Intellectual Property Discussion Reply
As technology increases, the ability to share information has transformed our world, and in the process created a higher available average standard of living. As the standard of living increases aided by technological innovation, for profit begins to play less of a role in this rapidly shifting world. As interconnectivity increases we can begin to see the negative effect of focusing solely on shareholder value can cause. I am by profession a Military Officer and while our military objective differs from the objective of for-profit companies, the observed trends do not differ much. The military’s main objective is to fight and win our nation’s battles, however doing so is not as simple as capturing territory as it used to be. Former U.S. Marine General James Mattis phrased the new way to win the nation’s battle in the Information Age as winning the “Hearts and Minds” of the people. (Ranjit Kumar, 2017) He further elaborates that winning popular support has a compounding effect and as such can increase the likelihood of faster victory in an area.
One does not need to take a massive logical leap to understand how this same concept applies to the typical “For-Profit” Business. It is essential to understand the concept that taking care of customers increases brand loyalty and thus increases profits. It is less of a balance between increasing profits and more of a mutually beneficial relationship where “For-Profit” companies are expected to take the first steps towards a better future. After that the customers reciprocate and the cycle continues as trust, loyalty, and profits increase. Put simply, as you continue to focus on meeting your customer’s needs, they in turn increase your profits through both buying more and telling others which increases the return on your investment in your customers.
For those companies who have a product on which lives depend, there is no better place to look for guidance than to our ultimate source of wisdom, the living Word of God. “But the one who does not know and does things deserving punishment will be beaten with few blows. From everyone who has been given much, much will be demanded; and from the one who has been entrusted with much, much more will be asked.” (New International Version, 2011, Luke 12:48) In this it is obvious that those companies that hold such a precious power must make stewardship of such resources a top priority. The danger in these situations is apparent as we see the vast majority of companies giving in to the allure of profits. Countless cases of this can be cited, one being Allergen spokesperson Brenton L. Saunders responding to claims of drug prices hikes of up to 7,000% with shallow justifications of “supply and demand”. These thinly veiled attempts barely bother to cover up avarice. (In re Allergan Generic Drug Pricing Secs. Litig., 2019)
We may find ourselves caught up in the wave of greed that sweeps our current time, where often the prevailing opinion is that a person’s worth is the number in their bank account. To guard against this thinking we can look to Proverbs 16:8: “Better is a little with righteousness than great revenues with injustice.” (New International Version, 2011).
As a business owner of a company where lives hang in the balance I would have a moral obligation to find the best balance possible between the consumer and the creator. The creator has rights to the intellectual property and the customer has an inherent right to live. To establish this balance the best course of action would be to speak with the creator of the drug and first guide him to this same realization. The next step I would take would be to establish a strategy that is centered around the loyalty of the customer and the establishment of a brand with a reputation for integrity and fair prices. The start-up costs for such a venture would be gathered through primarily philanthropic means by individuals with the same vision. Once the product was on the market and had built a sufficient customer base it would be priced to be self-sustaining, with a fair profit margin. Controls would be put in place, supervised by the company leadership to ensure only price increases as necessary to sustain the product would be implemented. At first glance the question might arise as to why the drug should continue in a for-profit capacity at all. The reasoning for this is simple and twofold: First the longer the product stays on the market, the more people it can save and it needs to make a profit in order to sustain itself and be of value to justify it staying. Second a for-profit product increases competition which may actually result in a better product for the ailment this drug treats. In this company shareholder value is important because without it, there is no way to continue distributing life-saving drugs, but it is also secondary to the value provided to customers. Any company built on this principle will find itself prospering in this customer centric world.
However there are more parties involved than just customers, we must also take into account the cost margin needed to provide for the practitioners. The fundamental challenge in a business where shareholder value is not the only primary focus lies in finding interested shareholders, and the initial launch of a product or company before a brand founded on excellence is established. The first can be mitigated by finding others with a shared worldview and this is fairly easy for the faithful Christian. For Christians already understand that we do not need to undertake the quest for finding provision alone: “Look at the birds of the air; they do not sow or reap or store away in barns, and yet your heavenly Father feeds them. Are you not much more valuable than they?” (New International Version, 2011, Matt. 6:26). The second challenge can be answered in much the same way and is also guided by the principle of momentum: Once a good customer base is established the product will sustain itself.
Finally consideration also must be given to the owners of intellectual property of the drug in question. That must be taken into account in the pricing process to ensure the drug does not go under while it still has the potential to do a great deal of good. Before the company accounts for this we must remember that the previous case law has established that in order for intellectual property to exist the drug itself has to be of reasonable uniqueness that someone of ordinary skill in the art could not make the necessary modifications to create it. (Cite Case). It also serves to reason that if that cannot be established competition will be excessive in this particular niche. Once that is established, it is necessary to negotiate with the creator to ensure he is also compensated fairly for his efforts.
References
New International Version. (2011). Biblica Inc. (Original work published 1769)
Ranjit Kumar. (September 29, 2017). India-US: New Phase in Defence Partnership. SP Aviation. https://advance-lexis-com.ezproxy.liberty.edu/api/document?collection=news&id=urn:contentItem:5PKK-MXV1-DXMP-K1N8-00000-00&context=1516831.
In re Allergan Generic Drug Pricing Secs. Litig., 2019 U.S. Dist. LEXIS 131562, Fed. Sec. L. Rep. (CCH) P100,535, 2019 WL 3562134 (United States District Court for the District of New JerseyAugust 6, 2019, Filed). https://advance-lexis-com.ezproxy.liberty.edu/api/document?collection=cases&id=urn:contentItem:5WRS-7SY1-F2F4-G013-00000-00&context=1516831.
Bayer Pharma AG v. Watson Labs., Inc., 183 F. Supp. 3d 579, 2016 U.S. Dist. LEXIS 57888 (United States District Court for the District of DelawareMay 2, 2016, Filed). https://advance-lexis-com.ezproxy.liberty.edu/api/document?collection=cases&id=urn:contentItem:5JNT-R1Y1-F04D-019W-00000-00&context=1516831.