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Brownstone Institute

Moderna and Pfizer: Cat Fight!

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BY JEFFREY A. TUCKER

The legend is that patents are a just reward for new inventions. The reality is that they are government grants of monopoly privilege for industrial interests. What began as a royal privilege left over from feudal times mutated into a right of anyone to deploy the power of the state to block competitors and thus exercise monopoly pricing power based on a statutorily determined amount of time.

For centuries, patents have been debated as to their social and economic merit. That they inhibit competition is beyond dispute. Not even those who reverse engineer a product have the right to produce and sell the results. The only question is whether such interventions are truly necessary to incentivize innovation.

In the case of pharmaceuticals, the justification is a bit different. It has surrounded the supposed need to cover the high costs of research and regulatory compliance. Industries need compensation lest their entire industry becomes unprofitable and we all suffer a lack of medical advances.

None of this pertains in the case of the Covid shots. Moderna received fast-track regulatory approval and $10 billion in tax subsidies for its mRNA innovation. Even then, it claimed the right to demand exclusive rights to its formulas. During the pandemic – during which time the company also enlisted governments and private business into forcing consumers to accept its product – it agreed to forego its claims.

Now that the pandemic is over, and the demand for the shots has plummeted worldwide and vaccine mandates scrapped, Moderns is suing Pfizer for stealing its intellectual property. The court fight could last years, at the end of which they will likely settle and redistribute their loot.

On top of that, both are publicly-traded corporations that made enormous profits off the pandemic, while the jury is still out on whether and to what extent their product proved to be a net benefit in terms of reducing disease severity. It certainly did not stop infection or spread.

To top it off, both companies are granted complete legal indemnification from damages from the shot, according to 42 U.S. Code § 300aa–22. “No vaccine manufacturer,” says the law, “shall be liable in a civil action for damages arising from a vaccine-related injury or death associated with the administration of a vaccine after October 1, 1988, if the injury or death resulted from side effects that were unavoidable even though the vaccine was properly prepared and was accompanied by proper directions and warnings.”

This is another level of privilege they enjoy, justified on grounds that no vaccine manufacturing company could possibly deal with the cost of vast litigation plus bear the expenses of research and development.

It is simply not possible that any industry could be granted more privileges in the law. Most of them are rather new in a legal sense. Boldrin and Levine have demonstrated that the claims to support this kind of privilege are false in theory, false in history, and false in the current moment.

Without the privilege of the patent, and without vast subsidies, and without indemnification against damages claims, there would have been every incentive just from sales of product to bring an effective product to market if such a thing could exist. Government decided with Operation Warp Speed that such a thing as a Covid vaccine absolutely must exist. It was seen as the only exit strategy. This demand ended up creating enormous distortions around price and effectiveness.

Some people predicted this eventual mess from the beginning. At the very least, the formula for the innovation should have been shared widely so that if the vaccine really did function properly it could be manufactured and distributed in a cost-effective and voluntary way. Those who wanted the shot could have it and the rest of us would have moved on with our lives while trusting the immune system that hundreds of years of science has come to understand and fully appreciate.

And now, after such vast chaos in labor markets from vaccine mandates, after a year and a half of false promises, after near silence on the problem of vaccine injury, and after the corruption of Big Tech, after the legal privileging of mRNA over other technologies, the top two industry leaders are fighting like scorpions in a bottle to retain their industrial privileges granted by the patent office. It’s a heck of a way for this story to end.

To top it off, the actual patent holder for mRNA has opposed these vaccines all along. His name is Robert Malone and he just wrote the following:

Based on my experience, all three of these patents can be readily invalidated due to the failure to cite relevant prior art. To repeat, I have no financial interests here. But the work that I did and the relevant patents that I am a co-author on (which Moderna conspicuously fails to cite) are now in the public domain. They belong to everyone, not to Moderna, or to CureVac, or to BioNTech. And this may explain part of why there has been such an effort to write me out of history. Not only because some seek the Nobel Prize, but also because the intellectual property patent positions of some very profitable companies may become at risk if those contributions are acknowledged.

