Canada authorises compulsory licences for COVID-19 shortfalls
Canada is the latest country to adopt emergency measures in order to secure drugs and medical equipment in the fight against COVID-19.
Amendments to the country’s Patent Act will give the minister of health the powers to seek authorisation for manufacturers to produce patented inventions, including pharmaceuticals and medical devices.
The amendments ensure that patent owners will receive adequate remuneration and place a limit on the duration of the compulsory licence, a government spokesperson said. The measures are currently set to expire at the end of September.
The powers would apply in the case of “market failures”, such as when a patent owner is unable to produce the invention for use in Canada, or demand exceeds supply, they added.
The move was criticised by Innovative Medicines Canada (IMC), a coalition of 40 drug companies including AbbVie, Amgen, GSK, and Pfizer.
“Our main concern with the amendment is that the government does not have to check with the original manufacturer to see if they can supply a product before allowing another entity to manufacture something that they otherwise would not be able to manufacture without permission,” an IMC spokesperson said.
“That said, the time limitation in the amendment clearly recognises that this is an extraordinary measure intended only for potential use during the current public health crisis,” the spokesperson added.
As COVID-19 spreads around the globe, governments have been quick to introduce new powers enabling them to bypass patent rights if necessary to secure drugs and medical equipment.
Earlier this week, Israel announced it would import generic versions of a HIV antiviral owned by AbbVie, despite the company still holding patent protection over the drug in the country.
AbbVie then announced it had agreed not to block generic versions of the drug in Israel. In the UK, the government has called on manufacturers to switch to ventilator production where possible, raising questions about patent implications.
Writing for LSIPR, Richard Fawcett, senior associate at Powell Gilbert, said the government could issue “Crown licences” if necessary in order to allow increased production of patented devices such as ventilators.
