INTELLECTUAL PROPERTY RIGHTS AND
ECONOMIC DEVELOPMENT
- Rishiraj Chandan
Abstract:
This paper provides a concise
overview of the relationship between Intellectual Property Rights (IPR) and
economic development, highlighting their critical interdependence and the significant
role they play in shaping global economies. Intellectual Property (IP) refers
to intangible assets, including patents, trademarks, copyrights, and trade
secrets, that are protected by law to incentivize innovation, creativity, and
knowledge creation. IPR systems provide legal frameworks that safeguard the
exclusive rights of creators, innovators, and inventors, ensuring that they can
benefit from their creations, thereby fostering an environment conducive to
economic growth.
Firstly, we will see how strong IPR
protection encourages innovation and technological advancements. Robust IP
regimes incentivize inventors and companies to invest in research and
development, knowing that their intellectual assets will be safeguarded and
rewarded. This stimulates the creation of new products, processes, and
technologies, driving economic progress and enhancing competitiveness. Secondly,
it emphasizes the significance of IPR in fostering domestic and foreign
investments. Countries with robust IP protection mechanisms attract foreign
direct investments as businesses seek secure environments to establish
operations.
Additionally, the paper acknowledges
the challenges posed by the complex global IP landscape, such as striking a
balance between incentivizing innovation and ensuring affordable access to
essential goods, such as life-saving drugs or educational resources. It
highlights the importance of finding appropriate mechanisms, such as compulsory
licensing or patent pools, to address these concerns while upholding the
principles of IPR. In conclusion, this abstract emphasizes the crucial role of
Intellectual Property Rights in driving economic development. By encouraging
innovation, attracting investments, facilitating technology transfer, and
promoting knowledge dissemination, strong IPR systems foster economic growth,
job creation, and sustainable development.
IP
AND DIGITAL ECONOMY: An Introduction
Many
small and medium-sized businesses (SMEs) are not familiar with the definition
of intellectual property (IP) as a result of the growth of the digital economy.
Intangible assets, often known as intellectual property, are valued more highly
as we approach the digital era. In the past, IP was only thought to be
important for specific businesses or for those who needed to protect patents.
Today, any company that wishes to expand or sell itself must begin by
considering IP.
Websites, content, and know-how are all examples of intangible assets that
provide value to a company and should be treated as real property like land.
Therefore, it is crucial for businesses that aim to be successful to own these
intangible assets and to make sure they are not infringing on anyone else's IP,
such as names, logos, copyright materials, etc.
IP
STRATEGY:
Planning
the time and procedures for due diligence and safeguarding your intangible
assets require an intellectual property (IP) strategy. These resources are
crucial for setting yourself apart from your rivals and dominating the market.
Your possessions could not be seen as assets at all if you are violating
someone else's rights, and you might be opening yourself up to responsibility.
To avoid such problems, it is vital to conduct inspections at an early stage.
The
majority of business sectors have seen considerable increases in competition as
a result of the removal of entry barriers, allowing customers a wide range of
alternatives for every service they need. As a result, some companies
succeed while others struggle to stay afloat. To retain your distinctiveness
and secure your revenues, it is essential to plan your due diligence and
protect your intangible assets. The greatest time to prepare for this is from
the start of your business, even if you might take fewer precautions to
preserve your position at first than after you become established.
IP’s
ROLE IN BUSINESS AND ITS DEVELOPMENT
The
truth is that some firms will unavoidably be more successful than others, and
to some extent, a business's confidence will determine the level of
intellectual property (IP) protection it implements in its early phases.’
Successful
businesses frequently have a few things in common, like careful planning,
budgeting, and market research before they are founded, a firm grasp of the
market and consumer behaviour, adaptability to changing circumstances,
awareness of business risks and the steps needed to mitigate them, and more
expertise and experience in running a business. These observations are based on both information
and experience gained from working in a certain industry, and there is no
replacement for being aware of the market's hazards. Over half of all firms
fail within the first five years, according to the Telegraph. According to
Shireen Smith's book, Intellectual Property Revolution, one cause for this can
be the unintentional violation of IP rights or the inability to take necessary
precautions to preserve IP, which is crucial to the success of a certain
business model.
