Patent Laws. 20% of the human genome is patented.

XZeroII

Lifer
Jun 30, 2001
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http://www.michaelcrichton.com/

There is no way to cliff note this. It is 100% shocking. The ending is the best evidence of the problem that could possibly exist. Please read.

The New York Times
OP-ED Section
Sunday, March 19, 2006

THIS ESSAY BREAKS THE LAW


The Earth revolves around the Sun.
The speed of light is a constant.
Apples fall to earth because of gravity.
Elevated blood sugar is linked to diabetes.
Elevated uric acid is linked to gout.
Elevated homocysteine is linked to heart disease.
Elevated homocysteine is linked to B-12 deficiency, so doctors should test homocysteine levels to see whether the patient needs vitamins.

Actually, I can't make that last statement. A corporation has patented that fact, and demands a royalty for its use. Anyone who makes the fact public and encourages doctors to test for the condition and treat it can be sued for royalty fees. Any doctor who reads a patient's test results and even thinks of vitamin deficiency infringes the patent. A federal circuit court held that mere thinking violates the patent.

All this may sound absurd, but it is the heart of a case that will be argued before the Supreme Court on Tuesday. In 1986 researchers filed a patent application for a method of testing the levels of homocysteine, an amino acid, in the blood. They went one step further and asked for a patent on the basic biological relationship between homocysteine and vitamin deficiency. A patent was granted that covered both the test and the scientific fact. Eventually, a company called Metabolite took over the license for the patent. Although Metabolite does not have a monopoly on test methods-other companies make homocysteine tests, too-they assert licensing rights on the correlation of elevated homocysteine with vitamin deficiency. A company called LabCorp used a different test but published an article mentioning the patented fact. Metabolite sued on a number of grounds, and has won in court so far.

But what the Supreme Court will focus on is the nature of the claimed correlation. On the one hand, courts have repeatedly held that basic bodily processes and "products of nature" are not patentable. That's why no one owns gravity, or the speed of light. But at the same time, courts have granted so-called correlation patents for many years. Powerful forces are arrayed on both sides of the issue.

In addition, there is the rather bizarre question of whether simply thinking about a patented fact infringes the patent. The idea smacks of thought control, to say nothing of unenforceability. It seems like something out of a novel by Philip K. Dick-or Kafka. But it highlights the uncomfortable truth that the Patent Office and the courts have in recent decades ruled themselves into a corner from which they must somehow extricate themselves.

For example, the human genome exists in every one of us, and is therefore our shared heritage and an undoubted fact of nature. Nevertheless 20 percent of the genome is now privately owned. The gene for diabetes is owned, and its owner has something to say about any research you do, and what it will cost you. The entire genome of the hepatitis C virus is owned by a biotech company. Royalty costs now influence the direction of research in basic diseases, and often even the testing for diseases. Such barriers to medical testing and research are not in the public interest. Do you want to be told by your doctor, "Oh, nobody studies your disease any more because the owner of the gene/enzyme/correlation has made it too expensive to do research?"

The question of whether basic truths of nature can be owned ought not to be confused with concerns about how we pay for biotech development, whether we will have drugs in the future, and so on. If you invent a new test, you may patent it and sell it for as much as you can, if that's your goal. Companies can certainly own a test they have invented. But they should not own the disease itself, or the gene that causes the disease, or essential underlying facts about the disease. The distinction is not difficult, even though patent lawyers attempt to blur it. And even if correlation patents have been granted, the overwhelming majority of medical correlations, including those listed above, are not owned. And shouldn't be.

Unfortunately for the public, the Metabolite case is only one example of a much broader patent problem in this country. We grant patents at a level of abstraction that is unwise, and it's gotten us into trouble in the past. Some years back, doctors were allowed to patent surgical procedures and sue other doctors who used their methods without paying a fee. A blizzard of lawsuits followed. This unhealthy circumstance was halted in 1996 by the American Medical Association and Congress, which decided that doctors couldn't sue other doctors for using patented surgical procedures. But the beat goes on.

Companies have patented their method of hiring, and real estate agents have patented the way they sell houses. Lawyers now advise athletes to patent their sports moves, and screenwriters to patent their movie plots. (My screenplay for "Jurassic Park" was cited as a good candidate.)

Where does all this lead? It means that if a real estate agent lists a house for sale, he can be sued because an existing patent for selling houses includes item No.7, "List the house." It means that Kobe Bryant may serve as an inspiration but not a model, because nobody can imitate him without fines. It means nobody can write a dinosaur story because my patent includes 257 items covering all aspects of behavior, like item No. 13, "Dinosaurs attack humans and other dinosaurs."

