Why are drug prices so high? Investigating the outdated US patent system | Priti Krishtel

92,942 views ・ 2020-02-06

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Translator: Reviewer: Daban Q. Jaff
00:13
For my husband, it was love at first sight.
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(Laughter)
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Here's what happened.
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Years ago, Rudy,
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who I had strictly put in the friend zone at the time,
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came over to my house and met my dad,
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a pharmaceutical scientist who had just retired
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after bringing a drug to market.
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My dad said,
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"Ah, you probably wouldn't have heard of it.
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It's for IPF,
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idiopathic pulmonary fibrosis."
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Rudy paused for a long time, and then he said,
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"That's the disease that took my father's life 15 years ago."
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Rudy says that this is the moment he fell in love.
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(Laughter)
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With my father.
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(Laughter)
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Even though it was too late for my dad to save his,
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he felt that destiny had delivered us this full-circle moment.
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In my family, we have a special love for my father's inventions.
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And in particular, we have a reverence for his patents.
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We have framed patents on the wall in our house.
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And there's a recognition in our family that everything I've been able to do --
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college, law school, health justice work --
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all of it is because America enabled my father
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to fulfill his potential as an inventor.
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01:37
(Applause)
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01:42
Last year, I met the director of the US Patent Office
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for the first time,
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and I sent my family a selfie from that office in Virginia.
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(Laughter)
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I got so many emojis back,
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you would have thought I had met Beyoncé.
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(Laughter)
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But truth be told,
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I was actually there to talk about a problem --
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how our outdated patent system is fueling the high cost of medicines
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and costing lives.
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Today, over two billion people live without access to medicines.
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And against this global crisis,
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drug prices are skyrocketing,
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including in wealthier countries.
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Thirty-four million Americans have lost a family member or a friend
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in the last five years,
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not because the treatment didn't exist,
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but because they couldn't afford it.
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Rising drug costs are pushing families into homelessness,
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seniors into bankruptcy
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and parents to crowdfunding treatment for their critically ill children.
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There are many reasons for this crisis,
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but one is the outdated patent system
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that America tries to export to the rest of the world.
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The original intention behind the patent system
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was to motivate people to invent
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by rewarding them with a time-limited monopoly.
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But today, that intention has been distorted beyond recognition.
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Corporations have teams of lawyers and lobbyists
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whose sole job is to extend patent protection as long as possible.
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And they've kept the patent office busy.
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It took 155 years for the US Patent Office
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to issue its first five million patents.
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It took just 27 years for it to issue the next five million.
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We haven't gotten drastically more inventive.
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Corporations have gotten drastically better at gaming the system.
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Drug patents have exploded --
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between 2006 and 2016, they doubled.
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But consider this:
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The vast majority of medicines associated with new drug patents
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are not new.
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Nearly eight out of 10 are for existing ones,
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like insulin or aspirin.
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My organization, a team of lawyers and scientists,
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recently conducted an investigation into the 12 best-selling drugs in America.
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We found that, on average,
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there are 125 patents filed on each medicine.
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Often for things we've known how to do for decades,
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like putting two pills into one.
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The higher a patent wall a company builds,
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the longer they hold on to their monopoly.
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And with no one to compete with,
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they can set prices at whim.
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And because these are medicines
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and not designer watches,
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we have no choice but to pay.
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The patent wall is a strategy to block competition.
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Not for the 14 years maximum
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that America's founders originally envisioned,
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or the 20 years allowed by law today,
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but for 40 years or more.
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Meanwhile, prices on these drugs have continued to increase --
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68 percent since 2012.
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That's seven times the rate of inflation.
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And people are struggling or even dying,
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because they can't afford the meds.
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Now I want to be really clear about something.
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This isn't about making the pharmaceutical industry the bad guy.
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What I'm talking about today
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is whether the system we created to promote progress
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is actually working as intended.
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Sure, the pharmaceutical companies are gaming the system,
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but they're gaming it because they can.
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Because we have failed to adapt this system
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to meet today's realities.
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The government is handing out
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one of the most prized rewards in business --
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the opportunity to create a product that is protected from competition --
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and asking for less and less in return on our behalf.
