Monopoly v. Openness: Two Sides of IP Coin in the Pharmaceutical Industry

Abstract

The pharmaceutical industry extensively relies on the patent system. It actively lobbies for the strengthening of the patent protection of its medical products. The results of its efforts may be found in bilateral and multilateral agreements, including the TRIPS and the most recent TPPA, and in private patent strategies pursued by pharmaceutical companies. However, some recent developments reflect the emerging tendency of pharmaceutical companies to implement different business models — models that may mark the beginning of transformation of this industry. Among these developments is an ‘open innovation’ model, increasingly followed by research institutions and pharmaceutical companies, that aims to facilitate the creation of new and affordable medicines, and provide transparency in order to enhance safety and efficacy of drugs. This article will discuss these two opposing forces in the pharmaceutical industry: strong IP protection and open innovation.

Keywords: patents; the pharmaceutical industry; access to medicines; open innovation