Supplementary Protection Certificate
- New provisions on national Italian SPCs.
The status of Italian SPCs granted under the national law
No. 349/1991, i.e. the national law providing for patent term
extension for medicinal products before the EC Regulation No.
1768/92 entered into force, has been modified by the Italian law
No. 112/2002, issued on June 15, 2002.
The concerned law results from the conversion into law of the
decree-law of April 15, 2002 No. 63, published on April 17, 2002
in the Italian Official Journal, which contains some urgent measures
taken by the Italian government in order to increase the fiscal
income and reduce and rationalize the public expenditure. The
measures taken in the pharmaceutical field are gathered under
Article 3 (both in the decree-law and in the final law No. 112/2002).
These include a 5% reduction of the price of those medicinal products
available at the expenses of the National Health Service (fully
reimbursed medicines), and, under paragraphs 8 and 8-bis through
8-quater, some measures connected with intellectual property rights.
The latter are purportedly intended to bring the group of Italian
national SPCs (about 400 filings in total) gradually in line,
as far as their duration is concerned, with the SPCs granted under
the EC Regulation No. 1768/92, and are aimed at fostering the
adoption of cheaper generics instead of brand-name products.
The text of Article 3, paragraph 8, as finally approved, provides
for a reduction of the term of SPCs granted under the previous
national law equal to “six months for each solar year, starting
from January 1st 2004”. Compared with the previous version
of this provision, present in the original decree-law and reciting
that the SPC term was reduced by one year in 2002 and by two years
for every solar year, starting from January 1st 2003, the present
version greatly limits the intended effects of Article 3, paragraph
8.
All SPCs which, under the Italian law No. 349 of October 19,
1991, were going to expire before January 1st 2004, will be unaffected
by the change introduced by the law No. 112/2002. In all other
cases the reduction will be quite limited. In any event, it should
be noted that these provisions affect the validity and enforceability
of a title already granted by the national Authority, and are
also likely to be questioned from the point of view of certainty
of law.
Obviously, in considering the levelling down of the Italian national
SPC protection to the European supplementary protection as an
object, the concerned decree has not taken into account (nor it
could have done differently) the fact that the first Italian Marketing
Authorization (M.A.) is not necessarily the first M.A. in the
European Community. This further advantage of the national law
in comparison with the EC Regulation has been left untouched.
The same paragraph 8 of the law No. 112/2002 contains another
important provision intended to favor the generics producers.
According to this provision, the firms interested in producing
medicinal products outside the patent protection may start the
procedure for obtaining the M.A. one year before the expiry of
the supplementary patent protection on the active ingredient.
This actually introduces an exception to the patent law principle
according to which any activity having a commercial end connected
with the exploitation of a patent is barred as long as the patent
is in force, even when it is experimental activity or “paper
work”.
The final text of the law No. 112/2002 contains, in addition
to the original text of the decree-law No. 63/2002, some provisions,
gathered under paragraphs 8-bis through 8-quater, stipulating
the possibility of producing an active ingredient still covered
by a Supplementary Protection Certificate according to the Italian
law No. 349/1991 for the purpose of exportation only toward countries
where the concerned active ingredient is free from patent protection.
The text of the law No. 112/2002 refers to a further act to be
issued by the Ministry for Productive Activity in order to define
the procedure for the issue of the licenses according to Article
8-bis.
Pursuant to the above, the Ministry for Productive Activity issued
a Decree, dated October 17, 2002, which has been published on
October 28, 2002 in the Italian Official Gazette.
The Decree concerns the grant of voluntary non exclusive licenses,
to be granted for a consideration, valid for the exportation of
active ingredients of medicaments covered by SPC, in Countries
where the protection conferred by the patent and by the SPC has
lapsed or does not exist, or where the exportation of the active
ingredient does not amount to an infringement of the corresponding
patent according to the provisions in force in the destination
Country.
The procedure for the grant of the license starts from the formal
communication by the party interested to obtain the license to
the Italian Patent and Trademark Office (PTO), with the specification
of the active ingredient. The Italian PTO promptly informs all
the potentially concerned parties. If the parties reach an agreement
within 90 days from the date of receipt of the communication,
a copy of the agreement shall be forwarded to the PTO.
If the parties do not reach an agreement the Italian PTO can
intervene in the procedure. In fact, if the parties inform the
PTO that the negotiations have been unsuccessful, in accordance
with Article 5 of the decree a Conciliation procedure starts.
It should be noticed that the decree seems to expressly require
that the communication of the failure of negotiations has to be
given by all the potential signatories of the agreement, even
if not jointly. This provision can be interpreted as a guarantee
to the PTO to give its co-operation only in case of a real and
concrete interest in reaching an agreement by all the parties.
The Conciliation can end with an agreement or with another failure
of negotiation. In this last case the records of the procedure
will be sent to the Authority for Competition and Market .
At this point, there remains to be seen (see article 7 of the
decree) what will be the real contribution of this decree to the
development of the generics market in Italy and to a concrete
saving for the National Health Service.