Pharmaceutical Companies, Intellectual Property,

and the Global AIDS Epidemic

This case is provided at the end of chapter 3 of your text (Luthans and Doh). After reading the case, and performing research on the topic, answer the following questions:

1.) Do pharmaceutical companies have a responsibility to distribute drugs for free or at low cost in developing countries? What are the main arguments for and against such an approach?

2.) What are the principal arguments of pharmaceutical companies who oppose making exception to IPR laws for developing countries? What are the arguments by NGOs and others for a differential treatment?

3.) What impact would you expect South Africa's decision to levy duties on drug imports from Western nations to have on the international distribution of drugs to South Africa?

4.) In June 2002, the WTO extended the transition period during which least-developed countries (LDCs) had to provide patent protection for pharmaceuticals. In your opinion, do you think this is an appropriate change in policy, or a dangerous precedent? What could be some of the negative ramifications of this resolution? What about effects for other industries?

5.) Given the initiatives announced by global development and aid organizations and among pharmaceutical companies themselves, was it necessary to relax IPR rules in order to ensure that adequate supplies of AIDs medications would be available for distribution in the developing world?

6.) What role do MNCs have in providing funding or other assistance to international organizations such as the Global Fund?