Doubts on IPR policy boost for patents, say experts

It aims to leverage IPR to reap economic and social benefits on a large scale

The recent Intellectual Property Rights (IPR) policy might lead to a higher number of patents but not necessarily foster innovation, feel legal experts.

The policy, a long time in the making, aims to leverage IPR to reap economic and social benefits on a large scale. However, IP lawyers and experts say while registering of patents might benefit its holder, its effectiveness as a socio-economic tool is in question.

“An indiscriminate push has been provided to registering patents and generating IP assets but the measures to link these with long-term innovation growth has been absent in the policy,” says lawyer Shamnad Basheer, part of the original think-tank constituted to draft the policy. He added no empirical validation has been given to prove a higher number of patents pushed up innovation. The government looked at China, where a record number of more than a million patent applications were filed in 2015, said an expert who'd with the government on IP. China had focused on patent generation on a massive scale since the late 1990s but, opine many, this resulted in proliferation of low-value patents, scoring low on innovation. Less than one cent of China’s patents are of intermediate or high value. An equal scenario has been predicted for India.

An official from the department of industrial policy and promotion recently said such patents constitute almost 10 per cent of all applications currently awaiting approval.

“Implementation is the key if the policy is to leverage efficient innovation,” said Nishad Nandkarni, associate partner at law firm Khaitan and Co. While the policy talks about specific research to find which areas in various sectors need new IP creation the most, it does not help that no specific framework has been provided, he added.

On the global front, India continues to be pressurised by developed countries and especially the United States on specific provisions in our patent laws.  Chief among this is section 3 (d) of the Patents Act, which stops evergreening of patents after minor adjustments. While major US pharmaceutical companies are the most vocal opponents, their Indian counterparts are also against it.

There is concern over the fact that the policy has kept open the possibility of amendments to such laws, though commerce and industry minister Nirmala Sitharaman recently ruled out accepting of provisions which are stricter than the current Trade Related Aspects of Intellectual Property Rights agreement. The pact came into force in 1994 and sets minimum standards for many forms of IPR for all members of the World Trade Organization.

CONCERNS OVER POLICY

• While major push has been provided to patent generation, policy is silent on how it  will lead to fostering innovation
   
• Fears of large number of low value patents clogging system as a result
  

 

Implementation under scanner as need to find out which sectors require IP creation most
 

On the global front, India continues to be pressurised by the developed countries and especially the US on specific provisions in our patent laws