China keeps global crown in patent applications; Nikkei Asian Review, December 4, 2018

Rintaro Hosokawa, Nikkei Asian Review; China keeps global crown in patent applications

"China was responsible for around 40% of the 3.17 million patent applications submitted worldwide last year, putting the country at the top for the seventh straight year and driving Asia's growing presence in the global intellectual property arena.

The World Intellectual Property Organization said Monday China's 1.38 million applications mark a new record, though the group did not give a year-on-year percentage increase due to changes in the way China's patent office counted filings.

China's patent applications in 2017 mainly concerned electronic devices, computer technology and digital data transmission. Chinese tech companies, such as telecommunications equipment makers Huawei Technologies and ZTE, significantly boosted their application counts.

At 607,000, patent applications from the U.S. were less than half of China's total. That places America in second place, followed by Japan's 318,000 applications in third and South Korea's 200,000 in the No. 4 spot."

Escaping Big Pharma’s Pricing With Patent-Free Drugs; New York Times, July 18, 2017

Fran Quigley, New York Times; Escaping Big Pharma’s Pricing With Patent-Free Drugs

"Although President Trump said before taking office that drug companies were “getting away with murder” and had campaigned on lowering drug prices, his administration is doing the opposite. A draft order on drug pricing that became public in June would grant pharmaceutical companies even more power to charge exorbitantly. For example, it could shrink a federal program that requires companies to sell at a discount to clinics and hospitals serving low-income patients.

Exorbitant prices are one thing that’s very wrong with the way we make medicines. The other is: medicines for what? If a malady has no market in wealthy countries, it gets no attention. Poor-country diseases, known as “neglected diseases,” have a ferocious impact: One of every six people in the world, including a half-billion children, suffers from neglected diseases. Yet of the 756 new drugs approved between 2001 and 2011, less than 4 percent targeted those diseases. The industry spends far more on lobbying government agencies to extend monopolies on high-cost drugs — or hand out deals like the Zika vaccine — than it does on research for a vaccine against dengue fever, which poses a risk for 40 percent of the world’s population.

But there’s one drug company that behaves differently."

Louisiana considers radical step to counter high drug prices: Federal intervention; Washington Post, July 3, 2017

Carolyn Y. Johnson, Washington Post; Louisiana considers radical step to counter high drug prices: Federal intervention

"At [Louisiana’s health secretary Rebekah] Gee’s urging, Joshua Sharfstein, a professor of public health at Johns Hopkins University and a former Food and Drug Administration deputy commissioner, convened a meeting of health-policy specialists and economists. They advised that the state ask the federal government to intervene in a two-pronged approach: Gee should first ask the government to negotiate with a drug company and license a medication, in line with a recent recommendation by a committee from the National Academies.

At the same time, they advised Gee to pursue a harder-edged tactic, in case the voluntary approach did not work: Gee should ask the secretary of health and human services to invoke a century-old law that allows the government to use patents at a reasonable cost. The panel recommended a price as low as $1,000 per patient.

The law was used routinely in the 1950s and 1960s to make medicines available at lower prices. It was considered but not used during the anthrax attacks in 2001. It has been used by more than 10 government agencies or departments to lower the prices for patented inventions, including night-vision goggles for the Defense Department.

“The drug has been out for years, and we’re failing to provide it to the majority of people who have this infection,” Gee said. “We’re failing at our mission to improve the public health, and so just doing what we’re doing is not an option and we have to do better.”"

One Way To Force Down Drug Prices: Have The U.S. Exercise Its Patent Rights; NPR, March 16, 2017

Alison Kodjak, NPR; 

One Way To Force Down Drug Prices: Have The U.S. Exercise Its Patent Rights

"...Trump already has a weapon he could deploy to cut the prices of at least some expensive medications.

That weapon is called "march-in rights."...

...[L]ower prices could also make drug companies less eager to invest lots of money in new medications.

That's the trade-off the government has always had to wrestle with. But it's one Trump could very well decide is worthwhile.

"Perhaps we as a country would rather have lower drug prices and a little less innovation," [Sara Fisher] Ellison [an economist at MIT] said."

What Is a Patent Cliff?; Fool.com via Fox Business, 7/6/16

Motley Fool Staff, Fool.com via Fox Business; What Is a Patent Cliff? :

"When a company is issued a patent, it can sell the item covered by the patent on the open market without having to worry about competitors coming in and snatching up a piece of the action. But the problem with patents is that they only have a limited life, and when they run out, they can significantly impact a company's bottom line. This is a particular problem in the pharmaceutical industry, where drug companies rely on patents to sell the products they work so hard to develop. That's why drug companies are often subjected to what's known as a patent cliff.

A patent cliff is what happens when a company's revenue starts plunging, or falling off a cliff, because an established product's patent reaches its expiration date and competitors can then start selling that product. While the term technically applies to any industry, it most frequently comes into play when talking about pharmaceutical companies."

If Patents Are So Valuable Why Does IBM's Intellectual Property Revenue Continue To Decline; Forbes, 1/19/16

Chuck Jones, Forbes; If Patents Are So Valuable Why Does IBM's Intellectual Property Revenue Continue To Decline:

"IBM was awarded 7,355 patents in 2015 which was the 23rd year in a row it has received the most patents. Over 2,000 of last year’s patents were related to cognitive computing and the company’s cloud platform. Over the 23 years IBM has received over 88,000 patents and I would estimate they have generated about $20 billion or more of IP (intellectual property) related revenue.

While the value of patents isn’t calculated just by the revenue they generate, it is interesting to see how IBM is doing with this financial line item. Between 2008 and 2012 IBM’s patent portfolio generated between $1.1 and $1.2 billion per year. It has fallen each year since then to $742 million in 2014 and could fall again in 2015 to under $700 million."