Brazil and many African nations aren't necessarily breaking any laws by importing generic drugs because often medicines aren't under patent protection in those countries. Brazil wasn't breaking any laws by importing generic drugs because Merck's products weren't patented there, a situation that exists for many AIDS drugs in Africa. Analysts say it is problematic for generic versions of widely patented drugs to be circulating, even in small sales markets like Africa, because it weakens the patent process. Major pharmaceutical companies are suing South Africa over a law that would allow the country to ignore patents and either import or produce generic drugs, under specific circumstances, to protect public health. The patent process is crucial to continued innovation,'' said Greg Reaves, a spokesman for Merck.
Patents are the basis for high drug prices.
The companies say the revenue allows them to recoup development costs and generate profits to fund new medicines. Pharmaceutical executives are quick to point out that this system created the AIDS drugs in the first place. AIDS activists have been calling for drug companies to offer cheap drug-licensing agreements to poor countries. Drug companies have powerful allies in their effort to keep generics at bay. Harvard economist Jeffrey Sachs, active in the African AIDS fight, agreed it was important to respect patent rights while solving the crisis.