FOREWORD

November 2004

Dear Sirs/Friend,

                                    Sub: Patentmatics.com – November 2004 Issue.

Inaugurating very recently the CII's OECD-India Investment Roundtable,the Commerce Minister, Mr Kamal Nath said that the country would meet the deadline for product patent protection."Our Patent Law is currently fully TRIPs compliant. Our obligations require that we provide for product patent protection with effect from January 1, 2005. We shall do it." So far only the Left parties have petitioned the Government on the need for addressing concerns of Indian companies before amending the patents law; the CPI(M) has since elaborated its views through an article in its official organ Peoples’ Democracy, the full text of which is available on the site. Major points in the ‘PD’ are the following:

            a. The January 1, 2005 deadline should not be used as a plea to hasten through a legislation, for which the country might have to pay a heavy price later. There is a precedent in India, where the Patents First (Amendment) Bill providing for Exclusive Marketing Rights (EMR) and a mailbox was passed by Parliament only in 1999 with retrospective effect, though the TRIPS agreement required that the country provide for the same by January 1, 1995.

b.It is imperative that the government holds discussions on the modalities that it proposes to use, before the Bill is enacted upon. The Bill should not be passed after a cursory discussion in Parliament, without adequate thought being given to its diverse implications. The Bill should, in fact, be referred to a Joint Select Committee of Parliament, which should solicit views from different sections, interest groups, and experts. This is necessary today, as the amended Patents Act would have implications not just for the pharmaceutical sector but for others sectors such as agriculture, biotechnology, software, etc. The principal concern should be to ensure that the Amended Law protects the country’s interest adequately.

Similar views with also detailed suggestions have been submitted to the concerned authorities by the Peoples’ Commission on Patent Laws for India chaired by the former Prime Minister Shri I K Gujral himself, the Executive Summary of which is available elsewhere on patentmatics. The report explicitly emphasises the need for more efficacious negotiations to our advantage even within the provisions of TRIPS, for which a good beginning was made by the then NDA government at Doha, the same point being substantiated in his article by  an IPR expert Shri Basheer.The PC Report has interestingly summarised the significant points which were highlighted by the then non-NDA opposition groups during the passage of the Second Amendment. Two significant issues raised by a Leftist veteran late Shri V V Raghavan are the following:

a.       “If you look at the website of USA, we will find that they have enacted a law saying, ‘Whatever be the international commitments or agreements signed by America, if any agreement conflicts with the interests of the American people, the American law will prevail; the American law will subdue that commitment’. If America can do that, I don’t understand that we should succumb to their pressures…I don’t think, amending our Patents Act should be to meet the obligations towards the TRIPS Agreement or the WTO Agreements. We have to argue our case strongly.

b.       “There must be stringent provisions (on Compulsory Licensing Powers) to control prices…(the) phrase ‘reasonable’ can go up to anywhere.

 The current Issue is again publishing three articles by APMA highlighting the different aspects of the matter and another one on the TRIPS conditionalities themselves. And last but not the least on the subject is the EMR case for the anticancer drug Glivec itself, still awaiting for the final decision of Supreme Court (almost an year has already passed since the judicial procedures were started). Concurrently, the number of PCT applications on “anticancer drugs” alone - many of which have India also is a destination – currently works out to 38, the latest being “Monoclonal Antibody, Gene Encoding the same, Hybridoma, Medicinal Composition & Diagnostic Reagent” WO 2004/ 076658 dated Feb 27,2004, in favour of Mitsubishi Pharma Corpn et.al. Examples on other types are no different either, even in antibiotics. In other words,in absence of adequately strong anti-monopoly clauses in the present Patent Act 2003, the “product regime” has already started effecting visible blows to the national health sector! Now that the non-NDA ruling front is pioneering the Third and Final Bill in a hurry to meet the so-called dead line, one has great reasons to be worried about. Let us hope that they will see sense in NOT pushing the Bill through ostensibly to meet the dead line!

