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The US Supreme Court is hearing a case about patent law’s “exhaustion doctrine”

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Re: The US Supreme Court is hearing a case about patent law’s “exhaustion doctrine”

#101

Earlier quoted context omitted.

> In medicine, you often can't just wait it out. Healthcare is not a normal market Then you pay. I have family members who are only functional because of prescription drugs. When I see someone on HN talk about how "oh, it will probably be okay if we mess with this market, I read this really cool article online that said so," I see them no different than someone who decided on their own to start tinkering with grandpa…

>Then you pay. And if you can't afford it? Does society pay? Do we let them die? I'm interested in your answer. >I have family members who are only functional because of prescription drugs. Me too. >I don't know what the HBR's source is because they don't tell me. And I don't know where your 5 year number comes from because you didn't provide a source. When I see someone on HN talk about how "oh, it will probably be…

> And if you can't afford it? Does society pay? Do we let them die? I'm interested in your answer.

The same thing that happens with the people whose lives could be saved right now if we stopped funding roads, or basic research, or investing in the city's water system, or educating first-graders, or researching drugs, or enforcing the property rights of rich people, or a bunch of other things that aren't going to pay off for years and are not associated with one's political party. It's not that the parties being funded are all completely honest and trustworthy, but that the money still needs to be spent. Drug research is one of the small number of things society does that actually add to the public good forever. Every year amazing drugs that do amazing things go off-patent. It's an amazing system and our children should be awed by how much stuff they will have. "Hepatitis C" will be like "polio" for them.

There is no reason to think the years 2010-2025 are some magic perfect ground where the drugs from pre-2010 are completely unsuitable and all the drugs that will be invented in year 2025 and beyond are unimportant or will still be found if a bunch of people who understand neither biochemistry nor economics rebuilt the economic system around it.

Every generation has the option to quit investing in the future. There are always people who want to stop all the painful sacrifices that are required right now, and just live off of yesterday's accumulated sacrifices and then go to sleep.

There will always be some procedure that keeps people alive but that costs Too Much Money. It's how most countries have kept their health care costs under control without noticeably impacting QALYs. There should be no doubt that there are people who died sooner because of these decisions, but the system works and doesn't bankrupt them. If "but we can't let someone die for a reason as stupid as money" is your terminal argument, be thankful you weren't in charge, or else society would have gone bankrupt a long time ago. These are hard decisions but adults need to make them, and generally adults do make them and things work out.

> When I see someone on HN talk about how "oh, it will probably be okay if we leave the market alone

I think there's a lot that can be improved about the market. I have a lot to say about that, but you are trying so hard to be cute and using children's arguments that goodwill can no longer be assumed. Good night and good luck.

Re: The US Supreme Court is hearing a case about patent law’s “exhaustion doctrine”

#102

Earlier quoted context omitted.

The thing is there are printers without the stupid on the market. So the EFF is wrong, patents haven't savaged the printer marketplace, there are nice printers available that are not expensive. And it's wrong that the market will punish shitty products, Lexmark is one of the few survivors in the printer business.

Without (ab)using patents, DMCA, etc to prevent 3rd-party products their business model would not be sustainable. If your business cannot survive without a government-granted monopoly, it's not a free market.

The problem with the "it's not a free market" argument is that ultimately almost nothing is a purely free market when you drill down. Not only that, but wether a market free or not has only tangential relation to the question of if the market is competitive - which is what most people are actually after when they start talking about free markets.

Re: The US Supreme Court is hearing a case about patent law’s “exhaustion doctrine”

#103

Earlier quoted context omitted.

The government does not pay for development, they pay for a portion of basic research across all research areas (and it's nowhere near 50% of all research funds or drug research funds). The entire NIH budget is about 32 billion. Large pharma companies spent around 50 billion on R&D in 2010: http://www.nature.com/nrd/journal/v9/n3/full/nrd3078.html The incredibly expensive pharma and device development costs are shoul…

* >Right now a significant portion of the patent lifetime is spent with the drug in clinical trials unable to be sold. >And for most new drugs, patents expire approximately 12 years after market introduction. https://hbr.org/2014/11/the-real-cost-of-high-priced-drugs Also: >Once a company has good data, the FDA approval process is moving faster than ever. According to the agency’s most recent progress report, the sta…

> >And for most new drugs, patents expire approximately 12 years after market introduction.

The length of a drug patent is 20 years, 8 of which by your statement are spent in development. So yes, almost half the patent duration is spent with the drug off the market. This is burden almost no other industry has to deal with. My original statement is completely valid.

> Hence why I also consider opening up the drug market to other countries. If drugmakers need to make all their profit front-loaded then they can at least spread it geographically so Americans don't have to suffer under these prices.

Other countries place more stringent price ceilings on the cost of pharmaceuticals, which is why there is such a disparity between what we are paying and what others are paying. If we want to spread the cost burden geographically, countries benefiting from these products should be pressured to remove their price ceilings, which would lower costs in the US. Opening up the markets to other countries is just regulatory arbitrage, not spreading of cost burden.

Also, if I'm interpreting this correctly, nothing you posted suggests that the government is the primary backer of pharmaceutical research. We can argue over whether the research costs are 50 billion or 30 billion or whatever, but your original claim is still incorrect unless the numbers are off by literally an order of magnitude.

