The Terminating the Extension of Rights Misappropriated (TERM) Act targets the practice of “evergreening,” in which pharmaceutical companies make minor changes to a drug and file a new patent on those miniscule modifications in order to extend their exclusivity and maintain high prices.
Introduced on June 12 by Reps. Hakeem Jeffries (D-NY) and Doug Collins (R-GA), the bill would lower costs and boost competition, thereby giving patients more choices, its supporters say.
Under current patent law, generic drug manufacturers have the burden to prove why a new patent should not be granted on existing medication. This process, the bill's sponsors argue, invites patent abuse, adds significant costs to generic drugs, and delays the release of lower-cost drugs.
