INSTRUCTOR DISCUSSION NOTES:
Will Eliminating Patents on Drugs Help Poor Countries?

1. The common argument against outlawing patents is that innovation will be stifled when it is needed most. It is, at best, an untestable hypothesis, under current conditions. Do you think this is correct? Why or why not?

Answers may vary. Students should focus on economic arguments, including CBA for the drug companies, and whether the developing world would become the home of two-generations-old drugs.

2. What will be the impact on the drug industry in the US if international patents are not observed?

Prices in the US will rise, as firms seek to recoup lost profits in areas that respect patent law.

3. What sort of backlash may be expected from the US prescription drug consumer if developing countries continue to violate patent laws and import generics?

As prices in the US rise, US consumers may be more likely to argue for an elimination of US patents so that prices will come down – recall the stories of senior citizens making monthly treks to Canada to purchase drugs.

Multiple Choice/True False Questions

1. True/False. A patent may be viewed as a return to innovation and research.

Ans. True

2. According to the article summary, which of the following is NOT a potential result of overruling patents?
  1. Innovation will be stifled.
  2. The world’s poor will not receive as much attention from drug companies.
  3. Generic drug industries will thrive.
  4. The duration of patents will be extended to compensate for the lost income.

ANS. D

3. Which of the following are given as reasons to offer patents to drug companies?

  1. Research is expensive.
  2. Research for novel drugs is uncertain and risky.
  3. Firms seek to recoup profits to undertake research.
  4. All of the above.
ANS. D

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