In modern times, the property is no longer strictly bound to any physical representation since it can also be intellectual and intangible. In the meantime, its tangibility does not influence the possible price – there are certain brands, such as Coca-cola, that are worth approximately half of the company’s market value (Meiners et al., 221). Although it is vital to protect one’s intellectual property in general, there are a few particular issues when this protection can face social or ethical questions; for example, too high of a price for patented drugs in developing countries.
The final price of a drug consists of numerous factors, from the resources’ net costs, logistics, and applied taxes, to the costs associated with its patents. The latter’s acquisition can be an expensive, technical and time-intensive process (Meiners et al., 234). In addition, there is evidence that the patenting practice negatively impacts the research and innovation process since it disables the communication between researchers (Gøtzsche, 1). Thus, in many cases, a patent leads to drugs being overpriced due to their intellectual value, becoming profit-oriented products with little to no room for improvement.
In this regard, the patent system can be considered unethical since it backfires on the people who cannot afford the drugs. In the meantime, the idea presented in Gøtzsche’s article about distancing from patents toward the production that is non-profit oriented provides a possible solution (2). Transferring the development to public organizations with a transparent government might stimulate innovation and substantially reduce drug production expenditures.
References
Gøtzsche, P. C. (2018). Patients not patents: drug research and development as a public enterprise. European Journal of Clinical Investigation, 48(2). Web.
Meiners, R. E., Ringleb, AL. H. & Edwards, F. L. (Eds.). (2015). The legal environment of business. Cengage Learning.