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page 25
81. In some cases, the period of data exclusivity may run during the life of the patent.
However, there are a number of circumstances in which exclusive rights over test data can
restrict the availability of medicines. Data exclusivity, being independent from patent protection,
can allow pharmaceutical companies to secure monopoly rights for off-patent or non-patentable
medicines. Evidence from Jordan indicates that pharmaceutical companies are choosing to rely
on data exclusivity to enforce their monopoly instead of filing for patents.92 In the context of
developed countries, as evidence from Canada and Australia suggests, data exclusivity leads to
higher costs of prescription medicines.
82. Data exclusivity may also block the production of generics after a compulsory licence is
issued. Because marketing approval is independent from patent law, it is possible that a national
DRA may refuse to approve a generic drug based on bioequivalence during the exclusivity
period. This will pose a problem unless the law relating to data exclusivity provides an exception
in the case of compulsory licences. However, even with this, there could be a delay in the entry
of a generic version, as the marketing approval process may commence only after the
compulsory licence is issued.
83. Data exclusivity is at odds with TRIPS flexibilities, such as those that allow governments
to enforce their own criteria for granting patents, contest the validity of patents or issue
compulsory licences. Therefore, in the context of developing countries and LDCs, data
exclusivity may actually provide pharmaceutical companies with market monopoly without
providing the public benefits and safeguards associated with the patent system.
3. Patent linkage
84. Patent linkage is another TRIPS-plus obligation imposed through FTAs. It makes the
marketing approval of a medicine dependent on its patent status. Thus if the medicine is
patented, no marketing approval would be given to its generic version.
85. The laws of a number of countries permit national DRAs to grant marketing approval to a
medicine, irrespective of its patent status.93 Some countries, however establish a link between the
patent system and drug marketing approval procedures.94 For many developing countries and
LDCs, patent linkages are introduced through FTAs that require the national DRA either to
refuse to grant marketing approval for the generic version or to disclose to the patentee the
identity of a third party seeking approval.
92
A country analysis of public health and patent law in Jordan has shown that of 103 medicines
registered and launched since 2001 that currently have no patent protection in Jordan, at
least 79 per cent have no competition from a generic equivalent as a consequence of data
exclusivity. See footnote 78 above, p. 9.
93
94
See footnote 90 above.
Drug Price Competition and Patent Term Restoration Act (The Hatch-Waxman Act),
United States 1984.
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