Patent policy and public health in developing countries: lessons from Japan.

Introduction The relevance of the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement to developing countries has been widely discussed at international fora, particularly regarding the impact of pharmaceutical product patents. Product patents restrict the ability of local firms to manufacture copies of new drugs, possibly leading to less competition, higher drug prices, and lower welfare in developing countries. These are the unintended public health consequences of what is primarily an industrial policy tool. In this context, we examine the Japanese experience of introducing product patents in 1976 which also attracted heated discussion at that time. The anticipated price increase and product shortage were largely avoided, while the number of available products increased.1 Negative consequences of product patents were largely averted through a series of well-coordinated policy instruments, the examination of which may provide suggestions for developing countries.