Evidence of meeting #42 for Industry, Science and Technology in the 40th Parliament, 3rd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was c-393.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Mike MacPherson  Procedural Clerk
Colette Downie  Director General, Marketplace Framework Policy Branch, Department of Industry
Mona Frendo  Director, Patent and Trade-mark Policy Directorate, Department of Industry
Rob Sutherland-Brown  Senior Counsel, Legal Services, Justice Canada, Department of Industry
Mark Mahabir  Committee Researcher

11:55 a.m.

Conservative

The Chair Conservative David Sweet

(Clause 1 agreed to)

(On clause 6)

Now we move on to clause 6.

Mr. Masse, I'm advised by our legislative expert that the committee will have to defeat clauses 6, 7, 8, 11, 12, 14, and 16, which you previously identified, to remove them. Is that correct?

11:55 a.m.

NDP

Brian Masse NDP Windsor West, ON

Yes, and clause 17 is on that list.

Noon

Conservative

The Chair Conservative David Sweet

And 17?

Noon

NDP

Brian Masse NDP Windsor West, ON

Yes.

Noon

Conservative

The Chair Conservative David Sweet

Okay. Actually, we can do something that we are very familiar with. Just to confirm again, for clauses 6, 7, 8, 11, 12, 14, 16, and 17, we can vote on clause 6 and then we can apply the vote to those others identified, if that has the agreement of the committee.

Noon

Some hon. members

Agreed.

Noon

Conservative

Mike Lake Conservative Edmonton—Mill Woods—Beaumont, AB

Can you just go through those numbers one more time?

Noon

Conservative

The Chair Conservative David Sweet

Sure. I'll confirm them with you, Mr. Lake. They are clauses 6, 7, 8, 11, 12, 14, 16, and 17.

Noon

Conservative

Mike Lake Conservative Edmonton—Mill Woods—Beaumont, AB

That will leave us with clauses 9, 10, 13, and 15. Is that correct?

Noon

Conservative

The Chair Conservative David Sweet

That's correct. So shall clause 6 carry?

Noon

Some hon. members

No.

Noon

Conservative

The Chair Conservative David Sweet

Is it agreed to apply that to the rest of them so identified?

Noon

Some hon. members

Agreed.

Noon

Conservative

The Chair Conservative David Sweet

(Clauses 6, 7, 8, 11, 12, 14, 16, and 17 negatived)

(On clause 9)

Noon

Conservative

The Chair Conservative David Sweet

Go ahead, Mr. Lake.

Noon

Conservative

Mike Lake Conservative Edmonton—Mill Woods—Beaumont, AB

Mr. Masse wiped out eight clauses, so obviously he has defended the clauses that he thinks are the most important.

Before I go to the officials, maybe he could give a justification for what clause 9 would accomplish that he's looking to accomplish here.

Noon

NDP

Brian Masse NDP Windsor West, ON

In my understanding, clauses 9 and 10 eliminate the two-year limit, so the actual drugs could be sent to the country in that timeframe. It gets rid of the two-year restriction.

Noon

Conservative

Mike Lake Conservative Edmonton—Mill Woods—Beaumont, AB

Okay. Again I'll ask the officials, if I could, for the purpose of section 21.09 in the first place. That would be the portion of the act that would be repealed through clause 9, which is a pretty short clause. What would the ramifications be? It's pretty clear what the impact would be if we just repealed the whole clause. What would be the ramifications of that?

Noon

Director, Patent and Trade-mark Policy Directorate, Department of Industry

Mona Frendo

Mr. Masse is correct. Currently, section 21.09 of the Patent Act states that a CAMR authorization is valid for two years from the date of the grant. That was reflective of several WTO requirements in the decision, including paragraph 2(c) of the waiver, which requires a country that authorizes the export--so a country like Canada--of a pharmaceutical product under its regime to notify the WTO of the quantities for which the authorization has been granted and the duration. Reflective of that and other WTO requirements, section 21.09 of the Patent Act presently describes the duration of an export, and it says that it would be valid for two years from the date of grant.

Clause 9 of Bill C-393 would delete this section altogether. It's a short section, but it is an important section in the regime.

Noon

Conservative

Mike Lake Conservative Edmonton—Mill Woods—Beaumont, AB

Where did it come from? Why is it two years? What's the rationale for or origin of the two years?

Noon

Director, Patent and Trade-mark Policy Directorate, Department of Industry

Mona Frendo

When CAMR was developed and reviewed by Parliament, there was testimony by several pharmaceutical manufacturing companies that the duration of the average pharmaceutical supply contract was two years, so that was taken into consideration.

There was also the interest in making sure that importing countries that chose to use the decision to receive drugs wouldn't be tied to an indefinite contract. They could go out and seek the best price in the marketplace at that time and there wouldn't an unlimited duration of a contract under CAMR.

12:05 p.m.

Conservative

The Chair Conservative David Sweet

Thank you, Mr. Lake.

Mr. Garneau.

12:05 p.m.

Liberal

Marc Garneau Liberal Westmount—Ville-Marie, QC

I just have a point of clarification, if I might ask.

You mentioned a two-year maximum duration for the licence. Is there a possibility of an additional or second two-year period? Is that included in there?

12:05 p.m.

Director, Patent and Trade-mark Policy Directorate, Department of Industry

Mona Frendo

It's in clause 10 of the bill, which speaks to the renewal of the authorization under CAMR. So yes, there would be the possibility, if the need were identified, that the authorization under CAMR could be extended for another two years to deal with any circumstances that may arise.

12:05 p.m.

Liberal

Marc Garneau Liberal Westmount—Ville-Marie, QC

Okay. So it's for up to four years.