HIV/AIDS Drugs, Patents, and the TRIPS Agreement: Issues and Options

Publication Date: July 2001

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Health; International relations; Law and ethics; Manufacturing and industry

Type:

Abstract:

AIDS ("Acquired Immune Deficiency Syndrome") is a serious medical condition that predisposes patients towards opportunistic infections, tumors, dementia and death. Human Immunodeficiency Virus ("HIV") is the viral agent associated with AIDS. HIV/AIDS remains a leading cause of death in the United States. Exposure rates in some other parts of the world, such as sub-Saharan Africa, substantially exceed those in the United States. The global HIV/AIDS pandemic has had a severe impact upon many states within the developing world, and future social and economic consequences could be devastating.

Recently introduced antiretroviral drugs have reduced the number of deaths caused by HIV/AIDS. These medicines can keep HIV from replicating and causing further damage to the immune system. Although the cost of an annual supply of different HIV/AIDS drugs varies. The prices of these drugs are beyond the ability of most residents of the developing world to pay. Because some HIV/AIDS drugs are subject to patent protection, others may not manufacture these drugs without the permission of the patent owner.

International disagreement has arisen regarding patents on HIV/AIDS drugs. Until recently, many nations did not allow patents to issue on pharmaceuticals. However, one component of the World Trade Organization agreements, the Agreement on Trade-Related Aspects of Intellectual Property Rights (the "TRIPS Agreement"), requires member states to grant pharmaceutical patents. Demand for increased availability of HIV/AIDS drugs has led to perceived conflicts with this TRIPS Agreement obligation. Although patent disputes concerning Brazil and South Africa have recently been resolved, a fundamental conflict persists between the goals of providing broad access to HIV/AIDS drugs, on one hand, and maintaining an environment conducive to pharmaceutical research and development, on the other.

Legislation has been introduced in the 107th Congress relating to the availability of drugs for treating HIV/AIDS. These and other options for dealing with this issue are discussed. Other options include: providing the U.S. Trade Representative with policy guidance that balances TRIPS Agreement compliance with the availability of HIV/AIDS drugs; encouraging the differential pricing of HIV/AIDS drugs in the developed and developing world; promoting market-based solutions, such as a global settlement between entrepreneurial pharmaceutical companies and nations seeking greater access to HIV/AIDS drugs; and offering humanitarian aid to the recently announced United Nations global fund for fighting HIV/AIDS.