provision is one of the most important safeguards under the Patents Act, 1970 to protect public health. This section contradicts the problem and claim of ever greening 17. This provision does not recognize ever greening and permits entry of generic drugs which in turn makes the price of life saving drug cheaper. It will definitely protect the public health of millions and millions of people in India who live in below poverty line and have a little financial power to purchase medicine.
Topics: Patents
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