Jack Dorsey, co-founder of Twitter (now X) and Square (now Block), sparked a weekend’s worth of debate around intellectual property, patents, and copyright, with a characteristically terse post declaring, “delete all IP law.”
X’s current owner Elon Musk quickly replied, “I agree.”
This is why it’s a mixed bag for me. IP law is kinda important in a capitalist system, which, for better or worse, that’s what we have. If someone comes up with a wonder drug that outright cures addiction or something, you’d want that person to be able to recoup their costs before a bigger organization with more capital swoops in and undercuts them on production costs until they’re the sole supplier of the drug. The hepatitis C cure drug selling for $70,000 is a great example of this quandary; there’s millions of dollars worth of research and clinical trials that went into developing the drug, you’d want the company to be able to recuperate the costs of developing it or else there’s less incentive to do something similar for other diseases down the line. Also, though, $70,000 or go fucking die is an outrageous statement.
Of course, what we have for IP law in practice is a bastardized monster, where corporations exploit the fuck out of it to have monopoly control over important products like insulins and life-saving medications that cost cents to produce and allow them to sell for hundreds a dose. That’s not the intent of IP law, IMO, and that doesn’t really serve anyone.
I see the point you’re aiming at, but it’s not little companies discovering new drugs it’s giant corporations (often on the back of government research money) who then ‘swoop in’ to protect their own profits while people in underdeveloped nations die of tuberculosis or whatever because they would rather make money than save lives.
You might be surprised how small medical research labs can be. The lady responsible for nanolipid particles used in transporting rNA vaccines, in similar fashion to how an organelle gets packaged in membrane and cast out, spent decades cruising on bare minimum public funding.
What costs money is testing phases, including a lab to hold and propogate immortal cell lines and later production lines to create enough doses for thousands of human trials.
Although tbh I don’t expect the USA to be upholding strict drug safety standards in the near future.
Thank you. These arguments are always hard to read. Sure, small labs are where it usually starts, but without enormous and risky investments, we would never have the drugs we have today. Most of these investments fail miserably, so one successful drug must cover the costs of ten unsuccessful ones. Nobody would do that if their IP weren’t protected. It’s more about reputation than facts when it comes to this topic.
Unless it were completely government funded, but that’s clearly not was Illegal Immigrant Billionaire Elon Musk and the Orange Felon are proposing so yeah, IP Laws applying to Pharmaceuticals all the way.
I was speaking generally and obviously there are exceptions and contributions from all over the place. But it’s not tiny labs like that that hold a death-grip on the patents to drugs that are being sold for absurd amounts of money that are far out of reach of the people who need them. Also while I recognize that this kind of research is expensive it must also be recognized that much of that research is funded, directly or indirectly, by the US government through the National Institutes of Health, Centers for Disease Control, etc, so the fact that these big corporations are effectively getting a hand-out and then charging an arm and a leg for it sticks in my craw. But then maybe I’m just weird for thinking that human life is more important than quarterly profits.
idk i think our incentive should be to cure diseases with public funding and make people healthy instead of for profit but what do i know
I agree, though I will note that I have often found that there is a non-trivial gap between what is and what ought to be.
Companies will not — ever — dump hundreds of millions/billions into developing a drug only to have it be sold at cost or even worse, completely losing out on it when a competitor sells a copy of it at a price you can’t match.
And even if they did suddenly turn to altruism like that, they’d very quickly go bankrupt.
Why would anybody spend billions making new drugs if they knew with 100% certainty that they’d never make the money back?
We may not like it, but that’s the system that we have. Some form of IP law should exist to encourage these companies to continue putting out medicines that better our lives, it’s just that our current ones go way too far.
We already fund the research of new drugs almost entirely through publicly funded projects which then HAND OVER the patent rights to whichever company has the most former board members in the executive branch at the time.
I watched it happen in real time during covid while working for the DPH. Those companies produce NOTHING. They are the literal obstacle to creating new medicines and making them widely available.
I’m against the context of the main post but putting on a cape for medical patents is wild. The entirety of healthcare in america is inexcusable. Let’s stay focused on the AI tech oligarchs robbing us of our futures and attempting to frame it as a concern with intellectual property.
If it’s state funded then that’s obviously a different matter.
But usually it’s a company making drugs, and they’d go bust if they spent billions developing a drug and got zero money back. Then there would be far fewer drugs made.
Be practical. Letting people die for ideological reasons is not a good thing.
How, when more companies would be able to develop the same drug? And they don’t develop drugs, they develop ways to extend their patents.
More companies will develop that drug.
But think of it this way. You’re the CEO of a pharmaceutical company that makes drugs, vaccines, etc that saves lives. You do this for a profit.
You’re presented with a plan to make a drug that, idk, lessens the symptoms of Crohn’s Disease. It’ll cost $2 billion to create and bring to market.
After it’s done being created, and the drug spends 10+ years in clinical testing, it’s on shelves. You have to price each box at $10 in order to break even after 5 years, so you do so.
But the law has changed, now anybody can manufacture the drug. A competitor who didn’t foot any of the development costs or do any of the hard work is selling each box at $0.80. you can’t compete with that, you make an enormous loss and your company edges closer to bankruptcy.
One of your workers comes to you with plans for a $2bn project that will hopefully reduce migraines. Given lessons learned from the previous example, do you go ahead with the plan? Will the board even let you?
I agree that IP laws in the sector need to be pared down, but scrapping them entirely would prevent any company from creating new drugs, as they’d be absolutely certain they wouldn’t be able to recoup development and regulatory hurdle costs.
In an ideal world, all drugs would be made by governments, for a loss, and open sourced, so the market could compete on price. But that’s not the world we live in.
If you only funded drugs through public funding, that means the government has a say in what drugs get funded and which don’t, meaning any and all drugs that don’t affect the broadest number of people simply won’t get funded.
Drugs will no longer be for all people, it’ll be strictly the people that vote for the government in charge. So… No hormone treatments, no birth control, no vaccines, no aids research, nothing that doesn’t explicitly align with the government.
The development of new medications should be 100% funded by governments and the IP that comes out of it should be 100% if the government, aka the people.
Governments are the ones that do the investments of projects that don’t directly make money but are good for humanity.
You don’t like that and the hepac drug can suddenly cost 70 dollars
You’re right.
In the US the tax payer subsidizes almost all drug research. Between 2010 and 2019 the NIH spent $184 Billion on all but 2 drugs approved by the FDA.
It worked out to about $1.5 Billion for each R&D product with a novel target and about $600 mill for each R&D product with multiple targets.
https://pmc.ncbi.nlm.nih.gov/articles/PMC10148199/
Or
https://jamanetwork.com/journals/jama-health-forum/fullarticle/2804378
The cost to develop each drug is between about $1 and $2.5 Billion
I’m not sure how much is subsidized outside of NIH but I’d imagine other countries are doing the same.
Why should companies own the whole IP or perhaps why should they have any ownership if most of the funding is from the public?
This is a great point. I know that some pharmas actually do internally funded research, it’s a thing, it happens, but it’s completely dwarfed by shareholder giveaways and government subsidies ofc.
The problem I mostly have is even when those costs are recouped most companies fight tooth and nail to keep the prices high and unaffordable in order to line the pockets of investors.
Yes, 100%.