KUALA LUMPUR – Just months ahead of the expected start of the Regional Comprehensive Economic Partnership (RCEP), the alarm is being sounded over a particular chapter – dealing with intellectual property (IP) – in the trade deal that would have a sweeping impact on millions of consumers.
Malaysia is expected to ratify the RCEP by year-end. As a consequence, critics warn, Malaysians are likely to see vital assets of products – like their formulas, patents, pricing, and research – dictated by foreign corporations.
Its enactment expected in early 2022, the agreement will see the strengthening of IP rights provisions among its 15 signatories — comprising the 10 Asean member states as well as China, Japan, South Korea, Australia, and New Zealand.
Put together, their economies account for close to 30% of global gross domestic product, making it the largest trade pact in history.
Fear of monopolistic behaviour
It is feared that provisions to strengthen IP rights will have a detrimental effect on common folk in all these nations.
While amendments to IP laws are commendable to an extent, they may lead to stifling of creativity and economic growth in the related industries. They can also potentially lead to increases in price of products and services.
Of key concern are matters related to the pharmaceutical sector, with various quarters having expressed apprehensions that the deal may restrict access to affordable medicines in the future.
Under the RCEP, provisions related to IP seek to extend pharmaceutical corporations’ patent terms beyond the 20-year period accepted internationally and enforce data exclusivity that limits competition.
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For example, a particular company that develops a groundbreaking medicine may have even longer and stronger exclusive rights on the patented product, possibly leading to a monopoly.
Closer to shore, the Malaysian government has given its commitment to amend the relevant local laws and regulations related to IP rights in order to abide by the RCEP.
On June 22, Domestic Trade and Consumer Affairs Ministry Secretary-General Datuk Seri Hasnol Zam Zam Ahmad said changes will be made to provisions on IP to ensure effective protection.
He reasoned that this will subsequently boost investors’ confidence and facilitate trade with RCEP partners.
Hasnol’s statement reveals why there is disapproval levelled against the move to strengthen IP rights. Critics have argued that it would only benefit investors and larger corporations at the expense of the public, impacting millions of lives globally.
Leena Menghaney, global IP advisor for Médecins Sans Frontières (Doctors Without Borders), had said back in 2017 that measures like patent term extensions and data exclusivity are another form of “evergreening” monopolies on older medicines.
This, she said, would allow a deadly delay to the introduction of generic competition, and expand the power of pharmaceutical corporations to charge exorbitant prices.
As an illustration, a basic medicinal formula for flu or headache may not be allowed to be manufactured generically – and therefore may not be available at a cheaper price – if a pharmaceutical giant enjoys longer patent control over it by virtue of the RCEP.
IP rights have to be people-centric
Speaking to The Vibes, Klang MP Charles Santiago, who is a vocal critic of inequitable trade agreements, said any such deal – including one involving IP rights – has to be people-friendly.
If anything, the DAP man said, the related laws have to be relaxed rather than tightened. There is no scientific study to back the false belief that strengthening these provisions would bring in more investments, he said.
“These IP rights are being used by multinational companies and big pharmas to control technologies and prices. They don’t need decades of patent protection when profits can be made within just a few years.
What Malaysia has to do is support the generic industry in the country. We shouldn’t be allowing big corporations to take advantage.
Santiago said the government’s decision to strengthen IP laws during a health pandemic is especially troubling, as it is this very protection that is holding back global Covid-19 vaccine supply and countries’ efforts to manufacture their own shots.
Over 80 countries, including Malaysia, have so far supported a movement urging the World Trade Organisation to waive IP rights on vaccines, a move that would allow other manufacturers to make vaccines in order to boost production for poor nations.
“It’s perplexing that on one hand Malaysia wants this waiver for the vaccines, but on the other the government is amending laws to strengthen IP rights. What is it that they really want?” the MP asked.
Acknowledging that Malaysia may be bound by the terms of the RCEP, hence the strengthening of IP provisions here, he said the government could lobby other countries who have inked the deal to renegotiate the particular chapter.
“Perhaps Malaysia can work with China and the other Asean countries, because I understand that the ones pushing for tighter IP control are Australia, Japan, and South Korea,” he said.
Impeding scientific research, technology transfer
Parti Sosialis Malaysia chairman and practising physician Dr Michael Jeyakumar Devaraj said beefing up IP-related laws will not only lead to higher prices of medicines but will also hinder efforts to conduct medical research.
The medical doctor explained that other than securing patent rights for final products, larger corporations also trademark ideas and even components of the product, making it even harder for others to conduct scientific studies.
“By doing this, they will control the market and stop research. Some of these companies even buy up potential ideas and hold on to them, so that their products will have a clear market,” he said when contacted by The Vibes.
How is this even good? Prices of drugs will be higher. What we should be doing is looking at how to reduce this protection on patents.
Like Santiago, Dr Jeyakumar believes Malaysia should push back any plans to strengthen IP laws and work with other developing countries that similarly want more relaxed provisions on patent and trademark rights.
He also urged for the proposed changes to the law to be put before a parliamentary committee for deliberation before officially tabling them for amendments.
“Also, the government needs to consult the matter with a larger group of people representing the health industry, particularly on the impact on medications and technological transfer.
“Patents have already proven to have held back developments in poorer countries. The government really needs to relook to what extent they want to make changes.
“Don’t simply tighten the law just to impress investors. It needs to be done judiciously,” Dr Jeyakumar said. – The Vibes, July 5, 2021
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