FOREWORD

November 2006 Foreword from Dr A D Damodaran

Greetings and November 2006, Foreword

Dear Sirs/Friend,

                                   

Sub: Foreword www.patentmatics.org November 2006.

 

 

      1.In his celebrated IUCN lecture "Science and the Problems of Development" in Bombay on January 7,1966, Homi Bhabha said:

     "...I think it only appropriate that I should recall at this stage the immense debt that Indian science and scientists owe to Jawaharlal Nehru. Science was an essential, indeed basic, component of the India, which he sought and worked so hard to build.’ It is now patent', he said, 'that without science and technology we cannot progress'. So great was his zeal for science and for scientific approach to life that he missed no opportunity of imparting his views to others. To quote,’ You know that whenever the chance offers itself I say something about the importance of science and its off-shoot, technology, I think we should realize how modern life is an offspring of science and technology'. And he fully realized that modern science and technology were as necessary for a highly developed agriculture as for industry. 'After all', he said, 'how has agriculture grown in many other countries greatly? It is because of the application of science and technology. If modern life depends so much on science and technology, then we must seize hold of them, understand them and apply them'. To give one more quotation: 'Science has developed at an ever-increasing pace since the beginning of the century, so that the gap between the advanced and backward countries has widened more and more. It is only by adopting the most vigorous measures and by putting forward out utmost effort into development of science that we can bridge the gap. It is an inherent obligation of a great country like India, with its traditions of scholarships and original thinking and its great cultural heritage, to participate fully in the march of science, which is probably mankind’s greatest enterprise today'".

We cannot remind ourselves of a more powerful quotation (of a great leader by a foremost scientist-leader of our country) when in November 2006 the national body-politique has to once again braze itself, “not badly or madly, but through incessant strivings”, to face the mounting S&T challenges of the new WTO/TRIPS dictated policy regime as applied to even essential sectors like health and family welfare of those for whom India does not yet shine, agriculture, food and livelihood of over 60% of our rural population or for that matter in ‘India-centric’ policy options on strategic areas like nuclear and allied technologies to meet our urges and requirements in such fields from a long term and sustained mode. Even on the issue of the Indo-US Nuclear Agreement, it is very worthy to appreciate Bhabha’s elaboration on his celebrated “Growing Science” model as applied to the very same nuclear technology (though equally applicable to the larger field of industrialization itself); and while debating on the plus and minus of the Indo US Nuclear Agreement, it will be very rewarding to go through how Homi Bhabha had visualized his strategy of developing nuclear technology in our country to make it economically viable. To quote him again (op.cit.),

     "The decision to build an uranium metal plant was taken in may 1956... and the first ingot of atomically pure uranium was produced in January 1959...Similarly the fuel fabrication plant... and the first fuel element (brought out) in June 1959.... our fuel elements (for one full charge) would cost Rs 26 lakhs or $520,000 equivalent (even with that of uranium at double market price). This fuel charge, if imported, would cost $750,000". Thus, not only that we obtain fuels at two-thirds of the price at which we could buy them through import, "we now have first hand technical knowledge for the erection of such plants on a much larger scale”. In other words, Bhabha had envisaged that indigenous manufacture of systems was the surest way to achieve economic viability in this sophisticated field of technology, thanks to the possibility of creating adequately trained manpower within itself. Undoubtedly this situation has not changed now also. In other words, economic viability of imported reactor-fuel assembly systems is yet to be adequately firmed up, thanks to the same reasons, leave alone the possible pressures on the nation to amend the very patents law once again! Undoubtedly the nation has to reinvent the basic tenets of the Nehru-Bhabha synergy in handling those crucial S&T issues of vital interest for national development within the framework of national dignity and sustained self-reliance.

 

2. The foremost issue of concern for November is aptly enough the ones related to WTO Treaty itself. As exquisitely brought out by the learned Supreme court legal luminary and public interests activist Shri Rajeev Dhavan through his article Indian Governance and Treaties: The Advent of the WTO”, India is obviously yet to learn lessons for handling such executive actions within the democratic processes envisaged in the constitution (Reference: Final Act of WTO: Abuse of Treaty Making Power, Shiva Kant jha, 2006). Pointing out that increasingly – and certainly since the advent of the WTO – the world is going to be governed by treaties; he examines the prevalent mode of Treaty Making and Democratic Governance in India in great detail. To quote, “ Treaties play, and will play, an increasing role in Indian governance. But, the practice in India has generally been to allow the Executive to make the treaties without really invoking the democratic process other than the fact that the Prime Minister and his cabinet are collectively responsible to Parliament. No doubt, a debate can be raised in Parliament but even such a process lacks both persistence and rigor. The WTO treaty is a case in point. In 1995-96, the National Working Group on Patent Laws set up a Peoples’ Commission on GATT. The membership of this Commission included Justices Krishna Iyer, Chinnappa Reddy, D.A.Desai and Rajinder Sachar. In the Submissions of PILSARC (a legal public interest group) I included an account of how, the then Government handled the negotiations. This submission finds place in the Report of the Commission and reads as follows:

