GOP Leader McConnell: 'Tax Issue Is Finished'

Jan 6, 2013 10:19am

                                                                                                            (Image Credit: ABC News)

Senate Republican Leader Mitch McConnell. R-Ky., Sunday said he will not accept any new revenue in future deals with congressional Democrats and President Obama.

“The tax issue is finished.  Over. Completed,” McConnell told me on “This Week.” “That’s behind us. Now the question is what are we going to do about the biggest problem confronting our country and that’s our spending addiction.

“We didn’t have this problem because we weren’t taxing enough,” McConnell added.

He blamed Obama and Democrats for waiting to resolve budget issues until the last minute.

Read a transcript of the full interview with Sen. Mitch McConnell HERE.

“Why we end up in these last-minute discussions is beyond me. We need to function,” McConnell said. “I mean, the House of Representatives, for example, passed a budget every year.  They’ve passed appropriation bills.

“The Senate Democratic majority and the president seem to like these last-minute deals.”

McConnell said that the biggest issue facing the country in the next year is the deficit and spending. And he predicted that the issue would occupy the congressional agenda in the first three months of the year, overtaking Obama’s other priorities, including gun control.

“But the biggest problem we have at the moment is spending and debt,” McConnell said. “That’s going to dominate the Congress between now and the end of March.  None of these issues, I think, will have the kind of priority that spending and debt are going to have over the next two or three months.”

On the expected nomination of former Sen. Chuck Hagel, R-Neb., as the secretary of Defense by Obama, McConnell said he would evaluate Hagel’s past statements before determining whether he could support his nomination in the Senate.

“I’m going to take a look at all the things that Chuck has said over the years and review that, and in terms of his qualifications to lead our nation’s military,” McConnell said. “The question we will be answering if he’s the nominee, is do his views make sense for that particular job?  I think he ought to be given a fair hearing, like any other nominee, and he will be.”

McConnell, who in 2008 praised Hagel for his clear voice and stature on foreign policy and national security, now says he will reserve judgment on his possible nomination until after a Senate confirmation hearing.

“I’m going to wait and see how the hearings go and see whether Chuck’s views square with the job he would be nominated to do,” he added.

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Chavez swearing-in can be delayed: Venezuelan VP

CARACAS (Reuters) - President Hugo Chavez's formal swearing-in for a new six-year term scheduled for January 10 can be postponed if he is unable to attend due to his battle to recover from cancer surgery, Venezuela's vice president said on Friday.

Nicolas Maduro's comments were the clearest indication yet that the Venezuelan government is preparing to delay the swearing-in while avoiding naming a replacement for Chavez or calling a new election in the South American OPEC nation.

In power since 1999, the 58-year-old socialist leader has not been seen in public for more than three weeks. Allies say he is in delicate condition after a fourth operation in two years for an undisclosed form of cancer in his pelvic area.

The political opposition argues that Chavez's presence on January 10 in Cuba - where there are rumors he may be dying - is tantamount to the president's stepping down.

But Maduro, waving a copy of the constitution during an interview with state TV, said there was no problem if Chavez was sworn in at a later date by the nation's top court.

"The interpretation being given is that the 2013-2019 constitutional period starts on January 10. In the case of President Chavez, he is a re-elected president and continues in his functions," he said.

"The formality of his swearing-in can be resolved in the Supreme Court at the time the court deems appropriate in coordination with the head of state."

In the increasing "Kremlinology"-style analysis of Venezuela's extraordinary political situation, that could be interpreted in different ways: that Maduro and other allies trust Chavez will recover eventually, or that they are buying time to cement succession plans before going into an election.

Despite his serious medical condition, there was no reason to declare Chavez's "complete absence" from office, Maduro said. Such a declaration would trigger a new vote within 30 days, according to Venezuela's charter.

RECOVERY POSSIBLE?

Chavez was conscious and fighting to recover, said Maduro, who traveled to Havana to see his boss this week.

"We will have the Commander well again," he said.