Such a situation is idiotic, of course. Yet elements of it already exist. And unless we begin to turn this around, there will be worse to come.

I wanted to end this essay by telling a story about how current rulings hurt us but the patent for "ending an essay with an anecdote" is owned. So I thought to end with a quotation from a famous person, but that strategy is patented, too. I then decided to end abruptly, but "abrupt ending for dramatic effect" is also patented. Finally, I decided to pay the "end with summary" patent fee, since it was the least expensive.

The Supreme Court should rule against Metabolite, and the Patent Office should begin to reverse its strategy of patenting strategies. Basic truths of nature can't be owned.

Oh, and by the way: I own the patent for "essay or letter criticizing a previous publication." So anyone who criticizes what I have said here had better pay a royalty first, or I'll see you in court.
 
May 16, 2000
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The more I read about humans the more I think it's time to just develop a virus to wipe us out and let some other species rule the world...something with more intelligence...like slugs, or maybe turnips.
 

Termagant

Senior member
Mar 10, 2006
765
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All I have to say is thank God for China. Hopefully they'll extend their blatant disregard for the West's "intellectual property" ideas into this arena, and maybe do some good.
 

Rainsford

Lifer
Apr 25, 2001
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I'm not a patent lawyer, but I'm fairly sure you can't patent something you didn't invent yourself...patenting the human genome is like patenting walnuts or something similar. I can't imagine this will stand up to a challenge in court, all a smart lawyer would have to do is drag a person with the "patented" part of the genome in front of the court and ask whether or not a corporation can own that person's genetic makeup.
 

Rainsford

Lifer
Apr 25, 2001
17,515
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Originally posted by: Termagant
All I have to say is thank God for China. Hopefully they'll extend some of their blatant disregard for the West's "intellectual property" ideas into this arena, and maybe do some good.

Corrected. I'm all for getting rid of some of the stupid ideas we have with WHAT can be intellectual property and what you can do with it, but I don't like the idea of getting rid of it all together like China seems to want to. It's great when you're China and you can sponge all your good ideas off of the US, but someone has to be at the top actually coming up with stuff.
 

BrownTown

Diamond Member
Dec 1, 2005
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AM I the only one who thinks this is a good thing? Perhaps. Patents only last for a certain amount of time, what this is designed to do is to encourage companies to research medical treatments and then know that if they find something they can patent it and make money. For example finding a new drug routinely costs billions of dollars, if there were no patents then as soon as a new drug was discovered a competing company could reverse engineer it and make a generic version. This would mean that the billions in research would be wasted. IF this were the case nobody would develop drugs. The same goes for pretty much everything. Patents are designed to encourage innovation since they guarentee the innovator will recieve the proffits.

I know is seems immoral to charge way more money for a drug then it costs to produce, but what you have to realise is that that money is going to pay off the research. If the company could not charge a higher price, or force other companies to pay a royalty to make the drug (or test, device etc..) then no new drugs would be invented.
 

Rainsford

Lifer
Apr 25, 2001
17,515
0
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Originally posted by: BrownTown
AM I the only one who thinks this is a good thing? Perhaps. Patents only last for a certain amount of time, what this is designed to do is to encourage companies to research medical treatments and then know that if they find something they can patent it and make money. For example finding a new drug routinely costs billions of dollars, if there were no patents then as soon as a new drug was discovered a competing company could reverse engineer it and make a generic version. This would mean that the billions in research would be wasted. IF this were the case nobody would develop drugs. The same goes for pretty much everything. Patents are designed to encourage innovation since they guarentee the innovator will recieve the proffits.

I know is seems immoral to charge way more money for a drug then it costs to produce, but what you have to realise is that that money is going to pay off the research. If the company could not charge a higher price, or force other companies to pay a royalty to make the drug (or test, device etc..) then no new drugs would be invented.

Agreed, you should be able to patent drugs...but you should not be able to patent the human genome. There was no innovation in coming up with the sequence, so the argument in favor of patents no longer applies. The idea is to encourage innovation, there is little value to society in granting patents to people who did nothing but filed their patent first.
 

