India on “priority watch list”

What changes should be made to India’s view on Intellectual property?

Intellectual property (IP) refers to creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names and images used in commerce. The Special 301 report is prepared by the USTR (United States Trade Representative) reviewing the state of enforcement and protection of IPR (Intellectual Property Rights) in countries that have strong trade relations with the US. India has been placed under the category of Priority Watch List according to the Special 301 Report of 2017. This step indicates that US finds “serious intellectual property rights deficiencies” in India which can be a threat to the Intellectual Properties of US Companies.

The top imports between the US and India include pharmaceuticals ($7.4 billion), miscellaneous textile articles ($2.3 billion), and machinery ($2.1 billion) etc. Leading services imports from India to the U.S. were in the telecommunications, computer, and information services and research sectors. All the above stated products and services have IPRs vested in them. Trump’s senior administration officials state that IPR theft is a high priority for them. There can be utilisation of dispute settlement mechanisms and in some cases more unilateral steps being adopted.

Indian Legislations on Intellectual Property Rights

India has enacted distinct legislations such as Copyright Act, Patent Act and Trade Marks Act etc. All these legislations are in compliance with the prominent International Conventions – TRIPS (The Agreement on Trade-Related Aspects of Intellectual Property Rights) and Berne Convention.

IP Laws in India try to balance the rights of the innovator or the author with that of the interests and benefits of the public from the work created. This balancing act can prove to be prejudicial to the rights of the Intellectual Property Rights of the creators in certain circumstances. Countries like US and Canada adopt a strict approach in protecting the IPRs and provide no exceptions even after considering the benefits or necessity of the work protected to the public.

What is the comparison between the Indian and American views on IP?

United States of America claims that IP laws in India are insufficient to drive large scale innovation and investment in India. They believe in having strong trade relations with countries that have unilaterally adopted strong IPR protection as a sovereign policy choice and not as a criterion of a trade agreement.

Software under Indian Patents Act is not considered to be patentable unless it is in combination with a new hardware. USTR would find such an exception to patentability of software unacceptable because the patent regime in US strict to the extent that, even the process of surgery is patented. Providing patent for software programmes can enhance the bilateral trade in IT.

Assessment

India’s apathy towards copyright and trade mark protection is evidently indicated by lack of awareness of the legislature and judiciary. India’s accession to some of the latest treaties to combat piracy (WIPO Internet Treaties and the Singapore Treaty on the Law of Trademarks) can lead to improvement in its domestic laws. This step would increase the confidence of trade partners of India.

Apart from trade benefits in global market, India will stand at an advantage even at the domestic level by tightening its IPR regulations. A country can produce more innovations, original literary and artistic works when there is adequate incentive and protection given to the creators. More the protection and recognition of IPR, more the incentives to produce original work and innovations, which leads to the growth of Indian economy.