Maduro, 50, whom Chavez named as his preferred successor should he be forced to leave office, said Venezuela's opposition had no right to go against the will of the people as expressed in the October 7 vote to re-elect the president.

"The president right now is president ... Don't mess with the people. Respect democracy."

Despite insisting Chavez remains president and there is hope for recovery, the government has acknowledged the gravity of his condition, saying he is having trouble breathing due to a "severe" respiratory infection.

Social networks are abuzz with rumors he is on life support or facing uncontrollable metastasis of his cancer.

Chavez's abrupt exit from the political scene would be a huge shock for Venezuela. His oil-financed socialism has made him a hero to the poor, while critics call him a dictator seeking to impose Cuban-style communism on Venezuelans.

Should Chavez leave office, a new election is likely to pitch former bus driver and union activist Maduro against opposition leader Henrique Capriles, the 40-year-old governor of Miranda state.

Capriles lost to Chavez in the October presidential election, but won an impressive 44 percent of the vote. Though past polls have shown him to be more popular than all of Chavez's allies, the equation is now different given Maduro has received the president's personal blessing - a factor likely to fire up Chavez's fanatical supporters.

His condition is being watched closely by Latin American allies that have benefited from his help, as well as investors attracted by Venezuela's lucrative and widely traded debt.

"The odds are growing that the country will soon undergo a possibly tumultuous transition," the U.S.-based think tank Stratfor said this week.

(Additional reporting by Marianna Parraga; editing by Christopher Wilson)

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Tennis: China's Li beats Zakopalova in Shenzhen final

BEIJING: Chinese star Li Na captured her seventh career title and second on home soil when she beat Klara Zakopalova of the Czech Republic 6-3, 1-6, 7-5 on Saturday in the Shenzhen Open final.

The world number seven and the competition's top seed had lost two of the pair's three previous meetings and suffered some final set jitters at the $500,000 tournament when she allowed the fifth-seeded Czech to come back from 2-5 down to 5-5.

But Li closed out victory with two quick games.

Li's previous victory in China came at Guangzhou in 2004 that made her the first Chinese player ever to win a tour trophy.

Her other five WTA titles came at Gold Coast in 2008, Birmingham in 2010, Sydney and the French Open in 2011 and Cincinnati in 2012.

"Klara played well and I managed my mood swings well, and I'm glad I made it," Li said as she continued her build-up to the opening Grand Slam event of the year, the Australian Open which starts in Melbourne on January 14.

"Winning the title certainly helps boost my confidence for the coming weeks, but it also depends on how I'm playing on the courts. Confidence itself won't guarantee a win.

"But I'm very happy to win and the Shenzhen Open was a great tournament - I believe it will get even better in future years."

Zakopalova is now 2-10 in WTA finals, but she has the consolation of knowing that she is projected to rise from her current world ranking of 28 past her career-high of 26, which she set back in 2006.

"It was about a few points today but she really proved she's a top player - she played her best from 5-all," Zakopalova said.

"She's playing unbelievably fast and flat, and she's hitting her backhand down the line very well. To me she's one of the top three players right now and I hope she can make it there.

"There's no way to be sad about losing - I lost to a top player and I'm happy to reach the final."

- AFP/de

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Zee News editor seeks video-recording of police statement

NEW DELHI: Zee News editor Sudhir Chaudhary, whom police has sent notice to join investigations after the channel aired the interview of December 16 rape victim's friend, on Saturday moved court seeking his statement be video-recorded but the order was silent on his request.

The court asked the city police to proceed the case "in accordance with the law" and did not specially mention in its order whether Chaudhary's statement would be recorded or not.

Metropolitan Magistrate Namrita Aggarwal said: "I have heard the counsel for the accused. SHO police station Vasant Vihar is directed to proceed as per law."

Chaudhary has moved the application saying he has been asked to join the investigation and a case has already been registered against him.

Advocate Vijay Aggarwal, appearing for Chaudhary, submitted that police has sent notice to his client to attend investigation.

