The New York Times - July 8, 2008
Donald G. McNeil Jr.

Unitaid, the international agency created in 2006 to buy medicine to counter AIDS, tuberculosis and malaria, has taken the first step toward establishing a mechanism to deal with a vexing problem of drugs so expensive they are out of reach for most poor people.

The agency is endorsing the creation of a panel of experts to explore the feasibility of a "patent pool." In theory, the pool would hold licenses on patented medicines, which it could use to have them made at lower costs for poor countries. Initially, it would focus on drugs for infants with AIDS and for adult patients who have developed resistance to first-line drugs.

While patents have expired on most first-line AIDS drugs and they are available cheaply from generic makers, patents still exist on many second-line and pediatric medicines. Only a tiny fraction of people on AIDS drugs in poor countries get the newer drugs.

Drug patents can be complex and may have multiple holders, including universities and governments who sub-licensed aspects of their research in return for royalties. Getting those rights may involve complex negotiations.

The panel would initially have only five experts in patent law and a budget of less than $2 million. "The panel might ask for licenses on second-generation drugs," said James Love, a longtime advocate for lower drug prices. "The patent-holders will either say yes or no - but if they say no, it might raise some eyebrows."

Unitaid was created in 2006 by Brazil, Britain, Chile, France, Norway and other countries - not including the United States. It is financed by a tax on airline tickets.

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