• By Donald Zuhn –-

    WTO logoOn December 6, the same day that the U.S. Trade Representative issued a statement on the June 17, 2022 Ministerial Decision that authorized developing Members to use the subject matter of a patent required for the production and supply of COVID-19 vaccines without the consent of the right holder to the extent necessary to address the COVID-19 pandemic, nine World Trade Organization (WTO) delegations called on the General Council "to immediately extend the 17 June TRIPS Decision . . . to therapeutics and diagnostics."

    The June 17 Ministerial Decision permitted an eligible Member, which is defined to include all developing country Members, to "limit the rights provided for under Article 28.1 of the TRIPS Agreement . . . by authorizing the use of the subject matter of a patent required for the production and supply of COVID-19 vaccines without the consent of the right holder to the extent necessary to address the COVID-19 pandemic."  The "subject matter of a patent" is defined in the Decision as including the ingredients and processes necessary for the manufacture of the COVID-19 vaccine.  Eligible Members could apply the provisions of the Decision until 5 years from the date of the Decision (i.e., June 17, 2027).  One of the Decision's provisions allows any proportion of the products manufactured in accordance with the Decision to be exported from one eligible Member to another, i.e., an eligible Member can waive the requirement of Article 31(f) that authorized use under Article 31 be predominantly to supply that Member's domestic market.  As we reported last week, the June 17 Decision also included a provision that "[n]o later than six months from the date of this Decision, Members will decide on its extension to cover the production and supply of COVID-19 diagnostics and therapeutics (see "Status of Proposed Extension of TRIPS Waiver in WTO").

    Last week, the delegations of Argentina, Bangladesh, Bolivia, Egypt, India, Indonesia, Pakistan, South Africa, and Venezuela issued a communication calling on the General Council to extend the June 17 Decision to therapeutics and diagnostics.  The delegations contended that "[a] more comprehensive waiver decision as envisaged in the original TRIPS waiver proposal would support the efforts to ensure timely, equitable and universal access to safe, affordable and effective therapeutics and diagnostics, ramping up of production and expanding supply options," but noted that the adopted waiver "is of limited scope covering only vaccines."  The communication states that:

    Diagnostics and therapeutics are essential tools for a comprehensive approach to fight the pandemic, that it is not over.  Omitting these vital tools will deter the effectiveness of the decision that aims timely and affordable access to effective vaccines against the ongoing COVID-19 pandemic.

    And the delegations argue that extending the June 17 Decision to diagnostics and therapeutics "will result in a holistic approach to enable developing countries to address those IP barriers that prevent the expansion and diversification of production and increase accessibility to crucial life-saving COVID-19 tools."  The communication concludes that by extending the waiver to include diagnostics and therapeutics, "WTO Members have an opportunity to show they can act promptly to respond to the ongoing COVID-19 pandemic and the challenge of inequitable access to therapeutics and diagnostics and respond to the criticism that the Decision on vaccines came too little too late."

  • CalendarDecember 13, 2022 – USPTO IP Attaché Roundtable (U.S. Chamber of Commerce Global Innovation Policy Center) – 8:30 am to 10:30 am (ET)

    December 13, 2022 – "The Impact of Director Vidal on the PTAB" (IPWatchdog) – 12:00 pm (ET)

    December 13, 2022 – "The Future of IP Operations and Technology" (Intellectual Property Owners Association) – 12:00 pm to 1:00 pm (ET)

    December 15, 2022 – "Some Novel, Non-obvious and (Hopefully) Useful Views on IPRs, Open Innovation and Licensing" (OxFirst Limited) – 15:00 to 16:00 (GMT)

    December 15, 2022 – "DocX Filing at the USPTO" (Intellectual Property Owners Association) – 12:00 pm to 1:00 pm (ET)

    December 15, 2022 – "Advice of Counsel Defense in Patent Litigation and Protecting Attorney-Client Privilege" (Strafford) – 1:00 to 2:30 pm (EST)

  • U.S. Chamber of CommerceThe U.S. Chamber of Commerce Global Innovation Policy Center (GIPC) with the U.S. Patent and Trademark Office's IP Attachés will be offering its 16th Annual USPTO IP Attaché Roundtable on December 13, 2022 from 8:30 am to 10:30 am (ET).  The program provides a unique opportunity to engage with the assembled IP Attachés for a discussion about recent trends and challenges in IP protection and enforcement in regions around the world.

    Those interested in registering for the program, can do so here.