BaliBabyDoc

Lifer
Jan 20, 2001
10,737
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Originally posted by: BrownTown
AM I the only one who thinks this is a good thing? Perhaps. Patents only last for a certain amount of time, what this is designed to do is to encourage companies to research medical treatments and then know that if they find something they can patent it and make money. For example finding a new drug routinely costs billions of dollars, if there were no patents then as soon as a new drug was discovered a competing company could reverse engineer it and make a generic version. This would mean that the billions in research would be wasted. IF this were the case nobody would develop drugs. The same goes for pretty much everything. Patents are designed to encourage innovation since they guarentee the innovator will recieve the proffits.

I know is seems immoral to charge way more money for a drug then it costs to produce, but what you have to realise is that that money is going to pay off the research. If the company could not charge a higher price, or force other companies to pay a royalty to make the drug (or test, device etc..) then no new drugs would be invented.

1) I doubt any single drug has ever cost BILLIONS to develop. Few actually cross into 10-digits. It's such a good racket b/c a single blockbuster drug (billion in annual sales) easily supports the development of its replacement plus several others . . . not to mention fat profit margins.

2) Big Pharma has corrupted the patent process just like other industries.

3) Congress is filled with morons. Much of the BS at the patent office has some turd Congresspersons grubby fingerprints on it.

4) The patent office is overworked, understaffed, and often fails to follow its OWN GD rules!

For the record, very few truly new, novel drugs have been produced in the past decades. Big Pharma is in it for the money . . . that's why you don't see a bunch of new antibiotics or vaccines.
 

BrownTown

Diamond Member
Dec 1, 2005
5,314
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Originally posted by: BaliBabyDoc
1) I doubt any single drug has ever cost BILLIONS to develop. Few actually cross into 10-digits. It's such a good racket b/c a single blockbuster drug (billion in annual sales) easily supports the development of its replacement plus several others . . . not to mention fat profit margins.

Your doubt does not change the facts which are that many drugs cost into the billions of dollars.

 

BaliBabyDoc

Lifer
Jan 20, 2001
10,737
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Originally posted by: BrownTown
Originally posted by: BaliBabyDoc
1) I doubt any single drug has ever cost BILLIONS to develop. Few actually cross into 10-digits. It's such a good racket b/c a single blockbuster drug (billion in annual sales) easily supports the development of its replacement plus several others . . . not to mention fat profit margins.

Your doubt does not change the facts which are that many drugs cost into the billions of dollars.

Uh, I'm a specialist in neuropsychopharmacology. Our drugs are amongst the most complicated (and lucrative). Only biologics are more involved and NONE of them have cost billions to develop.

Don't get mad . . . you should be happy I'm trying to cure your ignorance.

here's a tool claiming $1.7B
Naturally, they come to that ridiculous sum by adding in the cost of 12 months of sales and marketing costs.:roll: In essence, drug companies could cut their costs in half if they weren't spending BILLIONS to convince people to buy (and MDs to prescribe) their drugs. Further, I'm sure Bain uses a high cost of capital model.

DiMasi et al 2003 Journal of Health Economics
R&D cost of 68 randomly selected NEW drugs from a survey of 10 drug companies. Including the costs of duds and the total cost to get drugs to market the average was $403 million. With fully capitalized cost of $802 million . . . in essence, factoring in the opportunities lost by not doing something else with your money for 5-9 years. To say the least this item is quite controversial.

Regardless, by DiMasi's analysis 95% of all drugs would be expected to cost between $684 and $936m.

Now if you can give me TWO examples of drugs that cost billions to develop . . . I would love to see it.
 

BrownTown

Diamond Member
Dec 1, 2005
5,314
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Like everything it depends how you do the numbers, I believe the billion dollar numbers are more of a (total reserach $$$)/(new drugs patented), so drugs that never ended up making it to market end up being factored in since of course they still ahve to be paid for even if they don't end up to be viable. But arguing 500 Million or 1 Billion isn't the point, the point is that either way its really expensive, and companies have to pay off these capital costs before they can make proffits on their new drug. The same goes for doing research on the human genome, if your research discovers a link between a gene and a disease then don't you think you deserve some reward for this breakthrough? Certianly its preferable to have to pay a royalty for the test then for the test not to exist at all?
 

MrPickins

Diamond Member
May 24, 2003
9,124
787
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Originally posted by: Michael Crichton
[The question of whether basic truths of nature can be owned ought not to be confused with concerns about how we pay for biotech development, whether we will have drugs in the future, and so on. If you invent a new test, you may patent it and sell it for as much as you can, if that's your goal. Companies can certainly own a test they have invented. But they should not own the disease itself, or the gene that causes the disease, or essential underlying facts about the disease. The distinction is not difficult, even though patent lawyers attempt to blur it. And even if correlation patents have been granted, the overwhelming majority of medical correlations, including those listed above, are not owned. And shouldn't be.