"The applicant has received notice for attending investigation at Vasant Vihar police station. He prays that his statement made under section 161 (3) CrPC (Criminal Procedure Code) be recorded by audio video electronic means."

"The interview of the male friend had highlighted the irresponsible attitude of police towards the victims, so how can the same police register the case again the channel and also investigate it. It cannot be a fair investigation," said Aggarwal.

Delhi Police have filed a case against Zee News for revealing the identity of the gang-rape victim by carrying an interview of her male friend who was the only witness in the case.

The case was filed against at Vasant Vihar Police Station under Section 228 (A) of the Indian Penal Code. The interview of male friend would lead to the identification of the victim in breach of a law entitling her to anonymity, police said.

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FDA: New rules will make food safer

WASHINGTON (AP) — The Food and Drug Administration says its new guidelines would make the food Americans eat safer and help prevent the kinds of foodborne disease outbreaks that sicken or kill thousands of consumers each year.

The rules, the most sweeping food safety guidelines in decades, would require farmers to take new precautions against contamination, to include making sure workers' hands are washed, irrigation water is clean, and that animals stay out of fields. Food manufacturers will have to submit food safety plans to the government to show they are keeping their operations clean.

The long-overdue regulations could cost businesses close to half a billion dollars a year to implement, but are expected to reduce the estimated 3,000 deaths a year from foodborne illness. The new guidelines were announced Friday.

Just since last summer, outbreaks of listeria in cheese and salmonella in peanut butter, mangoes and cantaloupe have been linked to more than 400 illnesses and as many as seven deaths, according to the federal Centers for Disease Control and Prevention. The actual number of those sickened is likely much higher.

Many responsible food companies and farmers are already following the steps that the FDA would now require them to take. But officials say the requirements could have saved lives and prevented illnesses in several of the large-scale outbreaks that have hit the country in recent years.

In a 2011 outbreak of listeria in cantaloupe that claimed 33 lives, for example, FDA inspectors found pools of dirty water on the floor and old, dirty processing equipment at Jensen Farms in Colorado where the cantaloupes were grown. In a peanut butter outbreak this year linked to 42 salmonella illnesses, inspectors found samples of salmonella throughout Sunland Inc.'s peanut processing plant in New Mexico and multiple obvious safety problems, such as birds flying over uncovered trailers of peanuts and employees not washing their hands.

Under the new rules, companies would have to lay out plans for preventing those sorts of problems, monitor their own progress and explain to the FDA how they would correct them.

"The rules go very directly to preventing the types of outbreaks we have seen," said Michael Taylor, FDA's deputy commissioner for foods.

The FDA estimates the new rules could prevent almost 2 million illnesses annually, but it could be several years before the rules are actually preventing outbreaks. Taylor said it could take the agency another year to craft the rules after a four-month comment period, and farms would have at least two years to comply — meaning the farm rules are at least three years away from taking effect. Smaller farms would have even longer to comply.

The new rules, which come exactly two years to the day President Barack Obama's signed food safety legislation passed by Congress, were already delayed. The 2011 law required the agency to propose a first installment of the rules a year ago, but the Obama administration held them until after the election. Food safety advocates sued the administration to win their release.

The produce rule would mark the first time the FDA has had real authority to regulate food on farms. In an effort to stave off protests from farmers, the farm rules are tailored to apply only to certain fruits and vegetables that pose the greatest risk, like berries, melons, leafy greens and other foods that are usually eaten raw. A farm that produces green beans that will be canned and cooked, for example, would not be regulated.

Such flexibility, along with the growing realization that outbreaks are bad for business, has brought the produce industry and much of the rest of the food industry on board as Congress and FDA has worked to make food safer.

In a statement Friday, Pamela Bailey, president of the Grocery Manufacturers Association, which represents the country's biggest food companies, said the food safety law "can serve as a role model for what can be achieved when the private and public sectors work together to achieve a common goal."