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Imagine awarding 100 Pulitzer Prizes to one author for the same book.
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(Murmurs)
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It doesn't have to be this way.
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We can create a modern patent system
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to meet the needs of a 21st-century society.
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And to do that,
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we need to reimagine the patent system to serve the public,
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not just corporations.
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So how do we do it?
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Five reforms.
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First, we need to stop handing out so many patents.
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Back under the Kennedy administration,
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in an effort to curb rising drug costs,
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a congressman from Tennessee proposed an idea.
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He said,
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"If you want to tweak a drug,
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and you want to get another patent on it,
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the modified version has to be significantly better, therapeutically,
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for patients."
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Because of intense lobbying,
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this idea never saw the light of day.
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But a reimagined patent system
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would resurrect and evolve this simple, yet elegant proposition.
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That to get a patent,
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you have to invent something substantially better
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than what's already out there.
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This shouldn't be controversial.
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As a society,
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we reserve the big rewards for the big ideas.
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We don't give Michelin stars to chefs who just tweak a recipe --
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we give them to chefs who change how we think about food.
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And yet, we hand out patents worth billions of dollars
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for minor changes.
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It's time to raise the bar.
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Second,
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we need to change the financial incentives of the Patent Office.
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Right now, the revenue of the Patent Office
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is directly linked to the number of patents that it grants.
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That's like private prisons getting paid more to hold more people --
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it naturally leads to more incarceration,
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not less.
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The same is true for patents.
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Third, we need more public participation.
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Right now, the patent system is like a black box.
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It's a two-way conversation between the patent office and industry.
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You and I aren't invited to that party.
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But imagine if instead,
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the Patent Office became a dynamic center for citizen learning and ingenuity,
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staffed not just by technical experts and bureaucrats,
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but also by great public-health storytellers
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with a passion for science.
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Regular citizens could get accessible information
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about complex technologies
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like artificial intelligence or gene editing,
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enabling us to participate in the policy conversations
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that directly impact our health and lives.
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Fourth,
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we need to get the right to go to court.
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Right now in America, after a patent is granted,
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the public has no legal standing.
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Only those with a commercial interest, usually other drug companies,
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have that right.
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But I've witnessed firsthand how lives can be saved
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when everyday citizens have the right to go to court.
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Back in 2006 in India,
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my organization worked with patient advocates
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to challenge, legally, unjust HIV drug patents,
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at a time when so many people were dying,
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because medicines were priced out of reach.
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We were able to bring down the prices of medicines
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by up to 87 percent.
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(Applause)
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On just three drugs,
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we were able to save health systems half a billion dollars.
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Now, cases like these can save millions of lives
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and billions of dollars.
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Imagine if Americans had the right to go to court, too.
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And lastly, we need stronger oversight.
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We need an independent unit that can serve as a public advocate,
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regularly monitoring the activities of the Patent Office
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and reporting to Congress.
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If a unit like this had existed,
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it would have caught, for example, the Silicon Valley company Theranos
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before it got so many patents for blood testing
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and landed an evaluation of nine billion dollars,
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when in reality,
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there was no invention there at all.
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This kind of accountability is going to become increasingly urgent.
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In the age of 23andMe,
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important questions are being asked
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about whether companies can patent and sell
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our genetic information and our patient data.
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We need to be part of those conversations
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before it's too late.
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Our information is being used to create the new therapies.
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And when that moment of diagnosis comes for me and my family,
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or for you and yours,
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are we going to have to crowdfund to save the lives of those we love?
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That's not the world I want to live in.
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It's not the world I want for my two-year-old son.
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My dad is growing older now,
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and he is still as quietly brilliant and morally directed as ever.
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Sometimes people ask us whether things get heated between us:
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the patent-holding scientist
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and his patent-reforming lawyer daughter.
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It's such a profound misunderstanding of what's at stake,
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because this is not about scientists versus activists,
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or invention versus protection.
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This is about people,
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our quest to invent and our right to live.
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My dad and I understand that our ingenuity and our dignity
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go hand in hand.
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We are on the same side.
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It is time to reimagine a patent system
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that reflects that knowing.
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Thank you.
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(Applause)
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