Pharmaceutical IP and competition law in Singapore: overview

Practical Law Country Q&A 6-567-9006 (Approx. 18 pages)

Pharmaceutical IP and competition law in Singapore: overview

by Tony Yeo, Lim Chong Kin and Benjamin Gaw, Drew & Napier LLC
A Q&A guide to pharmaceutical IP and competition law in Singapore.
The Q&A gives a high level overview of key issues including patents, trade marks, competition law, patent licensing, generic entry, abuse of dominance and parallel imports.

Patents

Conditions for patentability

1. What are the legal conditions to obtain a patent and which legislation applies? Which products, substances and processes can be protected by patents and what types cannot be patent protected?

Conditions and legislation

The patents regime in Singapore, including the registration, grant, revocation and infringement of patents, is governed by the Patents Act (Chapter 221) and its subsidiary legislation, including the Patents Rules.
To obtain a patent for an invention, the invention must (section 13, Patents Act):
  • Be new.
  • Involve an inventive step.
  • Be capable of industrial application.
An invention is considered new when it does not form part of the state of the art (section 14(1), Patents Act). It involves an inventive step when it is not obvious to a person skilled in the art (section 15, Patents Act). It is capable of industrial application if it can be made or used in any kind of industry (section 16(1), Patents Act).

Scope of protection

Generally, patent protection lasts for 20 years from the date of the filing of the patent (section 36(1), Patents Act), subject to payment of renewal fees annually. There are certain limited circumstances prescribed under section 36A of the Patents Act where a patent term may be extended.
Since patent protection is territorial in nature, if a patent is filed in Singapore only, protection is limited to Singapore.
Certain types of inventions are not patentable in Singapore. For example:
  • A method of treatment of the human or animal body by surgery, therapy or of diagnosis practised on the human or animal body, as it is not considered to be capable of industrial application (section 16(2), Patents Act).
  • An invention, the publication or exploitation of which would be generally expected to encourage offensive, immoral or anti-social behaviour (section 13(2), Patents Act).
According to the Examination Guidelines for Patent Applications at the Intellectual Property Office of Singapore (IPOS), inventions relating to transgenic plants and transgenic non-human animals do not generally raise any ethical issues. This also appears to be the case even if the genome of such transgenic non-human animals contains human genes. Since creating such transgenic plants and non-human animals is not expressly prohibited by law, and given the scientific and medical benefits arising from such related research, section 13(2) of the Patents Act would not apply to such inventions. However, the position on germline genetic modification of non-human animals is less clear.
Generally, an invention relating to genetic manipulations that can cause public safety concerns or serious environmental hazards may attract objections under section 13(2) of the Patents Act, and may therefore not be patentable.

Obtaining a patent

2. How is a patent obtained?

Application and guidance

An application for a patent must be made to the Registry of Patents at the Intellectual Property Office of Singapore (IPOS). The IPOS website provides guidance on the application procedure, prescribed forms and fees.

Process and timing

A preliminary examination (where the application is checked for compliance with all formal requirements) is conducted on a patent application when it is filed (section 28, Patents Act). If successful, the Registrar notifies the applicant (section 28(11), Patents Act).
The applicant can then file a request in the prescribed form for a search and/or examination report, within 36 months from the earliest declared priority date or the filing date (if no priority is claimed) (section 29, Patents Act together with Rule 43, Patents Rules).
Once the search/examination has been established and/or issued, the Patent Registry will issue either a (section 29A, Patents Act):
  • Notice of eligibility to proceed to the grant of a patent. The applicant can file a request for grant of the patent with the necessary fees within two months from the date of issue of the notice (section 30, Patents Act read with Rule 47, Patents Rules). The Registrar will then grant the patent by issuing to the patent proprietor a certificate of grant and publishing a notice of grant in the journal (section 35, Patents Act).
  • Notice of intention to refuse the application, based on objections disclosed in the examination report. The applicant can file a request for a review of the examination report within two months from the date of issue of the notice (section 29B, Patents Act read with Rule 46A, Patents Rules). An examination review report is then issued. If there are still unresolved objections, the Registrar will issue a notice of refusal of the application. The application is deemed refused when two months have passed from the time the notice of refusal is forwarded to the applicant. If there are no remaining objections, a notice of eligibility is issued to require the applicant to file a request for grant (with payment of the grant fees) within two months from the date of the notice.
To accelerate grants of patent applications in all technology fields, IPOS has launched a pilot programme, the SG Patent Fast Track, which will run until 29 April 2022. Patent applications in all technology fields which are first filed in Singapore can use the SG Patent Fast Track, under which a patent may be granted in six months. Examples of technologies benefiting from it include those with a health care impact, such as digital health solutions, tracing applications, ventilators and diagnostics kits.