The
hazards that might result from failing to take early consideration of
intellectual property (IP) concerns into account may not be completely
understood by business owners. There are two facets of IP that should be taken
into account. First and foremost, it's crucial to make sure that you are not
violating anybody else's intellectual property rights when using their IP. In
order to position your company advantageously for future growth, you need also
get exclusive rights to your own IP.
Your
brand identification (trademarks), the things you produce (patents), the way
things look (designs), the material you generate (copyright), and your
sensitive information, such as trade secrets, know-how, and technical skills,
are all examples of intellectual property. Having exclusive IP rights restricts
competitors from exploiting and profiting from your ideas, and allows you to
benefit from your unique identity and offerings.
Depending
on the type of IP, different benefits come with it. For designs, patents, and
trademarks, monopoly rights are given, enabling those who apply for them to
stop others from violating the monopoly's defined boundaries. While copyright
does not grant a monopoly over developed work, it does prevent other companies
from using it for their own profit.
In
the end, these advantages result in more revenue for enterprises. Customers are
more inclined to refer a company to others when they recognise its brand
identity, which boosts sales. Similar to this, a patent holder can forbid
others from producing an innovation, requiring consumers to buy from them, or
provide a profit-making licence for the production and selling of the product
to a third party. Whether through direct sales or licencing payments, the
patent holder gains in either scenario.
PROBLEMS
AND CHALLENGES WITH IP TODAY
Intellectual
property management errors can have detrimental effects on a company's
operations. It may be expensive for well-established businesses and
embarrassing. However, it can be terrible for small and medium-sized businesses
(SMEs) and possibly lead to the collapse of the company. Two instances are given to
show the results of making a mistake. In one instance, the Dr. Martens
proprietors and the creator of the logo engaged in a copyright battle that
ultimately reached the Court of Appeal. If the appropriate contractual clauses
had been in place from the start, the conflict may have been avoided. In a
different instance, Microsoft was forced to change the name of its cloud
storage service, Skydrive, to Onedrive because broadcaster Sky had violated its
trademark rights.
Manufacturing
companies face a number of IP difficulties in the digital economy. These
include safeguarding and making use of the value of data, especially that
contained in exclusive cloud-based algorithms and enormous training data
warehouses amassed over time by Internet of Things (IoT) devices. To preserve
this data, businesses must put a high priority on cyber security. To increase
the value of their data, they may even consider licencing it. It's crucial to
comprehend the potential of IP portfolios since successful businesses will be
those who can create sizable, strategically-driven IP portfolios that encompass
a variety of pertinent, emergent, and convergent technologies. In order to
comply with regulations prior to the release of a product and to prevent
infringements, businesses may need to sign in-licensing agreements. They may
also wish to think about licencing out their patented technology to other
businesses.
Manufacturing
companies will also need to comprehend and adhere to the nuances, distinctions,
and specifications of the various licencing options for opensource software.
Additionally, businesses will need to distinguish their most important
know-how/data (trade secrets) from their general data and handle, enforce, and
safeguard them individually. Manufacturing companies must concentrate on three
key pillars in order to manage IP in the digital economy: having or having
access to the required IP awareness and management capabilities; aligning IP
strategy with business objectives and structures; and creating their own
integrated digital IP strategy that incorporates a portfolio approach.
Not
understanding the effects of intellectual property (IP) on your firm early on
might lead to issues and eventually lower the total worth of your organisation.
As a result, it's crucial to be proactive with your IP and carry out thorough
research before using any IP. Consider the counsel you receive as an investment
as opposed to an expense. You will be better able to capitalise on your
successes and support the expansion of your company if you put in place a solid
strategy to safeguard and promote ownership of your assets.
IPR DOMAINS: THE ISSUE
IPR Domains in India
In India, a number of laws regulate intellectual
property rights. These are grouped according to the area of expertise they
have. The IPR domain in India includes a variety of intellectual property
types, such as:
Patents: An invention's inventor is given the
legal right to make, use, and sell the invention exclusively for a set amount
of time through the issuance of a patent. The issuance and defense of patents
in India are governed by the Indian Patent Act, 1970[6].
