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2
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Intellectual property and the development divide
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2824
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Margaret Chon describes the TRIPS agreement as effecting a "tectonic shift in the landscape of intellectual property law." Margaret Chon, Intellectual Property and the Development Divide, 27 CARDOZO L. REV. 2821, 2824 (2005).
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In addition to existing tailoring mechanisms, legal scholars have suggested numerous other means of tailoring patent laws to particular industries or situations. Some of these suggestions relate to judicial interpretation of current law. See, e.g., DAN L. BURK & MARK A. LEMLEY, THE PATENT CRISIS AND HOW THE COURTS CAN SOLVE IT (2009) [hereinafter THE PATENT CRISIS]
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Michael W. Carroll, One Size Does Not Fit All: A Framework for Tailoring Intellectual Property Rights, 70 OHIO ST. L.J. 1361 (2009) (proposing a framework to evaluate existent and proposed tailoring measures based on the traditional economic case for intellectual property protection)
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An explicit policy lever for patent scope
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Anna B. Laakmann, An Explicit Policy Lever for Patent Scope, 19 MICH. TELECOMM. & TECH. L. REV. 43 (2012) (suggesting that the courts use patentable subject matter doctrine as an explicit policy lever for calibrating patent scope)
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Tailoring remedies to spur innovation
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Sarah R. Wasserman Rajec, Tailoring Remedies to Spur Innovation, 61 AM. U. L. REV. 733, 742-48 (2012) (suggesting that courts analyze the public interest in granting incentives to innovate and maintain access in order to determine the appropriateness of a permanent injunction for a company that lacks market share)
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Wasserman Rajec, S.R.1
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Partial patents
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Other suggestions would require legislative action. See, e.g., Gideon Parchomovsky & Michael Mattioli, Partial Patents, 111 COLUM. L. REV. 207 (2011) (suggesting two new patent forms in addition to the current system to mitigate social costs of traditional patents and increase access by subsequent inventors).
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Rebecca S. Eisenberg, The Role of the FDA in Innovation Policy, 13 MICH. TELECOMM. & TECH. L. REV. 345, 359-64 (2007) (explaining how FDA regulation provides similar protections to patent law, often for purposes that align more closely with patent law than with the health and safety concerns more typically associated with its mission).
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Graeme B. Dinwoodie & Rochelle C. Dreyfuss, TRIPS and the Dynamics of Intellectual Property Lawmaking, 36 CASE W. RES. J. INT'l L. 95, 98-100 (2004) (discussing how TRIPS does not allow flexibility for future negotiation of similar arrangements, even where all stake-holders are represented in bargaining, and suggesting that because the WTO's dispute settlement body looks at challenged legislation piece-meal, the result is that concessions benefiting the public are more likely to be struck down while measures appealing to patent-holders will be upheld, thus undermining the negotiations).
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See KEITH E. MASKUS, INTELLECTUAL PROPERTY RIGHTS IN THE GLOBAL ECONOMY 29 (2000) (Intellectual property rights "generate monopoly positions that reduce current consumer welfare in return for providing adequate payoffs to innovation, which then raises future consumer welfare.").
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Modern American patent law is rooted in the Constitution, which gives Congress the power to "promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries." U.S. CONST. art. I, § 8, cl. 8. See Rebecca S. Eisenberg, Patents and the Progress of Science: Exclusive Rights and Experimental Use, 56 U. CHI. L. REV. 1017, 1022 (1989)
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reprinted in MARTIN J. ADELMAN ET AL., CASES AND MATERIALS ON PATENT LAW 33-34 (1998) (explaining how the courts expect the right of exclusion to provide an incentive for individuals to invest in research and to disclose their new inventions, thereby benefiting the general public)
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Cases and Materials on Patent Law
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Taking the utilitarian basis for patent law seriously: The case for restricting patentable subject matter
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see also David S. Olson, Taking the Utilitarian Basis for Patent Law Seriously: The Case for Restricting Patentable Subject Matter, 82 TEMP. L. REV. 181, 195-97 (2009) (analyzing how the patent system offers a solution to the public goods problem by granting inventors exclusive right to control their invention for twenty years).
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525 U.S. 55, 63
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See Pfaff v. Wells Elecs., Inc., 525 U.S. 55, 63 (1998) ("[T]he patent system represents a carefully crafted bargain that encourages both the creation and the public disclosure of new and useful advances in technology, in return for an exclusive monopoly for a limited period of time.")
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Pfaff V. Wells Elecs., Inc.
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18
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79955789868
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The inducement standard of patentability
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1594
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Michael Abramowicz and John Duffy suggest direct application of this sort of weighing in The Inducement Standard of Patentability, arguing that a patent application should be denied "if the innovation would be created and disclosed even without patent protection," because "denying a patent on the innovation costs society nothing... and saves society from needlessly suffering the well-known negative consequences of patents." Michael Abramowicz & John F. Duffy, The Inducement Standard of Patentability, 120 YALE L.J. 1590, 1594 (2011).
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Following Locke's labor theory, the inventor's rights in her invention are derived from the labor with which it is imbued, resulting in property rights over the resulting invention. See, e.g., HOLGER HESTERMEYER, HUMAN RIGHTS AND THE WTO: THE CASE OF PATENTS AND ACCESS TO MEDICINES 29-30 (2007) [hereinafter HESTERMEYER, HUMAN RIGHTS] (explaining-and dismissing-a natural law rationale for patent law)
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Hestermeyer, H.1
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20
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ROBERT P. MERGES, JUSTIFYING INTELLECTUAL PROPERTY 34-67 (2011) (discussing the application of John Locke's ideas to theories justifying intellectual property law). Other justifications for the patent system include the contract theory, the reward theory, and the prospect theory. HESTERMEYER, HUMAN RIGHTS, supra, at 30-33.