The new rules could cost large farms $30,000 a year, according to the FDA. The agency did not break down the costs for individual processing plants, but said the rules could cost manufacturers up to $475 million annually.

FDA Commissioner Margaret Hamburg said the success of the rules will also depend on how much money Congress gives the chronically underfunded agency to put them in place. "Resources remain an ongoing concern," she said.

The farm and manufacturing rules are only one part of the food safety law. The bill also authorized more surprise inspections by the FDA and gave the agency additional powers to shut down food facilities. In addition, the law required stricter standards on imported foods. The agency said it will soon propose other overdue rules to ensure that importers verify overseas food is safe and to improve food safety audits overseas.

Food safety advocates frustrated over the last year as the rules stalled praised the proposed action.

"The new law should transform the FDA from an agency that tracks down outbreaks after the fact, to an agency focused on preventing food contamination in the first place," said Caroline Smith DeWaal of the Center for Science in the Public Interest.

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Debt Limit Negotiating Tactic? No Negotiating

President Barack Obama and Vice President Joe Biden walk away from the podium after Obama made a statement regarding the passage of the fiscal cliff bill in the Brady Press Briefing Room at the White House in Washington, Tuesday, Jan. 1, 2013. (AP Photo/Charles Dharapak)

Analysis

New for 2013: In the Washington, D.C. fiscal wars we’ve gone from everything must be on the table to politicians declaring they won’t debate.

The fiscal cliff deal either averted disaster or compounded the problem, depending on who you ask. It certainly created new mini-cliffs in a few months as Congress and the president square off on the debt ceiling, spending cuts and government funding. But it also made sure the vast majority of Americans won’t see as big a tax hike as they might have.

President Obama was pretty clear late on New Year’s night as he reacted to Congress’s passage of a bill to take a turn away from the fiscal cliff. He won’t negotiate with Republicans about the debt ceiling.

“Now, one last point I want to make,” said the president, before wrapping up and hopping on Air Force One for a redeye to Hawaii. “While I will negotiate over many things, I will not have another debate with this Congress over whether or not they should pay the bills that they’ve already racked up through the laws that they passed.”

(Read more here about the Fiscal Cliff)

That’s pretty clear. No debt ceiling negotiation. Then he added for emphasis: ”Let me repeat: We can’t not pay bills that we’ve already incurred. If Congress refuses to give the United States government the ability to pay these bills on time, the consequences for the entire global economy would be catastrophic — far worse than the impact of a fiscal cliff.”

But in Washington, saying you won’t do something these days has almost become like an opening bid. At least, that’s how Republicans are treating the president’s line in the sand.

“The president may not want to have a fight about government spending over the next few months, but it’s the fight he is going to have because it’s a debate the country needs,” wrote Senate Minority Leader Mitch McConnell, the Kentucky Republican, in an op-Ed on Yahoo! News about 36 hours later. “For the sake of our future, the president must show up to this debate early and convince his party to do something that neither he nor they have been willing to do until now.”

“We simply cannot increase the nation’s borrowing limit without committing to long overdue reforms to spending programs that are the very cause of our debt,” McConnell said.

The national debt is soon set to reach $16.4 trillion. That’s not a problem that can be solved with one bill or budget. And the two sides will have to figure out some sort of way to talk about entitlement/social safety net reform – meaning things like Medicare, Medicaid, and Social Security – in addition to cutting spending and, most importantly, hope for an improving economy, to deal with those deficits.

House Speaker John Boehner, who has several times now failed to reach a big, broad fiscal deal with President Obama, told colleagues, according to The Hill newspaper, that he’s done with secret White House negotiations. He wants to stick with the constitutional way of doing things, with hearings and bills that are debated on Capitol Hill rather than hatched by the vice president and Senate Republicans.

Okay. Obama won’t negotiate on the debt ceiling. McConnell won’t not negotiate on the debt ceiling. Boehner doesn’t to do things by the book.

But McConnell won’t negotiate on taxes any more.

