Monday June 25, 1:34 pm Eastern Time
U.S. Withdraws WTO Patents Case
U.S. Withdraws WTO Patents Case Against Brazil Over Law to Ensure
Cheap AIDS Drugs
By NAOMI KOPPEL
Associated Press Writer
GENEVA (AP) -- The United States has withdrawn a complaint with the
World Trade Organization over a law used by Brazil to ensure cheap
drugs to fight AIDS, a Brazilian trade negotiator said Monday.
Jose Alfredo Graca Lima told reporters the two countries had ``come to
an understanding'' over a law that requires owners of Brazilian
patents to manufacture their products in Brazil rather than import
them. If this is not done, the law gives the Brazilian government the
right to license the manufacturing rights to another producer.
``It is a victory for both sides, a victory for common sense,'' he
said.
U.S. Trade Representative Robert Zoellick, speaking in Washington,
insisted the U.S. case had nothing to do with AIDS drugs. Under WTO
rules, there are procedures for governments to force local production
of patented drugs if the country is experiencing a health emergency
like the HIV/AIDS epidemic, he said.
The United States went to the WTO in February to complain that
Brazil's 1996 industrial property law violates patent protection
rules.
Brazil maintained that its laws are acceptable under WTO rules.
The Nobel Prize-winning charity Medicins Sans Frontieres -- also known
as Doctors Without Borders -- said the Brazilian government's program
allowed it to offer free treatment to more than 90,000 patients, and
this would be threatened if Brazil had to accept higher-priced
imported drugs.
Graca Lima said Brazil had agreed with Washington that it would give
10 days' notice before it used compulsory licensing under the law, to
give time for consultations.
The WTO agreed last week to look into whether its rules protecting
drug patents can become more flexible to address concerns by
developing countries and health activists that the regulations prevent
vital medicines reaching the poor.