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Justifying Intellectual Property
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Merges, R.P.1
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See Steven Wilf, The Making of the Post-War Paradigm in American Intellectual Property Law, 31 COLUM. J.L. & ARTS 139, 191-92 (2008) (explaining the common, hostile view of patents as monopolies during the post-war years)
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Colum. J.L. & Arts
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Wilf, S.1
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77951891698
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289 U.S. 178, 186
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But see United States v. Dubilier Condenser Corp., 289 U.S. 178, 186 (1933), amended by 289 U.S. 706 (1933) ("Though often so characterized, a patent is not, accurately speaking, a monopoly.... In consideration of [an invention's] disclosure and the consequent benefit to the community, the patent is granted.").
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United States V. Dubilier Condenser Corp.
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23
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Costly intellectual property
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David Fagundes & Jonathan S. Masur, Costly Intellectual Property, 65 VAND. L. REV. 677, 696-98 (2012)
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Vand. L. Rev.
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84892747808
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Oct. 4
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See Fagundes & Masur, supra note 21, at 689-90 (estimating that between legal costs and Patent Office fees, "an average patentee will spend approximately $22, 000 to successfully prosecute a patent application."). Filing fees for patents start in the hundreds of dollars, but rise with additional claims, drawings, and length of application; issuance of the patent comes with its own fees as well. See Setting and Adjusting Patent Fees, 78 Fed. Reg. 4212 (Jan. 18, 2013) (to be codified at 31 C.F.R. pts. 1, 41, 42); U.S. PATENT & TRADEMARK OFFICE, CURRENT FEE SCHEDULE (Oct. 4, 2013).
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U.S. Patent & Trademark Office, Current Fee Schedule
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25
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Resolving patent disputes via mediation: The federal circuit and the ITC find success
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Apr. at 24, 26
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See David E. Sosnowski, Resolving Patent Disputes via Mediation: The Federal Circuit and the ITC Find Success, MD. B.J., Apr. 2012, at 24, 26 (citing findings on patent litigation costs that averaged $916, 000 when less than $1 million was at risk, $2.8 million when between $1 million and $25 million was at risk, and $6 million when more was at risk).
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Md. B.J.
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Sosnowski, D.E.1
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26
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The PTO's asymmetric incentives: Pressure to expand substantive patent law
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407
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See Omnibus Budget Reconciliation Act of 1990, Pub. L. No. 101-508, § 10101, 104 Stat. 1388, 1388-91 (1990); see also Melissa F. Wasserman, The PTO's Asymmetric Incentives: Pressure to Expand Substantive Patent Law, 72 OHIO ST. L.J. 379, 407 (2011) (explaining the costs to the agency of the various stages of examination and grant as compared to the fees charged).
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79955033920
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314 U.S. 488, 493-94
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Morton Salt Co. v. G.S. Suppiger Co., 314 U.S. 488, 493-94 (1942). The doctrine has been limited somewhat by statute. See 35 U.S.C. § 271(d) (2012).
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Morton Salt Co. V. G.S. Suppiger Co.
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29
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at 40
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CHRISTINE MACLEOD, INVENTING THE INDUSTRIAL REVOLUTION: THE ENGLISH PATENT SYSTEM, 1660-1800, at 40 (1988). MacLeod explains how the fifteenth-century Venetian patent system spurred the development of other modern patent systems: "Emigrant Italian craftsmen, seeking protection against local competition and guild restrictions as a condition of imparting their skills, disseminated knowledge of their patent systems around Europe." id. at 11
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Inventing the Industrial Revolution: The English Patent System
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Macleod, C.1
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Inventing invention: A case study of legal innovation
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See John F. Duffy, Inventing Invention: A Case Study of Legal Innovation, 86 TEX. L. REV. 1, 21-23 (2007) ("[P]olicy set forth in Venetian statute was quite plainly copied throughout Europe.").
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Tex. L. Rev.
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Duffy, J.F.1
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31
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5th ed.
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See ROBERT P. MERGES & JOHN F. DUFFY, PATENT LAW AND POLICY: CASES AND MATERIALS 7 (5th ed. 2011) (discussing how state patents were granted in the American colonies and how conflicts among the states led to the creation of a national patent system, rooted in the Constitution).
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Patent Law and Policy: Cases and Materials
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The patent controversy in the nineteenth century
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J. Econ. Hist.
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"The WTO recognizes as least-developed countries (LDCs) those countries which have been designated as such by the United Nations." Least-developed Countries, WORLD TRADE ORG. [WTO] (last visited Oct. 31, 2013), http://www.wto.org/english/thewto-e/whatis-e/tif-e/org7-e.htm.
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Least-Developed Countries
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35
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84892757564
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last visited Oct. 31
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Least Developed Countries are nations identified as such by the United Nations Economic and Social Council through its Committee for Development Policy and includes countries with "a low per capita income, a low level of human resource development and a high degree of economic vulnerability." Criteria for the Least Developed Countries, WORLD INTELLECTUAL PROP. ORG. [WIPO], http://www.wipo.int/ldcs/en/criteria-ldcs.html (last visited Oct. 31, 2013).