  • IPWatchdogIPWatchdog will be offering a webinar entitled "The Impact of Director Vidal on the PTAB" on December 13, 2022 at 12:00 pm (ET).  Gene Quinn of IPWatchdog, Inc. will moderate a panel consisting of Scott McKeown of Ropes & Gray; James Carmichael, former APJ, of Carmichael IP; and Kevin Laurence of Laurence & Phillips.  The panel will take a look back at the major developments from 2022, the changes to the PTAB ushered in by Director Vidal, and the potential for legislative reforms and rulemaking in 2023.

    There is no registration fee for this webinar.  However, those interested in registering for the webinar, should do so here.

  • IPO #2The Intellectual Property Owners Association (IPO) will offer a one-hour webinar entitled "The Future of IP Operations and Technology" on December 13, 2022 from 12:00 pm to 1:00 pm (ET).  Mehrdad Assadi of Patrix IP Helpware, Steven Lundberg of Schwegman Lundberg & Woessner, and Thomas Marlow of Black Hills IP will provide an overview of the evolving technical and service landscapes and introduce attendees to new, cutting-edge solutions to simplify their IP back office that are increasing accuracy and efficiency while simultaneously reducing cost, headcount, and risk.

    The registration fee for the webinar is $150 for non-members or free for IPO members (government and academic rates are available upon request).  Those interested in attending the webinar should register here.

  • OxFirstOxFirst Limited will be offering a webinar entitled "Some Novel, Non-obvious and (Hopefully) Useful Views on IPRs, Open Innovation and Licensing" on December 15, 2022 from 15:00 to 16:00 (GMT).  Ove Granstrand, Professor in Industrial Management and Economics at Chalmers University of Technology in Sweden and visiting professor at Stanford University and Cambridge University, will discuss the fairness principles, different bargaining outcomes, and value capture distributions associated with IPRs and patents and open innovation via partnering, venturing, licensing or technology intelligence.

    While there is no cost to participate in the program, those interested in attending the webinar should register here.

  • IPO #2The Intellectual Property Owners Association (IPO) will offer a one-hour webinar entitled "DocX Filing at the USPTO" on December 15, 2022 from 12:00 pm to 1:00 pm (ET).  Bradley Forrest and Kasie Grover of Schwegman Lundberg & Woessner, and Richard Seidel, Deputy Commissioner for Patents, U.S. Patent and Trademark Office will discuss the USPTO's Patent Center platform, the platforms being replaced by Patent Center, and the various features of Patent Center, as well as the new DOCX patent filing requirements and the related pros and cons, and offer best practice tips associated with DOCX filings.

    The registration fee for the webinar is $150 for non-members or free for IPO members (government and academic rates are available upon request).  Those interested in attending the webinar should register here.

  • Strafford #1Strafford will be offering a webinar entitled "Advice of Counsel Defense in Patent Litigation and Protecting Attorney-Client Privilege" on December 15, 2022 from 1:00 to 2:30 pm (EST).  Monte Cooper of Goodwin Procter, Azra Hadzimehmedovic of Tensegrity Law Group, and Lionel M. Lavenue of Finnegan Henderson Farabow Garrett & Dunner will examine the issues of privilege in the context of opinions of counsel and the use of the advice of counsel defense, and will review recent decisions and offer best practices for limiting the scope of discovery of communications and work product related to the advice of counsel defense and protecting the privilege.  The webinar will review the following issues:

    • What is the practical impact of recent decisions on utilizing opinions of counsel in defense of willful infringement while protecting privileged communications and attorney work product?
    • What considerations regarding possible waiver of the attorney-client privilege and work product immunity should counsel consider before asserting the advice of counsel defense in patent infringement litigation?
    • What are the best practices for counsel and corporations to preserve the attorney-client privilege and work product immunity?

    The registration fee for the webcast is $347.  Those interested in registering for the webinar, can do so here.

  • By Kevin E. Noonan –

    WTO logoIt is often observed (or asserted) that a fair compromise in a dispute has likely been reached when both sides are not particularly happy about it.  This is not always the case, of course, and is more likely not to be the case the more complex the dispute and disparate the parties' perspectives, prejudices, and goals.  These principles may explain the status of the current proposal to extend the COVID pandemic-created (or at least justified) waiver in the World Trade Organization (WTO) of patenting provisions under the TRIPS provisions that the WTO was created in part to enforce.