Re: The US Supreme Court is hearing a case about patent law’s “exhaustion doctrine”

#104

Without the guarantee of a patented marked up drug, would drug companies waste the same amount of money that they currently do on R&D? I'm of the opinion that we would see a major slow down in drug innovation without patents. R&D is very wasteful and expensive. Patents prevent competition for a short period of time to help the business recoup losses from failed experiments and to deliver profits which serve as an inc…

>I'm of the opinion that we would see a major slow down in drug innovation without patents.

My observation is we've seen a major slowdown already. $600 epi-pens, Turing Pharmaceuticals, my cousin's psoriasis medication that went from $10 a tube last year to $700 a tube this year. There's no innovation left. It's on to price gouging now. Pulling their patents might not solve their lack of ability to innovate, but it should be of some help with the price gouging.

Re: The US Supreme Court is hearing a case about patent law’s “exhaustion doctrine”

#105

Earlier quoted context omitted.

>Then you pay. And if you can't afford it? Does society pay? Do we let them die? I'm interested in your answer. >I have family members who are only functional because of prescription drugs. Me too. >I don't know what the HBR's source is because they don't tell me. And I don't know where your 5 year number comes from because you didn't provide a source. When I see someone on HN talk about how "oh, it will probably be…

> And if you can't afford it? Does society pay? Do we let them die? I'm interested in your answer. The same thing that happens with the people whose lives could be saved right now if we stopped funding roads, or basic research, or investing in the city's water system, or educating first-graders, or researching drugs, or enforcing the property rights of rich people, or a bunch of other things that aren't going to pay…

Unfortunately I'm one of those guys who just really enjoys having the last word lol.

>The same thing that happens with the people whose lives could be saved right now if we...

I'm just looking for an answer to the question. Right now society pays for treatments that can't be afforded. Furthermore, I'm actually pro drug development when most of your response seems to think I'm not. I actually think that the current system does not support R&D like it should.

>I think there's a lot that can be improved about the market. I have a lot to say about that, but you are trying so hard to be cute and using children's arguments that goodwill can no longer be assumed. Good night and good luck.

I'm a mirror, you're glue... :P But seriously, I am citing my sources, there's even a huge post in here a bit upstream you can read with all sorts of sources debunking a couple industry claims. The point of turning your quote around is to show that those sorts of diatribes aren't particularly useful.

Re: The US Supreme Court is hearing a case about patent law’s “exhaustion doctrine”

#106

I don't think patents are inherently evil; and I also believe that "obvious" patents will get less common with time (relatively speaking we're still in the early days of patent law for many areas). That being said, I think the big issue we're seeing these days is that some patent categories simply last too long. Technology moves a mile a minute, a patent system with a duration of 20 years is absurd, something that wa…

When I was at a start-up and had someone literally rip-off our product (including typos), we would have really liked some faster protection than the patent, which took around 2 years to issue. As a business matter, we would have happily accepted a shorter lifespan in return for a quicker decision.

Can you elaborate? Why wasn't it covered under copyright?

Re: The US Supreme Court is hearing a case about patent law’s “exhaustion doctrine”

#107

This is just an extension of a tied sale. Tying agreements are already illegal under anti-trust law. The only difference here is that Lexmark (and other companies) are skipping the contract/agreement part of it and going directly to forcing the hand of the consumer by adding new changes and inserting technology that has no other purpose than to specifically limit the consumer to purchase a related product (in this ca…

It's worth noting that tying agreements are no longer per se illegal in all cases. Courts have recognized procompetitive benefits in some cases. Now it's only under certain conditions. http://www.americanbar.org/groups/young_lawyers/publications...

Re: The US Supreme Court is hearing a case about patent law’s “exhaustion doctrine”

#108
I don't get it. If Lexmark is so hell-bent on preventing refilling, they could just simply change the purchase to a rental. Then, if don't return the cartridge to them you don't get your deposit back. They could even spin it as some sort of "we're being really green by making sure all of our cartridges are recycled" campaign.

The same goes for all of the farm equipment manufacturers that are fighting the right-to-fix movement. Why even have that fight and look like the bad guy? Again, I just don't get it.

Re: The US Supreme Court is hearing a case about patent law’s “exhaustion doctrine”

#109

Earlier quoted context omitted.

Perhaps they should be different, but people get most upset about the awesome drugs that cure things completely being under patent for so long. They don't care about that antacid drug so much. You would find yourself very short on allies with your proposal. All the money going towards marketing would instead go towards lobbying, towards getting the government agency in charge of deciding "what really counts" for deci…

You are probably right. We might have to accept less innovation in order to make the products affordable.

We are being asked to make the same hard decisions that each generation before us has made. And we are doing it while being far richer and having a greater repository of knowledge than them. Something's wrong with us if we quit where they preserved in worse conditions.

Re: The US Supreme Court is hearing a case about patent law’s “exhaustion doctrine”

#110

Earlier quoted context omitted.

When I was at a start-up and had someone literally rip-off our product (including typos), we would have really liked some faster protection than the patent, which took around 2 years to issue. As a business matter, we would have happily accepted a shorter lifespan in return for a quicker decision.

Can you elaborate? Why wasn't it covered under copyright?

They blamed it on a rogue employee, and then claimed that they had removed all our typos and that we would need to sue them if there was anything more we needed to demand. It wasn't until the patent came out, two years later, that we could finally get them to stop shipping their crap.

If we had been offered something that lasted half as long but issued twice as fast, we would have taken that in a heartbeat.

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