It is certainly worthwhile in this connection to recapitulate the history of IPR laws in our country, specifically when in another fortnight the nation will be celebrating the Birth Anniversary of the first Indian Prime Minister, late Jawahar Lal Nehru. One of the very early administrative steps taken by the newly independent government under Nehru was to review the the then valid Patents Act integral with the S&T and Industrial Policies themselves. It was quite crystal clear to the then political authorities that the 1911 Indian Patents and designs Act was basically meant to protect the interests of the foreign interests. Hence the reason that “the need for a comprehensive revision of the law relating to patents in India to suit our country’s developing economy was recognised soon after independence”. Accordingly based on the First Enquiry Committee (1948-50) recommendation, for which CSIR played a very significant role at that time, a notable amendment was made in 1952 itself for compulsory licensing in the field of food and medicine at any time after the sealing of the patent. The major amendments were of cource  to await the report of Justice Rajagopal Ayyangar in 1958, which eventually led to the celebrated 1970 Act.The question obviously to be raised most emphatically, more so when soon the nation will be celebrating this month the birth day of the first and perhaps the foremost Prime Minister late Jawaharlal Nehru, is: will not  the arguments of the 1958 Justice Rajagopal Ayyangar Committee in championing the cause of “Licenses of Rights” after three years for drugs continue to haunt the conscience of the nation hurrying towards the New IPR Regime, more so in absence of a relevant constututional authority which could order that judiciary must deliver its judgements within a stipulated time schedule on at least life-saving drugs! And that too under a government headed by the proclaimed successors of the Grand Old Party itself ? Well, we await with great expectations so that our country will not become the dumping ground of the neo-liberal brand of fortune hunters, the worst victims being the poor and ordinary citizens of this vast land. The chance of such developments could be real since there are reports that European Union is proposing to introduce Compulsory Licensing provisions in their Patent Acts ostensibly for “export to poor countries” to help them under the so-called Doha discussions.

It is not argued from the above that a market-economy based (capitalist) country like India can do away with patents and patenting practices.Basics of Industrial R&D as evolved and practiced in the West and advanced capitalist economies will  require a patent law to provide the required IPR protection to the producers of “R&D of possible industrial use”, but the law should necessary meet the overall demands of the national political economy, to quote the celebrated UK Swan Committee Report, since the primary aim of the limited patent monopoly protection is to promote national development and NOT to protect the interests of foreigners and their imported technologies. This has been the policy approach of all nations through their respective development stages and India cannot adopt a different approach in this crucial matter, as was exquisitely realised and emphasised by the Nehru government soon after our independence. We simply cannot afford to ‘trip’ under the WTO/TRIPS dictat!

As if ‘triping’ under TRIPS is not enough, developing countries are now being quietly exposed to another and perhaps more serious aspect of the same problem discussed through the auspices of the UN sponsored World Intellectual Property Organisation WIPO through the concept of an international patent – A Design for All Seasons! The two articles on the subject will serve to introduce the subject. Patentmatics will follow this aspect quite seriously in later issues. The Issue also has reproduced a detailed article on IPR laws in China, another one on ‘how to sharpen innovation’, a third one on Industrial R&D itself from a perspectival point of view and the fourth one on IPR issues involved in the latest industrial policy of GOI to scrap Press Note 18 connected with joint venture units. Added to all is the last provocative one on “Silcon Valley or Coolie Valley” wherein also the author has very rightly used IPR based evaluation methodology for definition of the word ‘technology’ in contrast to ‘abuse’ of the same so casually in our parlance!

Last but not the least, it is reported that Reliance Energy is looking at possibilities to set up Nuclear Power stations. ``This requires a lot of support from the Government'', V.K. Chaturvedi, newly appointed director of the New Power Initiative of Reliance Energy, said, adding that perhaps for the first time in the country any private company would be entering the nuclear power market. Dr. Chaturvedi, who was the former CMD of the Nuclear Power Corporation of India Ltd (NPCIL), said, ``it will be necessary to have technical support from the Department of Atomic Energy and NPCIL''. As soon as the amended Atomic Energy Act gets clearance from the Parliament on private participation in the nuclear energy production in the country, Reliance Energy would be the first company to come forward to set up nuclear power plants, Dr. Chaturvedi said. A new policy initiative like this will of cource also entail major modification/deletion in Patents Act currently providing sweeping protection powers to the government on all all items covered under the said Atomic Energy Act.

Note: Kindly note that with effect from November 2004, this site is renamed as www.patentmatics.org  to make it doubly clear that it is only a voluntary educational effort and NOT a commercial one. Being a purely educational and voluntary non-profitable activity, patentmatics has been reproducing a number of relevant articles under the ‘fair use’ doctrine. It is hoped once again that the authors and publishers will aptly condone the IPR issues if any!

Yours sincerely,

A D Damodaran