Hawley Introduces Legislation Targeting 'Patent Thickets'

U.S. Senators Josh Hawley (R-Mo.), Peter Welch (D-Vt.) and Amy Klobuchar (D-Minn.) introduced the ETHIC Act, which would prevent Big Pharma from gaming our patent system through the use of anticompetitive "patent thickets."

“Big Pharma knows exactly what it’s doing in monopolizing the U.S. patent system: driving up drug costs for Americans while preventing generic-drug manufacturers from getting their foot in the market. This bipartisan bill would break up the anticompetitive "patent thickets" that pharmaceutical companies have abused to the detriment of the American patient,” Senator Hawley said.  

“For decades, Big Pharma has exploited U.S. courts and the patent system through anti-competitive practices that prevent generic and biosimilar competitors from entering the market, forcing Vermonters to pay more out of pocket for life-saving drugs. It’s outrageous, and it’s gone on for far too long,” said Senator Welch. “I’m proud to join my colleagues in introducing the ETHIC Act to stop pharmaceutical companies from abusing the patent system and lower prescription drug prices for patients across the country. Congress must pass our legislation to cut drug costs for families and streamline access to care.” 

"Patent thickets" are dense webs of overlapping patents that companies must navigate to commercialize new technology, particularly common in pharmaceuticals where a single drug may be protected by dozens of patents covering an active compound, formulations, manufacturing processes, and delivery methods.

While these thickets can emerge naturally from the complexity of drug development, pharmaceutical companies also strategically build patent walls around drugs to extend market exclusivity beyond the original patent expiration, slowing access to affordable generic alternatives.

If signed into law this year, the Eliminating Thickets to Improve Competition (ETHIC) Act would:
Limit Big Pharma’s ability to exploit the patent system to prevent generic competitors from entering the market.

—Save $16 billion over 10 years.

—Apply only to patents asserted against generic and biosimilar drug manufacturers and does not impact other industries.

—Allows a drug company to assert one patent per ‘terminally disclaimed group’ against a generic or biosimilar competitor, meaning if one patent in a family of duplicates is struck down by the courts, then all of its duplicates will also be invalidated.

 

Editorial -- Tired of Abortion? Pass Paid Parental Leave

Now that the Supreme Court says that life begins at conception, it is time for the right to embrace policies that actually celebrate motherhood and childbirth. One good policy would be to pass paid parental leave laws so that babies can get the care and quality of life they deserve.

When Amy Klobuchar, now Minnesota Senator, was giving birth to her daughter, she was kicked out of her hospital just a day after giving birth. The insurance company wouldn’t let her stay any longer. She had to go home even though her baby had to stay because of complications. Her activism, and that of others, led to the passage of the Newborns and Mothers Health Protection Act of 1996, which states that insurance companies cannot restrict benefits for a hospital stay in connection with childbirth to less than 48 hours following a vaginal delivery or 96 hours following delivery by cesarean section. If you deliver your baby outside the hospital and are later admitted, the period begins at the time of hospital admission.

A Pew poll from July 29th finds that 46% of Americans say the federal government does too little to address issues affecting parents, while 54% say the government does too little to address issues facing children. Only 14% say that the government does too much to support parents and only 11% say the government does too much to support children. This includes 41% of Republicans who say the government does not do enough to support parents, while 44% of Republicans say the government does not do enough to support children.

This is not a partisan political issue. Rep. Elise Stefanik, the third ranking Republican in the House and a mom, supports advance child tax credits of up to $5,000 during the first year of a child’s life or in the first year after a child’s adoption. Adoption is touted as an alternative to abortion by the pro-life community. Maybe if we made it easier to adopt children and reward families that do, more women would give up unwanted babies for adoption instead of getting an abortion.

And on top of that, we need to respect women who choose to stay at home with their kids as well as women with kids who choose to work. Geraldine Ferraro on the left and Sarah Palin on the right both faced unfair criticism for running for Vice President while they still had kids at home. If we vote against someone, vote against them for policy reasons, not because of their family choices.

Editorial -- Amazon Wants to See Your Medical Records

Amazon is seeking to acquire 1Life Healthcare, a medical company that sees an extensive network of primary care providers. If approved, this will allow them to see the medical records of thousands of Americans who get their healthcare at one of 180 medical offices nationwide. What’s next? If I go to a One Medical clinic, will I start getting ads for over the counter blood pressure medications? If I get diagnosed with diabetes, will I start getting ads for products that counter it?

Despite bipartisan opposition to the deal, it appears that Joe Biden’s Federal Trade Commission is letting this deal go through. Writes Senator Josh Hawley (R-MO):

“This acquisition also further reinforces Amazon’s market power—despite, no doubt, the company’s protestations to the contrary. It doesn’t matter if the primary care market as such is presently competitive: by having its hand in dozens of smaller markets, Amazon positions itself to eventually emerge as the dominant player in each, as cross-subsidization allows Amazon to offer services at a loss and data-driven network effects allow Amazon to market at a level its competitors cannot match. A market might be competitive now, but a few years after Amazon gets involved, it won’t be.”

Writes Senator Amy Klobuchar (D-MN):

“Amazon has a history of engaging in business practices that raise serious anticompetitive concerns, including forcing small businesses on its site to buy its logistics services as a condition of preferred platform placement, using small businesses’ non-public data to compete against them, and, as was recently disclosed in new documents from the House Judiciary Committee’s Big Tech investigation, potential restricting advertising by competitors who could offer lower prices and better service.” 

“Amazon still continues to buy up more and more companies. In fact, it has bought 118 companies in the last 25 years. This proposed transaction raises questions about potential anticompetitive effects related to the pharmacy services business Amazon already owns and about preferencing vendors who offer other services through Amazon. I also ask that the FTC consider the role of data, including as a potential barrier to entry, given that this proposed deal could result in the accumulation of highly sensitive personal health data in the hands of an already data-intensive company.”

Despite this, as of Friday afternoon, there has been no action taken by the FTC. When the right and the left get together on something, politicians need to listen. And then Joe Biden wonders why nobody likes him. He apparently doesn’t believe in your right to privacy.