From Kerosene, Coal Tar, Snake Oil & Whiskey: Evolution of Today’s Medical Patent

Medical Patents Broker Inc.
By Kenneth Pearce, President

There is a historical irony in the term "Patent Medicine." In the late 19th and early 20th centuries, the "patent" in patent medicine often had very little to do with the USPTO—in fact, only a handful were ever officially patented. Instead, the name referred to "Letters Patent," a carryover from the UK tradition of keeping a formula secret.

From town to town, these hawked remedies included almost anything but the kitchen sink. Since heroin (the downer) and cocaine (the upper) were available over-the-counter, they were frequent ingredients in these concoctions. People drank those potions with mixed results—some high, some low, some drunk, some suffering violent GI reactions, and some dying.

The Era of Secrecy Ended

Between the 1890s and the 1920s, the "Patent Medicine" industry thrived on a type of sorcery. But in 1906, Congress passed the Food and Drug Act—the forerunner of today’s Food, Drug, and Cosmetic Act. This marked the beginning of the end for the traveling medicine show.

The Great Pivot: Disclosure as the Ultimate Value

Sometimes we think of a stubborn FDA panel as the enemy. On rare occasions, maybe that's true. But most of the time, they are doing their job: ensuring that medical inventions are safe and effective for humans. Unlike the "good old days" of 1910, modern records must eventually become public. Secrecy has been replaced by science.

Thankfully, today, transparency, data, and "Regulatory Velocity" are what contribute to a medical patent’s true value. For our betterment, the OTC snake oil has vanished, replaced by a system that demands proof before the patient is treated.