How licensing can help prepare us for the next crisis
In the context of global crises, the need for licensing to address emergencies is increasingly relevant and urgent. Crisis scenarios involving intellectual property (IP) licensing can be split into two primary categories:
- unforeseen crises, requiring immediate action,
- preventable crises, which are addressed through proactive, planned interventions.
The COVID-19 pandemic is a prime example of an unforeseen crisis, where there was a sudden demand for rapid access to technology, including vaccines, medical devices, and treatments. In contrast, preventable crises are less immediate but equally urgent, often affecting lower- and middle-income countries (LMICs) due to gaps in healthcare infrastructure and technology access.
Unforeseen vs. preventable crises
Understanding the difference between unforeseen and preventable crises is essential in developing effective technology licensing solutions.
- Unforeseen Crises: These are emergencies that arise suddenly, such as pandemics or natural disasters, and require urgent licensing to facilitate the rapid distribution of critical technologies. The COVID-19 pandemic, for instance, led to the temporary waiver of intellectual property (IP) rights and triggered a global push for wider access to lifesaving technologies, including vaccines, medicines, and medical equipment.
- Preventable Crises: These crises are often ongoing issues that can be mitigated through earlier action. Examples include global health challenges like the HIV/AIDS epidemic, which is still a significant issue in LMICs, or the unequal distribution of COVID-19 vaccines between high-income countries and LMICs. These crises require long-term, systemic solutions to prevent widespread harm.
The role of licensing in crisis situations
In both unforeseen and preventable crises, technology licensing plays a central role in ensuring that lifesaving innovations reach those who need them most. Licensing agreements can help overcome barriers to access, especially when IP rights are a constraint. There are two primary forms of licensing that address crisis situations:
- Compulsory Licensing: This allows governments to override patent protections in emergencies, meaning a rapid production and distribution of critical medical products. Compulsory Licensing is particularly useful during unforeseen crises where there is a pressing need for technology but the rights-holder cannot meet the demand in time.
- Voluntary Licensing: In voluntary, non-exclusive licensing agreements, technology providers share their innovations with manufacturers who can then produce and distribute the product, often under conditions that ensure affordability and accessibility. During the COVID-19 pandemic, initiatives like the COVID-19 Technology Access Pool facilitated such agreements to expand global access to vaccines and treatments.
To mitigate the impact of preventable crises, early intervention is crucial. By establishing strong policy frameworks that promote equitable access to IP, governments and international organisations can ensure that critical technologies are available when needed. IMPAC3T-IP advocates for the inclusion of equitable access clauses in licensing agreements and supports the creation of technology pools, which allow for the transparent and efficient sharing of medical technologies under non-exclusive licenses.
The COVID-19 pandemic highlighted the importance of a flexible, agile approach to technology licensing in times of crisis. The lessons learned from this global emergency can help address future preventable crises. For instance, by leveraging technology licensing models like those used during the pandemic, we can better prepare for future health emergencies, ensuring faster access to vaccines, medicines, and medical devices in LMICs.
How IMPAC3T-IP plays a role in crisis licensing
Through its tools and frameworks, IMPAC3T-IP ensures that licensing solutions are in place to address both unforeseen and preventable crises. IMPAC3T-IP is developing a Crisis Scenario Toolbox to address key intervention points in managing crises. The toolbox focuses on three stages: policy, research implementation, and licensing. At the policy stage, tools like Equitable Access Policy Guidelines and Compulsory and Voluntary Licensing Guides help link equitable access to missions and navigate legal frameworks. For research implementation, funding agency guidelines ensure R&D investments align with Equitable Access goals. At the licensing stage, resources such as royalty-free licenses and templates for equitable clauses enable the swift application of Equitable Access principles in agreements. Together, these tools can help stakeholders respond effectively to crises with ethical and practical solutions.
Both unforeseen and preventable crises highlight the need for effective technology licensing strategies. By creating flexible, responsive IP policies and encouraging international cooperation, we can ensure that lifesaving innovations reach the people that need them the most.
To find out more about the crisis scenario and more, download the full report.