“Predictably,” McConnell had written earlier in his post, “the president is already claiming that his tax hike on the ‘rich’ isn’t enough. I have news for him: the moment that he and virtually every elected Democrat in Washington signed off on the terms of the current arrangement, it was the last word on taxes. That debate is over.”

It’s a new chapter in the ongoing fiscal saga in Washington. Back when the two sides were talking about a grand bargain or a big deal – some sort of all-inclusive reform that would right the listing deficit with one flip of the rudder – the popular trope was that “everything must be on the table.” That’s basically how Obama put it back in the summer of 2011 when he and Boehner failed to reach a grand bargain. He wanted higher taxes – they were calling them revenues back then. More recently, after Obama won the election and when he and Boehner were trying to hammer out another grand bargain to avert the fiscal cliff, Boehner wanted entitlements on the table. That means he wanted to find ways to curb future spending.

Both sides are declaring they won’t debate certain points, but this far – a full two months – before the mini-cliffs start, those are easier declarations to make than they will be when the government is in danger of defaulting or shutting down.

Even though they’re trying to take elements off the table, both men hope that coming negotiations can be a little more cordial and a little less down-to-the wire.

“Over the next two months they need to deliver the same kind of bipartisan resolution to the spending problem we have now achieved on revenue — before the 11th hour,” wrote McConnell.

“The one thing that I think, hopefully, in the New Year we’ll focus on is seeing if we can put a package like this together with a little bit less drama, a little less brinksmanship, not scare the heck out of folks quite as much,” said Obama.

That’ll be tough if neither side will talk about what the other side wants to talk about.

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Damascus blames "terrorists" for petrol station blast

BEIRUT (Reuters) - Syria on Friday said a car bomb at a crowded petrol station in Damascus on Thursday night was set off by "terrorists", a term it uses for rebels seeking to topple President Bashar al-Assad.

The bomb killed 11 people and wounded 40 at a station packed with Syrians queuing for fuel, which has become scarce in the 21-month insurgency against Assad, in the second petrol station attack in the capital this week, opposition activists said.

"Terrorists ... blew up an explosive device at Qassioun Petrol Station near Hamish Hospital in Barzeh, Damascus, martyring several civilians," state news agency SANA said.

The United Nations says more than 60,000 people have been killed in the civil war, the longest, bloodiest conflict born from uprisings across the Arab world in the past two years.

Dozens of people were incinerated in an air strike as they waited for fuel at another Damascus petrol station on Wednesday, according to opposition sources.

The semi-official al-Ikhbariya television station aired its own footage from Barzeh, indicating the attack struck a government-held area. Barzeh's residents include members of the Sunni Muslim majority and religious and ethnic minorities.

The rebels hold a crescent of suburbs on the southern and eastern edges of Damascus, which have come under bombardment by government forces. Rebel forces also seized territory in Syria's north and east during advances in the second half of 2012.

The war pits rebels, mainly from the Sunni Muslim majority, against a government supported by members of Assad's Shi'ite-derived Alawite sect and some members of other minorities who fear revenge if he falls. Assad's family has ruled for 42 years since his father seized power in a coup.

Fighting has forced 560,000 Syrians to flee to neighboring countries, according to the U.N.

Lebanon, a country which has so far tried to distance itself from the conflict next door for fear it will inflame sectarian tensions, approved a plan to start registering 170,000 Syrian refugees and ask international donors for $180 million in aid.

"The Lebanese state will register the refugees...and guarantee aid and protection for the actual refugees in Lebanon," Social Affairs Minister Wael Abu Faour said after a six-hour cabinet session on Thursday night.

Most Sunni-ruled Arab states, as well as the West and Turkey have called for Assad to step down. He is supported by Russia and Shi'ite Iran.

ARMY WITHDRAWAL?

A Lebanese citizen who crossed into Syria through a mountainous frontier region said the army appeared to have withdrawn from several border posts and villages in the area.

Rebels controlled a line of border towns and villages north of the capital Damascus, stretching about 40 km (25 miles) from Yabroud south to Rankus, said the man, who did not want to be named and visited Syria on Wednesday and Thursday.

