259. Chile thanks Ecuador once again for taking the initiative of including this topic in the Council's agenda for discussion, because climate change is one of the greatest challenges that Members are currently facing.
260. We agree that it is appropriate to make use of the flexibilities provided in the TRIPS Agreement so that countries adopt the measures needed to address this problem, which, as everyone knows, is on a global scale. Although we consider this topic to be highly relevant, we are nonetheless of the view that the proposal submitted could potentially undermine incentives for innovation.
261. As a practical example, we would like to mention the case of the Medicines Patent Pool (MPP), a non profit organization backed by the United Nations, which is public health driven and geared towards the promotion of effective access to medicines.
262. The MPP uses a business model that seeks to reduce the price of HIV medicines while facilitating the development of better HIV medicines in the developing countries. Licence agreements have been signed under the MPP mechanism for a variety of treatments, and a database on the status of patents has also been launched in order to facilitate access to information on what HIV medicines are patented, and where.
263. It is necessary to be the patent holder or to be in possession of the appropriate licence in order to market, distribute or produce a patented medicinal product. The licence is a contract whereby the IP right holder, in this case the patent holder, grants certain property rights to the licensee so that the latter may, in this particular instance, produce, market and distribute a medicinal product. It is well known that one of the key problems that arises in the case of HIV medicines is that they are excessively costly for the countries which need them most (usually in the southern hemisphere) and which generally lack the technological capabilities to produce them. Through its licensing and sub licensing system the MPP is providing a solution to the problem by means of voluntary licences negotiated directly with the companies holding the patents.
264. In this connection, we believe that the compulsory licencing system for a specific industry, namely the environmental industry, could prove detrimental in terms of the investment needed to develop new and better environmental technologies. We therefore consider it important to explore other alternatives offered by the IPRs system under which it is possible, as in the case of the MPP, to promote and facilitate the granting of voluntary licences. Lastly, we think it would be useful to examine initiatives such as WIPO GREEN, a programme which is being developed by WIPO.
