Chicago Sun-Times: Thailand violates drug patents for its own profit

May 5, 2007

BY PHILIP STEVENS

This week, the Office of the U.S. Trade Representative issued its annual review of the protection and enforcement of intellectual property rights across the world. Twelve countries with particularly egregious policies were placed on the report's Priority Watch List, and for the first time, Thailand was elevated to that classification.

This dishonor was expected. Over the last few months, the nation's military-appointed government has issued several ''compulsory licenses'' on patented medicines.

Citing a World Trade Organization rule that permits a country to breach patents during a ''national emergency,'' the Thai government has granted itself the right to produce copies of Kaletra and Efavirenz, two powerful HIV/AIDS antiretrovirals, and Plavix, the popular heart-disease drug. The government has claimed, with much praise from a broad coalition of health activists and nongovernmental organizations, that it would be unable to meet its commitment to universal health care without compulsory licensing.

The truth is that Thailand's decision has nothing to do with lowering costs or compassion. Instead, the Thai government appears to be violating patents for its own profit. And in doing so, the nation is putting Thai citizens at great risk.

Consider: Earlier this month, Abbott Laboratories announced that it would sell to Thailand and dozens of other low-income nations, Kaletra for $1,000 per patient annually. That's about 55 percent less than Kaletra's current cost and cheaper than every copy of the medicine available. In March, Merck similarly offered to drastically reduce the price of Efavirenz.

Yet Thailand has asserted that it will maintain compulsory licenses for both medicines.

Or look at the Global Fund, which recently announced that it would foot Thailand's entire bill for Efavirenz by purchasing a generic version of the drug from a World Health Organization-approved plant in India.

The Thai government rejected the Global Fund's offer, leaving Thai taxpayers to foot the bill for the drug's manufacture.

Clearly, this isn't about improving access to medicines for the Thai people. It's about establishing Thailand's state-owned drug manufacturer -- the Government Pharmaceutical Organization -- as a dominant regional manufacturer of copycat drugs. Only the GPO can sell copycat drugs to the Thai government, which excludes private manufacturers from receiving government contracts.

This leaves the GPO to reap all the cushy rewards, which flow right back to the government and provide further opportunities for the nation's politically connected to enrich themselves.

In 2005, the GPO made a profit of around $35.5 million and reinvested only about 2 percent of that sum into research and development. As one would expect, this money lines the pockets of Thailand's ruling class.

Further, when it comes to producing drugs, the GPO has a terrifying track record. In 2002, the Global Fund awarded Thailand $133 million to test and manufacture its locally produced HIV/AIDS medication, GPO-Vir.

Last August, however, the Global Fund was forced to withdraw its funding because the GPO's manufacturing facilities did not meet international standards and the GPO's drug had yet to gain WHO approval.

But it was too little too late. In July 2005, it emerged that GPO-Vir had caused a rise in drug-resistant AIDS cases because of its poor quality. Despite this track record, Thailand continues to administer GPO-Vir to its HIV/AIDS patients -- which, ironically, is making the virus even more deadly.

Yet instead of denouncing the Thai government's dangerous and self-interested policies, activist groups have urged it to go further and faster. Even worse, many U.S. lawmakers have piled on. Earlier this year, 22 members of Congress signed a letter to the U.S. Trade Representative expressing their support for Thailand's use of compulsory licenses.

The public-health impact, as the HIV/AIDS example suggests, will likely prove devastating.

By upgrading Thailand to the Priority Watch List, the U.S. Trade Representative has sternly condemned the Thai government's patent violations. U.S. policymakers should take this opportunity to trumpet the trade representative's report and denounce Thailand's behavior.

Philip Stevens is health program director at the International Policy Network, a London-based charity.

This information is fairly old and well-known already. The Thai government is not the most ethical body in the world.

This is the same government that cares so much about the people that it was giving rotten milk to school children so a political big shot could make some corruption money.

I have worked in the medical industry before, so I know the reputation of Big Pharma, and it is not good. But when it comes to medical technologies, developing countries are ripping off the first world a lot. They steal the technology and re-sell it a cheaper price. This is not only about access to drugs for poor people. Thailand wants to frame the debate that way. But the credibility of the Thai government really is less than zero and it could care less about helping the poor. The fact is that Thailand could raise the money for its universal health care system by raising taxes. Instead, it chooses to steal. And, if this article is correct, it is stealing in order to make a profit on somebody else's dime and it is going to make many Aids sufferers worse off because of it.

Bangkok Post: Dishonestly Linking Thaksin to US Action Over IP

Thaksin linked to US action

Govt suspicious after country put on list

Bangkok Post


PRADIT RUANGDIT & APIRADEE TREERUTKUARKUL


The government is checking whether the recent movements of ousted prime minister Thaksin Shinawatra are linked to the decision of the US Trade Representative (USTR) to downgrade Thailand to a country deemed to have poor intellectual property protection. Government spokesman Yongyuth Mayalap revealed the government's response action when asked to comment on speculation to this effect.

