EEP 143 Lecture 17 07

EEP 143 Lecture 17 07 - EEP 143 Lecture 17 Patent Thickets...

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EEP 143 Lecture 17 Patent Thickets Golden Rice Hypoallergenic Wheat Human Genome? Stem Cells?
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Patent Thickets: Concerns Multiple overlapping patent claims Some blocking patents Injunction threat? Uncertainty re ‘Freedom to Operate” Multiple layers of transaction costs Stack royalty demands beyond what the product can bear Slow innovation
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Patent thickets: Golden Rice as early counter-example? Claims: Anticommons ” problem in ag. biotech Freedom to operate ” a problem for public sector, nonprofits, private startups Licensing access: Private sector will not risk its reputation, resources in negotiation for low-value uses by public, north or south Public and nonprofits cannot solve anticommons problem by integration
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Golden Rice” Golden Rice” Over 120 million children worldwide are deficient in vitamin A. Rice has been engineered to accumulate b-carotene, Incorporation of this trait into rice cultivars and widespread distribution could prevent 1 to 2 million deaths each year.
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Golden Rice: Triumph of IPR Access? up to 70 patents Widely-publicized multi-party IPR donations “…the recent example of Golden Rice shows that patented technologies need not necessarily be a barrier.” (Nuffield Council on Bioethics 2004 p. xix)
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Golden Rice: Reality Check Patents are NATIONAL in scope There were few or no valid patents in major rice-consuming countries (pre- TRIPS environment). Most rice not traded where most patents held (Binembaum et al, Econ. Dev. And C. Chg .)
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Golden Rice: Reality Check Material Transfer Agreements (MTAs) for golden rice construct, not patent licenses, were key IPRs. Rights to large farmers established by firms contractually, even if no valid patents existed Large negotiation costs supported by Syngenta for reputational/image concerns
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REAPING THE BENEFITS OF GENOMIC AND PROTEOMIC RESEARCH Intellectual Property Rights, Innovation and Public Health A Joint Committee of The National Academies’ Board on Science, Technology, and Economic Policy Committee on Science, Technology, and Law Briefing of the National Institutes of Health November 17, 2005
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Committee Membership Shirley M. Tilghman  (Co-Chair),  Princeton University  Roderick R. McKelvie  (Co-Chair),   Covington & Burling Ashish Arora,  Carnegie Mellon University Helen M. Berman,   Rutgers University Joyce Brinton,   Harvard University  (retired) Stephen Burley,  Structural GenomiX, Inc.  (SGX) Q. Todd Dickinson,  General Electric Co Rochelle Dreyfuss , New York University  School of Law Rebecca S. Eisenberg,  University of  Michigan  Charles M. Hartman,  CW Group Daniel J. Kevles , Yale University David Korn,  Association of American  Medical Colleges  George M. Milne, Jr.,  Radius Ventures  Richard Scheller  Genentech  Rochelle Seide  Arent Fox PLLC  Robert H. Waterston , University of  Washington Nancy Wexler
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