In March, World Trade Organization leaders considered a proposal that would void patents held by biotechnology companies in North Carolina and across the country — handing critical U.S. intellectual property to our rivals.
Thankfully, WTO members didn’t adopt the proposal — but they didn’t officially kill it either. Until they do, this dangerous plan threatens the intellectual property rights that drive our state’s innovation economy.
The proposal in question, known in diplomatic circles as the “TRIPS waiver,” would revoke intellectual property protections for COVID-19 tests and treatments. But while the waiver is intended to rectify a supposed shortage of such products in the developing world, poorer nations already have a surplus of tests and treatments — thanks to U.S. bioscience companies striking hundreds of voluntary licensing agreements with foreign manufacturers. It’s logistical hurdles, such as lack of proper storage and transportation, that prevent them from reaching patients.
In short, there’s simply no evidence that IP protections have hindered access to lifesaving treatments in low- and middle-income countries. But that isn’t stopping certain foreign governments at the WTO from trying to unscrupulously gain access to the underlying technology responsible for those medicines.
The proposed IP waiver would set a dangerous precedent that extends far beyond COVID-19 treatments and even the bioscience sector as a whole. It would signal to any U.S. company dependent on strong intellectual property protections that a cohort of international bureaucrats can void patents for their inventions on a whim. Bioscience and overall tech investment would evaporate, along with the jobs that investment creates. Patients would also lose out on an enormous number of lifesaving cures.
Voters in North Carolina are lucky to have representatives who support our booming innovation economy. The state’s life sciences industry is a key contributor to our prosperity, with more than 800 companies directly employing 75,000 people.
In particular, our congressional delegation played a key role in drafting the CHIPS and Science Act, along with the proposed Orphan Cures Act. The former heavily invested in North Carolina’s cybersecurity and clean energy industries, while the latter would enable our bioscience firms to jump-start development of rare disease drugs.
Given that the White House hasn’t opposed a proposal that would force biotech companies in North Carolina and other states to turn their promising discoveries over to America’s rivals, we need the support of those elected leaders now more than ever. We hope every member of North Carolina’s congressional delegation will continue to champion homegrown American innovation by speaking out against this destructive plan.
Laura Gunter is president of the North Carolina Life Sciences Organization.
