How Standardization And Format War Takes Place?

When a firm don´t make anything to get better has a high probability of being out of the market for product claims, in fact, a huge number of companies have closed due to lost legal suits.

Some how They are above copy write and patent law; that states that an individual/company can hold exclusive rights for only three years to regain research and development costs and make some profit. This was established so companies/individuals could not establish a monopoly on a product/service letting them completely control the market price. This is some thing that in the rest of the civilized democratic countries is not allowed and drug are part of the free market system. An example of this would be in Canada the same U.S. Company sells its drugs cheaper to compete with prices in the open market and in the U.S. they charge more money because of their monopoly on the drug.

* Its so-called innovative or revolutionary products do not gain the company as much credits as Samsung or Apple does. The market will test its ability to

There is just a one person who sells products or services and there are no incentives which help to break this monopoly. There are many monopoly industries in the market. In monopoly, they use patents because they don’t like if someone’s copy their inventions.

Many countries such as Canada, India, and the UK have price controls. The governments of these countries impose regulations that control the prices of new drugs as well as generics without compromising safety but at the same time they do not burden pharmaceutical companies

Profits are strong, but the company has to be willing to diversify. Also during this stage is where competition decreases and usually only the strong survives. Take for example the number of phone carriers there were in the 90’s versus how many today.

Pharmaceutical companies are often able to achieve temporary monopolies from patents granting them the exclusive right to produce and market drug formulations they have developed. These patents are:

This industry has monopolized drug distribution to sustain and control high cost of the brand name prescription drugs. These brand name drugs were covered under patent protections, which stipulate that only that pharmaceutical company awarded coverage can manufacture, market and eventually profit from that specific drug. As long as the patent protections exist, these drugs cannot be sold as generic brands by other companies. The regulations outlined in the PPACA, however, challenged these patents to allow a more competitive field, thus dropping the cost of drugs and sales of brand named prescriptions. This lowered the revenue of high cost drugs and opened accessibility for lower cost options. The PPACA continued to further impose regulations, even on biologic pharmaceutical products. These products, which are versions of the original biologic products “that have the same mechanism of action in the body and are used for the same clinical indication but are not identical to the original product (variously referred to as the reference, pioneer, or innovator product)” (Health Policy Brief, 2013, para 5).  The reform also included the Biologics Price Competition and Innovation Act (BPCIA), which encourages to allow competition, as the regulation of the patent protections, in the market for biologic

This is where industry regulations come. The regulations discourages the monopolies and oligopolies from charging unfair prices for their products.

brand image of the company same time it will initiate a price war. It will not benefit the

The fear of the same monopolistic effect has increased due to the media’s recent reports that announced AT&T’s plans to acquire T-Mobile. AT&T publicly revealed on March 27 that it had agreed to buy T-Mobile USA from Deutsche Telekom for $39 billion (Sorkin, 2011). AT&T currently ranks second in the industry, with Verizon falling in first, T-Mobile in third, and Sprint in fourth. Considered as one of the largest telecom mergers, the deal would leave Verizon and Sprint lagging behind based on the number of subscribers, pushing the companies into lower ranking positions within the market. Currently, AT&T and Verizon account for a large percentage of the market, but it is possible that soon AT&T will advantageously gain a subscriber base twice that of Verizon. It is likely that AT&T would gain 130 million subscribers from merging with T-Mobile (“AT&T and T-Mobile”, 2011). Purchasing T-Mobile and gaining a large subscriber base would be unethical on AT&T’s behalf because the company’s size could stifle innovation and competition within the telecommunications market, something that antitrust laws do not condone. This is bad news for consumers who would be faced to deal with the after effects of the merger, such as fewer telecom choices, higher prices, and lower quality products to fit their mobile wireless needs. The approval of this

Till today, the threat of lawsuits remains. These scandals give a bad image to the company

Simply, company started to sell everything that is commercially profitable, which is big mistake in the long term.

The Slow market Growth means increase in market shares from competitors means the market is tough and this is a Threat for

Therefore, protection of patents is one of the key conditions necessary for further development of the pharmaceutical industry. At the same time, non-efficient legislation that does not provide the necessary level of patent protection is one of the factors that hamper expansion of “Big Pharmaceutical” companies to the developing countries8.