Rebels in the area reported that some of Assad's forces have pulled back to defend the main north-south highway linking Syria's main cities of Damascus, Homs, Hama and Aleppo, while others were sent to reinforce the northern approach to Damascus.

"The border is controlled by the Free Syrian Army rebels," he said on Friday, adding he had crossed through mountainous terrain, covered in parts by more than a meter of snow.

(Additional reporting by Dominic Evans in Beirut and Khaled Yacoub Oweis in Amman; Editing by Jason Webb)

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Delhi gang-rape victim's boyfriend speaks out

NEW DELHI: The boyfriend of a 23-year-old woman who died after a brutal gang rape on a New Delhi bus spoke out Friday for the first time about the savage attack that has sparked protests across the nation and his own trauma over his inability to save her.

The 28-year-old man, who suffered a fractured leg and other injuries in the attack, has been deeply traumatised and is currently at his parents' home in rural northern India where he is taking time out from his job at a software firm in New Delhi.

"What can I say? The cruelty I saw should not be seen ever. I tried to fight against the men but later I begged them again and again to leave her," he told AFP in an interview by phone from Gorakhpur, a town in Uttar Pradesh state.

On December 16, the couple had been out to watch a movie and decided to get into a private bus when several rickshaws had refused to drive them back to the victim's home in a New Delhi suburb.

Once in the bus, he was attacked and his girlfriend was gang-raped by six allegedly drunk men, including the driver, who also violated her with an iron bar causing immense internal damage that would lead to her death last weekend.

The horrifying crime has appalled India and brought simmering anger about widespread crime against women to the boil amid angry calls for better protection by police and changed social attitudes.

The boyfriend, who asked not to be named, also recounted how passersby had failed to come to their rescue after they were thrown out of the moving vehicle at the end of their nearly hour-long ordeal.

He was also critical of police for failing to be sensitive to his and his girlfriend's mental condition and also raised questions about the emergency care given in the public hospital where she was admitted.

"A passerby found us (after the attack), but he did not even give my friend his jacket. We waited for the police to come and save us," he told AFP.

The police have since arrested six suspects for the crime -- five men and a minor believed to be aged 17 -- who were charged with murder, rape and kidnapping in a city court on Thursday.

"I was not very confident about getting into the bus but my friend was running late, so we got into it. This was the biggest mistake I made and after that everything went out of control."

The driver of the bus then made lewd remarks and his accomplices joined him "to taunt" the couple, the boyfriend said.

He said he told the driver to stop the bus, but by then his accomplices had locked the two doors.

"They hit me with a small stick and dragged my friend to a seat near the driver's cabin."

After that the "driver and the other men raped my friend and hit her in the worst possible ways in the most private parts of her body".

"I cannot tell you what I feel when I think of it. I shiver in pain," he said.

He said the police who came to their rescue took his girlfriend to a government hospital, but failed to take into account his injuries and mental trauma.

"I was treated like an object by the police.... They wanted all the help to solve the case even before getting me the right treatment. Nobody witnessed the trauma I suffered," he said.

- AFP/jc

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Involve panchayati raj institutions in food delivery: NHRC

KOCHI: National Human Rights Commission (NHRC) has written to chief secretaries of all states to ensure that the system of food delivery be firmed up by active involvement of Panchayati Raj institutions.

"It is mandatory not just to have food as matter of right but also to ensure proper nutrition. Schemes are already available but we have to see and remove the discrepancies in existing schemes. Providing food should not be based on only quantity but on calories of energy", NHRC has recommended.

"There is need to dovetail with employment generation schemes and other interventions to ensure sustainable livelihood", it added.

The Commission had constituted a core group on Right to Food, comprising experts from across the country. Later a small group was constituted to crystallize the recommendations and suggestions made by the core group. This happened after NHRC took cognizance of starvation deaths in Kalahandi, Bolangir and Koraput districts of Odisha as starvation constitutes a gross denial and violation of right to life.