Length of patent protection

3. How long does patent protection typically last? Can monopoly rights be extended by other means?

Duration and renewal

Patent protection typically lasts for 20 years, beginning from the application filing date, subject to payment of annual renewal fees (section 36, Patents Act) from the end of the fourth year from the filing date until the patent expires (Rule 51, Patents Rules).

Extending protection

The patent proprietor can apply to the Registrar of Patents to extend the patent term on any of the following grounds:
  • There was an unreasonable delay by the Registrar of Patents in granting the patent.
  • The patent was granted on the basis of prescribed documents relating to a corresponding patent application, there was an unreasonable delay in issuing the corresponding patent, and the patent office that granted the corresponding patent has extended the term of the corresponding patent because of that delay.
  • The subject of the patent includes an active ingredient of a pharmaceutical product, and there has been an unreasonable curtailment of the opportunity to exploit the patent because of the need to obtain marketing approval for the first pharmaceutical product using that substance as an active ingredient, and the patent term has not been previously extended on this ground.
(Section 36A, Patents Act.)

Patent revocation

4. How can a patent be revoked?
The Registrar of Patents can order a patent to be revoked on application by any person on any of the following grounds:
  • The invention is not patentable.
  • The patent was granted to a person who was not entitled to it.
  • The patent specification does not disclose the invention clearly and completely enough to be performed by a person skilled in the art.
  • The matter disclosed in the specification extends beyond that disclosed in the patent application.
  • An amendment or correction has been made to the patent specification or application, and the amendment should not have been allowed.
  • The patent was obtained fraudulently, on a misrepresentation or non-disclosure or inaccurate disclosure of prescribed material information.
  • The patent is one of multiple patents for the same invention which have the same priority date, filed by the same party or the successor in title to that party.
(Section 80, Patents Act.)
In the context of the pharmaceuticals sector, for example, revocation of a patent which claimed a monopoly over the use of pregabalin for the treatment of pain had been sought on the ground that the patent claimed a monopoly over methods of treatment of the human or animal body, which is impermissible under section 16(2) of the Patents Act (Warner-Lambert Company LLC v Novartis (Singapore) Pte Ltd [2017] 2 SLR 707).

Patent infringement

5. How is a patent infringed? How is a claim for patent infringement made and what remedies are available?

Conditions for infringement

A patent is infringed when a person does any of the following acts in Singapore in relation to the invention, without the proprietor's consent:
  • Makes, disposes of, offers to dispose of, uses or imports the invention product, or keeps it for disposal or otherwise.
  • Uses the invention process or offers it for use in Singapore when they know, or it is obvious to a reasonable person in the circumstances, that such use without the proprietor's consent will infringe the patent.
  • Disposes of, offers to dispose of, uses or imports any product obtained directly by means of the invention process, or keeps any such product for disposal or otherwise.
(Section 66(1), Patents Act.)
There are certain defences to infringement (section 66(2), Patents Act). The most relevant are when an act:
  • Is done privately and for non-commercial purposes.
  • Is done for experimental purposes relating to the subject-matter of the invention.
  • Consists of the extemporaneous preparation of a medicine for an individual in accordance with a prescription by a registered medical or dental practitioner, or consists of dealing with a medicine so prepared.
  • Is done in relation to the subject-matter of the patent to support an application for marketing approval for a pharmaceutical product, provided anything used to support the application is not made, used or sold in Singapore, or exported outside Singapore.
  • Consists of the import, disposal or offer to dispose of a patented pharmaceutical product for use by or on a specific patient in Singapore, if certain conditions are met.

Claim and remedies

A patent proprietor can bring civil infringement proceedings in the Singapore High Court in relation to any act alleged to infringe its patent.
Various remedies are available, such as:
  • An injunction (including an interim injunction).
  • A court order for the infringer to deliver up or destroy infringing products.
  • Damages or an account of profits (a court will not award both for the same infringing act (section 67(2), Patents Act)).
  • A declaration that the patent is valid and was infringed by the infringing party.
(Section 67, Patents Act.)

