Senators Send Letter to Commerce Secretary Regarding WTO Waiver Compromise

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Last week, Senators Thom Tillis (R-NC), Tom Cotton (R-AR), and Marsha Blackburn (R-TN) sent a letter to Secretary of Commerce Gina Raimondo (at right) to express their "grave concerns with the so called 'compromise' agreement to waive global intellectual property protections for Covid-19 vaccines."  Earlier this month, Reuters reported that the United States, European Union, India, and South Africa had reached an agreement on a waiver with respect to patents for COVID-19 vaccines (see "Compromise Reportedly Reached on COVID-19 Vaccine Patent Waiver").

The waiver compromise, if approved by World Trade Organization (WTO) members, would allow "an eligible Member [to] authoriz[e] the use of patented subject matter required for the production and supply of COVID-19 vaccines without the consent of the right holder to the extent necessary to address the COVID-19 pandemic."  The compromise defines "eligible Member" as "any developing country Member that exported less than 10 percent of world exports of COVID-19 vaccine doses in 2021," and defines "patented subject matter" as "includ[ing] ingredients and processes necessary for the manufacture of the COVID-19 vaccine" (see "More on Leaked WTO COVID-19 Vaccine Patent Waiver Compromise").

In their letter, the three Senators call the waiver compromise proposal a "disastrous plan" that "would destroy high-paying American jobs while handicapping our nation's ability to develop life-saving medicines in the future."  They argue that waiving IP rights "would enable any company or government -- including hostile actors like China and Russia -- to simply steal cutting-edge American technology."  The Senators also argue that it's "no accident" that all three of the FDA-approved COVID-19 vaccines "were developed by American firms and American workers," asserting that "[s]trong intellectual property rights are the bedrock that supports the investment and innovation that has historically allowed the U.S. to lead the world."

According to the Senators, the WTO waiver "would be a senseless gift to our foreign adversaries," but more significantly, would "not solve the problem it purports to address" (i.e., would not "increase global manufacturing of shots, which will in turn boost inoculation rates and help end the pandemic").  They note that current projections call for global COVID-19 vaccine production to reach 20 billion doses in 2022, and suggest that "[t]here will be a worldwide glut of Covid-19 shots by this summer."  They also suggest that India and South Africa, which first proposed a waiver in the fall of 2020, will face vaccine gluts as well, and point out that the Africa Centers for Disease Control and Prevention has stated that "the primary challenge for vaccinating the continent is no longer supply shortages but logistics and vaccine hesitancy" (see Payne, "Africa CDC to ask world to pause Covid-19 vaccine donations," POLITICO).

The Senators conclude that the U.S. Trade Representative, which agreed to the waiver compromise proposal with the European Union, South Africa, and India, "appears to have acceded to an arrangement that would undermine American workers, innovation, and our economy and national security," and they ask Secretary Raimondo "to reverse Ambassador Tai's disastrous decision to enter into this agreement."

For additional information regarding this topic, please see:

• "The Proposed WTO IP Waiver: Just What Good Can It Do? -- An Analysis," March 24, 2022
• "IP Associations 'Concerned' by Reports of TRIPS Waiver Compromise," March 24, 2022
• "More on Leaked WTO COVID-19 Vaccine Patent Waiver Compromise," March 21, 2022
• "Compromise Reportedly Reached on COVID-19 Vaccine Patent Waiver," March 16, 2022
• "Sen. Tillis Writes to U.S. Trade Representative (Again) Regarding TRIPS Waiver," December 12, 2021
• "U.S. Trade Representative Responds to Letters from Senators Regarding TRIPS Waiver," November 14, 2021
• "U.S. Chamber of Commerce Urges Administration to 'Double Down' on Global Vaccine Distribution," November 3, 2021
• "Is This the WTO Waiver End Game?" July 25, 2021
• "BIO Declaration on Global Access to COVID-19 Vaccines and Treatments and Role of IP," June 24, 2021
• "GOP Legislators Write in Opposition to Proposed TRIPS Waiver," May 16, 2021
• "Population of Patents at Risk from Proposed WTO Patent Waiver," May 12, 2021
• "Sen. Daines Urges Biden Administration to Withdraw Support for COVID-19 IP Waiver," May 12, 2021
• "Pfizer CEO Pens Open Letter on COVID-19 Vaccine IP Waiver," May 10, 2021
• "If the Devil of the WTO IP Waiver Is in the Details, What Are the Details?" May 9, 2021
• "The Road to Hell Is Paved with What Everybody Knows," May 6, 2021
• "BIO & IPO Issue Statements on Biden Administration's Support for Proposed WTO Waiver," May 6, 2021
• "Biden Administration Supports Waiver of IP Protection for COVID-19 Vaccines," May 5, 2021
• "Suspending IP Protection: A Bad Idea (That Won't Achieve Its Desired Goals)," April 26, 2021
• "Sen. Tillis Asks Biden Administration to Oppose WTO Waiver Proposal," April 21, 2021
• "IP Organizations Support Continued Opposition to Waiver Proposal," April 5, 2021
• "Industry Coalition Supports Continued Efforts to Oppose Waiver Proposal," March 29, 2021
• "BIO and PhRMA Urge Biden Administration to Oppose Proposed WTO TRIPS Waiver," March 11, 2021
• "IPO Sends Letter on IP Law and Policy to President-Elect and Vice President-Elect," January 4, 2021

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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