Not only is Big Pharma being exposed. But also the patent regime. And government itself.

There is absolutely no theory of political economy in existence that could possibly justify this combination of 1) private company with vast tax funding, 2) government-enforced monopoly claims of ownership, 3) indemnification against damage claims, 4) publicly-traded stocks, plus and 5) a forced customer base. And to top it all off, it’s not even clear that the product worked; it certainly did not live up to the wild claims from top government officials.

In any system of government and industry, this combination would cry out for dramatic change. If there is no change, it can only be due to the power of the industry itself. Somehow for them, it is never enough.

Author

  • Jeffrey A. Tucker, Founder and President of the Brownstone Institute, is an economist and author. He has written 10 books, including Liberty or Lockdown, and thousands of articles in the scholarly and popular press. He writes a daily column on economics at The Epoch Times, and speaks widely on topics of economics, technology, social philosophy, and culture.

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Brownstone Institute

The Predictable Wastes of Covid Relief

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From the Brownstone Institute

BY Daniel NuccioDANIEL NUCCIO  

As documented in a 2023 report from the Electronic Privacy Information Center, more than seventy local governments used ARPA funds to expand surveillance programs in their communities

If you ever had the vague sense that Covid relief funding worked in a manner akin to US aid packages in failed Middle Eastern dictatorships, your instincts weren’t wrong.

First off, there were cases of just outright fraud nearing the $200 billion mark with drug gangs and racketeers collecting Covid unemployment benefits from the US government, with some recipient fraudsters not even having the common decency of being honest American fraudsters.

Even worse, though, were some legitimate uses of Covid funds that actually counted as legitimate despite being laughably frivolous or clearly unrelated to nominal goals connected to public health or helping communities deal with the economic impact of the virus – or, more accurately, the lockdowns.

One of the most should-be-satirical-but-actually-real examples of a legitimate use of Covid cash was a researcher at North Dakota State University being awarded $300,000 by the National Science Foundation through a grant funded at least in part through the American Rescue Plan Act of 2021 to aid her in her 2023 efforts to reimagine grading in the name of equity. (If none of that makes sense, please don’t hurt yourself with mental pirouettes.)

Other more mundane projects pertained to prisons and law enforcement using Covid relief money for purposes that extended well-beyond simply paying salaries or keeping the lights on. In 2022 The Appeal and The Marshall Project  reported on how large sums of Covid money went to prison construction and expansion projects and to outfit police departments with new weaponry, vehicles, and canines. Regardless of how you feel about law enforcement or our prison system, these probably did little to stop the spread of Covid or keep out-of-work bartenders afloat while public health bureaucrats consulted horoscopes or goat entrails or their equally useful models to divine the proper time to let businesses reopen safely at half-capacity to diners willing to wear a mask between bites but too afraid to leave their homes.

Yet, of course, that didn’t stop people from trying to make the case that these expenditures absolutely were essential to slowing the spread. Often coming off like precocious children explaining to their parents how a new puppy would help teach them responsibility or an overpriced pair of sneakers would facilitate their social-emotional development by ensuring the cool kids would like them, local sheriffs and city managers were reported as claiming prison expansions could help prisoners social distance from each other, new tasers would help officers social distance from suspects, and new vehicles would allow officers to take their cars home with them rather than share one with another officer who might end up contaminating it with their Covid cooties.

But even worse than the funds that were outright plundered or just snatched up as part of a cash grab were those that were used on projects that helped further erode the freedoms of American citizens.

As documented in a 2023 report from the Electronic Privacy Information Center, more than seventy local governments used ARPA funds to expand surveillance programs in their communities, purchasing or licensing gunshot detection systems, automatic license plate readers, drones, social media monitoring tools, and equipment to hack smartphones and other connected devices.