    It will be recalled that the initial proposal by South Africa and India was focused on vaccines and preventing the purported, expected, or apprehended impediments to development or distribution of vaccines for SARS-CoV-2 during the COVID-19 pandemic.  U.S. support for the initial waiver was surprising (see "Biden Administration Supports Waiver of IP Protection for COVID-19 Vaccines"), particularly in view of opposition by IP groups (see "IP Associations "Concerned" by Reports of TRIPS Waiver Compromise") and members of Congress (particularly Senator Thom Tills; see "Sen. Tillis Asks Biden Administration to Oppose WTO Waiver Proposal" and "Sen. Tillis Writes to U.S. Trade Representative (Again) Regarding TRIPS Waiver").  And when agreement was reached on the waiver (see "Compromise Reportedly Reached on COVID-19 Vaccine Patent Waiver"), its provisions raised additional concerns, particularly to the extent they could encompass not only patents but trade secrets and other intellectual property (see "If the Devil of the WTO IP Waiver Is in the Details, What Are the Details?" and "The Proposed WTO IP Waiver: Just What Good Can It Do? — An Analysis").

    The original waiver agreement contained a provision that a decision on whether to extend the waiver to diagnostic methods and therapeutic agents useful against SARS-CoV-2 and COVID-19 would be reached within six months, which deadline falls on December 17th.

    On December 6th, the U.S. Trade Representative joined the growing international chorus at the WTO supporting delay for making a decision on extending the waiver, which includes the UK, the EU, Japan, South Korea, Singapore and most recently Mexico and Switzerland.  In addition, the USTR asked the International Trade Commission (ITC) to open an investigation to assess the extent to which "supply and demand, price points, the relationship between testing and treating, and production and access" affect market dynamics for COVID-19 diagnostics and therapeutics.  The ITC request includes specifics on what products would the proposed extension affect, the global market for these products and the extent to which there is an unmet demand for them or shortfalls in supply or distribution, as well as a report on the countries that have used the existing waiver versus countries using other options like the UN Medicine Patent Pool.  This inquiry could take up to nine months according to some estimates.

    This decision raised an expected outcry from groups in favor of the original waiver as well as the extension.  Most vocal in decrying the decision to support delay were representatives from the People's Vaccine Alliance (who termed the decision "heartbreaking") and the Trade Justice Education Fund, who noted the 290,000 COVID-related deaths globally since the WTO decided not to grant a waiver for diagnostics and therapeutics in the initial vaccine waiver earlier this year.  Commentators also cited WHO statistics revealing that 2% (one in 50) COVID tests were administered in low- and middle-income countries (which make up 84% of the global population), and a recent Oxfam analysis estimated that only a quarter of the Paxlovid supply had been sent to developing countries (although under an agreement with the UN Medicines Patent Pool drugmaker Pfizer has licensed generic companies to make the drug in 95 countries).

    On the other hand, the U.S. Chamber of Commerce, the Biotechnology Innovation Organization (BIO) and PhARMA have characterized the extension as unnecessary in view of the failure of the initial waiver, which has not been used by any country to increase access to vaccines.  In a talk sponsored by IP advocacy group C4IP last week (see "C4IP Presents Webinar on COVID Waiver Extension"), former U.S. Patent and Trademark Office Directors Andre Iancu and David Kappos and former U.S. Secretary of Commerce Gary Locke were in agreement that the waiver has had no effect, because problems with vaccine access have little to do with IP protection and were caused by logistical and supply chain limitations and failures.

    The COVID 19 pandemic provided an opportunity for those opposing patent rights to medicines and vaccines to achieve their goals to turn back the clock on global acceptance of IP that reached its zenith with the TRIPS agreement and establishment of the WTO.  The latest delay in extending the patent (really, IP) waiver in the face of the declining pandemic may thwart these efforts for now, but inherent disparities in global access to medicines is a problem exacerbated although not created by the pandemic and one for which the need for a solution remains.

  • By Kevin E. Noonan –

    Henrik Ibsen's 1882 play, An Enemy of the People, engendered an aphorism having a longer lifetime than the play itself (except amongst the literati) which is unfortunate, because the play has some lessons about human nature that arise frequently, particularly in politics.

    The play begins in an idyllic (albeit chilly) Norwegian town where the proprietor of a spa popular with tourists (and himself a physician) Dr. Stockmann finds that the spa is contaminated with bacteria.  It is well to remember that in 1882 Pasteur's germ theory of disease and Koch's famous postulates were new (indeed, Koch "discovered" the microorganism responsible for tuberculosis that same year) and that bacterial infections were serious health risks (for anyone wanting to get a feeling for how serious and who has a lot of time on their hands, Mann's The Magic Mountain illustrates the situation marvelously).  The doctor in a spirit of concern for the public's health informs the local newspaper which intends to run the story.  In the second act, the Mayor (the doctor's brother) urges the doctor to retract the story lest it be the (financial) ruin of the town, advocating for a "quieter" way of handling the problem and convinces the newspaper to print his own statement, extoling the safety of the baths.  The doctor calls a town meeting about the problem but is shouted down; this is the first instance in the play where he is called an enemy of the people.  The consequences of the doctor's attempt to "do the right thing" are evident in the final act, where his family's possessions are smashed, they are being evicted from their home, his wife has been fired from her job as a schoolteacher, and the doctor is blackballed from ever working in the town again.  This being Ibsen, the doctor stands firm on his principles and refuses to renounce his findings that the spa is unsafe.

