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Teva holds a dominant position in the generic pharmaceuticals industry. The company act as the generic drug leader with both cost and distribution advantages. Patents are essential in the field of innovation technology and it could be a strategic issue. In the first part, we will evidence the importance for Teva to protect intellectual property to keep the competitive advantage and then, we will show the barriers erected by US patenting.

In the United States, pharmacy and pharmaceutical manufacturers are affected by the rights and requirements of three different protections offered for intellectual property. The US Patent and Trademark Office (PTO) manages patents which provides protection for the invention or discovery of a new product, process or use by excluding others from use for a period of time. In most cases, generic products are available once the patent protections afforded to the original developer have expired. When generic products become available, the market competition often leads to substantially lower prices for both the original brand name product and the generic forms. The time it takes a generic drug to appear on the market varies. In the US, drug patents give 20 years of protection, but they are applied for before clinical trials begin, so the effective life of a drug patent tends to be between seven and 12 years. When a pharmaceutical company first markets a drug, it is usually under a patent that, until it expires, allows only the pharmaceutical company that developed the drug (or its licensees) to sell it. In the last decade, the firm has acquired U.S companies to become the leader in US generics prescriptions with a growth of 17,3% in 2006 (Exhibit 8).

The industry has been described as patent-intensive. Enterprises within this sector frequently obtain patent protection and enforce patent rights, and reportedly place a higher comparative

value on patents than do competitors in many other markets. Majortity of production plant are located in the United States and for the company this market is the most efficient. The U.S. FDA offers a 180-day exclusivity period to generic drug manufacturers in specific cases. During this period, generic manufacturers can produce the generic version of a drug. This exclusivity period is only used when a generic manufacturer argues that a patent is invalid or is not violated in the generic production of a drug, and the period acts as a reward for the generic manufacturer who is willing to risk liability in court and the cost of patent court litigation. In the actuality, I know that Teva and others major actors had contentions around these 180-day exclusivity periods because a generic producer does not have to produce the drug during this period and can file an application first to prevent other generic producers from selling the drug.

Patent lifetime differs from country to country, typically an expired patent cannot be renewed. In the U.S., patent extensions may be granted if changes are made; some pharmaceutical companies have sought extensions on things as minor as changes to the shape and color of the pill, generic makers are excluded while the adjudication of the extension is considered. A new version of the drug with significant changes to the compound could be patented, but this requires new clinical trials. For Teva, protectionism is very important but : Are patent extensions and market exclusivity provisions the most effective and efficient means to encourage innovation or do other mechanisms exist?

In fact, we can outline some disadvantages : patents are legally enforceable only in the issuing country, which is why patent law is often described as only territorial in its effect. Especially to the extent that the R&D work is done outside the United States. If a patent is granted in the United States to a European-based arm of a multinational company, the U.S.

arm of that same company cannot make use of the invention in the U.S. Without infringing the patent. The forces of decreased patent protection and the push for lower prices for generic products came to a head in 1984. Teva is research-based companies of the pharmaceutical industry, it took the position that the increased time for regulatory review decreased the period of patent exclusivity and negatively affected the profits needed to sustain and grow research. Then, others means to innovate in the specific area of research should restrain the increasing cost of medicines. Generic drugs can be produced without patent infringement for drugs where: the patent has expired, the generic company certifies the brand company's patents are either invalid, unenforceable or will not be infringed, for drugs which have never held patents, or in countries where the drug does not have current patent protection. The process of patenting in U.S could affect the profitability of the company, in fact, the cost associated to the protection and the lack of time will impact the earning ratio.

Furthermore, Teva should invest in market opportunity and protect high-innovation molecular in order to have a monopol of selling within the new concept. Every decision have to be weight and a particular service in Research and development need to ensure the capacity of the firm to invest in the major country which is the U.S.

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Pharnaceutical companies are well known as Patent holding companies set up to administer, consolidate and licence patents (molecular, biological innovation) or otherwise enforce patent rights, such as through litigation. Teva is not a patent-troll but the firm has now a real focus on protecting the future innovation. My reseach for this answer are located between 1976 and toda

This Israel's company has invest the major part of its technology in the U.S Market. So that, according to the US Patent and Trademarks Office they possess 442 patents in the country.

Moreover, if I do a specific search in Class 435 Chemistry, I find a total of 16 patents. In the first part, Pharmaceutical microbiology is the part of industrial microbiology that is responsible for ensuring medications do not contain harmful levels of microbes such as bacteria. Teva has 3 patents in the domain.

In the other part, Molecular biology is the branch of biology that deals with the molecular basis of biological activity. This field overlaps with other areas of biology and chemistry, particularly genetics and biochemistry. Teva pharmaceuticals have 13 US patent in this field.