Sometimes EPIC reported that this was done with little, if any, public debate over the civil liberties and privacy concerns inherent to these tools. In one case from a town in Ohio, approval for ARPA-funded ALPRs – cameras that can create a searchable, time-stamped history for the movements of passing vehicles – came after only a 12-minute presentation by their police chief.

Similarly, schools also likely used money from ARPA, as well as the 2020 Coronavirus Aid, Relief, and Economic Security Act, for their own surveillance purposes, although documentation of how schools used their Covid money is said to be somewhat spotty at best.

Vice News in 2021 reported how Ed Tech and surveillance vendors such as Motorola SolutionsVerkada, and  SchoolPass marketed their products as tools to help reduce the spread of Covid and allow schools to reopen safely.

Some attempts such as Vice’s description of SchoolPass presenting ALPRs as a means to assist with social distancing come off like police departments explaining the social distancing benefits of tasers.

Others, however, such as Motorola plying schools with lists of behavioral analysis programs that “monitor social distancing violations” and room occupancy while “automat[ing] the detection of students who are not wearing face masks,” seem to offer a glimpse of the dystopian future into which we are heading – as do the other surveillance tools bought with Covid cash.

Maybe at some point Disease X, about which our ruling class has been warning us, will hit and the additional drones, ALPRs, and social media monitoring tools bought by the law enforcement agencies reported on by EPIC will be used to monitor adults for social distancing violations and automatically detect who isn’t wearing a mask. Maybe those tools will just be used to keep a digital notebook of the daily activities of everyone while police reassure us that they promise only to look at it when they really really need to.

In either case, though, if you currently have the vague sense that post-Covid America is a little more like a Chinese surveillance state than in the Before Times, your instincts are dead-on.

Author

  • Daniel Nuccio

    Daniel Nuccio holds master’s degrees in both psychology and biology. Currently, he is pursuing a PhD in biology at Northern Illinois University studying host-microbe relationships. He is also a regular contributor to The College Fix where he writes about COVID, mental health, and other topics.

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Brownstone Institute

Book Burning Goes Digital

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From the Brownstone Institute

BY Brownstone InstituteBROWNSTONE INSTITUTE

In March 2021, the Biden White House initiated a brazenly unconstitutional censorship campaign to prevent Americans from buying politically unfavorable books from Amazon.

The effort, spearheaded by White House censors including Andy Slavitt and Rob Flaherty, began on March 2, 2021, when Slavitt emailed Amazon demanding to speak to an executive about the site’s “high levels of propaganda and misinformation and disinformation.”

Their subsequent discussions remain unknown, but recently released emails from the House Judiciary Committee reveal that the censors achieved their intended result. Within a week, Amazon adopted a shadow ban policy.

Company officials wrote in internal emails, “The impetus for this request is criticism from the Biden administration about sensitive books we’re giving prominent placement to, and should be handled urgently.” They further clarified that the policy was “due to criticism from the Biden people,” presumably meaning Slavitt and Flaherty.

At the time, “vaccine misinformation” was parlance for inconvenient truths. Five months after the Amazon censorship crusade, Twitter banned Alex Berenson at the Government’s behest for noting that the shots do not prevent infection or transmission. Senator Elizabeth Warren (D-MA) favorably cited his Twitter ban in a September 2021 letter to Amazon  calling for increased censorship of books.

A similar process occurred at Facebook. Mark Zuckerberg wrote in internal emails that the platform decided to ban claims related to the lab-leak theory in February 2021 after “tense conversations with the new Administration.” Facebook executive Nick Clegg similarly wrote that the censorship was due to “pressure from the [Biden] administration and others to do more.” Another internal Facebook email from August 2021 wrote that the company had implemented new “misinformation” policies “stemming from the continued criticism of our approach from the [Biden] administration.”

Not only does the Biden regime’s call for de facto book bans lead to the suppression of true information regarding lockdowns, vaccine injuries, and the lab-leak theory; it was also a clear violation of the First Amendment.

The Supreme Court weighed in on a nearly identical case over sixty years ago.

