Differences Over Trade Policy Affecting Indo-U.S. Relationship



It all dates back to the implementation of the Indian Patent Act (2005). While talking about the intellectual property rights climate in India, the U.S. industry bodies cite the case of Novartis blood cancer drug Glivec, for which Novartis was denied patent protection by the Supreme Court of India. Bayer’s was also denied patent protection for its kidney cancer drug Nexavar.

The big Pharma companies of the U.S. are asking for the removal of section 3(d) of the Indian patent law, which prevents the granting of patents for mere modifications in the existing drug otherwise known as ‘evergreening’.

Indian officials believe the U.S. is using India’s case to scare other developing countries like Indonesia and Brazil, who are considering legislations to prevent ‘evergreening’ in their respective countries.

The Indian government officials cite a FICCI report to highlight the double standard of the U.S. authorities regarding IPR issues. The said study by FICCI suggests widespread piracy in the U.S., especially in Virginia, Chicago and California by which Indian businesses lost up to $50 million. The study notes extensive piracy of Indian music content and Indian satellite TV content. The report was shared with the Obama administration yielding no positive result.

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