Senator Leahy Introduces University Licensing Bill

On September 28, Senator Leahy introduced legislation that would require all federally-funded research institutions to ensure that the drugs they develop are supplied to poor countries at the lowest possible cost: The Public Research in the Public Interest Act of 2006 (S. 4040). In recognition that universities have failed to act on an issue uniquely within their power, the legislation would condition federal research dollars on an institution's adoption of certain humanitarian licensing practices, which are in line with the policies that UAEM and others have urged universities to adopt voluntarily.

• S. 4040 Background Paper [pdf]

“Universities are, before anything else, institutions dedicated to the creation and dissemination of knowledge in the public interest. The Public Research in the Public Interest Act of 2006 is designed in the spirit of that commitment,” said Senator Leahy. “I have introduced this legislation because the leaders of universities have not yet been able to come together around a different approach. Regardless of how it is achieved, I believe that increasing the availability of the medical innovations that come from publicly-funded research centers is a sound solution to a pressing global health concern.”

The introduced bill would allow generic manufacturers to supply drugs developed at federally-funded institutions in eligible countries at affordable prices. Because these licensing terms encourage the introduction of reduced-price drugs only in markets too poor to otherwise afford them, its terms do not threaten intellectual property, corporate investments, or profits in wealthy nations. Moreover, under the proposal, both pharmaceutical companies and universities would receive royalties from the sale of generics in developing markets.