Equitable Access Licenses are provisions in a license whereby inventors and technology suppliers protect in advance the possibility of sharing their technology with people in need. Thus, Equitable Access Licenses set the conditions for the provision of access to innovations for people in need at a royalty free basis or at lower costs. Equitable Access Licenses assure that products of R&D stay publicly available and that at the same time the incentive function of exclusive Intellectual Property Rights are maintained.
The effects of the globally imbalanced power relations are best illustrated by having a look at of the IPR strongly concerned sectors, medicine and agriculture. These sectors are at the same time also crucial for development as they serve the basic needs of people. Here, intellectual property practices can be harmful, as they cover consumer products. Patent protection for drugs for example keeps the price of these drugs high and hinders competitors to introduce cheaper generic versions. In Agriculture the patenting of genes or certain properties of crops can make the use to these crops costly and burdensome. Access to varieties that have been under long use by farmers can be restricted and as a cause markets can be destroyed. But also in intermediate stages, IP protection might hinder development, as it expands not only over final, but also over intermediate products, processes and tools.
Technologies can be provided that stimulate the development of needed and to local conditions adapted products. Companies and research institutes in the specific countries are able to produce and develop at lower costs and know the local needs and problems best. This stimulates also future R&D as it creates learning by doing effects, thereby generating additional resources, ideas, and needs that fuel more innovation and technology creation. Technology can benefit the poor farmer or the sick people that are in need of drugs or food as well as the economy as a whole by stimulating R&D.
Equitable Access Licenses have the potential to enhance the supply of important consumer products. When cheap or cost free licenses are granted to companies in developing countries, it would be possible for them to produce copies of drugs or seeds to provide the population with. Apart from missing royalty payments companies in developing countries will possibly be able to produce and distribute at a much lower price than companies in wealthier countries.
Defining the population that should benefit and the institutions that can serve the needs of this population is required in the Equitable Access Licensing scheme. Depending on the different technologies that should be assigned via the HUL, there are different approaches of how to formulate a HUL. Below there are some examples of strategies of how a Equitable Access License can be assigned. Below there are just a few examples.
Donating technology and supporting R&D for developing countries will cause positive publicity for companies that do so, especially in the biotechnology and medical sectors. This can be reinforced if also governments take a role in this. Promoting positive publicity by giving prices or tax incentives are possible ways to reward companies that are engaged in underserved sectors.
Many developing countries have a growing potential private market for technologies. The technology supplier may plan to develop these growing markets as part of a long-term market strategy, implying that the supplier expects these currently unprofitable markets to become profitable in the future. Thus, the supplier can create a loyal customer base in the future with a generous donation today (IP strategies 2001)
Whether for intermediate or for final products – Equitable Access Licenses should be considered in every stage of development as IPR can restrict the access to materials, processes for product development or final products of R&D. Patents can be granted with respect to whole varieties, single genes or procedures that permit the isolation of genes. Equitable Access Licenses therefore do not only concern companies that bring products to the market and could via such licenses directly deliver people in need. It has to be considered also by Universities, National and International Agricultural Research Centres and Public Private Partnerships whose work represents the basis for further upstream research.