The Ethics of Intellectual Property Rights in an Era of Globalization

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Compulsory licensing refers to compelled licensing without the consent of the patent holder, on terms set forth by the government. Parallel importation, by contrast, is the process by which non-counterfeit products are imported from a country in which they are legally sold at a low price to another country in which the owner of the intellectual property is selling the product at a higher price. Compulsory licensing of pharmaceutical products is thought to aid developing countries by reducing the price that consumers pay for patented drugs that can be produced locally without involvement of the patent-holder, while parallel importation is thought to introduce greater competition into the market for pharmaceuticals, thereby also reducing the price paid by the average consumer.

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