Uganda, the fourth-largest importer of Indian medicines in Africa, is discussing a draft proposal to prevent entry of drugs defined as “counterfeit” for breaching intellectual property claims, which analysts here say will impair Indian firms’ ability to export drugs into that country.
The anti-counterfeit Bill being discussed there is similar to the one proposed by Kenya. The Kenyan parliament has accepted the amendment and the Bill is awaiting presidential nod.
Africa accounts for 14 per cent of India’s $8-billion medicine exports. While Kenya imported Rs 342.4 crore worth of medicines from India in 2007-08, Uganda’s share was Rs 185 crore.
The African nations’ move to link intellectual property issues in this manner has come despite the defeat (due to pressure from India, among other reasons) of a recent attempt to similarly change the World Health Organisation definition of “counterfeiting.”
The Indian Pharmaceutical Alliance (IPA), a group of leading domestic drug firms that account for over half of India’s total drug exports, say the new legislation are being encouraged under pressure from multinational lobbyists.
“Global pharma lobby groups seem to have succeeded in influencing developing countries like Kenya and Uganda,” says DG Shah, secretary-general of the IPA.
Both Bills define “counterfeiting” as manufacture, production, packaging, re-packaging, labelling or making, whether in the country or elsewhere without the authority of the owner of any intellectual property right subsisting in the country or elsewhere. Thus, a medicine which does not have a patent in Uganda (importing country) and India (exporting country), but has a valid patent in any other part of the world will be treated as “counterfeit,” he says.
The Bill, if enacted, would not only deprive Indian companies of their export market but also deny the people of Uganda access to safe, effective, quality and affordable medicines from not only India but also those supplied under various donor programmes, he added.
Shah had written to the central government, cautioning against Kenya being followed by other African countries. The Ugandan move shows industry fears to be valid.
Expressing concern, Amar Lulla, joint managing director, Cipla, said the move “will put the whole clock back” on “access to medicine” initiatives in Africa. Cipla is globally known for its efforts to supply AIDS medicines in Africa at a fraction of the cost of the patented products.
The proposed law also intends to make transit or trans-shipment of counterfeit goods illegal and allows border measures against such goods. The Netherlands had recently seized drug consignments of Cipla, Dr Reddy’s and Ind-Swift Laboratories on charges of intellectual property right infringement. In all these cases, the medicines were in transit to elsewhere and had no intellectual property protection either in the country of origin or the destination. The issue had made India (the origin) and Brazil (destination) voice concerns over such border measures.