Dispute resolution and settlement

Infringement allegations and claims are typically resolved by commencing a court action for patent infringement.
Alternatively, the patent proprietor can, with the alleged infringer's consent, request IPOS to determine whether a patent has been infringed. Through this method, the patent proprietor can only claim for damages or a declaration that the patent is valid and has been infringed.
Parties are encouraged to consider mediation and expert determination as time-saving and cost-effective alternatives to litigation. Mediation can be carried out at the World Intellectual Property Organization Arbitration and Mediation Center (WIPO AMC), Singapore Mediation Centre and Singapore International Mediation Centre.
Parties can also consider arbitration provided by the WIPO AMC and the Singapore International Arbitration Centre.
Alternative dispute resolution methods are not commonly used in patent-related matters. This might be because injunctive relief is more appropriately ordered by a court.
In relation to settlement agreements, parties should note that pay-for-delay type settlement agreements, based on a value transfer from a patent holder in return for a limitation on the entry or expansion into the market of a generic company, may have as their object or effect the prevention, restriction or distortion of competition in Singapore and be in breach of the Competition Act (Chapter 50B). If the parties are competitors and there was a significant value transfer that induced the limitation of entry or expansion, such a settlement agreement may be considered a market allocation, market sharing or market exclusion agreement.

International patent instruments and processes

Singapore has acceded to various international IP treaties, including the:

Non-patent barriers to competition

6. Are there non-patent barriers to competition that protect an originator's monopoly over an authorised medicinal product?
Pharmaceutical products (also known as chemical or biologic drugs) previously regulated under the Medicines Act (Chapter 176) and the Poisons Act (Chapter 234) are now regulated as therapeutic products under the Health Products Act, along with other health products (medical devices and cosmetic products).
If an applicant provides information on the safety and efficacy of an innovative therapeutic product to the Health Sciences Authority (HSA) in support of an application for product registration, and the HSA has registered it, the HSA cannot, for five years, register a similar therapeutic product based on the earlier registration, unless the registrant of the earlier registration has consented (Regulation 29, Health Products (Therapeutic Products) Regulations 2016).
There is additional protection for confidential supporting information provided in an application for an innovative therapeutic product to the HSA (Regulation 26(1), Health Products (Therapeutic Products) Regulations 2016).
An innovative therapeutic product application refers to a substance that is an ingredient in the manufacture or preparation of the therapeutic product, which has not been referred to in this way in any previous application. Some exceptions to this protection are set out in Regulation 27 of the Health Products (Therapeutic Products) Regulations 2016.

Patent licensing

7. Are any restrictions placed on licensing or transferring patents to foreign parties? Are intellectual property transfers for inventions funded, or partially funded, by public investment restricted?
As far as the authors are aware, the Patents Act or the Patents Rules do not expressly impose any restrictions on the licensing or transferring of patents to foreign parties.
According to the WIPO report on IP Management by the Government of Singapore dated 19 September 2018, the management, ownership and commercialisation of IP arising from research and development (R&D) by the government depends on the internal policies and terms and conditions of collaborative projects, which typically include provisions on apportioning IP rights.
There is an indication that government agencies may not prefer to hold the IP rights, and instead allow funded private entities to commercialise the patented product if they are better placed to do so.
Depending on the terms and conditions of the project, private or collaborating entities can retain the use of IP rights, while the government agency obtains a non-exclusive perpetual irrevocable and worldwide licence and right to use the IP rights for non-commercial purposes. Restrictions on IP transfer therefore depend on the agreement between the private entity and the government agency.

Trade marks

Conditions to obtain a trade mark

8. What are the legal conditions to obtain a trade mark and which legislation applies? What cannot be registered as a trade mark and can a medicinal brand be registered as a trade mark?

Legislation and scope of protection

The registration, cancellation, revocation, invalidation and infringement of trade marks in Singapore are governed by the Trade Marks Act (Chapter 332) and its subsidiary legislation, including the Trade Marks Rules.
An owner of unregistered marks can rely on common law causes of action such as the tort of passing off to protect their mark against unauthorised use.
Alternatively, if the mark is well-known within the meaning of section 2(1) of the Trade Marks Act, the owner is entitled to restrain by injunction unauthorised use of the mark in Singapore, even if the mark has not been registered in Singapore (section 55(3), Trade Marks Act).
A trade mark is registered for a period of ten years from the date of registration. At the request of the proprietor, the mark can be renewed for further periods of ten years (section 18 read with section 19, Trade Marks Act).
Since trade mark protection is territorial in nature, if a trade mark is registered in Singapore only, protection is limited to Singapore.

General conditions and specific rules for naming medicines

For a trade mark to be registered under the Trade Marks Act, the mark must be:
  • A sign (as defined in section 2(1), Trade Marks Act).
  • Capable of being represented graphically.
  • Distinctive (capable of distinguishing goods or services dealt with or provided in the course of trade).
(Section 2(1), Trade Marks Act.)
Medicinal brands can generally be registered as trade marks, provided they meet the general legal requirements of registrability.
Certain signs cannot be registered as a trade mark (sections 7 and 8, Trade Marks Act). Examples include signs which:
  • Do not satisfy the legal criteria (see above).
  • Are contrary to public policy or morality.
As far as the authors are aware, there are no specific prohibitions in relation to the images, symbols or words used in pharmaceutical trade marks under the Trade Marks Act. That said, the Registry of Trade Marks will check whether the trade mark consists of a protected International Non-Proprietary Name, which are generic names for specific pharmaceutical substances.