    Lee  MikeThis story comes to mind with the introduction in the Senate of Sen. Mike Lee's (R-UT; at right) bill entitled the Biosimilar Red Tape Elimination Act" (S.6), which in less purple prose is intended to permit biosimilar drugs to have the benefits of being interchangeable with the reference biologic product without the safety studies proscribed in the Biologics Price Competition and Innovation Act (BPCIA), enacted as part of "Obamacare" in 2010.  Sen. Lee's bill is short and to the point; after changing some of the language in Section 351(k) of the Public Health Service Act (codified in 42 U.S.C. § 262(k)) for consistency the bill provides that:

    The Secretary may not require, for a determination of interchangeability described in subparagraph (A), that a biological product undergo studies that assess the risks of alternating or switching between use of the biological product and the reference product.

    The statutory genesis of the need for this change is Sec. 7002(a)(2)(B) of the BPCIS, which added Section 351(k) to the PHSA and specifically in Sec. 351(k)(2)(B) the requirement that:

    INTERCHANGEABILITY.—An application (or a supplement to an application) submitted under this subsection may include information demonstrating that the biological product meets the standards described in paragraph (4)[, i.e.,] that

    (4) SAFETY STANDARDS FOR DETERMINING INTERCHANGEABILITY.—Upon review of an application submitted under this subsection or any supplement to such application, the Secretary shall determine the biological product to be interchangeable with the reference product if the Secretary determines that the information submitted in the application (or a supplement to such application) is sufficient to show that— ''(A) the biological product— ''(i) is biosimilar to the reference product; and ''(ii) can be expected to produce the same clinical result as the reference product in any given patient; and ''(B) for a biological product that is administered more than once to an individual, the risk in terms of safety or diminished efficacy of alternating or switching between use of the biological product and the reference product is not greater than the risk of using the reference product without such alternation or switch.

    One of the hallmarks of the BPCIA generally was that the Secretary of Health and Human Services, through the Food and Drug Administration (FDA) was given a great deal of leeway in deciding the standards upon which a determination of biosimilarity would be made.  This section is thus something of an anomaly, prescribing with particularity the need for the very switching studies that Sen. Lee's bill excoriates as "red tape" and in his rhetoric says are unnecessary.  It should be recalled that in addition to the strictures imposed by the statute (and consistent with the concerns motivating them) was a fear that switching could cause harm to individual patients.  In addition, there was an apprehension that clinical failures or deleterious outcomes occasioned by the FDA improvidently designating a biosimilar to be interchangeable with the reference biologic product would have a negative effect on patients and physicians towards using biosimilar products, particularly in view of the usual severity of the illnesses these drugs are used to treat.

    The motivation for Sen Lee's bill is economic and aimed at reducing drug costs.  Biologic drugs are among the most expensive and are usually prescribed for chronic or serious diseases (or both).  In addition to this being a time where the mantra "drugs cost too much" is one that politicians of every stripe can recite (and expect to garner political capital from doing so), in the ten years since passage of the BPCIA, 38 biosimilar drugs have been approved, four of which are interchangeable with the reference biological drug product.  The FDA has promulgated several Guidances for Industry on the standards and requirements for biosimilarity and in 2019 set out a Guidance on interchangeability (see "FDA Issues Final Guidance Regarding Biosimilar Interchangeability").

