Eli Lilly Enlists Congress In Fight Against Canada For Refusing Patent On Useless Drug
from the war-on-all-fronts dept
Eli Lilly bet its entire business model on patents years back, rather than on creating useful products that people want to buy. Lately it’s been having trouble getting new patents, and is reacting extremely poorly to the fact that its last-gasp efforts to get new patents aren’t working. As we’ve noted, a few years back, Canada rejected some patent applications for some Eli Lilly drug after the Canadian patent board “determined that the drug had failed to deliver the benefits the firm promised when obtaining the patent.” In other words, after realizing that the drug is not useful, Canada rejected the patent.
And Eli Lilly flipped out.
Eli Lilly has sued Canada for $500 million claiming “lost profits.” How is this possible, you ask? Well, it’s those corporate sovereignty provisions that are finding their way into various trade agreements lately. They’re usually called “investor state dispute settlement” (ISDS) provisions, because supporters know that such a phrase will bore most people to death and they won’t realize what’s happening. Eli Lilly is arguing that Canada’s decision to check to see if a drug is actually useful somehow violates its international agreements. And thus that a sovereign decision by Canada not to patent drugs of questionable benefit is not just a violation of trade, but stomping on Eli Lilly’s expected profits.
Lilly is now raising the stakes. Not only has it asked the USTR to put Canada back on the wacky “Special 301 list” of “naughty countries” that don’t bow before American corporate demands, but it’s convinced 32 members of Congress to out themselves as corporate shills for Eli Lilly by demanding that the USTR follow through on this request.
Eli Lilly seems to have no shame about this, happily admitting that it’s behind this effort to have the US punish Canada for daring to judge whether or not a drug is useful. As he told the Wall Street Journal:
“We’ve been unsuccessful in bringing about change by other means,” said Lilly chief executive John Lechleiter. “It’s an issue right at our back door. And unfortunately, we’re afraid it can lead to other countries attempting to undermine intellectual property.”
No, not “undermine intellectual property.” It’s about actually making sure, before giving you a decades-long monopoly right, that your drug is actually useful. Of course, if the USTR actually follows through and puts Canada on the Special 301 list, it will just cement what a complete joke the Special 301 list really is. For years, the USTR — at the behest of Hollywood — put Canada on the Special 301 list. Each year Canadian officials would specifically state that they “don’t recognize” the process of the Special 301 list as being legitimate (because it’s not) and then proceed to do nothing. Eventually, though, with a new government in place, Canada did change its copyright laws, and was “downgraded” on the Special 301 list. Upgrading them back up to a “pirate” nation will just highlight why Canada (and every other country) should totally ignore the nearly entirely arbitrariness of the list.
Meanwhile, shame on those 32 members of Congress for supporting such a blatant attempt by a company to interfere in the sovereignty of Canada and its crazy idea that drugs should actually be useful to deserve patent protection.