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Criteria for the Least Developed Countries
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Beyond the historical lines of demarcation: Competition law, intellectual property rights, and international trade after the GATT's uruguay round
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100 n. 113
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id. art. 5(A) (limiting the conditions under which a compulsory license may be granted to at least four years after the filing of the patent or three years after the grant of the patent, stating that a compulsory license must be refused "if the patentee justifies his inaction by legitimate reasons" and requiring that compulsory licenses be non-exclusive). This requirement actually strengthened the rights of the patent holder. Previously, numerous countries had working requirements that called for a forfeiture of patent rights upon the failure of a patent holder to work the patented invention. J.H. Reichman, Beyond the Historical Lines of Demarcation: Competition Law, Intellectual Property Rights, and International Trade after the GATT's Uruguay Round, 20 Brook. J. Int'l L. 75, 100 n. 113 (1993). Thus, by allowing only a compulsory license, the Paris Convention allowed the patent holder to maintain ownership of her patent and receive licensing revenue from the recipient of the compulsory license.
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Issue Paper No. 5, at 10 June
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Jerome H. Reichman & Catherine Hasenzahl, Non-voluntary Licensing of Patented Inventions: Historical Perspective, Legal Framework Under TRIPS, and an Overview of the Practice of Canada and the USA, UNCTAD-ICTSD Project on IPRs and Sustainable Development, Issue Paper No. 5, at 10, (June 2003), http://ictsd.org/downloads/2008/06/cs-reichman-hasenzahl.pdf.
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Unctad-Ictsd Project on Iprs and Sustainable Development
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⊥ 21
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"By the late 1970s, from the standpoint of industrialized country patent holders, the Paris Convention was most notable for what it does not do. The Paris Convention does not define a patent or what criteria are used for granting it. It does not prescribe subject-matter coverage, it does not set a minimum-or maximum-term of a patent, it does not define the rights of patent holders, and it was perceived as having a weak dispute settlement mechanism." FREDERICK M. ABBOTT, Intellectual Property, International Protection, in MAX PLANCK ENCYCLOPEDIA OF PUBLIC INTERNATIONAL LAW ⊥ 21 (2010).
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ADELMAN, supra note 1, at 4 (explaining how the PCT allows for centrally filing a patent application and noting the countries in which the applicant would like to apply for patent protection); see also Sisule F. Musungu & Graham Dutfield, Multilateral Agreements and a TRIPS-Plus World: The World Intellectual Property Organisation (WIPO), TRIPS Issues Papers No. 3, at 4, (2003) (discussing the history of WIPO, its creation under the Stockholm Convention, and subsequent status as a specialized agency of the United Nations).
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Multilateral Agreements and a Trips-Plus World: The World Intellectual Property Organisation (Wipo)
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Musungu, S.F.1
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40
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Protecting first world assets in the third world: Intellectual property negotiations in the GATT multilateral framework
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Frederick M. Abbott, Protecting First World Assets in the Third World: Intellectual Property Negotiations in the GATT Multilateral Framework, 22 VAND. J. TRANSNAT'l L. 689, 696 (1989).
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Hanns Ullrich, Expansionist Intellectual Property Protection and Reductionist Competition Rules: A TRIPS Perspective, 7 J. INT'l ECON. L. 401, 404 (2004).
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194
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See Abbott, supra note 55, at 692 (explaining how the United States resolved to protect intellectual property rights, whether unilaterally or multilaterally); see also Devereaux et al., supra note 56, at 1; Susan K. Sell, Post-TRIPS Developments: The Tension Between Commercial and Social Agendas in the Context of Intellectual Property, 14 FLA. J. INT'l L. 193, 194 (2002) (explaining that the lobbying Intellectual Property Committee, "which consists of chief executive officers from a handful of well-connected and economically powerful American-based multinational corporations" played a significant role in drafting and pushing for adoption of TRIPs).
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Fla. J. Int'l L.
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45
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June 25
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See HESTERMEYER, HUMAN RIGHTS, supra note 17, at 39-40; see also Clyde H. Farnsworth, Washington's Hard Line on Trade, N.Y. TIMES, June 25, 1989, http://www.nytimes.com/1989/06/25/business/washington-s-hard-line-on-trade.html (reporting that during an interview, then-Deputy United States Trade Representative S. Linn Williams defended the U.S. threat to use trade sanctions against Brazil for its lack of sufficient protection of patent rights for pharmaceuticals).
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Washington's Hard Line on Trade
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Farnsworth, C.H.1
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See Amy Kapczynski, Harmonization and Its Discontents: A Case Study of TRIPS Implementation in India's Pharmaceutical Sector, 97 CALIF. L. REV. 1571, 1574 (2009).
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Ministerial declaration of 14 november 2001, WT/MIN(01)/DEC/2
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World Trade Organization
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see id. arts. 65-66; see also World Trade Organization, Ministerial Declaration of 14 November 2001, WT/MIN(01)/DEC/2, 41 I.L.M. 746 (2002) [hereinafter Doha Declaration] (extending the transition period for least developed country members with respect to pharmaceutical products); see also TRIPS, supra note 54, art. 70.8-9 (requiring countries to make certain provisions for pharmaceutical patents to be filed even if those countries did not yet recognize eligibility for pharmaceutical patents).
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I.L.M.
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49
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84892731846
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Indeed, companies that have focused on production of generic drugs in India, for example, have begun investing in research and development for innovative drugs. See, e.g., Kiran Somvanshi, Innovation Will Be Key to Survival, Says Glen Saldanha, Chairman & MD, Glenmark Pharma, ECON. TIMES, Dec. 21, 2011, http://articles.economictimes.indiatimes.com/2011-12-20/news/ 30534740-1-indian-pharma-generics-glenmark-pharma.
