FOREWORD

September 2004

Dear Sirs/Friend,

                                    Sub: Patentmatics.com – September 2004 Issue.

While delivering the inaugural address at the JRD Tata centenary celebration on Tuesday, the Prime Minister, Dr Manmohan Singh said, "As a student of economics in the 1950s and later as a practitioner in Government, I was greatly impressed by the Bombay Plan of 1944. In the conceptualisation of this document, JRD played an exceedingly important role, along with GD Birla, Purushottamdas Thakurdas, Ardeshir Dalal and John Mathai," he said. "When we read it today, nearly 60 years later, we see how relevant many of the central propositions of the Bombay Plan remain. In those days it was an unprecedented document. It is worthy of emphasis that nowhere in the developing world has a group of businessmen come together to draw up such a long-term plan for a country." "The plan defined the framework for India's transition from agrarian feudalism to industrial capitalism, but capitalism that is humane, that invests in the welfare and skills of the working people," Dr Singh said. "We have come a long way since the days of the Bombay Plan. Many of the `prerequisites' of industrialisation and modernisation have been put in place. However, in order to realise our full growth potential, we need to pay much more attention to the expansion and modernisation of our social and economic infrastructure, to increase investment in education and health and to the creation of capability that make us globally competitive." It is equally important to remember that it was the founder father J N Tata who had said that modern India could be built only on the three edifices of development - electricity, steel and Industrial Science – and accordingly went on to establish the hydroelectric power station at Khopoli, TISCO at Jamshedpur and an advanced education-cum-research centre which eventually took the shape of the IISC at Bangalore. TIFR established by late Homi Bhabha under the financial patronage of late JRD has often been described as the "craddle" of our nuclear program, with DAE itself eventually becoming roll model for ISRO, DRDO, and so on in organising suitable techno-administrative structures equipped for managing their ‘big science’ projects. The Tata group itself has effectively utilized the favourable aspects of the New Economic Regime during past decade. TISCO supported by its large R&D centre at site is steadily emerging as the cheapest producer of molten steel with capacity approaching towards five million tons and lately transforming into an Asian MNC with operations elsewhere as well. TELCO alone for the first time in Indian history gave birth to the first state-of-art passenger car through in-house R&D and has again extended its activities to countries such as Korea.. TCS, again with perhaps also the largest in-house R&D centre in the field, has emerged as the largest IT major. While participating in an interactive session at TRDDC on "Challenges of the New IPR Regime" a couple of years ago, I was delighted to see the commitment of the staff to move towards excelling themselves also in the IPR field.Undoubtedly no other industrial family has contributed so much in nation building as the house of Tatas. Patentmatics also joins the nation in paying its handsome tribute to the great hero, late JRD Tata.

Amazingly coincident with the Independence Month of August, the nation has witnessed four major scientific-technological successes – the Main Battle Tank MBT of DRDO, the SARAS of CSIR and Agni II of DRDO belonging to the so-called ‘high tech’ sector and Genetically Modified groundnut and pigeon pea (arhar or tur) varieties, resistant to Indian Peanut Clump Virus (PCV) and bollworm (Helicoverpa armigera) infestations of India-centred ICRISAT, as briefly described below:

(a)THE indigenously designed and built, main battle tank (MBT) `Arjun' rolled out of the Heavy Amazingly. Vehicle Factory at Avadi on Saturday. This marks a milestone in India's self-reliance in defence equipment, according to officials. The Defence Minister, Mr Pranab Mukherjee, formally handed over five Arjuns to the Chief of Army Staff, Gen. N.C. Vij. The Minister said that the government cannot go it alone in this endeavour; there is a need for public-private partnerships with the involvement of scientists, technologists and the industry. The private sector has to take an active role in defence projects. Industry can complement the limited resources available to the Government and discharge its responsibility to the nation, he said. Gen. Vij said that the five MBTs would now be put through their paces, and once cleared, the HVF at Avadi would get further orders. "It is a dream come true. If a couple of regiments could be equipped with Arjun, then it would be great," he said. An MBT, in defence parlance, is distinguished by its heavy armour and armament. The 58-tonne Arjun is clad in newly developed lightweight composite Kanchan armour, and its primary armament is a 120-mm rifled gun. The fire control systems are computer controlled and the tank is capable of operating at night too. It is also equipped with 7.62-mm machine gun and a 12.7-mm anti-aircraft machine gun. The army has placed orders for about 120 more MBT Arjuns. This, coupled with the completion of the 100th successful test flight of the LCA Tejas and the Prithwi versions and the dare devil Brahmo jointly developed with Russia, has certainly taken DRDO a long way in augmenting the indigenous capabilities in defence R&D.