Registering a trade mark

9. How is a trade mark registered?

Application and guidance

An application to register a trade mark is made by filing Form TM4 with IPOS. The IPOS website provides guidance on the application procedure, prescribed forms and fees.
Singapore applies the International Classification of Goods and Services, which divides goods and services into 45 classes. An application for trade mark registration must list the classes of goods or services for which the applicant seeks to register the trade mark (section 5, Trade Marks Act).

Process and timing

The application is filed in the manner prescribed in section 5 of the Trade Marks Act, together with the prescribed fees.
If the applicant has filed an earlier claim for the same mark in another Paris Convention country or a World Trade Organisation member country, and wishes to claim priority for that mark, the application in Singapore must be filed within six months from the date of first filing (section 10, Trade Marks Act).
The IPOS checks the application for completeness and compliance with the minimum filing requirements, about 15 days after the filing of the application. If the minimum filing requirements are met, the application undergoes examination to ensure that the application satisfies the registration requirements (section 12, Trade Marks Act).
If the requirements for registration are not met, the IPOS will issue an examination report providing its grounds for refusal. The applicant is given four months (extendable on filing the requisite form and payment of fees) to respond to the examination report.
If the examination is successful, the IPOS accepts and publishes the application (section 13(1), Trade Marks Act).
Any interested party can oppose the registration of the trade mark within two months of publication (section 13(2), Trade Marks Act read with Rule 29(1), Trade Marks Rules).
If the mark is not opposed or if opposition proceedings are withdrawn or decided in favour of the applicant, the IPOS will register the trade mark and issue a registration certificate to the applicant (section 15, Trade Marks Act). Registration takes effect from the application filing date (section 15(2), Trade Marks Act).
Registration takes about four to six months if the examination is successful and registration is not opposed. If not, registration takes about six to 18 months.

Length of trade mark protection

10. How long does trade mark protection typically last?
Trade mark registration lasts for ten years from the date of registration (section 18(1), Trade Marks Act).
This can be renewed for further periods of ten years at the proprietor's request, no later than six months after the date of expiry of the registration, on payment of the prescribed fees (section 19, Trade Marks Act).

Trade mark revocation

11. How can a trade mark be revoked?
Any person can apply to the Registrar of Trade Marks or the Singapore High Court to revoke a trade mark (section 22(5), Trade Marks Act). If there are pending court proceedings concerning the trade mark, the revocation application should be made to the court. The Registrar of Trade Marks can at any stage of the proceedings also refer an application to the court.
A trade mark registration can be revoked on any of the following grounds:
  • The mark has not been put to genuine use in the course of trade in Singapore within five years after completion of the registration, by the proprietor or with their consent, in relation to the goods or services for which it is registered, and there are no proper reasons for non-use.
  • Such use has been suspended for an uninterrupted period of five years, and there are no proper reasons for non-use.
  • It has become the common name in the trade for the product or service for which it is registered, because of the proprietor's acts or inactivity.
  • Due to use of the mark by the proprietor or with their consent in relation to the goods or services for which it is registered, it is liable to mislead the public, particularly as to the nature, quality or geographical origin of those goods or services.
(Section 22(1), Trade Marks Act.)
If a trade mark is revoked, the proprietor's rights are deemed to cease from the date of the revocation application, or any earlier date on which the Registrar of Trade Marks or a court is satisfied that the grounds for revocation existed (section 22(7), Trade Marks Act).
A trade mark registration can also be declared invalid because either:
  • The mark was registered in breach of the grounds for refusal of registration in section 7 of the Trade Marks Act (section 23(1), Trade Marks Act).
  • There is an earlier trade mark and sections 8(1), 8(2), 8(3), 8(4) or 8(7) apply (unless the proprietor of that earlier trade mark or right consents to the registration) (section 23(3), Trade Marks Act).

Trade mark infringement

12. How is a trade mark infringed? How is a claim for trade mark infringement made and what remedies are available?

Conditions

A trade mark is infringed when a person, without the proprietor's consent, uses a sign in the course of trade that is any of the following:
  • Identical, for identical goods or services.
  • Identical, for similar goods or services.
  • Similar, for identical or similar goods or services, and there is a likelihood of confusion among the public.
(Section 27, Trade Marks Act.)
There is additional protection of well-known trade marks, regardless of whether they have been registered in Singapore or whether the proprietor carries on business or has goodwill in Singapore (section 55, Trade Marks Act).
Trade marks well-known to the public in Singapore can also be infringed if their use would dilute their distinctive character or take unfair advantage of it (section 55(3)(b) and 55(4)(b), Trade Marks Act).

