The Hatch-Waxman Act

The Hatch-Waxman Act, passed in 1984, is a law that balances encouraging innovation and making drugs affordable. It allows generic drug companies to quickly enter the market after the original drug's patent expires by providing a streamlined approval process. In return, brand-name drug companies get a period of exclusive marketing rights, incentivizing research and development. The act also establishes mechanisms for resolving patent disputes and ensures that generic drugs are safe and effective, ultimately aiming to increase access to affordable medications while protecting innovation.