Six days ago, The Washington Times published an article critical of the coup, the government's economic policies and its decision to adopt compulsory licensing. The article was penned by Ken Adelman, who is a senior counsellor of a public relations company which has Mr Thaksin among its clients and also an executive director of USA for Innovation.

This really proves how truly worthless Thai journalists are. They either are stupid or being dishonest on purpose. The Bangkok Post won't make the distinction that Ken Adelman was acting in his capacity as head of USA for Innovation and not acting as senior counsellor for Edelmen. Not only that, these reporters refused to contact Ken Adelman or Edelman for comment. Also, they didn't contact Thaksin for his comment also. Now, any real newspaper with journalistic ethics and with a competent editorial staff would actually contact the other side before going to print. But, in this case, the Bangkok Post chose its own political interests over what it is professionally right.

The USTR on Monday placed Thailand and 11 other countries on a ''priority watch list'' to monitor them for their handling of intellectual property rights.

Prime Minister Surayud Chulanont said he wanted to know why the US took this step and admitted he was concerned about the possible economic impact.

People living with HIV/Aids and health activists yesterday announced plans to rally at the US embassy today to protest against the USTR's decision.

''We have to let them know that this US attempt to protect its trade benefits is unacceptable. Millions of poor patients, not only in Thailand but in other developing countries, who depend on costly drugs will die because of such selfish action,'' said Virat Poorahong of the Thai Network Living with HIV/Aids.


Here is another unchallenged lie, which the Bangkok Post doesn't refute. The US is not protecting any trade benefits. The fact is that the US has been giving unreciprocated trade benefits to Thailand. Here is a link(KRC Predicts IP trade problems) to another story in the Bangkok Post that refutes this quote.

Further, the United States is not responsible for giving free Aids medication to Thais, who contracted HIV in Thailand through their own risky behaviors. HIV/Aids is preventable. If Thailand is worried about the spread of Aids maybe it should shut down it multibillion dollar sex industry.


Mr Virat and 30 HIV-positive people met Public Health Minister Mongkol na Songkhla to show their support for compulsory licensing of generic versions of the Aids and heart drugs Efavirenz, Kaletra and Plavix. They were concerned that the government would retreat from the move under pressure from the USTR.

Dr Mongkol said he was worried about the impact on trade but insisted that poor people should have access to cheap drugs.

''We can't let our poor patients die without dignity,'' he added.

There are millions of Thais dying of diseases unrelated to Aids every year. Their dignity has never been a priority of the Thai government . It seems that only when foreigners and their money and technology is involved does the dignity of Thais get top priority.

Washington should respect Thailand's decision, which he stressed was in line with the World Trade Organisation's Trade-Related Aspects on Intellectual Property Rights (Trips) rules.

''They should avoid putting pressure on us as long as what we're trying to do is legitimate,'' he said. Dr Mongkol will visit Washington on May 21-22 to explain the government's decision, in a trip planned long before the USTR announcement.


What the Thai government is doing is illegitimate and it hasn't been enforcing intellectual property laws across the board.


Here is another story on the Aids topic:


Aids activists lash out at US

Bangkok (TNA, dpa)

Activists of the Thai Network of People Living with HIV/Aids have called for retaliation against the United States, and for the US to be placed on a "watch list" for violating international sovereignty and patients' rights worldwide.The puckish yet angry suggestion came after the US Trade Representative placed Thailand on a 12-nation "Priority Watch List" for intellectual property piracy.

Dozens of network members, with representatives of the Aids Access Foundation, on Thursday gathered at the US Embassy and denounced Washington's move as an action taken for commercial purposes only, disregarding morality and human lives.

They said the US accusation of Thailand's failure to sufficiently protect American producers from widespread piracy lacked factual information.

"Evil USA stop threatening access to treatment in Thailand," said one of the banners.


Love their mentality. They engage in risky behavior. They want others to pay for the risky behavior that puts their health at risk. And then they blame the country with the drugs for their inability to pay for their health problems. How about paying the 50 baht for a pack of condoms? How about engaging a profession that doesn't put your health at risk?

In other words, these activists want free handouts from another country's industry because they are incapable of taking care of the sexual health.

If these activists are so concerned about Aids in Thailand, you would think they would be on the front lines of ending prostitution in Thailand. But, guess what, they aren't.

And what about sex education? Is that a priority? Nope. There only priority seems to blame Americans for their problems.

Also, if these activists are really concerned about this problem, why don't they demand that the Thai government invest is own money in research and development in its own pharmaceutical industry?

If the government can't afford the medicines, why doesn't the government advocate raising taxes?