Claim and remedies

A trade mark proprietor can bring civil proceedings for trade mark infringement in the Singapore High Court. The proprietor can seek one or more of the following:
  • An injunction (including an interim injunction).
  • Damages.
  • Account of profits.
  • Statutory damages, where a counterfeit trade mark is used.
(Section 31, Trade Marks Act.)
Damages, account of profits and statutory damages for use of a counterfeit trade mark are mutually exclusive (section 31(4), Trade Marks Act).

Dispute resolution and settlement

Counterfeiting in the pharmaceutical sector

13. Outline the regulatory powers and enforcement action against counterfeiting in the pharmaceutical sector.
A health product is counterfeit if it is presented to resemble or pass off as a registered health product, or with any false information as to its manufacturer or origin (section 2(2)(b), Health Products Act).
The principal regulatory agency tackling counterfeiting in the pharmaceutical sector is the HSA.
All health products must be registered with the HSA before they can be marketed and sold in Singapore. This better enables the HSA to detect counterfeit, adulterated and/or illegal health products at first instance.
The manufacture, import or supply of a counterfeit health product in Singapore is an offence under the Health Products Act, punishable by a fine up to SGD100,000 and/or imprisonment for up to three years.
The HSA has wide powers of enforcement, including to search premises suspected of being used for or in connection with the manufacture, import or supply of counterfeit health products. The HSA can also seize health products suspected to be counterfeit.
In addition, the HSA continually monitors the safety, integrity and quality of health products, acting on its own independent surveillance reports and in response to reports or complaints from the public. The HSA also maintains a publicly accessible list of illegal health products in Singapore that have been detected and tested.
For information on pharmaceutical pricing and state funding, manufacturing, marketing, clinical trials, advertising, labelling, and product recall and liability, see Medicinal product regulation and product liability in Singapore: overview.

IP and competition law issues

Competition authorities and legislation

14. Briefly outline the competition law framework in your jurisdiction and how it impacts on the pharmaceutical sector. In particular, the competition authorities and their regulatory powers, key legislation, whether pharmaceutical investigations are common, key recent activity and case law.
Competition law issues that arise in the pharmaceutical sector are subject to the Competition Act. The Competition and Consumer Commission of Singapore (CCCS) is responsible for enforcing the Competition Act. The Competition Act prohibits, among other things:
  • Agreements between undertakings, decisions by associations of undertakings or concerted practices which have as their object or effect the prevention, restriction or distortion of competition within Singapore (Section 34 Prohibition).
  • Undertakings from engaging in conduct which amounts to an abuse of a dominant position in any market in Singapore (Section 47 Prohibition).
  • Mergers that have resulted, or may be expected to result, in a substantial lessening of competition within any market in Singapore for any goods or services (Section 54 Prohibition).
If the CCCS has reasonable grounds for suspecting that any of the above prohibitions have been breached, it can conduct an investigation. During an investigation, the CCCS has the power, among others, to require production of relevant documents or information, interview individuals to obtain relevant information, take copies or extracts of documents, and enter premises (with or without a warrant).
If an undertaking is found to have infringed the Competition Act intentionally or negligently, the CCCS can:
  • Impose a fine up to 10% of the undertaking's annual turnover in Singapore for each year of infringement, up to a maximum of three years.
  • Issue directions to modify or cease behaviour, and/or require other necessary activity to end the infringement.
If the CCCS has issued an infringement decision and the appeal process has been exhausted, any party who suffers loss or damage due to an infringement of any of the Section 34, 47 or 54 Prohibitions can bring a civil claim against the infringing undertaking for damages and compensation.
There have been no reported infringement decisions involving pharmaceutical/medical companies in relation to the Section 34 Prohibition or the Section 47 Prohibition.
In 2009, the Singapore Medical Association (SMA) applied to the Competition Commission of Singapore (CCS) (as it was then known) for a decision on whether issuing guidelines on fees (GOF) would infringe the Section 34 prohibition. The GOF recommended ranges of professional fees for services provided by doctors in private practice (such as consultation, professional, operations and anaesthesia services). In 2010, the CCS formally advised the SMA that the GOF would infringe the Section 34 Prohibition, stating that in general, price recommendations by trade or professional associations are harmful to competition because they create focal points for prices to converge, restrict independent pricing decisions and signal to market players what their competitors are likely to charge.
In June 2014, the CCS began an investigation into Cordlife Group Limited (Cordlife) on its exclusive agreements with baby fair organisers and hospitals. The CCS took the view that these exclusive agreements could limit competition from other cord blood bank service providers in Singapore, and infringe the Section 47 Prohibition. Cordlife provided commitments to the CCS to remove these exclusive arrangements and ensure that it would not enter into similar arrangements in future. Cordlife also provided a commitment to inform affected baby fair organisers and hospitals of the change in its business practices. On this basis, the CCS formally ceased the investigation in June 2015.
The CCCS has cleared the following merger notifications involving pharmaceutical/medical companies:
  • GSK Trading Services Limited's acquisition of distribution and marketing rights in Singapore from UCB Singapore Pte Ltd (2009).
  • Novartis AG's acquisition of shares in Alcon Inc (2010).
  • Fresenius Medical Care Beteiligungsgesellschaft mbH and Fresenius Medical Care AG & Co. KGaA's acquisition of Asia Renal Care, Limited (2010).
  • Proposed Acquisition by Johnson and Johnson of Synthes, Inc (2012).
  • Asia Renal Care (SEA) Pte Ltd's acquisition of shares in Orthe Group (2012).
In March 2015, the then-CCS announced a provisional decision to block Parkway Holdings Ltd's proposed acquisition of RadLink-Asia Pte Limited, since it would infringe the Section 54 Prohibition. The merger was subsequently abandoned. According to the CCS, post-merger:
  • Parkway would have become the only commercial supplier of radiopharmaceuticals in Singapore.
  • In relation to providing radiology and imaging services, the merged entity would have had a very substantial market share, the merger companies were each other's closest competitors, entry barriers are moderate to high and the bargaining power of customers is weak.
  • A substantial lessening of competition would have been likely due to vertical integration of the merger parties' operations. The merged entity would have been able to restrict competition in the market for radiology and imaging services by controlling supply, prices and/or a range of radiopharmaceuticals available to its downstream competitors.

