Exports, Confiscation,

and
Generic Drugs

Presented by:-
Kuldeep Singh
PGFB1018
 Exports
 Goods and services produced
locally for consumption in foreign
countries
 Generic Drugs
 Generics are copies of drugs that
no longer enjoy patent protection
 The Situation
 India's pharmaceutical industry exports
cheap generics to many countries in Africa
and Latin America.
 Some of the generics exported by India
continue to enjoy patent protection in the
European Union
 Confiscation
 The Customs authorities of some of these
countries have therefore confiscated the
consignment of such drugs on the way to
other countries through European ports
for violating their intellectual property
rights
 The Cause
 The seizures took place following
complaints by pharmaceutical giants
holding patents to the medicines in Europe
including Sanofi-Aventis SA , Novartis AG
and Eli Lilly & Co.
 The Effect
 This had created uncertainty for India's Rs
40,000 crore generics export industry
following at least 17 cases of seizures of
consignments in the Netherlands,
Germany and France over the last two
years.
 India’s protest
 India protested strongly against the confiscations,
which it termed illegal, as the generics were off
patent in India and were not meant for sale in the EU.
It also raised humanitarian concerns, arguing that
countries in Africa and Latin America do not have the
capability to manufacture these life-saving medicines
and cannot afford the patented alternatives.
 India even took the issue to the World Trade
Organization (WTO), arguing that the seizures
amounted to violation of the international intellectual
property agreement, Trips, and asked the EU for
consultations
 The Result
 The EU had earlier offered to send notes to all
Customs authorities advising them against seizures
but India was insistent that it would not settle for
anything less than an amendment in Customs rules
 Pharmaceutical exporters can breathe easy as the
European Union has finally agreed to India's demand
to amend its Customs regulations to stop
confiscation of drugs en route to African and Latin
American countries. Till the amendment is brought
about, the European Commission has promised that
no further seizures would take place
Thank you