(b)The first prototype of the country's civilian aircraft, Saras, made its inaugural flight successfully here this morning. The flight lasting about 20 minutes was witnessed by Union Minister for Science and Technology Kapil Sibal and HAL Chairman N R Mohanty. The aircraft was flown by Squadron Leader K K Venugopal and Wing Commander Makkar. The inaugural flight was expected last month but was put off following a minor technical glitch during a test flight. The 6,100 kg 14-seater, multi-role aircraft, has been designed and developed by the Bangalore-based National Aerospace Laboratories (NAL) of CSIR and built by Hindusthan Aeronautics Ltd along with the Aeronautical Development Agency. Saras is capable of flying up to a maximum speed of 550 Km/per hour at a cruise altitude of 7,500 feet and is designed to take off and land on short semi-prepared runways for building air bridges between small towns through an extensive feeder-airline operation.. About 500 hours of flight-testing is planned for obtaining certification from the Directorate General of Civil Aviation. Saras could be used for multi-roles for civilian transport, air medical services, executive transport and surveillance.

(c)The third successful launch of Agni II, a two-stage solid propellant missile with a range of 2000-25000kms and with ability to carry conventional and nuclear warheads, has once again demonstrated the nation’s ability to have her own independent ‘minimum deterant’missile program.

(d) THE International Crops Research Institute for the Semi-Arid Tropics (Icrisat) has developed genetically-modified (GM) groundnut and pigeon pea (arhar or tur) varieties, resistant to Indian Peanut Clump Virus (PCV) and bollworm (Helicoverpa armigera) infestations, respectively. Addressing presspersons here on Wednesday, the ICRISAT Director-General, Dr William D. Dar, said the IPCV-resistant transgenic groundnut had already undergone on-station trials at Icrisat's fields in Patancheru, near Hyderabad, during the kharif 2002 and 2003 seasons.

"We have sought the Government's approval for conducting open trails in farmers' fields during the 2005 kharif season," he said. IPCV is a common disease of groundnut, transmitted by a seed-borne fungus. Although the disease does not kill the plant, the infected plants do not produce marketable pods. IPCV is said to be difficult to control because it can survive in the soil for several years. Conventional breeding efforts for conferring resistance have not succeeded because suitable resistant groundnut genotypes have not been found even after screening of over 10,000 germplasm accessions. Icrisat claims that the transgenic approach, necessitated by the failure of conventional breeding, involved genetically transforming groundnut with resistance genes introduced from the virus itself. The process involved Icrisat first undertaking gene sequencing and cloning in collaboration with the UK-based Scottish Crops Research Institute (SCRI). Subsequently, the `coat protein' and `replicase' genes of ICPV were transferred into economically important groundnut cultivars, yielding over 50 transgenic lines that were then subjected to extensive molecular characterisation for the desired gene integration and expression. Dr Dar said the GM pigeon pea would be subjected to on-station trials in the current as well next kharif season and would be ready for farmers' fields trials only in 2006. This crop would incorporate the Bacillus thuringiensis (bt) gene, which has been used in the case of cotton for conferring `in-built' resistance against the dreaded Helicoverpea or Heliothis insect pest.

While these successes need to be highly appreciated, we also must beware of potential setbacks for the continuation of such programs from the threats of the New IPR Regime insisting on a "Patent or Perish" philosophy. Even a casual survey of USPTO, to take one example, describes over 150 patents under the keyword "Battle Tank" during 1977-date. In other words, it should be taken on record that all the above major items are invariably IPR protected through large patent portfolios by the competitor agencies in advanced countries. Such threats can be squarely met by all agencies including CSIR and DRDO only if they also resort to matching IPR Management and protection measures on top priority under the rapidly emergant TRIPS dictated situation.

