Sec. 14. Donor Innovation Prize Fund

352 words·~2 min read·/bill/113/s/626/is/section-14

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In order to further separate product prices from research and development incentives and to facilitate the supply of low-cost generic drugs for the treatment of HIV/AIDS in developing countries, there is established in the Treasury of the United States a Donor Innovation Prize Fund . The amount in the Donor Innovation Prize Fund shall consist of— an amount set aside by the Secretary of Health and Human Services that is equal to 10 percent of the amount of money estimated by such Secretary as the cost of qualifying treatments for HIV/AIDS used by programs supported by the President’s Emergency Plan for AIDS Relief (commonly referred to as PEPFAR ) or other federally supported programs to fund the treatment of HIV/AIDS in developing countries; and other amounts donated to the Fund as described in subsection (d).

The Secretary of Health and Human Services (referred to in this section as the Secretary ) shall use the funds from the Donor Innovation Prize Fund to reward the owners and developers of products that permit open competition for products in developing countries, either by not patenting products, providing nondiscriminatory royalty-free open licenses to all patents and other intellectual property claims on at least a field of use for the treatment of HIV/AIDS in developing countries, or through licenses to the Medicine Patent Pool.

The Secretary shall encourage other donors and developing country governments to contribute a similar fraction of drug purchase budgets to the Donor Innovation Prize Fund, in order to facilitate greater competition for generic drugs, while providing a sustainable source of rewards for innovation. The Secretary shall establish and award prize payments from the Donor Innovation Prize Fund by applying similar eligibility rules, selection criteria, and requirements as are applied with respect to prize payments awarded from the Prize Fund for HIV/AIDS under section 8.

The Secretary shall adopt procedures to ensure that the operation of the Donor Innovation Prize Fund is transparent and supported by a description of the methods, data sources, assumptions, outcomes, and related information that will allow the public to understand how the Secretary reaches its criteria-setting and award decisions.