    Interchangeability is important for a variety of reasons, particularly with regard to biosimilar drug acceptance and the ability for the interchangeable biosimilar to be substituted for a reference biologic drug product without intervention or approval of a health care provider.  Accordingly, such drugs are rewarded with additional layers of exclusivity (indeed, the only exclusivity for biosimilar drugs contained in the statute, as set forth in the PHSA under § 351(k)(6)), wherein the FDA shall not grant interchangeability status for any second biosimilar drug until the later of:

    (A) 1 year after the first commercial marketing of the first interchangeable biosimilar biological product to be approved as interchangeable for that reference product; [or]
    (B) 18 months after –
        (i) a final court decision on all patents in suit in an action instituted under subsection (l)(6) against the applicant that submitted the application for the first approved interchangeable biosimilar biological product; or
        (ii) the dismissal with or without prejudice of an action instituted under subsection (l)(6) against the applicant that submitted the application for the first approved interchangeable biosimilar biological product; or
    (C)(i) 42 months after approval of the first interchangeable biosimilar biological product if the applicant that submitted such application has been sued under subsection (l)(6) and such litigation is still ongoing within such 42-month period; or
        (ii) 18 months after approval of the first interchangeable biosimilar biological product if the applicant that submitted such application has not been sued under subsection (l)(6).

    So the incentive has been there for biosimilar drug makers to obtain the interchangeability designation but in practice only four interchangeable drugs have been approved.  And Sen. Lee would have the public believe that this is due to the proverbial "pointy headed bureaucrats" at the FDA holding back approval that would economically benefit the public.

    Before being washed away in this latest tide of populism, it might be well to at least inquire whether the switching studies required under current law are (in addition to being more costly and retarding the progress of biosimilar to market as a drug interchangeable with the reference biologic product) necessary to protect public health.  These are scientific questions, not political or economic ones, and like Dr. Stockmann it may be the principled course to at least establish whether switching studies are necessary  (or at least prudent).  As recently as this past September 19, the European Medicines Agency (EMA) and Heads of Medicines Agencies (HMA) enunciated a joint "Statement on the scientific rationale supporting interchangeability of biosimilar medicines in the EU" that declared that a biosimilar drug approved by the EMA should be considered to be interchangeable (noting however that the definition of interchangeable use in Europe "does not include automatic substitution at the pharmacy level," leaving that to each member state).  Context is everything, however; the Statement notes that "[t]he EU regulatory network has been assessing, authorising and monitoring biosimilars for over 15 years and has gained very profound understanding of biosimilars after reviewing more than one hundred biosimilar candidate submissions, and monitoring their safety once they are placed onto the market," considerably longer than the U.S. experience (where the first biosimilar, Zarxio™, was approved in 2015; see "FDA Approves Sandoz Filgrastim Biosimilar").  Moreover, "interchangeability of EU-licensed biosimilars has been confirmed," evidenced by published studies, including Ebbers et al., 2012, The safety of switching between therapeutic proteins, Expert Opinion Biol Ther. 12:1473-85; Kurki et al., 2017, Interchangeability of Biosimilars: A European Perspective, BioDrugs 31(2):83-91; Kurki et al., 2021, Safety, Immunogenicity and Interchangeability of Biosimilar Monoclonal Antibodies and Fusion Proteins: A Regulatory Perspective, Drugs 81:1881-1896; and Barbier et al., 2022, Regulatory Information and Guidance on Biosimilars and Their Use Across Europe: A Call for Strengthened One Voice messaging, Frontiers in Medicine 9: 820755.  These studies have resulted in the conclusion that "when approval for a biosimilar is granted in the EU, additional systematic switch studies are not required to support the interchangeability at prescriber level" (see "Biosimilars in the EU – Information guide for healthcare professionals (europa.eu)").

    And a recent study of 25 members of European national medicines agencies and pharmaceutical companies (both originator and biosimilar) agreed that "interchangeability was more than a scientific question of likeness between biosimilar and reference products: it also pertained to regulatory practices and trust."  Also, these participants were overall confident in the science behind exchanging biosimilar products for the reference products via switching, i.e., with physician involvement."

    So it seems that there is a strong consensus building that the FDA's position on the requirements for interchangeability may need reconsideration and that the law may need to be changed to give the agency the needed flexibility.  But perhaps the better path than a rigid prohibition against switching studies or other methodologies to properly evaluate risk is one espoused by Daniel Alvarez and colleagues in a 2020 paper on interchangeability, where they write:

    Interchangeability should be assessed on a case-by-case basis, considering the "totality of the evidence" and biologic plausibility.  Alternative approaches to statistical analysis (e.g., use of asymmetric rather than symmetric margins to test equivalence) and study designs that meet the FDA's expectations for demonstration of interchangeability should be considered.

    (these comments coming in the context of a discussion of the potential for differing interchangeability requirements for insulin and monoclonal antibody therapies).

    There are many good reasons for making available biosimilar alternatives to biologic drugs to as broad a segment of the public as possible.  But doing so merely for economic benefit without ensuring that the cost savings won't exact alternative costs in patient morbidity or mortality seems imprudent and suggests a more measured approach might meet economic goals without sacrificing human ones.