Originally posted by: BrownTown
Like everything it depends how you do the numbers, I believe the billion dollar numbers are more of a (total reserach $$$)/(new drugs patented), so drugs that never ended up making it to market end up being factored in since of course they still ahve to be paid for even if they don't end up to be viable. But arguing 500 Million or 1 Billion isn't the point, the point is that either way its really expensive, and companies have to pay off these capital costs before they can make proffits on their new drug. The same goes for doing research on the human genome, if your research discovers a link between a gene and a disease then don't you think you deserve some reward for this breakthrough? Certianly its preferable to have to pay a royalty for the test then for the test not to exist at all?

Your reward is that you should be the first to develop a test, which you could then sell. And given that you discovered the link, you should have the jump on the competition, correct?

Patent a test all you want, but patenting a natural correlation will only stifle research.
 

Moonbeam

Elite Member
Nov 24, 1999
74,325
6,650
126
Someday corporate America will be sent packing and people will take back what is the property of all humanity.
 

BaliBabyDoc

Lifer
Jan 20, 2001
10,737
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Originally posted by: BrownTown
Like everything it depends how you do the numbers, I believe the billion dollar numbers are more of a (total reserach $$$)/(new drugs patented), so drugs that never ended up making it to market end up being factored in since of course they still ahve to be paid for even if they don't end up to be viable. But arguing 500 Million or 1 Billion isn't the point, the point is that either way its really expensive, and companies have to pay off these capital costs before they can make proffits on their new drug. The same goes for doing research on the human genome, if your research discovers a link between a gene and a disease then don't you think you deserve some reward for this breakthrough? Certianly its preferable to have to pay a royalty for the test then for the test not to exist at all?

The number you are likely quoting is (total operating cost)/(new marketing authorizations). Drug companies file for patents early in the development process. The end of the road is marketing authority.

But you can do your own analysis using 2000 figures
and compare it to DiMasi's study. Granted, it's a little confounded by subsequent mergers and acquisitions.

Merck spent 6% of its revenue on R&D, 15% on marketing/advertising/administration, and 17% recorded as net income. By your reckoning (using a simplified analysis), MRK would have less than $2.5B for R&D which means they could develop 1 drug.

Pfizer spent 15% of revenue on R&D, 39% on MAA, and logged 13% as profit. PFE R&D would have been $4.5B which I guess would be good for 2 drugs.

I could go on but the picture should be clear. Big Pharma spends most of its money somewhere OTHER THAN R&D! Which means most of their revenue isn't for the sake of recouping R&D costs.

At it's peak MRK sold $2.5 a year in Vioxx . . . comparable to their entire R&D budget. One of the ultimate ironies is that if they had avoided the aggressive marketing/advertising (which was also expensive), Vioxx would still be on the market and likely still within shouting distance of blockbuster status.

PFE has gobbled up quite a few companies in the past decade but I believe their two best products were home grown. Lipitor had 2005 sales of $12.2B. But let's go back to 2000 when PFE sold $5.4B and then followed up with $7B in 2001. In essence, PFE could cover its entire R&D budget and give its top 900 employees 7-figure salaries from the proceeds of ONE drug in 2000 . . . with a patent that wouldn't expire until next year IIRC.

Next to Lipitor . . . Viagra sales are almost an afterthought. Yet that failed heart failure drug has generated more than $10B in revenue.

In an abstract sense, drug R&D is expensive. But in a practical sense, the expense of R&D isn't what drives drug prices. Profit-motive and bad business models drive drug prices. And as long as the government is a willing co-conspirator . . . Big Pharma will continue to have its way.

Crichton didn't even mention how Big Pharma/government have corrupted the patent office . . . and that debacle has already cost us tens of $billions and thousands of lives.

 

Gigantopithecus

Diamond Member
Dec 14, 2004
7,664
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Originally posted by: BaliBabyDoc
In an abstract sense, drug R&D is expensive. But in a practical sense, the expense of R&D isn't what drives drug prices. Profit-motive and bad business models drive drug prices. And as long as the government is a willing co-conspirator . . . Big Pharma will continue to have its way.

