May 24, 2000
The Honorable John McCain
U.S. Senate
Russell 241
Washington, D.C. 20510
The Honorable Richard J. Durbin
U.S. Senate
Russell 364
Washington, D.C. 20510
Re: Columbia University's Patent Extension
Dear Senators McCain and Durbin:
We are writing to strongly support your effort to offer a motion to strike section 2801 of the Agricultural Appropriations bill (S. 2536) for FY 2001 when the bill comes to the floor for consideration. This section would grant a patent extension to Columbia University's Cotransformation Patent. This special-interest provision should be stricken from the legislation for the following reasons:
- The effect of this amendment would be a major rewrite of the Hatch-Waxman Act, a careful compromise reached between diverse interests in 1984. There is nothing in the current law that permits a patent extension for a manufacturing process; it only applies to drugs approved by the FDA.
- Like all patent extensions, this would result in additional costs to consumers for important pharmaceuticals used to treat heart attacks, strokes, AIDS, cancers and other diseases. Columbia has already earned nearly $300 million in royalty payments for this patented process, and it was the U.S. taxpayer who funded all of the university's research. A five-year patent extension, which could be achieved should section 2801 become law, could result in an additional $500 million in royalties to Columbia for drugs already manufactured with this process -- a savings that should be passed onto consumers by drug companies if the patent extension is denied. Moreover, any new products using this technology would clearly charge consumers the considerable costs of the royalties should the patent be extended. Americans are clamoring for Congress to enact policies that would substantially reduce the cost of drugs -- not maintain their high levels or increase them.
- It would open up the floodgates for numerous drug companies whose patents are about to expire to come to Congress to demand their special deal. Schering Plough tried to pass legislation last year that would have resulted in a patent extension on its blockbuster drug Claritin, which would have cost consumers an extra $7 billion. While thwarted initially, it is waiting to strike again. There are 20 blockbuster drugs with sales of $20 billion a year whose patents are set to expire over the next few years. Now is not the time to give the manufacturers of those drugs any hope of favorable treatment by granting Columbia's request.
- If Columbia has a legitimate claim to make, let it be subjected to Judiciary Committee hearings and full public review and debate, not be secretly added to an appropriations bill.
We thank you for your efforts to expose this special-interest deal, save consumers money, and maintain the integrity of the current drug patenting process under Hatch-Waxman.
Sincerely,
Center for Medicare Advocacy
Children's Foundation
Communications Workers of America
Consumer Federation of America
Consumer Project on Technology
Consumers Union
Families USA
National Council of Senior Citizens
National Education Association
Neighbor to Neighbor
Public Citizen
Union of Needletrades, Industrial, and Textile Employees (UNITE)
United Auto Workers
United Church of Christ
U.S. Public Interest Research Group (US PIRG)
Wilson's Disease Association
Columbia University Cotransformation Patent Extension Rider Page