However, if the TPP agreement doesn't include strong, enforceable protections for intellectual property at the crucial core of capturing value from innovation our brisk growth in exports could come crashing down.
The ideas and science behind the development of new therapeutics are just as much intellectual property as is a book, movie or song. And while most Utahns know of the worldwide concerns about piracy of entertainment content, far fewer are fully aware of the dangers associated with theft of biotech/pharmaceutical intellectual property. A recent report of the bipartisan Commission on the Theft of Intellectual Property (co-chaired by former Utah Gov. Jon Huntsman) found that the loss of revenue from IP theft to all U.S. companies is comparable to the total value of U.S. exports to Asia! Clearly, the Trans-Pacific Partnership must help protect U.S. companies from this theft so that they can continue to invest, innovate and create jobs.
The road map to success for stronger IP protections is clear. For example, strong protections for biotech and pharmaceutical IP rights are found in current U.S. law including 12 years of data protections for biologics. These common-sense laws encourage progress, intelligent risk-taking and the drive to deliver new and better treatments that meet patients' needs.
Lack of enforceable incentives for innovation, in contrast, will undermine the common goal of providing best-in-class treatments for medical needs around the world. Strong intellectual property protections are absolute bedrock needs for biotech and pharmaceutical companies, which typically invest more than $1 billion and 10-15 years to bring a new medicine to market through the arduous process that moves from concept through multiple phases of clinical trials and, ultimately, approval by the U.S. Food and Drug Administration (and reimbursement).
Along the way, the vast majority of potential new therapies fail, because they don't work as well as anticipated or as another alternative product, or the negative side effects are too great.
Innovative companies are only able to take these risks because their investments are protected by strong intellectual property laws. Without these protections, what company is going to risk millions or billions of dollars and years of research work if their innovations can be pirated with little or no consequence?
As the TPP talks convene in Salt Lake City, Utah's exporting businesses urge U.S. negotiators to place rock-solid intellectual property protections high on their list of priorities for an effective, robust international agreement. Businesses, workers and most importantly, patients are counting on our trade negotiators getting this right.
Kimball A. Thomson is president & CEO of BioUtah, the statewide association representing Utah's medical device, biotech, pharmaceutical medical diagnostics, and health care industries. BioUtah is on the web at www.bioutah.org