Trademarks: A trademark is a distinguishing sign
or symbol that is used to set one person's or company's goods or services apart
from those of competitors. In India, trademark registration and protection are
governed by the Trade Marks Act, 1999.[7]
Copyright: The exclusive right to reproduce,
distribute, and display an original piece of literature, art, or music is known
as a copyright, and it is an enforceable right awarded to the creator. In
India, copyrights are granted and protected under the Copyright Act, 1957.[8]
Trade Secrets: Trade secrets are classified as
proprietary knowledge that gives a business a competitive edge. Trade secrets
are shielded in India by both common law and contract law.
Geographical Indications: A geographical
indicator (GI) is a label applied to goods that come from a certain region and
have characteristics or a reputation that are peculiar to that region. In
India, GIs must be registered and protected under the Geographical Indications
of Goods (Registration and Protection) Act, 1999.[9]
Designs: A product or article's shape,
configuration, pattern, or decoration are all examples of a design. The
registration and protection of designs in India are governed by the Designs
Act, 2000.[10]
IPR, Patent and Technology Transfer
Maximizing the interests of a specific nation,
business, or person is the primary goal of using IPRs, along with fostering and
harnessing humankind's capacity for innovation in order to better human
situations. There are, nevertheless, certain significant economic difficulties
that are relevant to IPR. Its restriction of technological innovation and
technology transfer is a significant problem. The stringent patent protection
laws in wealthy nations frequently impede technology transfer.
The question of technology transfer concerns how
easily advanced technologies created in wealthy countries may be accessed and
used in emerging nations like India. Technology transfer can be accomplished
through a variety of strategies, including foreign direct investment, license
deals, and research partnerships. For a
predetermined amount of time, patent protection gives the creator of a new
invention the sole authority to produce, employ, and sell the technology.
To encourage innovation and financial investment
in R&D, patent protection is crucial. However, stringent patent enforcement
can also restrict access to new technologies and prevent technology transfer,
particularly for developing nations that depend on access to new technologies
to sustain their economic development. The Indian Patent Act, which is
applicable to India, governs the protection of patents and which is also in
line with international patent laws and regulations. However, India's access to
and development of new technology may be constrained by the tight enforcement
of patents, particularly in industries where patented technologies are
essential to growth and development. For instance, to promote accessible
healthcare, India's pharmaceutical business significantly depends on the
creation and manufacturing of generic medications.[11]
Governments want to encourage R&D by giving
inventors a monopoly through a patent, which offers them a financial advantage.
The public gains from technical advancement at the same time. Everywhere you
look, patent systems are based on a trade-off. Governments must strike the
right balance between encouraging innovation on the one hand and making new
items widely accessible on the other.
These stringent patent protection laws in wealthy nations can also
restrict access to new medications and obstruct the discovery of novel
therapeutic approaches.[12]
Developing nations like India frequently
implement measures like compulsory licensing, where the government permits
local businesses to create generic versions of patented medications at a
reduced cost, to solve the issue of technology transfer. However, the
effectiveness of these approaches may be constrained by the frequent judicial
challenges that developed country patent owners raise. Overall, the problem of
technology transfer serves as a reminder of the necessity of a balanced
approach to patent protection, one that encourages creativity and financial
investment in R&D while also guaranteeing developing nations' access to
life-saving tools and medications.
The instance of the HIV/AIDS medicine Darunavir
serves as an illustration of the problem with technology transfer in India. Due
to patent constraints, the Indian government was forced to buy the medicine at
a premium cost from a US pharmaceutical company that has the patent. As a
result, the government and a regional pharmaceutical business started a
campaign to create a generic version of the medication. But the US business
filed a lawsuit against the Indian business for patent infringement, and the
dispute ended up in court. The generic version of the medicine was eventually
made accessible at a far lower price thanks to the Indian company's eventual
victory in the legal battle, expanding access to treatment for HIV/AIDS
patients in India. [13]
Economic Analysis
Patent protection and technological transfer are
complex topics for economic research, and both their advantages and
disadvantages must be carefully considered. To promote innovation and financial
investment in R&D, patent protection is crucial. It grants innovators the
only right to use their creations, enabling them to recoup their expenditures
and make a profit on their investment. This encourages inventors to keep
creating innovative technology and goods, which may promote the expansion and
advancement of the economy. However, patent protection can also obstruct the
transfer of technology and reduce the accessibility of innovative technologies
in underdeveloped nations. This may limit access to necessary medical care and
technological advancements as well as impair economic growth and development in
these nations.[14]
However, technical transfer can help developing
nations since it gives them access to and use of cutting-edge technologies
created in rich nations. This can help these nations' economies grow and
flourish, as well as increase access to critical medical equipment and
technologies. Technology transfer, however, can also be risky for nations
because it might result in the loss of intellectual property and put native
industries in competition.
