Russia to Start Compulsory Licensing of Foreign Medicine?

The Federal Antimonopoly Service (FAS) has prepared draft amendments to the Russian Civil Code and to the Law on Protection of Competition that would theoretically allow Russian companies to produce foreign medicine and medical equipment without the patent holder’s consent, under compulsory licenses. The draft amendments are currently under public consideration.

The FAS Head Igor Artemyev stated that the changes would mainly affect pharmaceutical companies that abuse their dominant market position and refuse to produce or export drugs to Russia without reasonable grounds. Artemyev added that there is no effective mechanism to address the problems that arise when the drug producer fails to supply the medicine. The Russian Civil Code allows the Russian government to use a patent without the permission of the owner in the interest of national security, but the FAS would like to add the provision protecting the citizens’ right to health care and medical assistance.

In 2015, about 50 percent of pharmaceuticals in Russia were imported, 30 percent were produced locally by foreign companies and 20 percent were produced by Russian companies that produce generic or patented products.

By: Tatyana Kulikova

For more information, please contact Tatyana Kulikova at our Russia office.