Patent rights on COVID-19 vaccines may be waived for five years

EU proposal comes in backdrop of dispute at WTO

Intellectual property rights held by international pharmaceutical companies on COVID-19 vaccines may be relaxed for up to five years, according to a proposal by the European Union (EU) in the backdrop of a festering two-year-old dispute at the World Trade Organisation involving India, U.S., South Africa and the EU.

This reprieve will, however, not apply to COVID-19 drugs and diagnostic devices, though the EU proposes a “discussion” on this in the next six months.

This waiver will allow pharmaceutical companies in developing countries to not only make but also, further down, export vaccines without explicit permission from the patent holders, says a version of the negotiating text that The Hindu has viewed.

A discussion on the text is expected in the fortnight ahead, a person familiar with the proceedings, but who declined to be identified, told The Hindu.

Though India, along with South Africa, was among the proponents of the original waiver in 2020, it is unclear to what extent this proposal will benefit Indian manufacturers, who have in the last year, not only entered into licensing arrangements with global pharmaceutical companies but also developed indigenous vaccines.

Many developing countries, including India, already have a system of compulsory licensing regime, whereby exigencies can permit the government to authorise production of a drug or vaccine irrespective of whether it is protected by patents.