Report of the Inter-Regional Workshop on Intellectual Property Rights in the Context of Traditional Medicine (Bangkok, Thailand, 6-8 December 2000)
(2001; 52 pages) View the PDF document
Table of Contents
View the documentAcknowledgements
Open this folder and view contents1. Introduction
Open this folder and view contents2. The role of intellectual property rights in the context of traditional medicine
View the document3. Globalization, the TRIPS Agreement and access to essential drugs
View the document4. Intellectual property rights
View the document5. Systems and national experience for protecting traditional knowledge, innovations and practices
Open this folder and view contents6. Problems and gaps in traditional medicine in relation to modern patent laws
View the document7. Group discussion on existing problems and gaps for the protection of traditional medicine knowledge
Close this folder8. Presentations on national patent law: means, experiences and proposals
View the document8.1. China
View the document8.2. Colombia
View the document8.3. India
View the document8.4. Indonesia
View the document8.5. Kenya
View the document8.6. Pakistan
View the document8.7. Republic of Korea
View the document8.8. WHO Collaborating Centre (Chicago)
View the document9. Recommendations
View the documentAnnex I. Message to the Workshop from Dr Uton Muchtar Rafei, Regional Director WHO South-East Asia Region
View the documentAnnex II. Welcome address from Dr Mongkol Na Songkhla, Permanent Secretary, Ministry of Public Health, Thailand
View the documentAnnex III. Workshop Agenda
View the documentAnnex IV. List of Participants
 

8.8. WHO Collaborating Centre (Chicago)

University of Illinois at Chicago’s (UIC) policy of benefit sharing in research on drugs derived from natural products

Prof. Djaja Djendoel Soejarto of UIC presented this paper.

Modern research in the discovery of biologically active compounds from natural sources, with particular reference to plants, as potential candidates for drug development, has been ongoing at UIC for the past twenty-five years. Presently there are two possible schemes for sharing the benefits.

The first scheme is exemplified by a project, in which a group of UIC faculty collaborates with a group of counterpart scientists or an institution in a biodiversity-rich country, which also supplies the plant genetic material. If a compound is discovered and patent protection is sought, the co-authorship of the patent will take into account and may include a scientist from that country, as inventors, if this scientist played an inventive role in the invention. Following the filing of the patent by the UIC, licensing of the invention will be offered to a pharmaceutical firm. If eventually a drug goes onto the market as a result of the licensing process, the UIC will receive a stream of royalties. Costs for the original patenting process and for the establishment of a Trust Fund are to be paid by UIC. The net royalty income is then split 50-50 between a common fund and a Trust Fund. Income to go to the Trust Fund is intended solely to be returned to the country of origin of the genetic material, while the common fund is to be distributed as follows: (a) to the collaborating institutions (20%), who will divide the share based on agreed proportions among themselves, namely, between the PCRPS in the US, and the foreign institution or institutions; (b) to the inventors (40%), who will divide this amount among themselves; and (c) to the University of Illinois at Chicago (40%) to cover University expenditures in the form of their researchers’ time, facilities used, and administrative and legal costs. In this scenario, the total amount of funds that will go back to the source country will be: funds from the Trust Fund plus the share of the source country institution, for a total of about 55%, if no inventor share from the source country is involved, or higher, if one or more of the inventors is from the source country institution; the exact percentage will depend upon the number of inventors.


SCHEME 1: ROYALTIES SHARING IN THE EVENT THAT UIC DISCOVERS AND CHARACTERIZES A COMPOUND AND A PHARMACEUTICAL COMPANY DEVELOPS THE DRUG


SCHEME 2: ROYALTIES SHARING IN THE EVENT THAT A PHARMACEUTICAL COMPANY DISCOVERS A COMPOUND, CHARACTERIZES IT AND DEVELOPS THE DRUG

The second scheme is exemplified by a project, in which a group of UIC faculty collaborates with a counterpart institution, which supplies the genetic material for the drug discovery process, and an industrial partner, in which the industrial partner undertakes both the discovery and the development of the drug. In this scenario, if a drug is discovered and developed by the company, and a product goes onto the market, the UIC will receive royalties from the pharmaceutical company. Again, initial UIC costs are deducted. The net royalty income is then split 50-50 between a common fund and a Trust Fund. Income to go to the Trust Fund is intended solely to be returned to the country of origin of the genetic material, while the common fund is to be distributed as follows: (a) to the collaborating foreign institution (40%); (b) to the PCRPS (20%); and to the University of Illinois at Chicago (40%). A bigger percentage is destined for the collaborating foreign institution to justify research effort, inventiveness equivalent and contribution of the genetic material. In this scenario, the total amount of funds that will go back to the source country will be: funds from the Trust Fund plus the share of the source country institution, for a total of 68% or higher, depending on the total amount of royalty payment.

 

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