In 1956, the Rhode Island legislature created a “Rhode Island Commission to Encourage Morality in Youth.” Like “public health” or “inclusivity,” the innocuous language was a Trojan Horse for censorship.

The Commission sent notices to bookshops and book dealers that potentially violated Rhode Island’s obscenity laws. The book dealers challenged the constitutionality of the Commission, and the case made its way to the Supreme Court in Bantam Books v. Sullivan.

The New York Times’ description of the case from 1962 could be transposed to a modern article on the Amazon Files, but The Gray Lady has deemed the news unfit to print and has ignored the revelations entirely.

The challengers argued that the Commission acted “as a censor” while the Government “contended that its purpose was only to educate people,” the Times explained. The Government, desperate to maintain its benevolent facade, insisted its “hope [was] that the dealer would ‘cooperate’ by not selling the branded books and magazines.”

But the Government’s call for “cooperation” was a thinly veiled threat. The Commission did not just notify the booksellers; they also sent copies of the notices to the local police, who “always called dealers within 10 days of the notice to see whether the offending items had been withdrawn,” according to the book dealers.

“This procedure produced the desired effect of frightening off sale of the books deemed objectionable,” a book dealer told The Times. They complied, “not wanting to tangle with the law.”

The Supreme Court ruled 8-1 that the Committee’s reports violated the Constitutional rights of the book dealers. Justice William O. Douglas wrote in a concurring opinion: “This is censorship in the raw; and in my view the censor and First Amendment rights are incompatible.”

Here, we again see censorship in the raw; bureaucratic thugs, using the power of the US federal government, call for the suppression of information that they find politically inconvenient. They hide behind the innocuous language of “public health” and “public-private partnerships,” but the Leviathan’s “requests” carry an implicit threat.

As we wrote in “The Censors’ Henchmen,” the censorship demands from White House lackeys Rob Flaherty and Andy Slavitt are like mobsters’ interrogations. Just months after the Amazon demands, Flaherty wrote to Facebook, “We are gravely concerned that your service is one of the top drivers of vaccine hesitancy – period.” Then came the demands: “We want to know that you’re trying, we want to know how we can help, and we want to know that you’re not playing a shell game…This would all be a lot easier if you would just be straight with us.”

In other words, we can do this the easy way or the hard way. Nice company you have here – it would be a shame if something happened to it.

When companies refused to comply, Biden’s henchmen responded with scorn. Facebook ignored one censorship request, and Flaherty exploded: “Are you guys fucking serious? I want an answer on what happened here and I want it today.”

Failure to comply would threaten Amazon’s substantial government contracting operations. In April 2022, Amazon received a $10 billion contract from the NSA. Later that year, the US Navy granted Amazon a $724 million cloud computing contract, and the Pentagon awarded Amazon an additional $9 billion in contracts. Amazon also has ongoing contracts with the CIA that could be worth “tens of billions” of dollars.

“Cooperation” is a prerequisite for these lucrative agreements. Sixty years ago, the Court recognized the threat that Government demands for “cooperation” posed to liberty in Bantam Books. Ten years later, the Court held in Norwood v. Harrison that it is “axiomatic that a state may not induce, encourage or promote private persons to accomplish what it is constitutionally forbidden to accomplish.”

Since then, skyrocketing government spending and public-private partnerships have further blurred the line between state and private persons at the cost of our liberties.

The recent Amazon revelations add to the censors’ parade of horribles that have been uncovered in recent years. The Supreme Court will rule on the crux of the battle between free speech and Biden’s cosa nostra next month in Murthy v. Missouri.

Meanwhile, the revelations keep pouring in, adding to what we know but still concealing the fullness of what might actually have been happening. Adding to the difficulty is that the revelations themselves are not being widely reported, raising serious questions concerning just how much in the way of independent media remains following this brutal crackdown on free speech that took place with no legislation and no public oversight.

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  • Brownstone Institute

    Brownstone Institute is a nonprofit organization conceived of in May 2021 in support of a society that minimizes the role of violence in public life.

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