Therefore, a balanced approach to technical
transfer and patent protection is required to guarantee that the advantages of
both policies outweigh their drawbacks. Governments should implement policies
that encourage innovation and investment in research and development while also
ensuring access to vital medicines and technologies, taking into account the
social and economic benefits of patent protection and technical transfer.
To address the issue of technology transfer, the
Indian government has put in place a number of measures, including mandatory
licensing and team research collaborations. These regulations have improved
access to necessary technology and encouraged the creation of low-cost generic
medications. The necessity for a balanced approach to patent protection and
technical transfer is highlighted by the fact that these regulations have also
been the target of legal challenges from patent holders in industrialized
nations.
Importance of IPR in Economic
development
Intellectual Property Rights (IPR)
are legal rights that are granted to individuals or businesses that have
created original works, including inventions, literary and artistic works,
designs, symbols, and names. These rights provide the owners with exclusive
rights to use and exploit their creations for a certain period, allowing them
to earn profits and invest in further innovation. IPR is important in economic
development because it helps to promote innovation, drive economic growth, and
encourage foreign investment.
Act as an Incentive for new
innovations
Innovation is the process of
creating something new or improving an existing product, service, or process.
However, the process of innovation can be time-consuming and expensive, making
it difficult for innovators to recoup their investment. This is where IPR plays
a crucial role. IPR laws provide innovators with exclusive rights to their
creations, preventing others from using, selling, or manufacturing their work
without their permission. This protection gives innovators the confidence to
invest time and resources into research and development, knowing that they will
be able to reap the benefits of their work. Due to this confidence it
encourages inventors, artists, and other creators to do innovation. Without
these protections, individuals and businesses would have no incentive to invest
time and resources into developing new products or services.
As stated in the working paper “The
Role of Intellectual Property Rights in Technology Transfer and Economic
Growth: Theory and Evidence” of United Nation Industrial Development
Organization that as research is a risky activity, returns on successful
R&D (which produces intellectual property) must be large enough to
compensate for the high proportion of R&D that is unsuccessful, generating
in this way a normal return on R&D as a whole. Additionally, if a firm is
not able to make huge income and profit from its innovative activity, it may
not only be unable for them to fund R&D but they may not be able to stay in
business at all. By protecting the rights of creators, IPR creates a framework
that enables businesses to compete in a fair and transparent marketplace. This
framework encourages investment in research and development, which can lead to
the creation of new products and services, and ultimately, economic growth.
The first industrial revolution
started only in Britain because it had a strong economic institutional
mechanism which ushered invention and innovation in a highly primitive market,
leading to the emergence of new technologies and inventors such as James Watt
as now they have incentives and a level playing field where no big monopolies
or aristocrats can withhold the competition.
After the Glorius Revolution of
1688, the Parliament became powerful and gave protection and several incentives
in order to intensify investments, trade and innovation. It eventually led to
the decrease in the power of monopolies backed by aristocrats. Furthermore,
wages and employment increased, new companies were established, and the period
witnessed a surge in inventions and patents. Meanwhile, the intermingling of
all these factors made Britain the most advanced and self-reliant country of
that time. The industrial revolution might not have occurred in Britain if the
institutions and IPR laws were not strengthened following the Glorius
revolution.
Encourages Foreign Investment
IPR is critical in attracting
foreign investment. Companies are more likely to invest in countries that have
strong IPR protections, as it gives them the confidence that their investments
will be protected. This, in turn, can lead to increased economic activity, job
creation, and higher standards of living.
A strong IPR law is based on a very
simple logic that begins with protection and ends with innovation. For
instance, the firm foundation of IPR laws in the early days of the USA gave a
major impetus in the development of new companies across industries and
innovations because it motivated and protected small and new players from the
big business behemoths from using their financial prowess to suppress other
players. This encouraged them to come into the market protected from uncanny
business practices.
