CHILEAN PATENT LAW REFORM FALLS SHORT OF EXPECTATIONS

Despite strong progress in recent years, Chile's reforms to intellectual property legislation have continued to disappoint international drugmakers. Under the US-Chile FTA, signed in January 2004, Chile must ratify or accede to, among other measures, the 1984 Patent Co-operation Treaty by 2007, and to the 1994 Trademark Law Treaty by 2009.

However, recent modifications to the Intellectual Property Law have proved a cause for concern. US drug industry association PhRMA has protested a lack of protection for test data from "unfair commercial use," and the body notes that a transition period for patent legislation to be enforced has led to the continuation of intellectual property violations. The Industrial Property law was amended in 2004, but this has so far fallen short of Chile's international obligations, according to international critics.

If Chile were to enforce the FTA's patent terms in full, this could lead to market growth of almost 50% in the short term. However, as population demands ever greater access to healthcare and the country has an expansionist generics-based domestic manufacturing sector, the government could be tempted to pursue an alternative course of action.