Intellectual property rights issues could get a resolution system

One of the main outcomes of Prime Minister Narendra Modi’s visit to the US is going to be the launch of a dialogue mechanism on issues related to intellectual property rights (IPR), a major irritant in India-US ties.

The dialogue mechanism, likely to get a mention in the joint statement after the much-touted meeting between Modi and US President Barack Obama, will subsequently commence under the India-US Trade Policy Forum likely in November, a top official told Business Standard.

It is learnt that following the prime minister’s visit, US Trade Representative Michael Froman is expected to visit India to implement the dialogue mechanism jointly with minister of state (independent charge) Nirmala Sitharaman during the Trade Policy Forum meeting.

According to the ministry of external affairs, a constructive dialogue will commence soon.

During his meeting with Obama, Modi is expected to inform the President about India's plan to launch a comprehensive IPR Policy by 2015 in order to strengthen the country’s patent laws that have come under scathing attack from the US.

Issues concerning IPR and patents, including grant of compulsory licences and ever-greening of patents, are going to be discussed between both the leaders. On September 29, Obama is throwing a private dinner party for Modi in Washington, which will be attended by Froman and US Commerce Secretary Penny Pritzker.

The issues will be discussed at length the next day, September 30, when both leaders sit for a face-to-face bilateral meeting.

While announcing the government’s plans earlier this month, Sitharaman had said the new policy will put the country’s intellectual property right and patent laws under a single framework, even as she reiterated that the country’s IPR environment is sound and is in compliance with the World Trade Organization’s agreement on Trade Related Aspects of Intellectual Property Rights.

US companies, especially pharmaceutical firms through their lobby group, had been pressuring the US administration to take strict action against India over its IPR policy.

The US was particularly miffed with the Supreme Court’s judgment in April last year, where it rejected the patent application made by Swiss company Novartis for its cancer drug, Glivec.

Prior to this, American companies were already upset since the controller general of patents, designs and trademarks decided to grant compulsory license to Natco Pharma to produce and sell generic versions of Bayer-Onyx’s cancer drug, Nexavar.

Under its annual report on the trade practices of various countries – Special 301 – the US administration had even gone to the extent of almost imposing trade sanctions on India. Finally, it suggested that it will closely monitor India’s IPR practices and conduct out-of-cycle review.

Besides, the US International Trade Commission had launched an investigation into India’s IPR laws jointly with the National Association of Manufacturers.

The Global Intellectual Property Center, under the US Chamber of Commerce, in its annual report had ranked India the lowest because it believes the country has the poorest intellectual property rights environment and innovation climate.