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Innovation Will be Key to Survival, Says Glen Saldanha, Chairman & Md, Glenmark Pharma
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In comparison to much of the rest of international public law, the compulsory dispute settlement system and the inability of countries to "pick and choose" among WTO obligations may be seen as "elevat[ing] the importance of public international law generally." James Cameron & Kevin R. Gray, Principles of International Law in the WTO Dispute Settlement Body, 50 INT'l & COMP. L.Q. 248, 249 (2001)
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Jeffrey Dunoff & Mark A. Pollack eds.
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However, these characteristics also remove WTO obligations from the reach of flexibility analysis theorized in that field. See, e.g., LAURENCE R. HELFER, Flexibility in International Agreements, in INTERNATIONAL LAW AND INTERNATIONAL RELATIONS: TAKING STOCK 175-96 (Jeffrey Dunoff & Mark A. Pollack eds., 2012) (analyzing non-substantive methods of exercising flexibilities in international law in formal manners-such as the use of reservations, escape clauses, and withdrawal provisions- and informal practices-such as "auto-interpretation," nonparticipation, and noncompliance).
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Requirements are contained in GATT 1994. See General Council Decision, Transparency Mechanism for Regional Trade Agreements, WT/L/671 (Dec. 18, 2006).
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(2006)
Transparency Mechanism for Regional Trade Agreements
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54
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85008880028
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last visited Oct. 31
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See Valdés & Tavengwa, supra note 78, at 7 (finding 351 regional and bilateral trade agreements in force in 2012 when goods and services notifications were counted separately; examining agreements reported before 2010 in detail); see also WTO, Regional Trade Agreements, http://www.wto.org/ english/tratop-e/region-e/region-e.htm (last visited Oct. 31, 2013) (suggesting a lower number of 319 regional and bilateral agreements in force).
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Regional Trade Agreements
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55
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78649615008
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264 F. 3d 1094, 1105 Fed. Cir.
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United States-Morocco Free Trade Agreement, U.S.-Morocco, art. 15.9(4), June 15, 2004; NEOFEDERALIST VISION, supra note 68, at 149 (discussing TRIPS plus measures). The Court of Appeals for the Federal Circuit has considered exhaustion of patent rights to occur "when a patented device has been lawfully sold in the United States." See Jazz Photo Corp. v. Int'l Trade Comm'n, 264 F. 3d 1094, 1105 (Fed. Cir. 2001). Under this rule, an article patented in the United States but sold elsewhere under a license would be considered infringing when imported
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(2001)
Jazz Photo Corp. V. Int'l Trade Comm'n
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56
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84874291937
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667 F. 3d 1373 Fed. Cir. cert. denied, 133 S. Ct. 1656 (2013)
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This interpretation was reiterated in Ninestar Technology Co. v. International Trade Commission, 667 F. 3d 1373 (Fed. Cir. 2012), cert. denied, 133 S. Ct. 1656 (2013)
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(2012)
Ninestar Technology Co. V. International Trade Commission
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57
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84887031470
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133 S. Ct. 1351, 1371
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The Supreme Court recently ruled that there is international exhaustion in the copyright context. Kirtsaeng v. John Wiley & Sons, Inc., 133 S. Ct. 1351, 1371 (2013). That case need not affect the common law rule in patent law because it involved statutory interpretation instead of the Copyright Act. see id. at 1363-64.
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Kirtsaeng V. John Wiley & Sons, Inc
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59
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84891030858
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Arbitration of patent infringement and validity issues worldwide
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334
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In Germany, for example, infringement claims are brought and litigated in court as private law issues, while challenges to patent validity are considered public law questions and are initially decided by the German Federal Patent Court. See M.A. Smith et al., Arbitration of Patent Infringement and Validity Issues Worldwide, 19 HARV. J.L. & TECH. 299, 334 (2006).
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61
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84892691095
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Proposal for a regulation of the european parliament and of the council implementing enhanced coooperation in the area of the creation of unitary patent protection, explanatory memorandum
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215 final (Apr. 13, 2011)
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Proposal for a Regulation of the European Parliament and of the Council Implementing Enhanced Coooperation in the Area of the Creation of Unitary Patent Protection, Explanatory Memorandum, COM (2011) 215 final (Apr. 13, 2011).
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Com
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62
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84879312799
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The other patent agency: Congressional regulation of the ITC
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538-39
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Such divergence occurs within countries, too. In the United States, for example, there is the possibility of different validity decisions from the U.S. PTO and district courts or different decisions from district courts and the U.S. International Trade Commission (the "ITC"). Although federal court decisions are binding on the ITC, the converse is not true. See Sapna Kumar, The Other Patent Agency: Congressional Regulation of the ITC, 61 FLA. L. REV. 529, 538-39 (2009).
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See HESTERMEYER, HUMAN RIGHTS, supra note 17, at 62-64; see also Panel Report, Canada-Patent Protection of Pharmaceutical Products, WT/DS114/R (Mar. 17, 2000). The WTO found Canada's similar provision consistent with TRIPS, but held that a further provision allowing generic companies to produce "stockpiles" of drugs in anticipation of the patent expiration was inconsistent. id.
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Canada-Patent Protection of Pharmaceutical Products
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Report, P.1
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64
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84880401525
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Exclusivity without patents: The new frontier of FDA regulation for genetic materials
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1450-51
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In addition to extending the term of exclusivities granted to patent holders, the protections offered by the Hatch-Waxman Act also provide pseudo-patent protection on drugs that otherwise do not meet the patentability criteria, because unpatented drugs may sometimes receive market exclusivity. Gregory Dolin, Exclusivity Without Patents: the New Frontier of FDA Regulation for Genetic Materials, 98 Iowa L. Rev. 1399, 1450-51 (2013) (explaining that drugs receiving FDA approval as "new chemical entities" block FDA review of Abbreviated New Drug Applications attempting to piggyback on the pioneer drug's data the subsequent five years, even if the pioneer drug is unpatented or off-patent).