Licensing and competition law

15. Briefly outline the competition issues that can arise in relation to commercial contracts and other business arrangements relating to medicinal products. What compliance issues do parties to pharmaceutical technology licences and pharmaceutical distribution agreements need to consider?
The CCCS Guidelines on the Treatment of Intellectual Property Rights in Competition Cases 2016 (IP Guidelines) provide some guidance on competitive issues that can arise in relation to the licensing of technology and patents in a pharmaceutical context:
  • Grantbacks. The licensee agrees to assign to the licensor all rights to any improvements it may make to the licensed technology. This may have pro-competitive effects, for example, if it increases the licensor's incentive to license or promote dissemination of the improvements. However, anti-competitive concerns may arise if it significantly reduces the licensee's incentive to conduct R&D.
  • Technology pools. At least two parties create a pool of technology which they cross-license as a package to each other and third parties. This is generally pro-competitive if the technologies in the pool are essential and complementary to each other. However, if the pool is largely made up of technologies that are solely or mainly substitutable with each other, the pooling may be an anti-competitive agreement in breach of the Section 34 Prohibition. In assessing if anti-competitive effects arise, the CCCS will also consider the risk of foreclosing alternative technologies that are not in the pool.
  • Refusal to supply a licence. An IP right owner can generally decide who to license its technology to. However, in certain circumstances a refusal to license by a dominant licensor may give rise to anti-competitive effects in breach of the Section 47 Prohibition, for instance if it refuses to license access to technology that is an essential facility. A facility is seen as essential if there are no potential substitutes (through duplication or otherwise) and it is indispensable to the exercise of the activity in question.
  • Tying. If a dominant licensor, as a condition of granting a licence, requires licensees to buy additional products unrelated to the technology being licensed, this may result in anti-competitive effects in breach of the Section 47 Prohibition. It is open to the dominant licensor to objectively justify its conduct by showing, for example, that buying the additional products is necessary for the satisfactory exploitation of the licensed technology.
  • R&D. Licensing agreements which, directly or indirectly, restrict the ability or incentive of any of the parties to carry out independent R&D, including R&D with third parties, may have anti-competitive effects. However, in its proposed amendments to the IP Guidelines, the CCCS noted that it would consider whether the restriction is indispensable to prevent the disclosure of licensed know-how to third parties. To be covered by the exception, the restrictions imposed to protect the licensor's know-how against disclosure must be necessary and proportionate to ensure such protection. For instance, where the agreement designates particular employees of the licensee to be trained in and responsible for the use of the licensed know-how, it may be sufficient to oblige the licensee not to allow those employees to be involved in R&D with third parties.

