Novartis & Patents

In a case filed by Novartis in an Indian court in Chennai, it had challenged ruling by a court which had rejected its patent. As per Indian Patent Law, patents are given only for "substantially innovative' new drugs and not for "incremental" improvements in older drugs. This novartis was claiming was against the WTO rules. The Indian court rejected it. Initial reports said that court said it had no juridistion to rule about WTO compliance of the Patent law.

In most of the countries Novartis has obtained patent for the drug in question as Patent rules are different in other countries. The case was of importance because if court had ruled the other way it would have stopped generic drug companies in India producing various drugs for the developing world (especially the AIDS drugs).

The "incremental" patents which drug companies seek are a way to increase the patent life time of the older drugs and maintain monopoly power. In most countries as pharmaceutical industry has huge lobbying power they have being able to get these patents - through chaning laws. But in India, I am guessing mostly due to public protest and Generic drug lobby this was not in the patent law.

Atleast for now drug companies lose. But who knows what techniques they come up with to subvert these rules .....

http://www.nytimes.com/2007/08/07/business/worldbusiness/07drug.html?hp