quinta-feira, 14 de maio de 2020

PATENT RIGHTS IN THE MIDST OF COVID-19

On the news from RDP-Africa radio station, broadcasted on Friday, 10th of April 2020, at 12h00 in Maputo, a specific report caught my attention. It alluded that in Spain a car manufacturer has developed a ventilator based on windshield wiper motors functioning. It further stated that the ventilators will be made available to health services in Spain with the aim to combat covid-19. Further details were to be given at end of the news. The inventors decided not to register the invention, so that such invention should not fall under their Intellectual Property Rights and thus allow the countries that need it most (especially in Africa and Latin America) to manufacture their own ventilators based on this invention[1]. 

We are faced with an extraordinary  form of altruism. In contrary to the people and companies who seek to take advantage in the current situation by increasing food, products and essential protection equipment used in the combating of this pandemic, these inventors made their invention for the purpose of having it accessible free of charge. 

This and other situations really motivated me and I thought, it could be useful to revisit what our current patent legislation provides for cases whereby inventions are created and used in combating pandemics  or other dangers which represents a threat to public health.

National legislation

Under the national legislation, every national inventor enjoys the legal protection for their rights duly provided for in the article 74 of the Industrial Property Code (hereinafter IPC). In effect, the current legal provision stipulates in paragraph 1 that “Without prejudice to any other provisions of this chapter, the patent holder enjoys the following exclusive rights relating to the invention: a) Exploit the patented invention; b) Grant or assign of the patent; c) Conclude license agreements for the exploitation of the invention; made; d) Opposing the improper us of the patent”.

What this means is that, albeit the right to use or explore, patent holder also enjoys the right to conclude different types of contracts with potential interested parties, as well as exercising his right to prevent that such patent may not be used by third parties without his permission. Failure to do so is legally regarded as a breach of the exclusive rights of the patent, provided for and duly punished in accordance to the provision contained in the article 214 of the IPC - (Industrial Property Code).

However, there are exceptions to this rule, in that, it can be motivated by certain situations, for instance, as the outbreak of pandemics, such as the one that is currently devastating the entire world. Mandatory License is the legal mechanism which provides for the said exception, duly stipulated in the article 92 of the IPC. This mechanism is accessed or activated whenever there are justified reasons of public interest, namely when the invention is crucial for combating public health issues. The relevant Ministry, in this case the Ministry of Health authorizes the exploitation of the invention, upon request addressed to Industrial Property Institute- IPI[2].

For extreme situations such as the national emergency, the compulsory license is applicable however the requesting therefore is not required. The Government, through the relevant Ministry, simply authorizes the use of the invention for as long as necessary, provided it is aimed to contain the pandemic. This is in reference to the Principle of Proportionality which according to BARBOSA, Denis (2003), its application requires that “(…)- the principle of proportionality is applicable whenever we are confronted with two constitutional requirements - the protection of property and that of social interest.

It is emphasized that the collective interest will only prevail to the exact extent, and no further action will be needed to satisfy that interest. In essence, this means that the actual compulsory license, in accordance to the constitutional parameters, cannot exceed the extension, duration and indispensable form with the excuse of serving the relevant public interest, or to repress the abuse of the patent or that of the economic power[3].

Let us assume, for example, a Mozambican national invented something that would help in the fight against Covid-19, and during the period of time in which the Government declared a state of emergency, in this case, the government could resort to the mandatory license as to limit the exclusive rights of the patent holder and, thus, authorizing the exploitation of the invention by third parties. However, it is still important to state that the interests of the inventor will always be taken care of. In effect, under the terms of paragraph 6 of article 92 of the IPC, "the patent holder receives an adequate remuneration, paid by the beneficiary, adjusted to each specific case, taking into cognisance the economic value of the patent". In the case of the discovery of the pandemic cure, the remuneration should not be paid by each person who benefited from such cure, it should be paid by the Government.

International legislation

The protection of intellectual copyrights has as its regulating cornerstone the Paris Convention dated back on the 20th of March 1883, whose sole mandate is to protect the industrial property of which Mozambique is a signatory member state[4].

The convention gives the newly joined member states of the Union the prerogative to include in their national legislation provisions on mandatory licensing, as a way to “prevent abuses that could result from the exercise of the exclusive right conferred by the patent, as, for example, the lack of exploitation”. As it can be seen, the enumeration is exemplary, therefore an extensive interpretation of this standard must be made, and it should include situations such as the state of national emergency, threats or danger to public health, among other things.