Furthermore, it gives small players
a level playing field, which leads to innovation and job creation. China, for
example, in its first 30 years of existence was in a very decrepitude condition
because of autocratic political and economic institutions, which did not give
many incentives or a balanced arena where corporations could innovate and
manufacture on a large scale. This resulted in widespread poverty, starvation,
deaths of millions of people with almost no modernization. Further, it made
China reliant on other countries for even essential supplies. However a drastic
change 1980s and 90s, when Deng Xiaoping opened the Chinese economy and
incentives private corporation that gave it a tremendous boost, thus shaping
the country in what it looks like today.
There was a multifold increase in the number of private companies along with the
constant decline in the number and market share of government companies. In
1997, there were a total of 7,922,900 enterprises in China's industrial sector.
Of these, 98,600, or just 1.25%, were state-owned enterprises.
IPR also has the potential to
address some of the most pressing global challenges, such as climate change and
public health. As new companies are emerging in the climate and energy sector
promoting green technologies and giving new job opportunities to the youth. Big
monopolies may try to thwart competition and growth in this new sector and here
comes the role of the IPR laws in protecting these corporations.
In conclusion, IPR is critical in
economic development as it promotes innovation, drives economic growth,
encourages foreign investment, and has the potential to address some of the
world's most pressing challenges. It is therefore important for governments to
establish strong legal frameworks for protecting IPR, and for businesses to
take advantage of these protections to invest in innovation and drive economic
growth.
LACK OF GLOBAL PRESENCE OF
INDIA-BASED IPR
There has been a rise in the
number of patent applications filed and approved in India. From 2010-2011 to
2016-2017 to 2021-22, the total number of patent applications filed in India
increased from 39,400 to 45,444, while the total number of patents issued
increased from 7,509 to 9,847 to 30,074. In addition, Indian citizens, rather
than foreign corporations, are filing for a growing share of patents. The
percentage of Indian citizens applying for visas has increased by more than
100% during the past decade. From 20% in 2010-11 to 30% in 2016-17 and then to
44% in 2021-22, residents' participation in patent applications has risen
steadily. In the fourth quarter of the fiscal year 2021-2022, local patent
filings at the Indian Patent Office topped the number of patents submitted by
foreign entities for the first time in the past eleven years. It's worth noting
that the process reforms1 implemented over the past five years have been
substantially responsible for the recent gains. As a result, India has risen 35
places in the Global Innovation Index, from 81st in 2015-16 to 46th in 2021.[15]
When seen in the context of
time, this may appear like great growth; nonetheless, India remains far behind
its worldwide contemporaries. When compared to China, the United States, Japan,
and Korea, India has a significantly lower rate of patent applications and
approvals. In 2020, just 3.8% of patents will be submitted in China, compared
to 9.5% in the United States.[16]
Nearly 1.5 million patent
applications were submitted to the China National Intellectual Property
Administration in 2020. The U.S. Patent and Trademark Office has received 2.5
times that amount. After the European Patent Office, the Korean Intellectual
Property Office, and the Japanese Patent Office, the United States Patent and
Trademark Office placed second with 597,172 applications (180,346). It is
projected that by 2020, the top five offices would have processed 85.1% of all
global applications, an increase of 7.7% from 2010. China's contribution to
global GDP more than quadrupled from 19.6% in 2010 to 45.7% in 2020, mostly as
a result of the country's rapid economic development. The ratio of locals to
non-locals who apply to these agencies varies substantially. In 2020, for
instance, just 10% of patent applications in China came from outside the
country, but that number was 54% in Europe and 54% in the United States.[17]
When compared to the world's
top patenting nations, India not only has a far lower patenting output, but its
patent application processing times are also significantly longer. Disposal
should take no more than three years, but in India, it takes an average of just
under five years and as much as nine in some sectors like biotech because of a
lack of qualified workers in the industry.
Within 18 months of filing, the
Controller will publish the application; within this time, the applicant may
request that the application be withdrawn. The application will then be
processed and reviewed. The waiting period before receiving the first office
action has decreased significantly in recent years. From a projected 18 months
in 2020 to the current record-breaking 4.8 months, the time it takes to receive
the first office action is the shortest of any jurisdiction in the world.
However, the outcome has not improved because of the subsequent lengthy delays.
