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Markets in everything
Or should this post be titled "Department of Uh-Oh"?
Indonesia, which has had more human cases of avian flu than any other country, has stopped sending samples of the virus to the World Health Organization, apparently because it is negotiating a contract to sell the samples to an American vaccine company, a W.H.O. official said yesterday. The strains of the H5N1 virus circulating in Indonesia are considered crucial to developing up-to-date vaccines and following mutations in the virus.
Here is the story. At the very least, is it not better to release the information but require a payment of royalties from any company using it profitably? Or since the virus has a 60-70 percent fatality rate in Indonesia, maybe they might go back to simply giving the information away...?
Here is further commentary, perhaps the Indonesians are resentful that they would not be able to afford any resulting vaccine. If this entire episode does not convince you that IP law is out of control, I don't know what would.
Posted by Tyler Cowen on February 7, 2007 at 12:17 PM in Medicine | Permalink
Comments
Does the owner of IP rights to a pathogen have any liability when it infects someone?
Would spreading a contagious disease be a kind of IP piracy?
Posted by: John Mansfield at Feb 7, 2007 3:40:47 PM
This doesn't just show IP law is out of whack. It also shows that capitalism does not necessarily lead to economic efficiency and that economic efficiency is not always the primary good. This is a point that libertarian ideologues would do well to understand.
Posted by: an ony mouse at Feb 7, 2007 6:32:56 PM
Could you please elaborate on the problem with IP law that prompted: 'If this entire episode does not convince you that IP law is out of control, I don't know what would.' Thanks.
Posted by: Christopher Prottas at Feb 7, 2007 8:12:27 PM
I don't get it either. What does IP law have to do with it? As far as I can tell, it's not that Indonesia has legal control over information regarding the virus--it's that they have physical custody over it.
Posted by: Brandon Berg at Feb 7, 2007 9:15:47 PM
IP law is indeed out of control. We should consider a system that encourages cooperation in advancing discovery, rather then a winner-take-all mentality.
Posted by: Viscus at Feb 8, 2007 1:47:09 AM
What IP law caused this? Seems like it's an extreme case of rent-seeking.
Posted by: eriks at Feb 8, 2007 10:49:35 AM
The IP law Tyler means, I presume, is the US patent law, which gives the American company the incentive to buy exclusive virus rights from Indonesia.
IMHO, the company is wrong. If/when a pandemic reaches the US, it would take about an hour for Congress to break every patent related to bird flu. Effect measure is right that public funding for vaccines is necessary, but not because of the need to share but because the promise of monopoly profits in a real crisis is simply not credible.
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