Here is a list of things that can be taxed.

Tourism, health tourism, sin products like the lottery, alcohol, and cigarettes, massage parlours, brothels, and go go bars.

Why not have a lottery to raise money for medicines?

The fact is that the Thai government is trying to pull a fast one and wants to get something for free.

Also, I think it is interesting that Bill Gates and Bill Clinton can raise hundreds of millions of dollars in private funds to help in the fight against Aids.

I have to wonder, however, how many Thai billionaires have put up their own millions to defeat Aids or provide treatment for their own people.

Bangkok Post: More Excuses for Thailand Stealing US IP

Government says IP arrests up 25% last year

PHUSADEE ARUNMAS

Bangkok Post

The government intends to clarify improvements in suppressing intellectual property (IP) violations for US officials during talks next week.

Puangrat Asvapisit, director-general of the Intellectual Property Department, said it was not fair for Washington to downgrade Thailand to its Priority Watch List (PWL) due to failure to suppress IP violations.

''As a matter of fact, the number of arrests improved notably last year,'' Mrs Puangrat said yesterday.

Police brought 9,575 cases of IP violations to court last year, up 25% from 7,689 cases in 2005. More than 2.8 million counterfeit items were seized, up 24% from 2.26 million items confiscated a year earlier.

What does "brought to court" mean?

In terms of value, she said IP violations in Thailand last year caused US trademark and copyright owners US$219 million in damage, much less than the $2.2 billion in China and $1.5 billion in Mexico.

The US also kept Indonesia on the Watch List, one step below the PWL, even though its IP problems are similar to those of Thailand and caused about $205 million in damage to US property last year.

When you take in consideration the size in population, Thailand is just as bad.

Officials will highlight this information in talks with the US Intellectual Property Office on May 11.

''We will signal our disappointment over its determination to create negative sentiment among Thais against the US,'' Mrs Puangrat said.

You got to be kidding. Thais steal from Americans, and Puangrat worries about "negative sentiment among Thais against the US."

A working group representing various government agencies would be formed to solve IP problems, she said. It will speed up revisions to the Copyright Law with an aim to put Thailand back on the Watch List next year.


I want to point out three things about this story.


1. The Bangkok Post spins this US/Thai spat as if Thailand is the victim when Thailand has been clearly ripping off US IP for decades. Anybody who has been to Panthip, Fortune IT City, and other malls knows the truth. Anybody who walks down any major city street in Bangkok with street stalls that sells DVDs, software, Playstation 2 games, brand names clothes, etc knows the truth. The truth is there is no enforcement of the law.

2. The Bangkok Post really thinks the US should accept the Thai government's word that it is doing its best. These editors at the Bangkok Post are shameless liars. They know that the Thai government has really done next to nothing to enforce the IP laws.

3. In order to distract from Thailand's culpability, the Bangkok Post says that because other countries break the law, it is OK for Thailand to break the law, as if what Thailand does has anything to do with what other countries do on their own accord. Thailand needs to worry about its own crimes rather than worry about what other countries are doing.

Washington Times: USA for Innovation's Attack on Thailand

Troubles from Thailand

By Ken Adelman
April 27, 2007

America's critical efforts to promote good governance around the world face several obstacles. At the World Bank, for example, the lavishly paid globocrats seem incapable of stopping payment to Third World kleptoptocracies. And its president, Paul Wolfowitz, has had his good governance reform agenda stalled as he is embroiled in a scandal over payments to his Bank-employed lady friend.

But the importance of good governance has never been clearer. Let's take as a "case study" something relevant this week when yesterday saw the celebration of World Intellectual Property Day, and the United States Trade Representative (USTR) is expected to release its "Special 301 Report" on Monday -- an annual listing of IP violators around the world. Numerous organizations, including USA For Innovation, believe Thailand should be elevated to the Priority Watch List, a special section reserved for the worst offenders.

What happened to Thailand? We've long regarded Thailand as a fine little country, friendly to America, nice rulers -- the stuff of "The King and I."

Thailand has for years been one of the rising Asian tigers, growing rapidly as it harnesses the global trading system to its benefit. And since World War II, when Thailand became an ally of the United States and deepened its business and commercial ties with the West, it has grown at an average of almost 8 percent annually. It rose to become the second largest economy in Southeast Asia. But it's no longer your grandfather's Siam.

Continued


2 Bangkok did his own interesting expose here, which Hobby kindly pointed out to me.

First, let me say that this attack against Thailand by this USA for Innovation non-profit in the media recently is very serious. Full ad in the Wall Street Journal and an op-ed in the Washington Times is not insignificant. Somebody is angry. Is it Thaksin who is behind it? It is plausible, but I have my doubts. I am putting my money on the pharm industry or another US company that has recently been screwed by the Thai government. Anyway, here is why I don't think it Thaksin.

