“The biggest single change in management during my career has been the increase in the time that managers spend in dealing with the government”- Edmund Pratt, Chairman and CEO of Pfizer Inc.

1. A case on the global protection
of intellectual property HarleenV.
Rishani
A.
Sheena C.
Neha R.
Dexter A.
Thuwarga P.
Zahin

2. Introduction- Pfizer
• Pfizer- a global pharmaceutical company
• Founded in 1849
• Before WW II – Largest producer of citric acid
• During WW II – Largest producer of penicillin
• After WW II – Emphasis on innovation
• 1972 – Edmund Pratt, Chairman

3. International Pharmaceuticals Industry
• Innovation increased, emphasising patent
rights and protection
• Patent protection became critical to corporate
strategy
• Cost of production only a miniscule part of
total cost
• Major cost: research and discovery of new
products

4. “The biggest single change in management during
my career has been the increase in the time that
managers spend in dealing with the government”
- Edmund Pratt
Chairman and CEO
Pfizer Inc.

5. Importance of the Patent System
• Patents gave exclusive rights to make, sell or
use the product or process for a limited period
of time
• 2 types of patents
– Product
– Process
• Incentive for innovation

6. Patent protection at Pfizer
Pfizer was aggressive in protecting and
defending its pharmaceutical patents

7. Patent problems in developing
countries
• Offered process patents but not product
patents
• Inadequate duration of patents
• In India, government would price control and
force Pfizer to license the product to local
companies.

9. Network of Influence - Priority
• Company leaders in favour of intellectual
property protection
• Internal memos
• Operating plans and budgets

10. Network of Influence - Result
• Country managers worked in favour of
intellectual property
• Pfizer executives for intellectual property
protection

11. Pratt’s Role in forming the IPC
• Chairman of ACTPN
• Intellectual property protection
• GATT negotiations
• Intellectual Property Committee (IPC)

12. Members of the Tripartite Coalition
• Intellectual Property Committee (IPC)
• The European Union of Industrial Employers’
Confederation (UNICE)
• The Keidanren

13. Basic Framework – six categories of
intellectual property
• Patents
• Copyrights
• Semiconductor chips
• Trademarks
• Industrial design
• Trade secrets

14. Challenges to the coalition views
Is stealing drugs any more
acceptable than stealing
food?

15. 1984 Trade and Tariff Act
Retaliation Measures – tariffs, quota’s etc.
VS
U.S. Generalized System Of Preferences – loss of
tariff preferences

16. 1988 Omnibus Trade and
Competitiveness Act
Main Objective
• Increase transparency of Offending countries
How?
• Watch List Vs Priority Watch List

17. Trade Leverage
• Mexico Case - Free Trade Agreement
• Important Player - Pharmaceutical
Manufacturers Association

18. Encountering Resistance
• Canada – 20 yr patent protection
• Brazil – 100% levied Tariffs on imports
• Thailand – Revoked Tariff Preference

19. Developing countries Point of View
• Freedom in policy making
• Lack of adequate resources and time
Eg : China and Latin America
• India’s patent laws a self sufficient
pharmaceutical industry

20. Our Analysis
• Pfizer- the only one
• Incentive of Innovation Vs. Security of prices
desired by the developing countries
• Redistribution of wealth
• An aggressive approach - Special 301 by the
USTR