            “On March 15 and 30,1990, the Government stated “…. that it will not participate in any negotiation …under threat of retaliation” (Lok Sabha Qn. 33 and 2873)

            “On march 19 and 27,1990 the Government stated that there was no proposal to amend the Indian Patents Act which was a statutory legislation (Rajya Sabha Qn. 643 and 660; Lok Sabha Qn. 2221 and 2312).

            “On May 3,1990 the Government stated that investment and services”…lie in the domain of sovereign decision making not covered by GATT or any other multi-lateral or bilateral agreement” (Rajya Sabha Qn. 88).

            On 4-10th May, 1990 the Government reiterated that “.. …. It cannot enter into bilateral negotiations to change basic economic policies which are in the domain of our sovereign decision making, and that too, under threat of retaliation”. India would provide support and leadership to the concerns of developing nations (Lok Sabha Qn. 7452; Rajya Sabha Qn. 7603).

            On May 11,1990 the Government was hopeful that the GATT Negotiations would result in a “balanced outcome” for developing countries; and ensure that India’s interests were safeguarded (Lok Sabha Qn. No. 8334).

            On 17th May 1990 the Indian Government repeated “The Indian delegation also reiterated its stand that it would not negotiate under threat of retaliation under Super 301 (Rajya Sabha Qn. 221).

            On 9-10 August 1990, the Government reported that there would be no negotiation under threat of retaliation but admitted that the US had stayed its hand because of India’s potential through (its) participation…in negotiations on (TRIMS and Services” (Rajya Sabha Qn. 46; Lok Sabha Qn. 883)

            On 31 August 1990, the Government admitted that the comprehensive package of the developed nations in GATT “did not…take our development and other concerns fully into account”. The Government claimed that India had “held its position” in GATT and much depended on the ability of the developing nations to “stand together and firmly” in the final phase of negotiations”….

            In another statement it was also repeated that India would not negotiate under threat of retaliation (Statement in reply to Lok Sabha Qn. 3868).

            On 28 December 1990, the Government declared that its stance in GATT was that developing countries are different and unique and that Indian labour should be able to travel to industrialized countries temporarily. Aspects of India’s tentative position were stated in one-line policy statements on textiles, patents and services (Lok Sabha Qn. 382).

 

However with the change of Government in June 1991, a process of adjustment and reversal seems to have resumed again.

            By 16 July 1991, the Government talked of “different perceptions on patents and trademarks” from the US; but took no stand (Lok Sabha Qn. 418).

            On 11, September 1991, the Government admitted that the Dunkel proposals would fundamentally alter various aspects of the economy including patents. Thus, it is evident that during the first five years of the Uruguay Round, the Indian Government failed to make any substantive policy statement to Parliament, the State Assemblies, the Chief Ministers or the people. The Union Government failed to issue any position paper detailing the status of the negotiations, the position taken by various countries, the proposed changes to domestic legislation and anticipated consequences of signing the Treaty”. This evasive conduct on the part of the Government continued. After some time, the Arjun Singh Committee was informally established in 1992-93. Its sessions were in camera. Its report remained secret. One of the Committees of Parliament, headed by Shri Gujral, was very critical of the implication of the Treaty on India’s people and its economy. This made little difference to the government, which knew it had the power to do what it wanted. The Indian constitutional system does not keep an eye on treaties, which are signed by the Executive without submitting to the democratic process.

....".

