EXCLUSIVE MARKETING RIGHTS: SAUDI COMMITTEE FORMED

UNCLAS RIYADH 002193

SIPDIS

SENSITIVE
SIPDIS

USTR FOR JASON BUNTIN
USDOC FOR TYLER HOFFMAN

E.O. 12958: N/A
TAGS: ETRD EINV KIPR SA
SUBJECT: EXCLUSIVE MARKETING RIGHTS: SAUDI COMMITTEE FORMED
TO CONSIDER PROPOSAL

REF: A. RIYADH 2139


B. RIYADH 2149

C. RIYADH 2155


1. In a meeting on November 3, Mohamad Al-Aiyash, Chairman
of the IPR Committee, informed Emboffs that the SAG has
formed a committee to consider the USTR-coordinated Exclusive
Marketing Rights proposal to provide patent protection for
identified pharmaceutical products that lost protection when
Saudi Arabia transitioned to a new patent law in 2004
(reftels). Al-Aiyash is the chairman of the committee, which
will also include representatives from the Ministry of Health
(MOH) and the King Abdulaziz City for Science & Technology
(KACST). Al-Aiyash mentioned that Dr. Khalid Alakeel,
Director General of Industrial Property at KACST (the
Directorate, which is the Saudi patent office),will serve on
the committee. He hopes that the committee will hold its
inaugural meeting in the next week or two, but specifically
made no promises regarding the timing or content of any
decision the committee might make.


2. Al-Aiyash claimed that the license to manufacture generic
Lipitor was issued despite Pfizer's pending appeal of its
denied patent application because the Directorate was not
aware of the appeal at the time it informed the MOH that
Lipitor did not enjoy patent protection in the Kingdom. This
is because the committee to which denied patent applications
can be appealed is independent of KACST (its members are
appointed by the Council of Ministers). Al-Aiyash suggested
that an applicant's lawyers should provide notice to the
Directorate when it appeals the denial of its patent
application.


3. Emboffs encouraged Al-Aiyash to engage directly with the
pharmaceutical industry on issues that impact their business
in Saudi Arabia. He expressed his understanding that
industry has local representatives with which the SAG meets.
Emboffs explained that the MOH will only meet with the local
distributors of pharmaceutical products, whose interests are
often not aligned with those of the multinational
pharmaceutical companies. Al-Aiyash said he will raise this
issue with the MOH.
FRAKER