The government on Friday announced the National Intellectual Property Rights (IPR) Policy which has comprehensive coverage.

The policy which should be reviewed every five years aims to push IPRs as a solid financial asset that promotes innovation and entrepreneurial ventures. It also protects public interest by ensuring availability of essential and life saving drugs at affordable prices.

The U.S had expressed concerns about rejection of patent applications of innovative pharma products due to the ‘unpredictable’ application of  Section 3(d) of the Patents Act. Finance Minister, Arun Jaitely clarified that the policy will ensure that no changes are made to Section 3(d) which prevents extended renewal of drug patents and the patent disabling

Though the U.S. concerns include the “rejections” of patent applications for innovative pharmaceutical products due to “unpredictable” application of Section 3(d) of the (Indian) Patents Act, Mr. Jaitley clarified that the policy will ensure that no changes are made in that Section (which prevents ever-greening of drug patents) and the patent-disabling Compulsory Licensing regime (Compulsory licensing is when a government authorises a party other than the patent owner to produce the patented product or process, without the patent owner’s consent)

Safeguards in the Indian Pharma Industry

The IPR policy comes in the backdrop of the US Trade Representative (USTR) in its 2016 edition retaining India on the ‘Priority Watch List’ for “lack of sufficient measurable improvements to its IPR framework.” It is important to note that it also comes ahead of PM Modi’s scheduled visit to the U.S. in June.

The policy states the following points clearly. First, India will continue to remain committed to the WHO Doha Declaration on Trade Related IPR Agreement & Public Health. Secondly, India will continue to use the legal space and flexibilities availabe in international treaties and the TRIPS agreement. This means using provisions such as SEction 3(d) to ensure availability of essential and life saving drugs at affordable prices.

The policy looks to form strong IPR laws by striking a balance between patent rights owners and greater public good. This policy review will be done to improve, update and remove any errors and inconsistencies.

Government sources have also said the changes in the laws will be those relating to the Rules on patents, trademarks, copyrights and other IPRs, but the changes will not go beyond India’s commitments at the WTO-level.

Policy at public cost

“The IPR policy is driven by the agenda of IP maximalism, where IP owners’ rights will be maximised at the cost of public interest. This (policy) will influence courts and judges. The policy needs to be opposed from becoming a ‘national’ policy,” said Dinesh Abrol, convenor of the National Working Group on Patent Laws and WTO, a civil society group.

To ensure strong IPR laws, the policy states that India will look to have active participation across all stakeholders involved. It would also examine multi lateral treaties which are in India’s interest and become signatory to those treaties which India has implemented. This would enable India to participate in the decision making process of these treaties.

India will look to be part of IP classification agreements like the Nice and Vienna classifications and not pacts like Trans Pacific Partnership which have TRIPS plus provisions.

Encouraging IPR filings

While the policy looks to create a balance, it also wants to encourage domestic IPR filings for the entire value chain from IPR generation to commercilisation. Promoting R&D via tax benefits and a proposal to create effecient loan guarantee schemes to encourage start ups are also part of the IPR process.

With inputs from – The Hindu

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