Aptly enough, he highlights the anomalous manner in which the ongoing discussions are held ‘democratically’ on the July 18, 2005 Indo US Nuclear Agreement. To quote Shri Dhavan again,Under the American Constitution, treaties have the same status as law to implement them. More significantly, the treaties have to be ratified by the Senate unless the law provided some leeway. So, every treaty has to be tested under the procedures provided by the Constitution as well as the framework of laws within which decisions in respect of treaties have to be made. The world had to wait until all this was done or move at speeds dictated by the inner compulsions of governance of the US. In the year 2005-6, India had entered into an agreement with the US on the supply of nuclear fuel. The US wants to impose its will on India by interposing new conditions, which India is required to meet. But, then, even if signatures were made on the agreement, it had to be ratified by the Senate. For several months, India had to wait and respond to the treaty making system of the US. For India this created issues of pride and prejudice. Within India, political parties of the right and the left criticized India’s Prime Minister for entering into such humiliating and inchoate agreements. Prime Minister Manmohan Singh had to reply to a debate in Parliament on 17 August 2006 and assure both Parliament and India’s populace that he would not countenance a surrender of India’s sovereignty to the US or agree to conditions, which were onerous. Whether this was a good parliamentary tactic or a bonafide assurance remains to be seen. On WTO, India simply capitulated during the treaty making process”. And will the GOI do the same when the “final product” is placed on the table? Alternately, is it the truth that the Executive has already surrendered since, it is truly disturbing to read news items such as “On his first day in office as External Affairs Minister, Pranab Mukherjee reportedly got some positive news on the UPA government’s most important foreign policy initiative — the Indo-US nuclear deal. US Secretary of State Condoleezza Rice called to assure him that the Bush Administration will “do its best” to ensure the Indo-US Civil Nuclear Cooperation Bill passes through the Senate in the November session!

Coming back to the procedures on Treaty making, Shri Jha has in his monograph has ably summarised the practices in UK, USA, Australia, France, Japan, and so on, in all of which the democratic processes are, unlike in India, supreme over the executive authority in treaty making. Organised efforts are reportedly being made by a group of learned legal luminaries to move a Writ Petition in the apex court seeking its appropriate intervention to see that India remains a liberal parliamentary democracy, not only an ‘enlightened dictatorship’.  There is very little doubt that if Jawaharlal Nehru was alive today, there is every reason to believe that he certainly would have graciously supported such a constitutional review move on Treaty Making Rights!

            With great privilege, patentmatics is placing this Constitutional Issue before its readers for their studied support in the matter; after all, by now they know only too well that even an otherwise ‘neutral’ sector like S&T is increasingly being subject to the WTO/TRIPS dictated challenges! Whether it is on new life saving drugs, new plant varieties for even those like rice and cotton, Data Exclusivity as applied to drugs and agrochemicals, optimised patent monopoly/ competition law synergy to meet peoples’ needs,liberalizing’ the education sector for even the foreign investors (as announced by a Commerce Secretary, not even one handling Education!), and so on, the WTO dictated challenges are ill-affecting every sector of our developing economy, not forgetting the temporary gains through the so-called ICT Revolution or the escalating Stock Exchange Index through FII induced speculative capital much beyond what is justifiably indicative of improved performance indices. When Indians are crying for quality and affordable medicines, major Indian drug companies are encouraged to getting ‘globalized’, with, in some cases, even 90% of their revenue accruing from sales in advanced countries like US! With one R&D Centre at Bangalore since 1991, about 40 per cent of the software used in Motorola phones globally is what is developed by MSG's India design centers, thanks to the New IPR Regime.  A new international division of labour, a truly “Inclusive Globalization” (due apology to Prime Minister’s use of this description in his recent lecture in Cambridge University!) with reverse benefits!

Last but not the least, the great success of ISRO in successfully developing the cryogenic engine matching with its GSLV launch architecture. Incidentally, US have now a New Space Policy released in August 2006. Under the heading, Freedom of action, the document says: “For 50 years, the U.S. has led the world in space exploration, developing “a solid civil, commercial, and national security space foundation,” the document notes. “Space has become a place that is increasingly used by a host of nations, consortia, businesses, and entrepreneurs,” the space policy states. “In this new century, those who effectively utilize space will enjoy added prosperity and security and will hold a substantial advantage over those who do not.” Additionally, the Bush space policy is designed to “ensure that space capabilities are available in time to further U.S. national security, homeland security, and foreign policy objectives.”  Moreover, a fundamental goal of the policy is to “enable unhindered U.S. operations in and through space to defend our interests there.” The policy calls upon the Secretary of Defence to “develop capabilities, plans, and options to ensure freedom of action in space, and, if directed, deny such freedom of action to adversaries.”. And on Overhead intelligence in a section called “Space-related Security Classification,” the new space policy lists several unclassified facts, such as: The U.S. government conducts satellite photoreconnaissance that includes a near real-time capability, as well as overhead signals intelligence collection. Among a number of tasks, U.S. government photoreconnaissance is used to “image the United States and its territories and possessions, consistent with applicable laws, for purposes including, but not limited to, homeland security.” The Director of National Intelligence is charged by the policy to “provide a robust foreign space intelligence collection and analysis capability that provides timely information and data to support national and homeland security.” Will this mean anything for the indigenous ISRO programs?

Looking forward to your comments and suggestions,

 

Yours truly,

A D Damodaran.