US officials call for review of government-owned IP management

A US congressman and senator have asked the country’s audit institution, the Government Accountability Office (GAO) to review the management of government-owned IP in the health sector.

The letter, dated yesterday, June 18, was signed by Elijah Cummings, the chairman of the Committee on Oversight and Reform, and Debbie Stabenow, a ranking member of the Subcommittee on Health Care.

It requested that the GAO review the processes currently implemented by the US Department of Health and Human Services (HHS).

According to Cummings and Stabenow, numerous reports have suggested that US-based biotechnology company Gilead Sciences may be infringing a number of patents owned by the US Centers for Disease Control and Prevention.

The allegedly infringing product is Gilead’s drug Truvada (emtricitabine), which is used to treat and prevent HIV and AIDS.

“If true, this would mean that a private entity has generated billions of dollars in revenue over several years while infringing on government-owned IP, and that the government either failed to detect the infringement or was aware but failed to prevent it,” the letter said.

The letter requested for HHS to review the steps it takes to detect and prevent infringement of US-owned IP, to ensure that private companies properly compensate the government.

Additionally, it asked HHS to assess whether it considers the impact of prescription drug prices and affordability when granting exclusive licences to pharmaceutical companies.

The letter said the US also holds and licences patents in a number of foreign countries, and requested that the GAO also review its management of international patents and licences.

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