NHRC also had a day-long national conference on 'Right to Food' in New Delhi on Friday to analyse the right to food in terms of availability, accessibility, adequacy and sustainability; existing situation in the country regarding fulfilment and realization of the right to food; examination of the programme and policies being followed in realizing right to food; and steps to create awareness on the importance of the right to food.

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Indian court to rule on generic drug industry

NEW DELHI (AP) — From Africa's crowded AIDS clinics to the malarial jungles of Southeast Asia, the lives of millions of ill people in the developing world are hanging in the balance ahead of a legal ruling that will determine whether India's drug companies can continue to provide cheap versions of many life-saving medicines.

The case — involving Swiss drug maker Novartis AG's cancer drug Glivec — pits aid groups that argue India plays a vital role as the pharmacy to the poor against drug companies that insist they need strong patents to make drug development profitable. A ruling by India's Supreme Court is expected in early 2013.

"The implications of this case reach far beyond India, and far beyond this particular cancer drug," said Leena Menghaney, from the aid group Doctors Without Borders. "Across the world, there is a heavy dependence on India to supply affordable versions of expensive patented medicines."

With no costs for developing new drugs or conducting expensive trials, India's $26 billion generics industry is able to sell medicine for as little as one-tenth the price of the companies that developed them, making India the second-largest source of medicines distributed by UNICEF in its global programs.

Indian pharmaceutical companies such as Cipla, Cadila Laboratories and Lupin have emerged over the past decade as major sources of generic cancer, malaria, tuberculosis and AIDS drugs for poor countries that can't afford to pay Western prices.

The 6-year-old case that just wrapped up in the Supreme Court revolves around a legal provision in India's 2005 patent law that is aimed at preventing companies from getting fresh patents for making only minor changes to existing medicines — a practice known as "evergreening."

Novartis' argued that a new version of Glivec — marketed in the U.S. as Gleevec — was a significant change from the earlier version because it was more easily absorbed by the body.

India's Patent Controller turned down the application, saying the change was an obvious development, and the new medicine was not sufficiently distinct from the earlier version to warrant a patent extension.

Patient advocacy groups hailed the decision as a blow to "evergreening."

But Western companies argued that India's generic manufacturers were cutting the incentive for major drug makers to invest in research and innovation if they were not going to be able to reap the exclusive profits that patents bring.

"This case is about safeguarding incentives for better medicines so that patients' needs will be met in the future," says Eric Althoff, a Novartis spokesman.

International drug companies have accused India of disregarding intellectual property rights, and have pushed for stronger patent protection that would weaken India's generics industry.

Earlier this year, an Indian manufacturer was allowed to produce a far cheaper version of the kidney and liver cancer treatment sorefinib, manufactured by Bayer Corp.

Bayer was selling the drug for about $5,600 a month. Natco, the Indian company, said its generic version would cost $175 a month, less than 1/30th as much. Natco was ordered to pay 6 percent in royalties to Bayer.

Novartis says the outcome of the new case will not affect the availability of generic versions of Glivec because it is covered by a grandfather clause in India's patent law. Only the more easily absorbed drug would be affected, Althoff said, adding that its own generic business, Sandoz, produces cheap versions of its drugs for millions across the globe.

Public health activists say the question goes beyond Glivec to whether drug companies should get special protection for minor tweaks to medicines that others could easily have uncovered.

"We're looking to the Supreme Court to tell Novartis it won't open the floodgates and allow abusive patenting practices," said Eldred Tellis, of the Sankalp Rehabilitation Centre, a private group working with HIV patients.

The court's decision is expected to be a landmark that will influence future drug accessibility and price across the developing world.

"We're already paying very high prices for some of the new drugs that are patented in India," said Petros Isaakidis, an epidemiologist with Doctors Without Borders. "If Novartis' wins, even older medicines could be subject to patenting again, and it will become much more difficult for us in future to provide medicines to our patients being treated for HIV, hepatitis and drug resistant TB."

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