Final disposal times fell from 64 months in 2017 to 42 months in 2020, but have
since been creeping back up to their current 58-month mark. In comparison, it
takes 20–21 months on average in China and the United States to dispose of an
application, which is less than a third of the time it takes in India. The
remaining three IP-5 agencies (European Patent Office, Japan, and South Korea)
take 25.4, 15, and 15.8 months to process the application.
According to the WIPO’s annual
report, India has one of the highest rates of withdrawn patent applications
which is mostly due to delays in the procedure. Although the percentage of
withdrawn applications in India decreased as processing times were shortened
and procedures were simplified, it was still about 66% in 2018. Even if the
withdrawal share fell to 54% in 2019 and 38% in 2020, it was still
significantly larger than the United States, Japan, Korea, and China, the other
major economies of the globe.[18]
WHAT CAN BE DONE?
- First, the present backlog
of applications has to be cleared promptly by sanctioning new jobs at the
controller level. Just shuffling around the current staff won't solve
anything. To keep up with the volume of patent applications and processing
times of our international competitors in the coming years, the patent
office will need a significant expansion in staff. A brief certificate
course (similar to a diploma) may be produced in tandem with existing graduation
courses in order to increase the accessible pool of qualified employees.
Those who have completed this training and meet the prerequisite
qualifications may be considered for temporary employment as examiners.
- Lack of set timetables
also leads to delays, therefore fixing timelines for each step of the
process is a crucial step that has to be done to solve the delays in
processing patent applications. For instance, anybody who disagrees with
the patent application can submit a pre-grant opposition at any time after
the application has been published but before the award. The lack of a
hard deadline causes unnecessary accumulations and holds up. Instead, hard
deadlines should be established.
- Applicants face onerous
compliance obligations as a result of certain sections of the patent
legislation. For instance, applicants must continue to submit information
about the prosecution of foreign patent applications on a periodic basis[19],
which imposes stringent criteria for ensuring compliance. Since India has
joined WIPO's Centralized Access to Search and Examination (CASE)[20],
the patent office may quickly and readily access this data in order to
process PCT applications. Such, alternatively, the clause should be
changed so that the controller can request certain details about such PCT
applications from the applicant. The patent office should be encouraged to
use data from WIPO CASE to learn about the outcomes of similar
applications in other key jurisdictions, which may then be used to
streamline the application process on a national level.
Reforms
required to build domestic IPR regime and mobilize in global market:
An
Indian report rarely receives favourable attention outside country does not
happen often. The 10th edition of the International Intellectual Property (IP)
Index from the US Chambers of Commerce accredited the 161st Report of the
Parliamentary Standing Committee on Commerce, which was widely debated in
the legal community.
The
recommendations were welcomed as a "welcome development" and "a
first significant attempt at assessing the state of India's IP policy
regime," according to the US magazine. It also emphasised the importance
of the suggested Intellectual Property Rights (IPR) reforms in the study for
significantly enhancing India's domestic IP environment.
Contents
of the report:
In
accordance with the evolving dynamics of innovation, the report emphasises the
need for an appropriate legislative framework on intellectual property rights
(IPR), measures to speed up the processing of patent and trademark
applications, active coordination between enforcement agencies, and the
appointment of skilled manpower and additional staff for deftly handling IPR
issues.
Procedural
Amendments:
For
the purpose of increasing the effectiveness of the patent application process,
the research study suggested a number of procedural improvements. In order to
reduce some of the delays plaguing the system at the moment, it has suggested
introducing defined deadlines at key points in the patent process. It has
suggested doing away with onerous compliance requirements like the need to
submit data on the prosecution of foreign patent applications, even though this
data is readily available via the PCT portal. The report also urges the
creation of utility model patents, which offer a less onerous application
process but a shorter duration of protection, for small discoveries.
Utility model patents, if they are adopted, will be especially important for
inventions arising from programmes supported by the nation's Atal Innovation
Mission.
Additionally,
it urges lawmakers to pass legislation addressing concerns including
educational copyrights, trade secrets, financing for IP assets, and
anti-counterfeiting. The group hopes to close the gap between innovation,
economic activity, and IPR through the effective application of its proposals.
As a result, there will be more employment possibilities and foreign currency
inflow. The committee has also acknowledged the value of industry-academic
collaboration to advance research and innovation, particularly in the
pharmaceutical business.
