Decision 632
Clarification of the second paragraph of Article 266 of Decision 486 (year 2000)

       THE ANDEAN COMMUNITY COMMISSION, 

       HAVING SEEN: Articles 22 and 55 of the Cartagena Agreement and Article 266 of Decision 486; and 

       WHEREAS: On September 14, 2000, the Andean Community Commission approved Decision 486 containing the Common Industrial Property System;  

       The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) signed by all of the Member States of the World Trade Organization establishes the obligation to protect “against unfair commercial use” any test data that may be submitted to health authorities as backing for applications to register pharmaceutical products or agricultural chemical products; 

       The second paragraph of Article 266 of Decision 486 stipulates that Member Countries make take the necessary measures to guarantee the protection of test data; 

       One of the means adopted by the international community to effectively protect such test data is to impede, for a given period of time, their use by third parties to obtain licenses for marketing pharmaceutical or agricultural chemical products; 

       It is necessary to define the scope of application of the second paragraph of Article 266 of Decision 486, so that any Member Country wishing to do so may establish time periods during which it shall not authorize a third party, without the consent of the person who originally presented the data in question, to market a product based on that information;  

      As jurisprudence for Community law, Article 79 of Decision 344 also made it possible, in this case explicitly, for Member Countries to establish a period of exclusivity to protect test data;   

       As stipulated in the Judgment handed down in Proceeding 7-AI-99, “only the Commission, as the legislative body from which the clarified, explained or interpreted Decision emanated, is authorized to make what is known in legal doctrine as an “authentic interpretation,” by issuing another legal norm at the same level or with the same hierarchy.  This interpretation, by virtue of being set out in a law, shares the characteristics of that law, including that of its general applicability, among other things;” 

       In this same judgment, the Court went on to state that “on occasion, legislators, as part of their legislative responsibilities, enact laws or regulations that because of their subsequency, supersede in their application, amend, annul or interpret previously enacted laws.  This later legislative effort is intended to clarify the material content of a law that in the legislators’ opinion was unclear or that had been subject to differing interpretations, with the result that the legal certainty and ends sought by that law were occasionally undermined. The legislators consider these ends to  be unchanging, so that, for all legal purposes, the enactor of the previous law and the person interpreting it at a later time are considered to be one and the same, thereby respecting the underlying basis for the sovereignty that is expressed in the exercise of legislative functions;” 

       It is necessary to interpret the second paragraph of Article 266 of Decision 486 authoritatively, in the sense that it permits the Member Countries to select, adopt and implement the measures they deem advisable to guarantee the protection of the test data referred to in the first paragraph of Article 266; 

       By virtue of this interpretation, the Andean Community Commission clarifies the intent of the legislators, as embodied in the second paragraph of Article 266 of Decision 486, by establishing that each Member Country shall have the authority to choose the means for protecting test data, including the possibility of establishing time periods during which a Member Country shall not authorize a third party, without the consent of the person who had originally presented such test data, to market a product based on that information;    

       By virtue of this Decision, Member Countries may establish the conditions under which they shall require the presentation of information about test data and other undisclosed data; 

       The countries have the independence to determine the conditions they will require to approve the marketing of pharmaceutical products or agricultural chemical products that incorporate new chemical formulas.  They may therefore approve such marketing, based on the existence of prior evidence of the approval of the marketing of such products in other countries; 

       In the event that the protection of test data through the establishment of data exclusivity periods proves to be harmful to the public health or food security of any Member Country, that Country may eliminate or suspend the said protection;   

       In order to guarantee Community transparency in the application of the legal provisions contained in this Decision, the Member Countries commit to informing the General Secretariat about any action they may take in reliance on this Decision;   

DECIDES: 

       Article 1.- Any Member Country wishing to do so may include, among the measures referred to in the second paragraph of Article 266 of Decision 486, the establishment of time periods during which it shall not authorize a third party, without the consent of the person who originally submitted the test data, to market a product based on such information.   

       Article 2.- Member Countries may establish the conditions under which they shall require the presentation of information about the test data or other undisclosed data, for purposes of the procedures for approval of the protective measures.    

       Article 3.- If a Member Country deems that the protection of test data granted in its territory pursuant to Article 1 of this Decision is damaging to domestic public health or food security, its competent national authority may eliminate or suspend that protection.  

       Article 4.- Member Countries shall inform the General Secretariat about their use of the authority provided for in Article 1 of this Decision and the General Secretariat shall pass on that information to the other Member Countries.    

       Signed in the city of Lima, Peru, on the sixth of April of two thousand and six.