Generic entry

16. Are there competition issues associated with the entry of generic pharmaceuticals in your jurisdiction?
There have been no reported CCCS decisions on competition issues with the generic entry of pharmaceuticals into Singapore.
However, the CCCS has recognised potential anti-competitive effects of pay-for-delay arrangements (see Question 5). It has also conducted public seminars, including with IPOS, discussing potential concerns when a patent holding company enters into settlement agreements, or otherwise pays generic drug manufacturing companies to delay market entry.

Abuse of dominance

17. Have abuse of dominance issues arisen in the pharmaceutical sector in your jurisdiction?
There have been no reported CCCS decisions relating to an abuse of dominance in the pharmaceutical sector.

Parallel imports

18. Have parallel imports of pharmaceuticals raised IP and competition law issues in your jurisdiction?
There have been no reported CCCS decisions relating to the parallel import of pharmaceuticals into Singapore.
Generally, the importation of a pharmaceutical product is not allowed if the product has not been sold or distributed in Singapore by or with the consent of the patent proprietor. Once the patent proprietor has introduced the product into Singapore, the proprietor is in competition with parallel importers.
In particular, an import of a patented product produced by or with the patent proprietor's consent or any person licensed by them is not an infringement (section 66(2)(g), Patents Act). However, this does not apply if both:
  • The product has not previously been sold or distributed in Singapore by or with the consent of the patent proprietor or any person licensed by them.
  • The import will result in the product being distributed in breach of a contract between the patent proprietor and a person licensed by the patent proprietor to distribute the product outside Singapore, and the importer has actual or constructive knowledge of the breach.
Importing a patented pharmaceutical product for use by or on a specific patient in Singapore, or the use of that product by or on that patient, will not be an infringement if certain conditions are met (section 66(2)(i), Patents Act).
19. Does a patent or trade mark licence and payment of royalties under it to a foreign licensor have to be approved or accepted by a government or regulatory body? Are there any formalities or other requirements that must be complied with to make the licence enforceable?
There are no express provisions requiring patent or trade mark licences and payment of royalties under them to a foreign licensor to be approved or accepted by IPOS.
However, it is advisable for any transaction affecting the rights in a patent or registered trade mark (including a licence and assignment) to be registered as soon as possible after its execution.
An entry of a transaction, instrument or event on the register is prima facie evidence of it if there is a dispute about who owns the rights to the patent or trade mark (section 101, Trade Marks Act; section 45, Patents Act):
  • For patents, registration allows a person who acquires rights under the registered transaction to be entitled against a person claiming rights under an earlier transaction, provided that at the time of the later transaction, the earlier transaction was not registered, and the person claiming under the later transaction did not know of the earlier transaction (section 43, Patents Act).
  • For trade marks, a similar rule applies to certain transactions (for example, an assignment of a registered trade mark) but not to a grant of a licence (sections 39(3) and 39(5), Trade Marks Act).
An entry of a transaction, instrument or event in the register also affects the right of the proprietor or licensee to claim certain infringement remedies:
  • For patents, a patent proprietor or licensee will not be awarded damages or an account of profits in a patent infringement action occurring before a registrable transaction is registered, unless the transaction is registered within six months of its occurrence (or the court or IPOS Registrar is satisfied that it was not practicable to register the transaction in this period and it was registered as soon as practicable thereafter) (section 75, Patents Act).
  • For trade marks, there is a similar restriction on claiming damages, an account of profits or statutory damages for infringement occurring before registration of certain transactions (for example, an assignment), but this does not apply to a grant of a licence (sections 39(4) and 39(5), Trade Marks Act).
For information on pharmaceutical pricing and state funding, manufacturing, marketing, clinical trials, advertising, labelling, and product recall and liability, visit Medicinal product regulation and product liability in Singapore: overview .

Contributor profiles

Tony Yeo, Director

Drew & Napier LLC

T +6 565 312 512
F +6 565 354 906
E tony.yeo@drewnapier.com
W www.drewnapier.com
Professional qualifications. LLB (Hons), National University of Singapore; Admitted to the Singapore Bar, 1992
Areas of practice. Administrative and public law; commercial litigation; health care and life sciences; IP.
Recent transactions
  • Successfully representing a client in a suit in the Singapore High Court and before the Singapore Court of Appeal concerning disputes over defamation and shareholdings in an Indonesian listed company.
  • Acting as lead counsel to a Singapore statutory board in a suit involving unauthorised use of its well-known trade mark.
  • Acting as lead counsel in a patent infringement action involving an invention relating to drugs for breast cancer treatments. Representing the patent proprietor, Aventis Pharma S.A., and Sanofi-Aventis Singapore Pte Ltd.
  • Acting as lead counsel for Novartis AG and its subsidiary Novartis (Singapore) Pte Ltd in a patent infringement action over a pharmaceutical invention for gastrointestinal stromal tumour treatment.
Languages. English
Professional associations/memberships. President, International Association for the Protection of Intellectual Property, Singapore Group; Honorary legal counsel, ORBA (Orchard Road Business Association); Honorary legal counsel, Singapore Advertisers Association (in May 2012); Examinations Committee at the Intellectual Property Office of Singapore; Asian Patent Attorneys Association; International Trademark Association; Law Society's Inquiry Panel and Disciplinary Tribunal.
Publications
  • Singapore chapter of Global Pharmacovigilance Laws and Regulations: The Essential Reference, published by the Food & Drug Law Institute.
  • Legislating medical devices in Singapore, in Financier Worldwide: Biotechnology and Life Sciences e-Book 2010.

