US backs down on health IP

By Jeremy Torr
Tuesday, 22 July, 2003

Strong negative reaction from local industry bodies has led to the US modifying plans to snare biotech IP by funding grants to Australian researchers.

Following deputations to the government by the National Health and Medical Research Council (NHMRC), the US has backed away from controversial proposals to maintain 'rest-of-world' rights to research funded or part funded by US granting bodies.

The proposed changes to the US National Institutes of Health's IP policy, released last March, signalled a major shift in IP ownership from researchers to underwriters, outside the country of origin.

However, a recent meeting in Washington between federal Science Minister Peter McGauran and NIH deputy director Dr Raynard Kington, indicated a less restrictive option was being formulated.

"The NIH will be releasing a new proposal on the allocation of intellectual property rights and will address issues identified by the NHMRC in relation to NIH-funded research," said McGauran. "It will outline how research institutions can retain intellectual property rights, and how benefits in the form of new products will be managed. The new paper represents a welcome recognition of Australia's concerns," he added.

NHMRC chief executive Prof Alan Pettigrew has also been involved in high-level talks in the US, where he is reported to have made good progress on the substance of the new agreement. No timeline has been set for a new agreement, but an NHMRC spokesperson asserted "there will be no firm outcome for a little while yet."

The NIH's original proposal proposed that NIH-funded researchers would only be entitled to the IP on inventions in their own country, with all other world rights reverting to NIH. The new proposal is based on the negotiation of IP on a case-by-case basis, which is likely to be much more attractive to most researchers.

"This demonstrates the willingness of the NIH to move forward on this issue," said Minister for Health and Ageing, Senator Kay Patterson. "I am delighted progress has been made on this issue."