It is in this context that one gets anxious at Industry and Commerce Minister Shri Kamal Nath’s recent announcement that he will soon be completing the task of fulfilling the TRIPS dictated Agenda in time by presenting the pending Patents Bill also to the houses of parliament for approval and subsequent enactment very soon, this bill for replacing the EMR provisions for drugs and agrichemicals with grant of product patents in line with the WTO/TRIPS dictated conditionalities. It is taken for granted that there is NOT going to be any review of the earlier Amendments at this stage. In line with the continued Campaign for Affordable Medicines, the August Issue has published three articles dealing with (a) Specific points in support of the PIL in Supreme Court against the Glivec EMR Case (b) Need for a true National Drug Policy for even the Generics and (c) a ‘global’ view of the Indian drug industry.

The Planning Commission has proposed to establish the NMCC (National Manufacturing Competitiveness Council) as an apex mechanism in the commission to evolve the national manufacturing policy. The NMCC would include representatives from the ministry of finance, department of industrial policy and promotion, department of commerce, Planning Commission, ministry of external affairs, Council for Scientific and Industrial Researh (CSIR), Federation of Indian Chambers of Commerce and Industry (Ficci) and the Defence Research and Development Organisation (DRDO). According to a paper prepared by the industry division of the Planning Commission, the terms of reference of the NMCC would include evolving policies and conditions which encourage competitive, sustainable and efficient indigenous creation of value through manufacturing sector. It would identify technology missions critical to manufacturing sector like nano-technology, consider global benchmarking initiatives, explore sectoral complementarity of India and China and evolve a time-bound road map on achieving world class standards. The NMCC would also try to integrate industry concerns in the export-import and fiscal policies.The share of the manufacturing sector in the gross domestic product in India is 17 per cent compared to 33 per cent in China, 29 per cent in Korea, 25 per cent Brazil and 27 per cent Thailand.Share of manufacturing export in total exports has also gone down to 0.76 per cent in 2003 compared to 0.8 per cent in 2002, according to a WTO report.

Recognising the importance of pushing the manufacturing sector for growth of GDP as well as exports, the Common Minimum Programme of the UPA government had originally proposed the setting up of the NMCC to provide a continuing forum for policy dialogue to energise and sustain the growth of industry like food processing, textiles and garmets, engineering, consumer goods, pharmaceuticals, capital goods, leather and hardware. The proposal, as formally announced, has drawn very severe comments from the leading daily, Financial Express thus: "The NMCC, it would seem, does not believe in running a lean, mean ship but in the philosophy of ‘the more the merrier’. The same disregard for practicality extends to the terms of reference of the NMCC as well. Consider. The terms of reference include evolving policies and conditions that encourage competitive, sustainable and efficient indigenous creation of value through manufacturing. The NMCC would identify technology missions critical to the manufacturing sector like nano-technology, consider global benchmarking initiatives, explore sectoral complimentarity of India and China and evolve a time-bound road map for achieving world standards! Phew! That’s a tall order by any standards. A lesser body might be daunted by the prospect. But the members of the NMCC will, presumably, be made of sterner stuff. Which is why, perhaps, the Planning Commission has not told the FM what it should have in the first place: that there is no need for a council that will, willy-nilly, metamorphose into a bureaucratic monolith with IAS officers jockeying for top slot. To ensure competitiveness, lower tariffs, open up all sectors (but for a small negative list) to FDI , tackle procedural hassles, and set up a Competition Commission to check misuse of market dominance. The rest will automatically follow."

Undoubtedly the "manufacturing competitiveness" element of Total Factor Productivity is not a subject which can be ignored any further, though one is not sure whether FE’s prescription of leaving it just to the market will quite suffice under the prevailing Indian situation. August issue is publishing two articles on this subject (a) A detailed study on the continuing improvement in innovation and TFP of the Finnish Industry through focussed industrial R&D under the slogan "Market gives the Pull, Technology gives the Push" (b) A New threat for Indian industrial R&D through the steady increase in PCT patents in India from abroad in virtually all sectors, perhaps steadily leading the national sector to even a Technology Trap, though outwardly the policies relating to transfer of technology have been liberalised in India with removal of restrictions on royalty or technical fee payments and removal of restrictive clauses in technology transfer agreement and easier procedures and these steps have increased

