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IMPACT OF WTO AND PATENT REGIME |
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1. Introduction: The twenty first century with liberalisation, globalisation and free trade will witness a sea change in the method of research and developement , relevance of process change and reverse engineering. Especially it is true with third world developing countries like India. Indian Reserch and developement has always been lagging when compared to advanced nations. The strategy for chemical reserch and product development for last four decades was to look for development elsewhere. Due to multitude of intelligentia available with all National Laboratories , successful modifications , adaptations and process developements were possible . To site few examples - the process developments in the fertiliser industry, especially Urea process, developement in the refinery industry especially in the production of Catalysts, in pharamaceutical industries like production of Ranitidine , Antibiotics etc. These realisations were possible because there was no product patenting exercises (Only the process patenting was being done)before the advent of GATT and WTO. 2. Stipulations of WTO and GATT The important differences and rigidity of Trade releated Intelectual Property Rights (TRIPS) and Indian Patent act - 1970 are briefly out lined and summarised below. a) Nature of Patent: TRIPS allows product patent in all branches of technology without discrimination. IPA-1970 allows only process patent in drugs, foods and pharamaceuticals. b) Patentability : TRIPS allows patent for any invention in all fields of technology including micro organisms and micro biological process, where as IPA 1970 does not allow patenting of any life form or agricultural / medicinal / surgical products. c) Plant Varieties: Protected under TRIPS d) Duration: Under TRIPS the duration of patent is 20 years compared to 7 years for food and pharmaceuticals and 14 years for others. TRIPS regime imposes strigent conditions for patent violations and intelectual piracy. The onerous of patent violation rests with the persons accused of trespassing in to intellectual property rights. The WTO agreements - India being one of the signatories- came in to effect from 1995. There was a grace period up to 2000. Up to 2005 the exclusive monopoly Rights comes in to operations. There after all stipulations of WTO comes in to effect without any concessions. Ofcourse there are redressal mechanisms and dispute clauses available for each country under the general terms of WTO. 3. Impacts
of WTO and GATT on Chemicals Industries.
The Indian Chemical industries had been showing a consistent improvement of about 10% over the past two decades. India produces almost all types of chemicals ranging from Ferilisers, Pharamaceuticals , Drugs, Petrochemicals and Paints to consumer chemicals like food, bevarages etc. For some of the industrials products there is an umbrella of government protection and subsidy, effective import controlls and increse in the import duty along with anti dumping measures and administered pricing mechanism. Under obligations to WTO , India has already removed restrictions on free trade from abroad for 3500 items and other 950 items would be realised by April 2001. Astonishingly , apart from essentials , the list is very long including safety pins, razers, cosmetics , essentials oils etc. This will results in such a free flow of materials at a low cost to Indian consumers. But it will adversely affect the ecnomic vialility of many organised chemicals sectors. To cite few examples, the cost of Titanium Dioxide , which at present is priced at Rs 85/- per Kg is priced at RS. 30/- per Kg internationally. Common drugs , Aspirin which is RS. 60/- per Kg is available for RS. 25/- per kg from China. The price difference is predominentialy seen in the cost of edible oils, rubbers and its products etc. Apart from the impact on economies , the existing industries if they have to deversify in to newer products, exclusive lisencing fee have to be paid to the inventors and developers. In pharamaceutical industry the advent of new drugs for AIDS, Cancer , slow delivery medicines etc. will certianly impose new difficulties to the existing drugs manufactures.
The industrial scenario requires to be recast. Survay of ecnomic
viability, market conditions, consumer preferance and above
all, modernisation and cost effective method of manufacture
become imperative for the indian industry to survive.
Most of the chemical industries do not have a strong
R&D base and futuristic programmes.
The governmental fiscal and tax policies required
to be rationalised including the lending and credit debit ratios.
Urgent refoms on all the above factors only
can lay competitive road map for the effective and competative survival
of indian industries.