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Dolin, G.1
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Balancing competition and patent protection in the drug industry: The drug price competition and patent term restoration act of 1984
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273
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Ellen J. Flannery & Peter Barton Hutt, Balancing Competition and Patent Protection in the Drug Industry: The Drug Price Competition and Patent Term Restoration Act of 1984, 40 FOOD DRUG COSM. L.J. 269, 273 (1985) (detailing the 1962 FDA requirements for approval of all new drugs based on a showing of safety and efficacy).
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Food Drug Cosm. L.J.
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Flannery, E.J.1
Hutt, P.B.2
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66
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84892729290
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133 S. Ct. 787 (No. 12-416)
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H.R. REP. 98-857, pt. 2, at 4 (1984), reprinted in 1984 U.S.C.C.A.N. 2686. See Brief for Knowledge Ecology Int'l as Amicus Curiae Supporting Petitioner, at 2-3, FTC v. Watson Pharms., Inc., 133 S. Ct. 787 (2013) (No. 12-416)
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Ftc V. Watson Pharms., Inc.
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67
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84891079281
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133 S. Ct. 2223
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sub nom FTC v. Actavis, Inc., 133 S. Ct. 2223 (2013) (discussing the purposes of the Hatch-Waxman Act).
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(2013)
Ftc V. Actavis, Inc.
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68
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36048995303
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496 U.S. 661, 676
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See Federal Food, Drug, and Cosmetic Act, 21 U.S.C. § 355(j) (2006); see also Eli Lilly & Co. v. Medtronic, Inc., 496 U.S. 661, 676 (1990) (explaining the abbreviated approval process and interpreting the act to exclude from infringement medical devices made and used for the purposes of obtaining FDA approval).
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(1990)
Eli Lilly & Co. V. Medtronic, Inc.
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69
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84937376131
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Gaming the hatch-waxman system: How pioneer drug makers exploit the law to maintain monopoly power in the prescription drug market
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See, e.g., Elizabeth Powell-Bullock, Gaming the Hatch-Waxman System: How Pioneer Drug Makers Exploit the Law to Maintain Monopoly Power in the Prescription Drug Market, 29 J. LEGIS. 21 (2002) (arguing that legal and marketing strategies by pioneer pharmaceutical companies have thwarted the goals of the legislation)
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J. Legis.
, vol.29
, pp. 21
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Elizabeth, P.-B.1
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70
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84882030497
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The impact of recent reforms of the hatch-waxman scheme on orange book strategic behavior and pharmaceutical innovation
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185, 195
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Natalie M. Derzko, The Impact of Recent Reforms of the Hatch-Waxman Scheme on Orange Book Strategic Behavior and Pharmaceutical Innovation, 45 IDEA 165, 185, 195 (2005) (describing how pharmaceutical companies strategically listed numerous patents for each approved drug to garner longer terms of market exclusivity and how generic companies accepted anti-competitive settlement agreements to stay off the market, and discussing the extent to which reforms solved these problems).
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(2005)
Idea
, vol.45
, pp. 165
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Derzko, N.M.1
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71
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84892756181
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WORLD HEALTH ORG.
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According to the World Health Organization's Country Cooperation Strategy brief on India, India accounts for twenty-one percent of the world's global burden of disease. WORLD HEALTH ORG., COUNTRY COOPERATION STRATEGY AT A GLANCE: INDIA (2012). The total expenditure on health per capita in India in 2010 constituted four percent of GDP that year, the majority of which was out of pocket. id.
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Country Cooperation Strategy at a Glance: India
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-
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73
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84892690550
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Symposium, Indian patent law and TRIPS: Redrawing the flexibility framework in the context of public policy and health
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327-28, 333
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Although India's patent laws under British rule allowed for pharmaceutical patents, India subsequently prohibited patents on pharmaceutical compounds, from 1970 until it was required to under TRIPS in 2005. See V.K. Unni, Symposium, Indian Patent Law and TRIPS: Redrawing the Flexibility Framework in the Context of Public Policy and Health, 25 PAC. MCGEORGE GLOBAL BUS. & DEV. L.J. 323, 327-28, 333 (2012) (explaining that under the 1970 law, India allowed short patent terms for processes of making pharmaceutical products; processes which are trivial to design around). Although India was not required by TRIPS to grant patents on pharmaceutical products until 2005, it was required to accept applications earlier for later processing and granting of exclusive marketing rights under some circumstances, followed by a grant of the remaining patent term. This transitional provision of TRIPS is known as "the Mailbox Rule," and its precise requirements spurred WTO litigation by the United TRIPS, supra note 54, art. 70.8(a)
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(2012)
Pac. Mcgeorge Global Bus. & Dev. L.J.
, vol.25
, pp. 323
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Unni, V.K.1
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75
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84892707896
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Nov. 02 4:21 AM
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See 35 U.S.C. § 100(b) (2011) ("'[P]rocess' means... a new use of a known... composition of matter, or material."). However, the Indian law may be providing a model for other developing countries, as Thailand and Argentina are considering similar provisions. See Shan Kohli, Section 3(d) Equivalent in the Offing for Thailand..., SPICY IP BLOG (Nov. 02, 2011, 4:21 AM), http://spicyipindia.blogspot.in/2011/11/section-3d-equivalent-in-offing- for.html (noting that Thailand is considering a similar provision)
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(2011)
Section 3(D) Equivalent in the Offing for Thailand...
