Impact Of Patents On The Pharmaceutical Industry Development

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Few know the impact that patents have on the pharmaceutical industry development. The evolution of this industry is closely linked with the evolution of patent system (Salazar, nd.). Lehman (2003) explains in a simple way the definition of patents. According to him, patent is the property right that the creator has over his creation, if it is new, useful and not obvious. The reason for the existence of this protection is to safeguard products from being copied without compensation for the author or inventor. Since the adoption of intellectual property law in the realm of the chemical and pharmaceutical industry, the process of innovation of treatments and creation of drugs have been galvanised (ibid.). However, if on the one hand it brings…show more content…
Without a free competition market, prices tend to rise (Borts and Stein, 1964) and, due to that, the populations of developing countries are, usually, the most affected by these rules. In other words, adoption of a system of patent represents a burden for the poor population once it creates more difficulties for their government in providing the necessary amount or quality of drugs or treatment required by their needs. To solve this situation, it is necessary to find a balance between the incentive and power given to the pharmaceutical industry and affordable access to medicine by the population. This essay will evaluate the patent system and show three key solutions to the problem in the realm of public health adopted by developed and developing countries, contrasting and evaluating each one. It will also argue that intervention by the government is the most appropriate solution. Patents have many positive aspects, as briefly aforementioned. Analysing the positive side of patents, some of its benefits are extremely important for modern society. First, intellectual property right protection does give to the creator the confidence to invest and commit more money to their ideas (Barton and Emanuel, 2009). Secondly, by raising the prices and being entitled to monopoly, the business tends to be more profitable, resulting in an increase in the costs of medical products that lead to
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