China on IP

China decided recently to rescind Pfizer’s (Chinese) patent for Viagra. An official from China’s patent office reportedly said, “We are very cautious when we grant a patent, because a patent means a market, and that can mean allowing the monopolization of a market.” The article noted that the “Viagra pill costs about one yuan (US$0.10) to make but Pfizer sells them in China for 98 yuan a tablet. … The entry of local producers is likely to see the price drop to 22 yuan a pill.”

Just what China needs, more reproduction. Anyway, a step in the right direction from the point of view of property rights.

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10:03 pm on July 18, 2004