Explained | What patent waivers on Covid-19 drugs mean for low-income countries

India and South Africa will reportedly ask for patent waivers on Covid-19 drugs and medical equipment after support from US on vaccines

India, South Africa and other developing countries are likely to push for a wider waiver of intellectual property rights for Covid-19 drugs and medical tools after US President Joe Biden and Trade Representative Katherine Tai backed their call to waive off intellectual property rights on Covid-19 vaccines.

India and South Africa had submitted a joint proposal to the World Trade Organisation (WTO), touching upon the broad areas of the Trade-Related Aspects of Intellectual Property Rights (TRIPS) waiver they were seeking. The revised draft is likely to go into further detail on the coverage and duration of the waiver, which could be longer than originally anticipated, according to a report by the Times of India.

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So far, The United States has backed talks to scrap only vaccine patents but has stayed mum about other medical supplies that are crucial in the fight against the pandemic for low-income countries.

"Intellectual property is not the only barrier but definitely a significant barrier that can impact the production of medical tools.... The scope (of the waiver) should cover health products and technology, including diagnostics, therapeutics, medical products and personal equipment," South Africa's ambassador to the WTO Xolelwa Mlumbi-Peter said at an online panel discussion.

Patent rights ensure pharmaceutical companies that develop medical equipment have the sole right to monetise or license them to recover costs and generate revenue off them, prompting some to claim that scrapping them would set a dangerous precedent and discourage future medical innovation. However, critics have said that honouring the patents during a global pandemic has robbed economically weaker nations of the chance to vaccinate their large populations.

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India has been the worst-hit developing nation, with its health system buckling under the pressure of a large and sudden upsurge of cases in its second Covid wave. While the Centre’s vaccination drive has had a sluggish start, with vaccine production taking time to ramp up, hospitals have also been clamouring for supplies of life-saving drugs and medical supplies like oxygen.

If patents on Covid-adjacent medical supplies are dropped, it would make it easier for countries like India and South Africa to increase their availability and impose price caps without incurring hefty financial hits.