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The article focuses on the laws on pharmaceutical intellectual property of Canada. It states that the federal government has changed the pharmaceutical intellectual property policy for several years including in 1969, 1987, and 1993. It says that the Patent Act in 1969 was amended to allow generic drug firms to import active ingredients while in 1987, a set of reforms was passed in which did not eliminate compulsory licensing for drug firms and in 1993, the compulsory licensing was eliminated. INSET: Summary of Canadian laws protecting pharmaceutical intellectual...

The author comments on the deal finalized by the Council of the Federation with generic drug manufacturers to reform the reimbursement scheme for generic drugs. Topics covered include the concept of the tiered pricing scheme, the consequences of the ad hoc price reductions pursued by provincial drug plans in the generic drug market and the possible effect of tendering on incentives to challenge patents on existing brand name drugs.