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Editor's Choice | This Week in BMJ | Press releases
BMJ No 7133 Volume 316 News Saturday 7 March 1998 Israel's patent law criticisedIsrael's newly amended patent law, which will allow pharmaceutical companies to develop generic versions of patented drugs before their patents expire, has aroused sharp criticism from the European Union (EU) and the Pharmaceutical Research and Manufacturers of America (PhRMA). EU officials have warned that the legislation violates patent rights and international treaties to which Israel is a signatory. US patent lawyer Richard Luthi claimed that the law would turn Israel into a copycat country for drugs, allowing generic drug companies to register products in North America before their patents have expired in the local market. Thomas Bombelles, a spokesman for the PhRMA, said that his group would take action against the amendment but added that it was too early to say what steps would be taken, while EU officials said that two European companies had already decided to freeze their investments in Israel. However, Israeli government officials and major pharmaceutical companies denied the charges, declaring that the amendment merely equalised Israel's laws with those in the United States. In 1986 the pharmaceutical firm Hoffmann-La Roche sued an American generic drug company for conducting research and development on drugs during the life of the patent. The US Congress then passed a law allowing generic drug companies to try to copy patented drugs during the 20 year life of the patent, but it also extended the life of the patent by a few years to cover the time invested by the company in developing the medication. As a result of this law, the American generic drug industry boomed, causing prices to drop. "What the US did in 1984, Israel has done in 1998, and Australia plans to do the same," said Dr Aharon Schwartz, a vice president of Teva, Israel's largest pharmaceutical company. Europe, he added, had no need for such a law because its patented medications are under strict price controls. Judy Siegel-Itzkovich
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