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Kohli, S.1
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76
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84892746708
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May 23 10:25 PM
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Shouvik Kumar Guha, Argentina goes the 3(d) Way: Creases of Worry for the Pharmaceutical Patent Applicants?, SPICY IP BLOG (May 23, 2012, 10:25 PM), http://spicyipindia.blogspot.com/2012/05/argentina-goes-3d-way-creases-of-worry. html (stating that Argentina is considering a similar provision). It appears that developed countries are fighting back by including provisions requiring that new forms of known substances be considered patentable regardless of efficacy in regional trade agreements, such as the Trans-Pacific partnership
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(2012)
Argentina Goes the 3(D) Way: Creases of Worry for the Pharmaceutical Patent Applicants?
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Guha, S.K.1
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78
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77950412319
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339 F. 3d 1373 Fed. Cir.
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See, e.g., Schering Corp. v. Geneva Pharms., Inc. 339 F. 3d 1373 (Fed. Cir. 2003) (invalidating a patent under the theory of inherent anticipation).
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(2003)
Schering Corp. V. Geneva Pharms., Inc.
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79
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77951846977
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4 M.L.J. 1153 (India)
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See HO, supra note 116, at 93-94 (discussing the Novartis case and criticizing the law for requiring the patent office to make efficacy determinations when the data to prove it will likely not yet exist and because patent examiners do not have the type of resources or expertise that agencies, such as food and drug agencies, that typically make such determinations have). The lack of evidence may not have been an issue in the Novartis case because that application was filed in 1997 and held by the patent office under the mailbox rule; it was rejected during a pre-grant opposition during the examination which only started in 2005. see generally Novartis AG v. Union of India, (2007) 4 M.L.J. 1153 (India).
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(2007)
Novartis Ag V. Union of India
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80
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84892748025
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2013 S.C.R. at para 5(c) (No. 2706-2716) Apr. 1 (India)
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id. The appellate court upheld the decision, holding that section 3(d) was not unconstitutional for being vague, arbitrary, and conferring uncontrolled discretion on the Patent Controller. See Novartis AG v. Union of India, 2013 S.C.R. at para 5(c) (No. 2706-2716) (Apr. 1, 2013) (India), available at http://judis.nic.in/supremecourt/imgs1.aspx?filename=40212.
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(2013)
Novartis Ag V. Union of India
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82
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84892686620
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India orders bayer to license a patented drug
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Mar. 13 at B
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Vikas Bajaj & Andrew Pollack, India Orders Bayer to License a Patented Drug, N.Y. TIMES, Mar. 13, 2012, at B
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(2012)
N.Y. Times
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Bajaj, V.1
Pollack, A.2
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83
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84892753790
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Mar. 12 1:27 PM
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Shamnad Basheer, Breaking News: India's First Compulsory License Granted!, SPICY IP BLOG (Mar. 12, 2012, 1:27 PM), http://spicyipindia.blogspot. in/2012/03/breaking-news-indias-first-compulsory.html. Note that any of these three conditions would be sufficient to support a compulsory licensing decision.
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(2012)
Breaking News: India's First Compulsory License Granted!
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Basheer, S.1
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84
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84892770989
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Mar. 4
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Rumman Ahmed, India Appeals Body Rejects Bayer's Plea on Nexavar, WALL ST. J. ONLINE (Mar. 4, 2013) http://online.wsj.com/article/ SB10001424127887324178904578340013954624212.html. In its decision, the Appellate Board quoted the Iyengar Committee Report to emphasize that patent rights are in the interest of the national economy as opposed to the inventor and are therefore subject to the public interest
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(2013)
India Appeals Body Rejects Bayer's Plea on Nexavar
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Ahmed, R.1
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86
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84892731447
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Jan. 15
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See G. Pramod Kumar, India's Cancer Burden: Why the Govt's CL Ruling Is so Important, FIRSTPOST.INDIA, Jan. 15, 2013, http://www.firstpost.com/india/ indias-cancer-burden-why-the-govts-cl-ruling-is-so-important-589051.html (lauding government plans to issue compulsory licenses for trastuzumab-the patent for which is due to expire in 2014-dasatinib, and ixabepilone)
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(2013)
India's Cancer Burden: Why the Govt's Cl Ruling Is So Important
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Pramod Kumar, G.1
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88
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84892748311
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Jan. 14
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Divya Rajagopal, Compulsory Licence Likely for Three Cancer Drugs, ECON. TIMES, Jan. 14, 2013, http://articles.economictimes.indiatimes.com/2013-01-14/ news/36331897-1-compulsory-licence-indian-patent-act-patent-controller.
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(2013)
Compulsory Licence Likely for Three Cancer Drugs
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Rajagopal, D.1
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89
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Jan. 16 1:19 AM
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See Prashant Reddy, The Political Economy of the Current Round of Compulsory Licensing in India, SPICY IP BLOG (Jan. 16, 2013, 1:19 AM), http://spicyipindia.blogspot.com/2013/01/the-political-economy-of-current-round. html ("The present round of compulsory licencing... is widely seen as the fruits of a sustained lobbying effort by the generic pharmaceutical lobby.").
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(2013)
The Political Economy of the Current Round of Compulsory Licensing in India
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Reddy, P.1
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90
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77950491923
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53
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Craig Allen Nard, Legal Forms and the Common Law of Patents, 90 B.U. L. REV. 51, 53 (2010) ("[T]he common law has been the dominant legal force in the development of U.S. patent law for over two hundred years.")