First, why would Thaksin attack his own government's policies? Theft of US intellectual property happened under his regime just as much as under the current government. Thaksin made his billions taking western technology and re-marketing it to Thai people.

Second, Thaksin is not in favor of protecting intellectual property of foreigners. During the recent US-Thai FTA talks, Thaksin's government resisted the intellectual property provisions when it came to pharmaceuticals.

Third, if Thaksin ever came back to Thailand to seek power, it would not be in his best interests
to be behind an ad or pro-US intellectual property "non-profit" that has waged war against Thailand.

Fourth, if I was Thaksin and truly behind this "non-profit organization"and saw this editorial or ad, I would not approve of it because it would be personally destructive and it wouldn't be helpful to Thailand as a country.

Lastly, if this is truly a Thaksin conspiracy to come back to power, he should be ashamed of himself for a couple reasons. 1. It was sloppily executed. 2. It doesn't endear him to Thais when he is attacking his own country abroad. In other words, no matter how angry you are for being ousted, you don't ally yourself with the US pharmaceutical lobby in attacking your own country. That is just moronic. Most people all over the world hate the US pharmaceutical industry.

If Thaksin really wanted to do damage to the junta and come back to power, instead of playing golf with Jack Nicklaus, or buying mansions in England and Australia, and purchasing an English Premiere League football club, he would have worked with pro-democracy groups, university professors, NGOs, or other groups that are traditionally associated with getting rid of military regimes. Seriously, if Thaksin's strategy to get rid of the junta and come back to power is to ally with big Pharm, he really is a fool. And I doubt Big Pharm would want to work with Thaksin.


And what of this Adelman, Edelman connection? Just because these two guys have similar sounding names doesn't mean there is a conspiracy. Further, Washington is an incestuous town. Meaning, former ambassadors, senators, congressmen work for many non-profits, law firms, NGOs and lobbying groups as rain-makers. In other words, a famous person sits on a board as an adviser and that brings in high value clients and/or prestige.

But the Thai half-assed way of doing things is to say, "Look, Edelman, Adelman know each other, and Thaksin hired Edelman, so now we know he is behind these attacks on our country."

In the non-conspiratorial world, it doesn't really work that way. There could be an Edelman, Adelman, big pharm or other IP dispute connection without the Thaksin element.

This is what I predict. I doubt one single Thai newspaper or Thai politician will pick up a telephone and call to verify Adelman, Edelman, Thaksin theories.

Will The Nation or the Bangkok Post pick up a phone or write an e-mail to Adelman or Edelman? Nope. Will any Thai newspaper call Thaksin and ask him for a comment? Nope. Will any Thai newspaper call Abbott pharm and ask them if they are behind this campaign? Nope.
Will any Thai newspaper look at the financial disclosure forms of USA for Innovation? Nope.

This is what the worthless, conspiracy loving Thai media will do. It will quote Thai politicians, like Korbsak Sabhavasu, to discuss their conspiracy theories, but won't actually do any work to verify if any of the conspiracy theories are true.

It will also go on a right-wing anti-American crusade.

Will the Thai media actually made an effort to uncover the truth? Never.

Why do that when it can rely on lies, innuendo, conspiracy theory and quotations of wacky Thai politicians.

Thai Health Ministry: General Monkol Fired for not Stealing Foreign Intellectual Property Rapidly Enough

GPO chief claims unfair dismissal

Sacked by cabinet for failing to follow policy


APIRADEE TREERUTKUARKUL

The managing director of the Government Pharmaceutical Organisation has been sacked by the cabinet following a personal row with the board chairman and what he said yesterday was unfair pressure to speed up the upgrading of a pharmaceutical manufacturing plant and the breaking of international drug patents. Mongkol Jivasantikarn said Public Health Minister Mongkol na Songkhla's comments on his failure to implement government policy on developing vaccines and drugs ''necessary for the country'' were baseless.

Lt-Gen Mongkol said the budget preparation for constructing vaccine development plants had already been drafted and the Government Pharmaceutical Organisation (GPO) would be ready to produce oseltamivir for bird flu within a month.

The sacking of Lt-Gen Mongkol was approved by the cabinet on Tuesday on the grounds that he had failed to turn health policy into action. He will work in the position until a successor is selected.

Lt-Gen Mongkol also claimed it was unreasonable to blame the substandard drug manufacturing plant on him, saying examination of the facilities by the World Health Organisation was carried out before he was appointed in Oct 2005.

He said that he and other GPO executives had been put under pressure by the issue of compulsory licensing.

He said it was difficult to speed up the government's policy to break the patents on Aids drugs and heart disease therapy as long as there was no guarantee from policymakers that they would be protected from any possible lawsuits by patent holders of the drugs if they signed contracts to approve the import or manufacture of generic versions.

Continued