A few glimpses on IPR Issues and technology developments abroad on a few examples of Advanced Systems, Phonics, Artificial Retina and a new steel. The review of Taiwanese Photonics Industry is very rewarding, since reportedly DST has recently earmarked a sizeable R&D grant for promoting research work in this field. It is necessary to beware that large number of patents are already granted in this emerging area and Indian R&D must be obviously subject to systematic IPR Audit if the project envisages also "R&D of possible industrial use". Similarly a recent article in Technology Review on "Artificial Retina: A Demo" reports that "In the mid-1980s, neuroophthalmologist Joseph Rizzo III was researching retinal transplants to restore blind people’s vision. One day, removing a lab animal’s retina, a tissue-thin membrane that lines the back of the eyeball’s interior, he had an epiphany. "The moment I made the cut, I said to myself, ‘What in the hell are you doing?’" Rizzo recounts. He realized he was cutting nerve connections that are actually spared in many forms of blindness. The retina’s light-sensing cells die off in retinitis pigmentosa and age-related macular degeneration, which affect millions worldwide; but the nearby neurons that ferry the signals from those cells to the brain remain intact. So Rizzo conceived of a retinal prosthesis—an implant that would take a wireless signal from a video camera, bypass the light receptors, and stimulate the healthy nerve cells directly to feed the image to the brain. Rizzo, working at the Massachusetts Eye and Ear Infirmary and the Boston VA Medical Center, teamed up with MIT electrical engineer John Wyatt Jr. to pursue the scheme. In 1988, they launched the Boston Retinal Implant Project, which today comprises 27 researchers at eight institutions. The team has already done short-term human tests and hopes to test a permanent prosthesis by 2006". Importantly enough USPTO has already granted a number of patents on artificial retina! Also, as per Technology Review, Researchers from Oak Ridge National Laboratory and the University of Tennessee have found a way to cast relatively large structures from a type of steel whose atomic structure is amorphous, like glass, rather than the usual orderly crystalline structure of metal.Amorphous metal alloys are generally stronger and harder than their crystalline cousins; they enable light sports equipment and strong medical implants. Amorphous metals are also not magnetic.Current amorphous alloys are relatively expensive because they are made from metals like zirconium and palladium. The new steel alloy is around seven times cheaper than these, and is also stronger and has higher resistance to corrosion and heat, according to the researchers.The trick to making structures from amorphous metal is keeping the metal atoms from arranging themselves into an orderly crystalline form as it turns from liquid to solid. Past research efforts ran into trouble when casting amorphous steel objects more than 4 millimeters across.The researchers used a mix of metals that allows them to drop-cast their alloy to produce glassy steel rods as large as 12 millimeters. Steel is a mix of iron and carbon and often contains small amounts of other elements. The researchers' iron alloy contains chromium, manganese, molybdenum, carbon, boron and yttrium. Key to the researchers' mix is the rare earth metal yttrium, which allowed the mix to remain molten at lower temperatures, and slowed the growth of crystals.The new materials can be used for practical applications within one to two years, according to the researchers. The work appeared in the June 18, 2004 with issue of Physical Review Letters. When will India have her first alloy, we can and we must.

Last, but not the least, among the various items announced by the Union Commerce Minister, the government has also "liberalised import of seeds, bulbs, tubers and planting material, while freeing export of plant portions, derivatives and extracts with a view to promoting export of medicinal plants and herbal products". As far as I am able to understand (I do not propose to deal with other issues since I am not conversant with them), this clause can have very serious futuristic consequences specifically arising from the TRIPS dictated New IPR Regime. Almost all new seeds/bulbs/tubers/planting materials, etc are IPR protected in advanced countries and perhaps they have also started extending the protection to our country through approved mechanisms. Since Agriculture Ministry is yet to publish details readily for others' use, we are kept totally dark, though we know for sure that the Act is already in force for IPR protection of plant varieities in India. In other words, under the liberalised regime, IP protected seeds etc will start competing with our varieties and if ICAR and national R&D systems does not effectively compete with them, the farmers will easily opt for the former slowly and steadily and then at some stage become victims of the foreigner dictated seed market. Similarly, we still have not learnt to IP protect our medicinal/ornamental plants, etc. as required by the international scenario. Under such a situation, if export of such items are made liberal, our biodiversity will become 'world property' in no time. If we go forward on this ‘badly and madly’, we will TRIP again on TRIPS. This issue will be discussed in greater detail along with the much-trumpetted and so-called WTO "July Package" and issues connected with the NAMA.

Please keep writing to make patentmatics more ‘user friendly and user useful’.

Sincerely yours,

A D Damodaran.