Lim Chong Kin, Director

Drew & Napier LLC

T +6 565 314 110
F +6 565 354 864
E chongkin.lim@drewnapier.com
W www.drewnapier.com
Professional qualifications. LLB (Hons), National University of Singapore, 1995; Admitted to the Singapore Bar, 1996; LLM, National University of Singapore, 1997; Admitted to the Roll of Solicitors of the Supreme Court of England and Wales
Areas of practice. Competition/antitrust and regulatory law; telecommunications, media and technology law; corporate commercial law.
Recent transactions
  • Assisting Pacnet in its joint notification with Telstra to IDA of the acquisition of Pacnet by Telstra.
  • Assisted Airbus and Singapore International Airlines in obtaining a merger clearance for their joint venture to establish a flight training facility in Singapore.
  • Lead a team appointed by CCS as part of a consortium to assist the CCS with its review of the Block Exemption Order for Liner Shipping Agreements in Singapore.
  • Represented a large international MNC in the financial services sector on an ongoing cartel investigation by the CCS.
  • Represented a large international bearing manufacturer and distributor in respect of a cartel investigation by the CCS.
Languages. English
Professional associations/memberships. Law Society of Singapore; Singapore Academy of Law; Law Society of England and Wales; Pacific Telecommunications Council; Associate member of the American Bar Association.
Publications
  • All Things Not Being Equal, Asian MENA Counsel Vol 9 Issue 7 2011.
  • Singapore Chapter of the American Bar Association International Antitrust Law.
  • Lim and Ng, Your Country Guide to ASEAN Competition Law (Drew & Napier LLC, 1st edition 2008; 2nd edition 2010; 3rd edition 2012).
  • Merger Notifications in Singapore: Information Requirements, International Antitrust Committee: The Newsletter, Summer 2013.
  • Lim and Ng, The International Encyclopaedia of Laws, Competition Law - Singapore (Kluwer Law International, 2013).

Benjamin Gaw, Director

Drew & Napier LLC

T +6 565 312 393
F +6 565 354 906
E benjamin.gaw@drewnapier.com
W www.drewnapier.com
Professional qualifications. LLB (Hons), National University of Singapore, 2002; Admitted to the Singapore Bar, 2003; Specialist Diploma in Molecular Biotechnology, Ngee Ann Polytechnic, 2007; Admitted to the Roll of Solicitors of the Supreme Court of England and Wales, 2009
Areas of practice. Administrative and public law; banking and finance; corporate restructuring; corporate/M&A; employment; health care and life sciences; IT; IP.
Recent transactions
  • Advised a health care institution on medical laws and regulations compliance.
  • Advised a pharmaceutical company on various matters of medical confidentiality and data protection.
  • Acted for a liquefied natural gas terminal operator in its procurement of software systems and hardware for its business operations.
  • Advised the Singapore subsidiaries of a German speciality chemicals company in its worldwide amalgamation process, arising from its acquisition of an international catalysts manufacturer.
  • Advised and assisted a NYSE-listed asset management related company, in its acquisition of a global relocation and real estate brokerage, and worldwide reorganisation exercise.
Languages. English
Professional associations/memberships Singapore Academy of Law's Committee on Legal Education and Studies; Law Society of Singapore; Singapore Academy of Law.
Publications
  • Singapore chapter of Global Pharmacovigilance Laws and Regulations: The Essential Reference, published by the Food and Drug Law Institute.
  • Legislating medical devices in Singapore, in Financier Worldwide: Biotechnology and Life Sciences e-Book 2010.
  • Employment Contracts - Safeguard Your Intellectual Property Rights, Singapore Biotech Guide 2007/2008.
  • Legislating the Fruits of Biotechnology: Suggestions for Regulating Bio-engineered Food, Singapore Law Review.
End of Document
Resource ID 6-567-9006
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Law stated as at 01-Mar-2021
Resource Type Country Q&A
Jurisdiction
  • Singapore
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