I think I should start by apologising for the thread drift so severe that much of it has moved away from anything electrical The principle being discussed is, however, still roughly on-topic
).....
No, I'm talking about the ability of a manufacturer to recoup the costs of development and to protect themselves against generic competition from the Chinese and Indian copyists who copy the designs but probably don't do the same extent of testing.
As I said, that’s what patent protection is for. If a company develops a truly innovative (hence patentable) product, they get exclusivity for up to 20 years. That’s probably plenty for an electrical product (which can be got to market quite quickly, and most of which will be obsolete before the patent expires). There’s more of a problem in the pharmaceutical industry, because the very long timescale of pharmaceutical product development and licensing is such that the products are lucky if they’ve got much more than 10 years patent protection left by the time they get to market.
Of course, there is one way in which ‘the world’ suffers from this system (in addition to suffering from the high price which comes with a monopoly supplier). As well as preventing poor Asian copies appearing, it also prevents
better versions of the product being developed by competitors, unless the change is conceptually so great that it does not infringe the original patent.
I don't see that it would be unacceptable if Boots' paracetamol was different from Tesco's.
Oh dear
What you have to understand is that developing a new drug and testing it to establish its quality, safety and efficacy (and then securing a licence for it) takes a decade or so and costs a ‘nine figure’ sum. The only way in which generic copies are allowed to exist (after patent expiry) without going through the same expenditure of time and money is by demonstrating that they are
identical to the established and licensed product. If Tesco, or anyone else, wanted to produce a ‘sort-of-paracetamol’ (even a 'better-than-paracetamol'), they are free to do so, but they’d need to start from scratch and spend that decade and lots and lots of money – but, even then, they would not be allowed to call it paracetamol. That would be the pharmaceutical equivalent of calling something a ‘Type B MCB’ even though its operating characteristics were totally different from those you would expect of a Type B MCB! Drug names are ‘standardised’, just as electrical products have to comply with relevant Standards - so that, in both cases, one knows that it will do 'what it says on the tin'.
My point was that the existence of generic paracetamol means that the market price will drop to something close to the lowest price supplier, so if Tesco choose to market their parcetamol as a loss leader, that will bring down the market price, reducing Boots' profit to the point where they can no longer afford to do the research into new drugs, or more accurately they can't afford to get the approvals and licenses for new drugs.
You’ve got the facts slightly wrong. Both Tesco’s and Boots’ paracetamol products (as well as dozens of other ‘paracetamols’) are generic copies of paracetamol originally sold under the proprietary name ‘Panadol’, first marketed in 1955 – i.e. 56 years ago. After a series of takeovers and mergers, the owner of Panadol (which they still market) is GSK, one of the largest pharma companies in the world. Do you think that they should still be enjoying ‘paracetamol exclusivity’ after those 56 years, and probably charging the public 10, 20 or more times more than the current price of paracetamol? You may feel (as the pharma industry obviously does) that the 10 or so years of patent-protected marketing they usually get is not enough to support their R&D of new products, but I think most people would agree that such a monopoly is not needed, and should not be allowed, for 56 or more years.
Kind Regards, John