1. Lipitor
2. Plavix
3. Nexium
4. Advair
5. Zocor
6. Norvasc
7. Zyprexa
8. Risperdal
9. Prevacid
10. Effexor

Those are the top 10 selling prescription drugs. With the exceptions of 7 & 8 (which treat schizophrenia), the rest treat conditions which, to a large extent, are preventable or can be mitigated without medication by eating a healthy diet, not smoking, not drinking alcohol excessively, and exercising regularly. While I think patenting organisms' genomes is very, very wrong, the Big Pharma will have its way as long as >50% of Americans are overweight. But it's easier to blame 'them' than it is to blame 'us'. Pass the french fries & salt!
 

BaliBabyDoc

Lifer
Jan 20, 2001
10,737
0
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Originally posted by: Gigantopithecus
Originally posted by: BaliBabyDoc
In an abstract sense, drug R&D is expensive. But in a practical sense, the expense of R&D isn't what drives drug prices. Profit-motive and bad business models drive drug prices. And as long as the government is a willing co-conspirator . . . Big Pharma will continue to have its way.

1. Lipitor
2. Plavix
3. Nexium
4. Advair
5. Zocor
6. Norvasc
7. Zyprexa
8. Risperdal
9. Prevacid
10. Effexor

Those are the top 10 selling prescription drugs. With the exceptions of 7 & 8 (which treat schizophrenia), the rest treat conditions which, to a large extent, are preventable or can be mitigated without medication by eating a healthy diet, not smoking, not drinking alcohol excessively, and exercising regularly. While I think patenting organisms' genomes is very, very wrong, the Big Pharma will have its way as long as >50% of Americans are overweight. But it's easier to blame 'them' than it is to blame 'us'. Pass the french fries & salt!

Fair enough . . . I've been fighting that battle since before I started medical school in 1998. Suffice it to say people are getting fatter and sicker . . . to the extent that even our friggin' kids are becoming ridiculously unhealthy before they can even speak in complete sentences.

On a positive note, 1, 4, 5, 6, 8, and 9 will lose patent protection in the next few years. #2 is falling out of favor b/c the benefits don't justify the cost. #3 may meet a similar fate since its sister drug (Prilosec) is OTC and being pushed by insurance providers. #7 loses patent protection in 2011 (IIRC) but 'scripts are falling b/c it causes semi-permanent weight gain of up to 2lbs per week.

But your premise bears repeating . . . we are doing a lot of bad things to ourselves.
 

zendari

Banned
May 27, 2005
6,558
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You should have some rights on the research and methods for finding out such facts, but it should be fine for a company to use other methods and come up with the same conclusion.
 

Genx87

Lifer
Apr 8, 2002
41,091
513
126
Originally posted by: Termagant
All I have to say is thank God for China. Hopefully they'll extend their blatant disregard for the West's "intellectual property" ideas into this arena, and maybe do some good.

You are dreaming, their lack of patent laws will end up stifling their economy. Who would bother to create anything in their economy when the guy next door can steal it and put him out of business?

As for this case, the article is fuzzy on the facts. Methods for testing are patentable, I dont see how actual genes are. And I expect the courts to eventually figure it out.

The patent office is simply overwhelmed and you have people who may or may not understand what they are even granting.

 

Pacemaker

Golden Member
Jul 13, 2001
1,184
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Originally posted by: zendari
You should have some rights on the research and methods for finding out such facts, but it should be fine for a company to use other methods and come up with the same conclusion.

That's actually how patents work for some things. For example, Splenda is not patented nor can it be, but the process to make it is patented. However, if someone comes up with a different or better process, then they have the right to use it.

If I remember correctly patents cover processes, inventions, and drugs. With processes and inventions if you make something that does the same thing, but better or different you can produce and market it. However, improving upon a drug is not something normally done (probably because it?s usually easier to make a new drug). Because it isn't the process of making the drug that's patented, but the drug itself you cannot come up with a new process to make it.

I wish they would make only the process of making the drug able to be patented. Then if a company spent the time to come up with a different way of making it they could.

Also, by submitting a patent you are making what you are patenting essentially public domain after your patent is up. This saves the companies making the generics a lot of money as they know how it's made.
 

Zorba

Lifer
Oct 22, 1999
15,613
11,255
136
Originally posted by: Pacemaker
Also, by submitting a patent you are making what you are patenting essentially public domain after your patent is up. This saves the companies making the generics a lot of money as they know how it's made.

Actually I used to work for a company that had a huge number of items that they would not patent so we wouldn't give up our trade secrets.