BIO White Paper Dispels Over-Patenting Myth</a>

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WASHINGTON, D.C. (May 31, 2007) – The theory claiming that the over-patenting of biotechnology research hinders the research and development of new treatments is not supported by empirical evidence, concludes a white paper entitled “The Myth of the Anticommons” released today by the Biotechnology Industry Organization (BIO). The paper was released as Congress considers a variety of changes to current U.S. patent law.

The theory of the “tragedy of the anticommons,” put forth in 1998, claims that patents have the potential to stifle innovation in the biotechnology industry. The theory claims that too many patent holders of upstream technology may inhibit downstream innovation due to transaction costs and strategic behaviors.

The BIO white paper found that the biotechnology industry is actively engaged in discovering and inventing innovative therapies. Research, development and employment in the biotechnology industry are steadily increasing, as are the number of therapies in the clinical pipeline.

The white paper also cited a study by the National Academy of Sciences (NAS) which examined the impact of patents on university research. The NAS study found that only 1% of academic respondents experienced delays on their projects of more than a month due to patents and not a single respondent abandoned a project due to a patent on knowledge inputs.

“Biotech companies and university scientists agree that patents are a key force behind biotech innovation,” stated BIO President and CEO Jim Greenwood. “Biotech companies rely on patented intellectual property to attract the funding they need to conduct the years of research and development necessary to bring a product to market and into the hands of patients and other consumers.”

“As Congress considers changes to the patent system, we encourage them to recognize and protect the key role patents play in encouraging innovation in the biotechnology industry,” concluded Greenwood.

The white paper can be accessed at http://bio.org/ip/domestic/TheMythoftheAnticommons.pdf.

About BIO

BIO represents more than 1,100 biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and 31 other nations. BIO members are involved in the research and development of healthcare, agricultural, industrial and environmental biotechnology products. BIO also produces the annual BIO International Convention, the global event for biotechnology.

Upcoming BIO Events

· BIO VentureForum-East 2007

June 18-20, 2007

Montreal, Canada

· BIO Mid-America VentureForum 2007

Sep. 24–26, 2007

Milwaukee, WI

· BIO InvestorForum 2007

October 9-11, 2007

San Francisco, CA

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About BIO
BIO is the world's largest trade association representing biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and in more than 30 other nations. BIO members are involved in the research and development of innovative healthcare, agricultural, industrial and environmental biotechnology products. BIO also produces the BIO International Convention, the world’s largest gathering of the biotechnology industry, along with industry-leading investor and partnering meetings held around the world. BIOtechNOW is BIO's blog chronicling “innovations transforming our world” and the BIO Newsletter is the organization’s bi-weekly email newsletter. Subscribe to the BIO Newsletter.