672. This delegation acknowledges the importance of, and fully supports the goals contained in, the 2030 Agenda for Sustainable Development, including goal number three to ensure healthy lives and promote wellbeing for all at all ages.
673. By incentivizing research and development of new medicines, the IP system and patents play a key role in making further progress towards achieving goal number three by 2030.
674. The communication of South Africa further refers to the TRIPS flexibilities, confirmed in the Doha Declaration on the TRIPS Agreement and Public Health in 2001. Members are free to use these flexibilities in situations where they have to address a public health problem under the Declaration.
675. In addition, Members agreed on including Article 31bis in the TRIPS Agreement, providing for a compulsory license for export purposes to address the particular needs of WTO Members with insufficient or no manufacturing capacities in the pharmaceutical sector.
676. While these TRIPS flexibilities are there for Members to be used in appropriate circumstances, it is important to underline that the IP system and patents can only perform their function and incentivize the necessary investment needed to develop new drugs for unmet medical needs, if IP protection is the rule - and making use of a flexibility remains the exception.
677. The IP system proved to be instrumental in the unparalleled success story of modern medicines over the last 100 years, for the benefit of both developed and developing countries.
678. This said, more progress is needed to address illnesses that still today are not curable, whether communicable or non-communicable diseases. The IP and patent system will play a crucial role in mastering this challenge. Where not sufficient on their own to incentivize investment in R&D - as may be the case in areas such as neglected tropical diseases or drug-resistant bacteria - additional incentives are needed to complement the incentives of the patent system.
679. It is the essence of the patent system to grant to the inventor a time limited right for the commercial exploitation of her or his invention. The patent system is central as it addresses and remedies an economic market failure, in order to reward and promote innovative and creative activity. As any right, an IP right can be abused. In such cases competition law may provide a remedy. Beyond this, competition and or anti-trust law are outside of the field of responsibility of this Council.
680. My delegation considers also the pricing of medicines as well as the cost of research and development to be outside of the purview of the TRIPS Council. The WHO is currently examining questions in this regard, as the communication of South Africa also notes.
681. Having said this, it would be misleading in this delegation's view to imply that the price of a medicine is directly related to patents. To ask for a specific price, is not a right conferred by a patent on its owner.
682. In sum, the IP system, and for cases such as neglected diseases, complementary incentive and financing systems are needed, to ensure that innovative and more effective medicines and medical technology continue to be developed also in the future, to reach the goal of healthier lives and wellbeing for all.