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B.U. L. Rev.
, vol.90
, pp. 51
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Nard, C.A.1
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see also Arti K. Rai, Patent Validity Across the Executive Branch: Ex Ante Foundations for Policy Development, 61 DUKE L.J. 1237, 1265 (2012).
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Duke L.J.
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Is patent law technology-specific?
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see e.g., Dan L. Burk & Mark A. Lemley, Is Patent Law Technology-Specific?, 17 BERKELEY TECH L.J. 1155 (2003) (arguing that courts apply a lower standard of nonobviousness to biotechnology patents while imposing stricter enablement and written description requirements, while, in contrast, loosening enablement and best mode requirements for software patents); Burk & Lemley, supra note 3 (arguing that technology-specific tailoring through the courts is desirable); THE PATENT CRISIS, supra note 3.
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Burk, D.L.1
Lemley, M.A.2
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93
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84892741266
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550 U.S. 398, 419
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The Supreme Court moved to an obviousness standard based on the skills and knowledge of a person having ordinary skill in the art in 2007. KSR Int'l Corp. v. Teleflex Corp., 550 U.S. 398, 419 (2007).
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(2007)
Ksr Int'l Corp. V. Teleflex Corp.
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-
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94
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0037997518
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447 U.S. 303, 309
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Diamond v. Chakrabarty, 447 U.S. 303, 309 (1980) (upholding Chakrabarty's patent on a bacterium genetically modified to break down the components of crude oil)
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(1980)
Diamond V. Chakrabarty
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-
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95
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33645618856
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Biotechnology, technology policy, and patentability: Natural products and invention in the American system
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106-07
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See John M. Golden, Biotechnology, Technology Policy, and Patentability: Natural Products and Invention in the American System, 50 EMORY L.J. 101, 106-07 (2001).
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Emory L.J.
, vol.50
, pp. 101
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Golden, J.M.1
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96
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77951930215
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437 U.S. 584
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Chakrabarty, 447 U.S. at 309 (citing Parker v. Flook, 437 U.S. 584 (1978)
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(1978)
Parker V. Flook
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97
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77951933823
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409 U.S. 63, 67
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Gottschalk v. Benson, 409 U.S. 63, 67 (1972)
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(1972)
Gottschalk V. Benson
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100
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77951892300
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55 U.S. 156
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Le Roy v. Tatham, 55 U.S. 156 (1853)
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(1853)
Le Roy V. Tatham
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-
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101
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78649987691
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the Court affirmed that business methods are eligible for patents, but suggested that they may still be suspect for vagueness. 130 S. Ct. 3218, 3228-29
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2, or the law of gravity, understanding these as "'manifestations of... nature, free to all men and reserved exclusively to none.'" id. (quoting Funk Bros., 333 U.S. at 441). The Supreme Court has shown a recent interest in cases relating to patent-eligibility in these areas. In Bilski v. Kappos, the Court affirmed that business methods are eligible for patents, but suggested that they may still be suspect for vagueness. 130 S. Ct. 3218, 3228-29 (2010)
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(2010)
Bilski V. Kappos
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-
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103
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84883101512
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133 S. Ct. 2107
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the Court invalidated a claim under the "law of nature" exclusion. The Court recently addressed the exclusion of living organisms in Association for Molecular Pathology v. Myriad Genetics, Inc., 133 S. Ct. 2107 (2013)
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(2013)
Association for Molecular Pathology V. Myriad Genetics, Inc
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-
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104
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84892689002
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768 F. Supp. 2d 221 D.D.C.
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In addition to these cases, the Court of Appeals for the Federal Circuit recently issued an en banc decision discussing the appropriate test to determine whether "a computer-implemented invention is a patent ineligible 'abstract idea.'" CLS Bank Int'l v. Alice Corp. Pty. Ltd., 768 F. Supp. 2d 221 (D.D.C. 2011), rev'd, 685 F. 3d 1341 (Fed. Cir. 2012), reh'g granted, opinion vacated, 484 Fed. App'x 559 (Fed. Cir. 2012) (en banc)
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(2011)
Cls Bank Int'l V. Alice Corp. Pty. Ltd.
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-
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105
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84892746128
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717 F. 3d 1269, 1277 Fed. Cir.
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In a plurality opinion, the court invalidated the claims before it and drew from Supreme Court precedent to suggest "guideposts" for a framework that "turns primarily on the practical likelihood of a claim preempting a fundamental concept" and might apply to technologies beyond the "computer-implemented inventions presented in this case." CLS Bank Int'l v. Alice Corp. Pty. Ltd., 717 F. 3d 1269, 1277 (Fed. Cir. 2013).
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(2013)
Cls Bank Int'l V. Alice Corp. Pty. Ltd.
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106
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79959824299
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Life after bilski
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id. at 1292 (quoting Gottschalk, 409 U.S. at 67). The Court continues, explaining that "there is a danger that the grant of patents that tie up their use will inhibit future innovation premised upon them, a danger that becomes acute when a patented process amounts to no more than an instruction to 'apply the natural law.'" id. at 1301-02 (citing Mark A. Lemley et al., Life After Bilski, 63 STAN. L. REV. 1315 (2011).
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Stan. L. Rev.
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, pp. 1315
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Lemley, M.A.1
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107
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84892767753
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132 S. Ct. 1289
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see generally Brief for the United States as Amicus Curiae Supporting Neither Party, Mayo Collaborative Servs. v. Prometheus Labs., Inc., 132 S. Ct. 1289 (2012) (No. 10-1150) (arguing that the subject matter was sufficiently applied to be patent-eligible, but that the patents were likely invalid under the novelty and nonobviousness requirements of the patent act and further arguing that the claims would not preempt other practical applications of the correlation described).
