India must tighten IPR laws to become research hub

Tuesday, 02 March 2004, 20:30 IST
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MUMBAI: India can emerge as a research and development hub for global corporations representing a wide spectrum of industrial sectors if the country tightens law to protect intellectual property rights (IPR), say experts. India's inadequate protection for patents and copyright materials discourages foreign companies, representing sectors like pharmaceuticals and biotechnology, from enhancing investments in Asia's third largest economy, experts added. "For a nation that has such dynamic and intelligent people, it is a pity that very few want to register a patent or trademark in India," says Randall Rader, circuit judge on the US Court of Appeals. "And I dare say very few will until India gets it act together on protecting intellectual property rights," Rader, who is in India to participate in seminars, told IANS. He said India's inadequate protection for IPRs forces the country's talented scientists and engineers to leave for other nations such as the US that, Rader said, allows people to reap the rewards of their intellectual endeavours. "IPR is about wealth creation and why should we Indians have any kind of problem," said Raghunath Minisandram, senior director (intellectual property) of Seagate Technology, a US-based computer storage devices maker. "At the nucleus of safeguarding IPR is the ability and confidence of a nation to tell the world that it will safeguard and protect property rights. It is also about attracting capital and talent," he added. Analysts say IPR is a crucial area when it comes to the pharmaceutical industry. Indian pharmaceutical firm like Ranbaxy Laboratories and Dr. Reddy Laboratories have made great strides in safeguarding their IPR. The protection of IPR in the pharmaceutical industry will assume greater significance in 2005 when the product patent regime comes into force as per the World Trade Organisation guidelines. Under the existing Indian patent law, only manufacturing processes of drugs are protected and not the drugs themselves. This, analysts say, helps many Indian pharmaceutical companies to spend less on research and development and yet produce large volumes of drugs at very low prices by copying the medicine patented in the West. According to a recent study report, copyright and IPR violations are as high as 80 percent in India as against a mere 30 percent in US. "Data exclusivity is crucial in the pharmaceutical industry. Inadequate protection of IPR would be detrimental," said Martin Adelman, professor of law in the US-based Dinwoody Centre for Intellectual Property Studies. "It is a property. IPR is equivalent to tangible properties. Some Indian companies infringe and use reverse engineering method. It is plain and simple theft." Adelman said it was time India woke up to the impending changes that would be introduced in 2005 when the product patent regime becomes effective. "India has talented pool of people. If they can make a name for themselves in the US and register patents by dozens, there is no reason why they cannot in India," said Raj Dave, an US-based expert on patent law. "All it requires is a proper mechanism in place to safeguard their intellectual property," he added. According to Dave, an alumnus of the premier Indian Institute of Technology (IIT), India can significantly increase foreign investment in agro chemical, pharmaceutical and biotechnology sectors by strengthening IPR laws.
Source: IANS
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