Comment by simiones
1 day ago
> If the US was maximally capitalist it would be a free for all with no patent protection.
The much more likely alternative in a maximally capitalist / free market maximalist society would be keeping all drug formulas as trade secrets, and thereby having all drugs as branded, no generics whatsoever (or few - perhaps some substances could be reverse engineered). In such a society, having the state force companies to publish their formulas would be seen as unacceptable interference in the free market, almost certainly.
I'm not convinced about trade secrets being the capitalistic route here, specially since, as pointed out somewhere else, the current system is basically like trade-secrets already, which suggest inverted causality.
In a pure free market, someone could try to keep the formulas secret, but others can just reverse engineer it into being public, which is basically guaranteed to happen if there's sufficient demand. Given that they aren't wasting money trying to obfuscate the recipe nor the formula, these competitors do have an advantage over the original. As such, I posit that free-to-copy will be default behavior in a pure free market, with trade-scerets being resteicted on niche sectors.
The reason we can't do this today is primarily that reverse engineering is heavily restricted by IP laws.
The recipe for Coca Cola, the most popular soft drink in the world by far, has been a trade secret for over 100 years. And I'd wager a guess that it's slightly simpler to make then most medicines. So I don't see any reason whatsoever to assume that drugs would be easily reverse engineered.
Instead, I'd say that the assertion that today's drug making is hard to reverse engineer is hard even knowing the exact formula, substance, and dosage of every drug is unlikely to be true - is there any example of any drug that generics companies are not producing more cheaply than the original inventor, once the patent has expired?
I don't think Coca Cola is a good counterpoint due to a couple of reasons:
1) there was a recent attempt to find the formula [1], but the primary reason that was infeasible is that, allegedly by the ingredient list, they use coca extract and, IIRC, only one company provides that in the US, due to FDA regulations. Even if they were find the formula behind, it wouldn't help much, so they're are trying to replicate the flavor instead.
2) Coca Cola is, before anything, a brand. It's not comparable to generic medications because people in general don't buy it for the formula specifically, but the expectation of flavor and taste associated with the brand. Even if you were to find the current formula, the Coca Cola Company can just change it.
In regards to the last point, there probably is one (likely in heavily subsidized prices case), but, regardless, I don't see how your point shows patents are the reason anymore than a increase in competition, which we are proposing would happen if patents were abolished.
[1] https://www.youtube.com/watch?v=TDkH3EbWTYc