It
is clear reports such as these and the innovation discussed in the National IPR
Policy are clear Indicators of building a regime, where markets are developed
and protected from theft when the Intellectual Property Rights of the goods,
products, trade name and trade secrets are protected under the legal sanction. The Committee suggested, that state
governments in consultation with the Industrial and Commercial lobby should
endeavour to formulate their state policies, in order to have “trickle down”
effect in bring change and further boost the IPR promotion and protection
regime.
Key
Recommendations
IP
Financing: According to the Committee, using IP-backed financing (using IP to
obtain financial benefits, credit, or revenue) can promote financial
innovation, boost credit availability, and broaden the capital base. In order to reduce financial risks from IPR
infringement, it was advised to (i) alter the Insurance Act of 1938, (ii)
create a standardised system of IP valuation, (iii) implement legislation to
safeguard IPR and establish criteria for financing, and (iv) embrace
risk-sharing policies with businesses.
Piracy
and counterfeiting: The Committee recommended the following measures to combat
piracy and counterfeiting: (i) implementation of strict legislation through
strong inter-Departmental coordination; (ii) boosting the capacity of
enforcement agencies (such as IPR cells in the state police); and (iii)
establishing a method to calculate revenue loss from it. To prevent misuse and reap marketing
benefits, it suggested identifying products as "patent pending"
(patent applied, but not yet granted).
Sector-specific
recommendations: A new
category of rights for innovations in artificial intelligence and
related fields was suggested by the committee because of the technology's
numerous advantages and practical uses. Education and Health were regarded as
one of those potential sectors where AI oriented and IPR protected tools and
equipment can boost the economic build-up of the country as more people shall
be aware of the IPR relation to market and development. It also advocated
directing pharmaceutical research towards the development of novel medications
and specialised markets. This
emerging area requires intervention both on Central Level and State level to
tap all resources to build the policy for further innovation and growth.
- The
key reform, from all the amendments as recommended or fielded by people who
hail expertise in this area is on the ground Research and Development, on
finding solutions to the problem of IP Protection and IP Theft.
Indian
Pharma Industry had shown tremendous growth in the COVID-19 pandemic, a good
start for building the Specific sector would be promote more development and
protection of APIs (Active Pharmaceutical Ingredients) which act as the
backbone of the Innovation and Growth of this industry.
Many
of the products, for which the Department of Trade and Commerce looks out for
as Import Substitution products such electronic manufacturing industry, require
research and development especially these capital intensive areas, today
require establishment of high tech labs for building more technical components
and drivers within India.
Critical
Analysis of the Report:
The
Parliamentary Standing Committee ought to have given its full attention to
those critical concerns, both inside and outside of the Parliament, and
postponed the non-priority issues until later. To solve the COVID-19 pandemic
situation in India, for instance, a rigorous and targeted analysis of the
influence of patents, trade secrets, and copyright could have been very
pertinent today. A focused analysis of the issues, particularly the scope and
restrictions of compulsory licences as well as IP waivers, could have given our
Parliamentarians and the Government better direction in handling the IP-related
aspects of the crisis, despite the report's superficial remarks.
[6] The Patents Act, 1970
[7] The Trade Marks Act, 1999
[8] The Copyright Act, 1957
[9] The Geographical Indications of Goods (Registration
and Protection) Act, 1999
[10] The Designs Act, 2000
[11] Swilam, Y., (2017). The Potential of Intellectual
Property Rights for Economic Development: A Case Study on India. Retrieved from
Lund University Publications database.
[12] Intellectual property and access to medicine.
Oxfamamerica.org. Retrieved April 20, 2023, from
https://www.oxfamamerica.org/explore/issues/economic-well-being/intellectual-property-and-access-to-medicine/
[13] Butler, D. India says no to HIV drug patents. Nature
(2009). https://doi.org/10.1038/news.2009.882
[14] Economic Development and Patents. WIPO International.
Retrieved April 20, 2023, from
https://www.wipo.int/patent-law/en/developments/economic.html
Scaria, Arul George. “A Parliamentary Standing
Committee Report That Challenges the Fine Balances within the IP System.” BQ
Prime, July 26, 2021. https://www.bqprime.com/law-and-policy/a-parliamentary-standing-committee-report-that-challenges-the-fine-balances-within-the-ip-system.