A similar provision is also found in the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement on Trade-Related Aspects of the Intellectual Property Rights (TRIPS). This agreement remains by far the broadest international instrument enacted for the protection of intellectual property and is binding on all the member states of the World Trade Organization. In its article 31 with the heading “other uses without authorization of the right holder”, the agreement establishes that member states may authorize the use of the invention by third parties, provided that the respective national laws make provision for such. It also defends that the use by third parties must be communicated to the right holder, but such communication is not required "in cases of emergency or other circumstances of extreme urgency or in cases of non-commercial public use[5].

As you might easily attest to, our IPC (Intellectual Property Code) is in line with current international legislation  in as far as the matter under scrutiny here is concerned. Nor could it be otherwise because Mozambique has joined and accepted these Agreements, thus being included in its national legal system .

 

The Social Function of the Intellectual Property

The legal provisions discussed above is intrinsically linked to ensure the authorized use of patents by third parties and this is regarded as being an integral part the doctrine known as the Principle of the Social Function of the Intellectual Property and it derives from an understanding that albeit Intellectual Property Rights in general, and that of patents in particular, it ensures that their holders enjoy the protection and exclusive right of their use, these rights should in essence, whenever needed, play a social role as a way of helping countries to meet their social development goals. In a nutshell, intellectual property must be subject to the imperatives of national interest, once again, whenever needed. In other words, every single holder of an intellectual property right has a duty towards his community, that is, his property should be serving the community whenever there are justified reasons for so doing.

VARELLA, Marcelo (1996) cited by CARVALHO, Thiago and THOMÉ, Karim (2015) emphasized that “the social function is a limit found by the law-makers in order to outline the property, in compliance to the principle of the supremacy of the public interest above the private interest”.

From this legal premise, it is clear that the social function of property is not a restriction on the property itself, but on its misuse. According to BARBOSA, Denis (2003) "the social function would be all transcendence of the selfish interest". This means that the holder of the right should give up his personal interests and accept that such personal interests should in essence serve the community at large.

For instance, in Mozambique this principle is in line with the very nature of the State clearly defined in the ambits of the Constitution of the Republic, thus establishing in the article 1 that “Mozambique Republic is an independent, sovereign, democratic and social justice state”. As result of this definition there is an alignment of the entire organization and the action of the state to reach this goal[6].

 

Concluding remark

Mozambique being regarded an undeveloped country, without any technological advancement out there, people do not consider the hypothesis that, in the near future, a great invention of national or international impact will emerge. In fact, an in depth reading of the Industrial Property Bulletin published monthly by the IPI clearly reinforces this perception, because the inventions so far registered by our inventors are commonly regarded as “small patents” thus of a low impact nationwide, simply because they are not well developed inventions even though they were made to address and meet the basic needs and challenges faced by communities.

 

Notwithstanding this, one cannot discredit or ignore the human ingenuity which at any given time can lead the invention of something of with a national impact and repercussion, may it be for combating the pandemic, or find a solution to eradicate a chronic problem of hunger or malnutrition which should not be overlooked as it still remains a challenge in the country affecting large percentage of Mozambicans, or an invention to solve an eventual technological “blackout” in the national financial system, among several other situations. In such case, it should be necessary to carefully analyse the situation to assess how best a particular interest of the invention and the needs of the community can be reconciled.



[1] Here’s a link of the audio extract of the news  https://www.rtp.pt/play/p5442/e466418/noticiarios-rdp-africa. For more updates or development on the subject, please click right here   https://www.seat.pt/empresa-seat/noticias-auto/novidades-seat/a-seat-inicia-a-producao-de-ventiladores-de-emergencia-nas-suas-instalacoes-de-martorell.html.

 [2] Article 92, no 1 to 3, from the IPC.

 [3]. In: BARBOSA, Denis (2003), The New Regulation for Compulsory License for Public Interest.  Article published in the issues of Gazeta Mercantil of 17th, 18th and 19th of November 2003 and is available on this link http://denisbarbosa.addr.com/trabalhospi.htm, consulted on the 14th and 15th of April 2020.

 [4] Mozambique joined the Union through Resolution no.21/97, of 12th of August.

[5] Clause (b) of the article 31 of the TRIPS Agreement.

 [6] See article 11 on the Fundamental Objectives, article 96 on the Economic Policy and article 101 on the Coordination of Economic Activity.


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