Chinese Court Throws Out Viagra Patent Protection;
Pfizer Appeals Decision
In a major ruling, a Chinese court ruled that Pfizer's
Viagra, used for treating male impotency, was denied patent
protection. Chinese makers of competing products hailed
it as a victory, while the US strongly condemned the decision.
A Chinese patent for Viagra was issued to Pfizer in 2001
by the State Intellectual Property Office. Pfizer said
that it would immediately appeal the court decision, and
expected that Viagra would continue to enjoy patent protection
during the appeal process. Competing Chinese makers do
not seem to share this understanding, and have taken steps
to introduce competing products which contain sildenafil
citrate, the active ingredient in Viagra.
The case is seen as an important test case by the US
and EU, and the US has hinted at taking retaliatory measures
against China if it failed to rule in Pfizer's favor.
Up until now, most of the cases involving IP violations
have had to do with entertainment products and services.
One notable case has had to do with automobile
design violations.
The Chinese companies who contested the patent have argued
that sildenafil citrate was used as an ingredient in medications
to treat male impotence before 2001, when the Chinese
patent was awarded to Pfizer.
Pfizer said that it planned to introduce up to 15 different
drugs to China to treat different medical conditions if
it won this test case. The underlying message is that
this would be adversely affected by a court decision denying
Viagra patent protection.
Investment in health and medical products are considered
a major investment area in China. It will be interesting
to note the effect of this court decision on investment
in these sectors.
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