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(2012)
Brief for the United States as Amicus Curiae Supporting Neither Party, Mayo Collaborative Servs. V. Prometheus Labs., Inc.
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108
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84892748447
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Deputy comm'r for patent examination policy, to patent examining corps
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July 3
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Memorandum from Andrew H. Hirshfeld, Deputy Comm'r for Patent Examination Policy, to Patent Examining Corps, 2012 Interim Procedure for Subject Matter Eligibility Analysis of Process Claims Involving Laws of Nature 3 (July 3, 2012) available at http://www.uspto.gov/patents/law/exam/2012-interim-guidance.pdf (laying out a test of process claims involving natural principles to see whether "additional elements or steps [are included that] relate to the natural principle in a significant way to impose a meaningful limit on the claim scope. The analysis turns on whether the claim has added enough to show a practical application.").
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(2012)
2012 Interim Procedure for Subject Matter Eligibility Analysis of Process Claims Involving Laws of Nature
, vol.3
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Hirshfeld, A.H.1
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110
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The future of gene patents and the implications for medicine
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See Jacob S. Sherkow & Henry T. Greely, The Future of Gene Patents and the Implications for Medicine, 173 JAMA INTERNAL MEDICINE 1569, 1570 (2013) (suggesting that in the short run, the Myriad decision means "more competitive markets for diagnostic genetic testing," for the genes at issue in that case, but that "in the long term, probably [it doesn't mean] very much").
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Jama Internal Medicine
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, pp. 1569
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See Mark A. Lemley & Carl Shapiro, Patent Holdup and Royalty Stacking, 85 TEX. L. REV. 1991, 2015 (2007) (explaining that holdup risk is high for complex inventions, particularly when there is no reciprocal risk of litigation and that NPEs bring a significant portion of infringement suits in industries subject to royalty stacking)
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Tex. L. Rev.
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see also id. at 2164 (emphasizing that "holdup is recognized as a form of market failure that leads to inefficiency, primarily by discouraging what would otherwise be socially desirable investments"); Carol M. Nielsen & Michael R. Samardzija, Compulsory Patent Licensing: Is It a Viable Solution in the United States?, 13 MICH. TELECOMM. & TECH. L. REV. 509, 510-11 (2007) (describing new technologies as particularly susceptible to holdup due to "patent thicket," where hundreds of patents are needed for a single product, yet they all overlap and block one another).
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Mich. Telecomm. & Tech. L. Rev.
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Nielsen, C.M.1
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77951780598
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401 F. 3d 1323, 1338-39 Fed. Cir.
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MercExchange, L.L.C. v. eBay Inc., 401 F. 3d 1323, 1338-39 (Fed. Cir. 2005), vacated, 547 U.S. 388 (2006).
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(2005)
Mercexchange, L.L.C. V. Ebay Inc.
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114
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58149083295
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547 U.S. 388, 391, 395-97
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eBay Inc. v. MercExchange, L.L.C., 547 U.S. 388, 391, 395-97 (2006) (noting that issuance of overbroad patents may affect how courts approach the four-factor test).
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Ebay Inc. V. Mercexchange, L.L.C.
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115
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84860133062
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546 U.S. 132, 139
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Id. at 395 (Roberts, C.J., concurring) (quoting Martin v. Franklin Capital Corp., 546 U.S. 132, 139 (2005).
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(2005)
Martin V. Franklin Capital Corp.
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116
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84860465292
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500 F. Supp. 2d 556, 591-92 E.D. Va. remanded by 547 U.S. 388 (2006)
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Although the reasoning was not based on a rule that patent holders who do not practice their inventions should not be entitled to injunctions, the "market share rule" emerging in the district courts following the eBay decision accomplishes much the same as such a rule would, albeit with some logical contortions. See MercExchange, L.L.C. v. eBay Inc., 500 F. Supp. 2d 556, 591-92 (E.D. Va. 2007), remanded by 547 U.S. 388 (2006).
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(2007)
Mercexchange, L.L.C. V. Ebay Inc.
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117
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84892734731
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126 S. Ct. 1837
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A separate line of argument relating to both the level of industrial development in developing countries and the access concerns of the public suggests that the traditional patent regime, rewarding an individual inventor with rights impinging on public access, does not fit with the model of discovery and innovation in certain developing countries. Thus, for countries rich in "traditional knowledge," valuable subject matter and knowledge is possessed collectively and benefited from by all. At the same time, for various reasons, such knowledge would not be patentable. These reasons include that the subject matter may be considered unpatentable laws of nature or that the knowledge is old enough not to be considered novel. Nonetheless, companies from developed countries may exploit the knowledge for free while protecting the results with patents. Imagine, for example, a plant that is known by indigenous peoples to have curative powers. While the plant and its use in medicinal applications is likely unpatentable, an isolated chemical derived from the plant might result in high profits to the company that learns of its use and appropriates that knowledge without paying a premium. This possibility has led to calls for protection of indigenous rights in traditional knowledge. For example, WIPO established the Intergovernmental Committee on Intellectual Property and Genetic Resources, Traditional Knowledge and Folklore in September 2000, and in 2009 tasked it with drafting a recommendation or treaty on this topic. For an overview of their progress, see Intergovernmental Committee, WIPO, http://www.wipo.int/tk/en/igc/index.html (last visited Oct. 31, 2013).
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