Difference between revisions of "Prize Fund for HIV/AIDS Act"
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Return to [[Innovation Policy#Patent Reform | Patent Reform]]. | Return to [[Innovation Policy#Patent Reform | Patent Reform]]. | ||
The [[Prize System for Inventions|Prize Fund]] for HIV/AIDS Act is a patent reform act proposed in a previous congressional session. | The [[Prize System for Inventions|Prize Fund]] for HIV/AIDS Act is a patent reform act proposed in a previous congressional session. | ||
| + | See: https://www.congress.gov/bill/112th-congress/senate-bill/1138 | ||
==Summary== | ==Summary== | ||
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The act nullifies patents on manufacturing processes of drugs, so that no company may hold the patent on the manufacturing process of a drug. However, a company becomes eligible for prize funds by holding a patent on the manufacturing process they use to create a drug. [Bill language: ''...in the case of a manufacturing process for a qualifying treatment for HIV/AIDS, the holder of the patent with respect to such process...'']. No new firms may be eligible for prize funds if they use a manufacturing process they did not hold a patent for. | The act nullifies patents on manufacturing processes of drugs, so that no company may hold the patent on the manufacturing process of a drug. However, a company becomes eligible for prize funds by holding a patent on the manufacturing process they use to create a drug. [Bill language: ''...in the case of a manufacturing process for a qualifying treatment for HIV/AIDS, the holder of the patent with respect to such process...'']. No new firms may be eligible for prize funds if they use a manufacturing process they did not hold a patent for. | ||
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| + | [[Category: Public]] | ||
| + | [[Public Classification::Legislation| ]] | ||
Latest revision as of 16:26, 14 March 2017
Return to Patent Reform.
The Prize Fund for HIV/AIDS Act is a patent reform act proposed in a previous congressional session. See: https://www.congress.gov/bill/112th-congress/senate-bill/1138
Contents
Summary
S. 1138[1], Prize Fund for HIV/AIDS Act, was proposed by Sen. Bernie Sanders during the 112th session of Congress. The bill sought to change the current patent system for drugs treating AIDS to a prize system where the inventor would receive a lump sum payment for discovering a drug, and then void any claim on a paten for the drug. The bill died in Congress, and was re-introduced as S. 626 in the 113th Congressional session[2].
Provisions
- Drug companies void their right to patent a drug that treats HIV/AIDS.
- In lieu of patents, companies would receive prize funds from the Prize Fund for HIV/AIDS.
Administrative
- Secretary of Health and Human Services appoints a Prize Fund Director, advisory board other officials, as needed.
Prize Fund
- Prize Fund operates as a revolving fund.
- Secretary of Treasury credits Fund with proceeds.
- Prize Fund Director responsible for giving prizes for medical innovation drugs.
- New prizes do not exclude older prizes (e.g. if a company finds an innovative drug and receives prize money and another company builds on the previous drug and receives money, then both companies would receive prize funds).
- Prize funds may be granted for a maximum of 10 fiscal years for a particular treatment.
- No one particular treatment may receive funds in excess of 50% of the total Prize Fund amount.
- At least 5% of prizes dedicated to Open Source Dividend Prizes
Funding
- Seed capital for fund was defined "as needed", which has a level of ambiguity.
- Subsequent funds were defined as .02% of GDP for the preceding fiscal year (e.g. the prize fund would have received ~$3,354,000,000 in FY2014)
Donor Innovation Prize Fund
- The Donor Innovation Prize Fund is also created, with the goal of encouraging medical innovation related to HIV/AIDS in developing countries.
- Fund would contain 10% of the funding for the President's Emergency Plan for AIDS relief (PEPFAR).
- FY2013 Funding would equal $652,700 (10% of the $6,527,000 total PEPFAR budget[3])
- Fund would contain 10% of the funding for the President's Emergency Plan for AIDS relief (PEPFAR).
Heterogeneity of Patent and Prize Systems
The act nullifies patents on manufacturing processes of drugs, so that no company may hold the patent on the manufacturing process of a drug. However, a company becomes eligible for prize funds by holding a patent on the manufacturing process they use to create a drug. [Bill language: ...in the case of a manufacturing process for a qualifying treatment for HIV/AIDS, the holder of the patent with respect to such process...]. No new firms may be eligible for prize funds if they use a manufacturing process they did not hold a patent for.
