HIV activists hail Madras HC quashing Novartis patent challenge

HIV activists on Tuesday hailed Madras High Courts verdict quashing Swiss pharma major Novartis challenge to a patent law.

New Delhi, Aug 7 : HIV activists on Tuesday hailed Madras High Court's verdict quashing Swiss pharma major Novartis' challenge to a patent law.

The court rejected the challenge, saying it had no jurisdiction on whether Indian patent laws complied with intellectual property rules set by the WTO, as Novartis had questioned.

French charity Medecins Sans Frontiers (MSF) said the decision would discourage the practice of pharmaceutical corporations suing developing countries putting public health over patent considerations."The court has very clearly dismissed the case and not deferred the matter. It said that domestic courts are not where you raise issues about TRIPS (Trade Related Aspects of Intellectual Property Rights) compliance and actually that puts an end to the harassment countries like India would face in domestic courts from companies like Novartis," said Leela Menghaney, MSF India Project Manager.

Novartis had filed a similar case against the South African Government in 2001, which tried to roll out HIV anti-retro viral drugs in its own country by granting licenses.

Novartis has the right to challenge the Chennai court order in India's apex court. A company statement on Monday, however, said it "likely will not appeal to the Supreme Court."

The Chennai HC noted in its judgement that the sole forum for determining TRIPS compliance was the WTO's Disputes Resolution Panel.

A legal expert said Novartis could petition home country Switzerland to take up the matter against India at the WTO, but the Indian law could stand scrutiny nevertheless.

"The only parties that are allowed in the Disputes Resolution Panel are individual countries, so it would not be... it could not possibly be Novartis versus us. But if Novartis were to succeed in petitioning a country to take India to the WTO Disputes Resolution Panel, we are fairly confident that section 3 (d) would, nevertheless, survive TRIPS scrutiny. This was argued extensively in the case," said Chan Park, who has been providing legal aid to fora of HIV-patients locked in cases with Novartis.

Park added the WTO dispute panel had earlier favoured Canada in a similar case when it introduced provision for reverse-research on patented drugs to develop generic versions, and the US alleged it violated TRIPS obligations.

The Swiss company has said the Indian patent system stifles innovation.

Critics of Novartis say changes to the law would affect the supply of affordable anti-AIDS drugs from India, one of the biggest makers of generic drugs.

Novartis had moved the Madras High Court against a law that blocks the patenting of minor improvements in known molecules.

The Swiss pharmaceutical firm argued tightening of intellectual property laws would increase investment for developing more drugs.

ANI