LEGISALTIONS REGARDING VACCINE PRICING

LEGISALTIONS REGARDING VACCINE PRICING

Subject: Legislations

Context : SC has noted that ‘different manufacturers are quoting different prices’ for Covid-19 vaccines, and told govt it has ‘powers under the Drugs Control Act and Patents Act’ that it can employ.

Concept :

Indian patent act 1970

• The Patents Act, 1970 is the legislation that till date governs patents in India. It first came into force in 1972.
• The Patents Act has been repeatedly amended: 1999, 2002, 2005, 2006. These amendments were required to make the Patents Act TRIPS-compliant
• The major amendment was in 2005, when product patent was extended to all fields of technology like food, drugs, chemicals and micro organism
• The Indian Patent Act, 1970 strikes a balance between the rights of the applicant and his obligation to the society granting the rights.
• Some salient features of the Act include, product and process patent, term of patent as 20 years, patent examination conducted on request, fast track mechanism for quick disposal of appeals, pre-grant and post-grant opposition allowed, protection of biodiversity and traditional knowledge, and, publication of applications after 18 months of date of filing of patent application.
• One of the most important aspects of Indian Patents Act, 1970, is compulsory licensing of the patent subject to the fulfillment of certain conditions.
• Section 3(d) stipulates that the mere discovery of a new form of a known substance which does not result in the enhancement of the known efficacy of that substance or the mere discovery of any new property or new use for a known substance or of the mere use of a known process, machine or apparatus unless such known process results in a new product or employs at least one new reactant, is not patentable.

Essential Commodities Act

• The ECA is an act which was established to ensure the delivery of certain commodities or products, the supply of which if obstructed owing to hoarding or black-marketing would affect the normal life of the people.
• The ECA was enacted in 1955. This includes foodstuff, drugs, fuel (petroleum products) etc.
• It has since been used by the Government to regulate the production, supply and distribution of a whole host of commodities it declares ‘essential’ in order to make them available to consumers at fair prices.
• Additionally, the government can also fix the maximum retail price (MRP) of any packaged product that it declares an “essential commodity”.
• The list of items under the Act includes drugs, fertilizers,Food items, pulses and edible oils, and petroleum and petroleum products.
• The Centre can include new commodities as and when the need arises, and takes them off the list once the situation improves.

Epidemic Diseases Act, 1897

• The Epidemic Diseases Act aims to provide for the better prevention of the spread of dangerous epidemic diseases.
• The colonial-era Act empowers the state governments to take special measures and prescribe regulations in an epidemic.
• It also defines penalties for disobedience of these regulations, and provides for immunity for actions taken under the Act “in good faith”.
• The Epidemic Diseases Act (EDA) was enacted by the colonial government in India to curb the spread of the bubonic plague in erstwhile Bombay.

Provisions of the 1897 Epidemic Diseases Act:

• The Act, which consists of four sections, aims to provide “for the better prevention of the spread of Dangerous Epidemic Diseases.”
• Section 2 empowers state governments/UTs to take special measures and formulate regulations for containing the outbreak.
• The state may determine in what manner and by whom any expenses incurred (including compensation if any) shall be defrayed.
• It also provides penalties for disobeying any regulation or order made under the Act.
• It also gives legal protection to the implementing officers acting under the Act.