this page only  
Join BIO   |   Member Directory   |    Contact BIO    
Biotechnology Industry Organization
Bio Photo

Home
About BIO
Members.BIO.org
BIO News Online
BIO Bulletins
Suggestion Box
Membership Directory
BIO Videos
News & Media
National Issues
Health Care
Food & Agriculture
Industrial & Environmental
Bioethics
• Intellectual Property
Regulatory
Tax & Financial
State & Local Issues
State by State Initiatives
Letters, Testimony & Comments
Speeches & Publications
Industry At-a-Glance
Conferences & Events
Business & Finance


Sunday, May 18, 2008

Patent Reform

Click here for a printer-friendly page Printer Friendly

BIO members are involved in the research and development of healthcare, agricultural, industrial and environmental biotechnology products. BIO's membership represents a complete cross-section of the industry, from small startups to large pharmaceutical and agricultural biotechnology companies. Patents are often the sole assets of many of BIO's member companies. As such, strong and predictable patent protection enables the flow of risk capital that is vital to achieving biotechnology's promise. BIO supports strengthening the U.S. patent system and opposes efforts to undermine or limit protection and enforcement.

Patent Reform - America needs to protect and fully enforce intellectual property rights, without which the biotechnology industry would be irrevocably harmed. Inventions in biotechnology are entitled to the same patent term as inventions in other technologies. However, due to the added step of Food and Drug Administration (FDA) regulatory review, biotechnology inventions lose eight to ten years of patent life. BIO advocates day-for-day restoration of all patent term lost due to regulatory delays.

Biotechnology Patenting - Because biotech companies depend on private investments, patents are among the first and most important benchmarks of progress in developing a new biotechnology product. Patents offer limited protection against commercial use of a company's invention by a competitor. In biotechnology, patents are critical to raising capital to fund the research and development of products. BIO advocates strong intellectual property protection for biotechnology inventions. For this reason, the organization opposes any legislation, regulatory change by the Patent and Trademark Office (PTO) or judicial effort that would shorten the length of a patent or limit the scope and protections a patent affords.

PTO Appropriations and Fee Diversion-The Patent and Trademark Office (PTO) plays an important role in the progress of biotechnology. Its role is inextricably linked to the creation of the necessary pipeline for continued advancement in cutting edge biotechnologies. Adequate funding of the PTO will ensure the security of the biotechnology industry's investment in research and development of biotechnology products. The PTO is a fully user fee funded agency whose funds in the past have been siphoned off for non-PTO programs. The PTO's customers are entitled to receive the best services the agency can provide for the fees they pay. Therefore, a fundamental change in the method by which the PTO is funded is needed. The change is the establishment, by statute, of the principle of no diversion of fees. With no diversion, the PTO would have access to the fees paid by its customers to process their work, while at the same time continue effective oversight by the Administration and Congress. BIO advocates a permanent end to this diversion.

Hatch-Waxman Reform-The Hatch-Waxman Act, or the Drug Price Competition and Patent Term Restoration Act of 1984, was designed to both encourage innovation and facilitate generic competition with the branded products they copy. The Act itself consists of two titles, Title I of which serves to facilitate drug discovery and development by restoring effective patent life to innovators. Under Title I of the Act, a generic company could file for an Abbreviated New Drug Application (ANDA) and refer to the innovator's clinical research. The generic company can also reference an innovator's trade secret as long as at least 5 years have passed since the date FDA approved the innovator application. In addition, generic companies can use a patented drug prior to patent expiry to conduct pre-market testing in support of an ANDA. Title II of the Hatch-Waxman Act provides the opportunity for pioneer companies to obtain partial restoration of time lost during pre-market testing and approval required by the FDA. The total effective patent life may be restored to no more then 14 years. The total time restored between filing an IND and approval at the FDA is limited to no more than 5 years. The Act provides for a half-day cap on clinical development time during the investigational New Drug Application phase with the FDA.

Cloning and Intellectual Property- BIO supports the PTO's current practice of denying patents on human beings. BIO however, opposes revising patent laws in order to deal with ethical concerns such as cloning. Such changes to patent laws can have serious long term implications for all industry sectors. Modification of patent laws in order to carve out specific subject matter from patentability must be considered carefully. Revision of the patent laws to exclude one subject area from patent eligibility can lead to other types of exclusions. Opening up the Patent Act could open the door and create a pathway to preclude patents on virtually any item or industrial product.

© 2008 | Biotechnology Industry Organization | 1201 Maryland Ave., SW, Ste. 900 | Washington, D.C. 20024