India among the last three in US intellectual property index

The report grades countries on patents, trademarks, copyright, trade secrets and intl treaties

For the fifth consecutive year, India continued its dismal run in the US Chamber international IP Index. In the latest 2017 edition that evaluates the intellectual property (IP) environment in 45 countries, India figures in the 43rd place.  

The annual report grades countries on patents, trademarks, copyright, trade secrets, enforcement, and international treaties. India with a score of 8.75 out of 35 – just 25 per cent of the total score – is clubbed among the last three, along with Pakistan (8.37) and Venezuela (6.88). The US (32.62), the UK (32.39), Germany (31.92), Japan (31.29) and Sweden (30.99) were ranked the top five countries in the IP Index.  

The silver lining for India in the 2017 report was that it improved its position by one place and scored more than last year’s edition (37th place out of 38 countries and 7.05 out of 30). India ranked last or next-to-last in the previous four years.

Commenting on India’s performance, David Hirschmann, president and chief executive officer of Global Intellectual Property Center (GIPC) said, “Although India has made incremental progress, the government needs to build upon the positive rhetoric of its IP rights policy with the substantial legislative reforms that innovators need.”

Citing challenges in India’s IP environment, the report said that the National Intellectual Property Rights Policy – that was announced last year – does not address the fundamental weaknesses in the country’s IP framework.

Explaining the US Chamber’s position, Patrick Kilbride, executive director of International Intellectual Property at the GIPC, noted that despite significant gaps in India’s IP statute, relative to most other countries benchmarked in the Index, the National IPR policy seems to strongly suggest that no legislative changes to that framework are necessary. “It even goes so far as to claim that the current laws and judicial decisions provide a stable and legal framework for protection and promotion of IPRs,” he added. 

Among the challenges in India’s IP framework, the report cited issues around the scope of patentability for computer-implemented inventions and those relating to Section 3(D) of the Indian Patent Act.  Section 3 (D) restricts grant of patent for ‘incremental innovations’ in many drugs. This has led to disputes relating to patenting of known drugs and linking of marketing approvals with their patent status. 

This year’s report is critical of the recent Delhi High Court ruling regarding photocopying of copyrighted content. This involved a long-running case between some of the world’s leading academic publishers and the University of Delhi and a local photocopy shop. The court in its ruling did not find anything wrong with the university providing a photocopied master-copy of course texts for students to photocopy themselves in the university library.

“The judgment underlines the challenging environment that rights holders and creators face in protecting their IP not only in court but more broadly and across all major forms of content in India,” the report noted.

On the road forward for Indian policymakers, Hirschmann said the government must address issues that impact Indian innovation, such as software patentability, life sciences patents, copyright protection and enforcement, and trade secrets protection.

International IP Index: India's slip is showing
	Rank		Score
2012	11th  (among 11 countries)		6.24/25
2014	25th (among 25 countries)		6.95/30
2015	29th (among 30 countries)		7.23/30
2016	37th (among 38 countries)		7.05/30
2017	43rd (among 45 countries)		8.75/35
Top 5 in 2017		Bottom 5 in 2017
Country	Scores	Country		Scores
United States	32.62	Egypt		9.38
United Kingdom	32.39	Algeria		9.34
Germany	31.92	India		8.75
Japan	31.29	Pakistan		8.37
Sweden	30.99	Venezuela		6.88
Source: 'The Roots of Innovation' US Chamber International IP Index 2017

Key concerns about India's IP environment (in 2017)
National Intellectual Property Rights policy does not address fundamental weaknesses in the country's IP framework
Limited framework for protection of lifesciences IP
Patentibility requirements outside international standards
Challenges with the scope of patentability for computer-implemented inventions
Delhi high court ruling in the case involving University of Delhi regarding photocopying of copyrighted content