Competition Bureau Responds to Complaint Over Alleged Misuse of Canada's Drug Patent Rules

OTTAWA, February 27, 2004 – The Competition Bureau has closed its inquiry into the alleged misuse of Canada's drug patent rules by brand name pharmaceutical companies. The practice in question, commonly referred to as "evergreening," can already be challenged under the existing regulatory system and in the courts. The Bureau concludes that, in this case, the Competition Act is not the appropriate vehicle for resolving what amounts to a patent dispute between two firms. However, from a competition policy perspective, the Government may wish to review the current rules to ensure that an appropriate balance is maintained between protecting intellectual property rights and facilitating a competitive supply of pharmaceutical products for Canadian consumers.

The Bureau opened its inquiry, in June 2003, following a public complaint from the National Union of Public and General Employees and other national organizations representing seniors, pensioners, patient advocates and health care activists. The complaint alleged that brand name pharmaceutical companies engaged in a practice of evergreening patents, by adding new ones to the patent list simply to delay a generic version from entering the Canadian market.

The process of approving brand name drugs and generic drugs is administered by Health Canada under the Patented Medicines (Notice of Compliance) Regulations. The practice alleged by the complaint also falls under the purview of these regulations.

The Competition Bureau is an independent law enforcement agency that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.

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