4. Impact of Patent Regime on Space Chemicals Though the problems and possible solutions outlined for chemical industries are common to the R&D of space chemicals and propellants, these materials being strategic in nature, additional burdens are imposed on in the form of embargo on export and non availability of technologies. In the last four decades both ISRO and defence scientists were focussing their attention on the indegenisation and reverse engineering. Of course in certain areas, adoption of existing technologies came to the rescue in realising their missions. The absence of product patent helped them to develop newer process based on the open literature and published patents. Since most of the products are meant for internal consumptions and not for commercial exploitation , there were practically no desputes on patent infringement. The scenario will change when advanced and higher energy material are required to be synthesised in future. The growth in technology is so vast, newer higher energy materials will be produced by the computer simulationof structure of molecules. The changed scenario will require the present researchers to resort to more computer simulation , more theoretical computations and attitude change ie from being ‘ faith full’ follower of the developements done else where. Cost effectiveness in items of launch and payload would be the emphasis of the future. The impact of modern compulsions and present status on space chemicals and propellants will be discussed in the subsequent headings. 5. Current status and Non Vulnerable Areas. 5.1. Propellants and High Energy Materials: There is no constrain or concern on the manufacture and utilisation of conventional high explosives used in the production of small of arms and amunitions. The wide variety of chemicals like Nitroglycerine, Nitrocellulose, Nitroguanidine, RDX, HMX, ballpower etc are already in the manufacturing lines of indian ordance factories both under lisence as well as being declassified in nature. The present proposed patent laws do not cover them as they are time barred and come under open literature since the manufacturing details and technologies are widely published. The same logic is also applicable to manufacture of propellant - either double base or multibase-for tactical missiles under production in India . This is true for the small arms manufacture and weapons like torpedoes , gun propellant , etc. But however further modernisation, process improvements and adapting newer technologies would come under the purview of international lisencing and patent regime. Concerning the space chemicals and propellants used in different launch vehicle programmes like PSLV and GSLV of ISRO , the scenarrio emerges thus. The solid propellant system for our launch vehicles is based on composite type , containing , HTPB as the polymeric binder , ammonium per chlorate as the oxider , aluminium as the metallic fuel along with additives like plasticisers, burn rate catalysts, anty oxidants etc. The production of HTPB either by free radical polymerisation or by an ionic polymerisation is declassified and the validity of existing patents are time barred. India has the manufacuring facility for HTPB production and this area poses no concern. Similer is the situatiuon in the production of AP. All other ingredents are in commercial production. With resepct to present HTPB based work horse propellant , there are no international obligations to be met. Withragard to propellant formulations patent., they will not be binding on the nation for similer reasons. 5.2. Polymers and Chemicals
With respect to different polymers , resins, adhesives, sealants etc used
in space Technology - some of them are developed in house and others bought
out from thr market.
5.3 Liquid and Cryogenic Propulsion With respect to liquid and cryogenic propellants , perse, the oxider and fuels are in the regular manufacturing list whose patent infringements are time barred . Liquid propellant like UDMH, N204 , MMH, Hydrazene etc are in production line for the last 5 decades in the world. Production of liquid hydrogen and oxygen are no longer novelties. However new system development in materials of constructions and material for cryogenic temparatures can attract the stringent requirements of today’s patent regime. 6. Challanges in New and Advanced Technologies in Space Chemicals and Propellants Consistent and consorted efforts are put in by advanced countries in the developement of new higher energy materials. Especially in solid propellant technology , the effort are on to improve the deliverable energy levels by unit mass of the propellant. The present saturated levels of specific impulse (say 265 secs) of solids propellant will be broken in the next decade by atleast by 20% . In missle technology , fourth generation missiles with low Vulnerability Propellants (LOVA) and Operational Theatre Missiles with precise targets capabilities (both anti missle and detection free)will be replacing the existing system. To keep abreast with the possible changes, India should devise both long and short term objectives. Another area of interest will be the re-entry -single stage to orbit (SSTO) - air breathing system. The polymers , chemicals and propellant required for the same require to be identified and technology required to be developed with in the frame work of patent regime. Thrust is being given by the advanced nations in developing higher energy materials like ammonium dinitramide (ADN), hydrazenium nitro formate (HNF) , oxetanes like is BAMO & NIMMO Wurtzitane compounds like CL.20 etc. Glycidyl Azide polymer (GAP) has already been synthesised and is under production. Most of the products are already patended and some of them are validated legally up to 2005. Due to the relaxation in international patents act, the products enjoys patent rights in almost of all countries. To cite a few patents which are currently in voage, some of the patents are listed in Annexture I. Through the list is not exhaustive , they are indicative in the sense of wider areas of coverage ranging from solid propellant, grain design, dual pulse motor , processing of solid propellant motors, hybrid motor etc. The list reveals the meticulousness in registering the novel ideas in the form of patents. This stands inpoor contrast to patent by Indian Inventors espectually in the field of space chemicals. There are over 23,000 patents on the subject, compared to less than 100 by indian scientists. It is imperative to educate Indian inventors , regarding the importance of the present day patent regime. 7. Typical Studies on International Patents In order to highlight the importance and thoroughness in international patent activities, three case histories of importance space chemicals and propellant are briefly studied in the ensuing subheading. The propellant /chemicals chosen are (1) environmentally friendly propellant based on ammonium nitrate (ii) glycidyl azide polymer and (iii) ammonium dinitramide. 7.1 Phase
stabilised Ammonium Nitrate (PSAN)
Over the last 5 decades serious R&D efforts are going on for producing low cost, low smoke environmentally friendly based propellant based on cheap ammonium Nitrarte (AN). AN has the drawback of hygroscopaity and phase transformation at propellant processing temparature , making it as such unfit for propellant processing . To make it a viable candidate, AN has to be phase stabilised by crystal modification (doping) and reduce its hygroscopocity by suitable surface modifications. Through ther are more than 150 patents available on this subject , two specific patents ie patents No, US4, 158, 583, dt 19th June 1995 and US patent No 3,171,716,dt 2nd March 1965 (gap of 30 years between these patents) are taken for brief study. The art of patent writing , presentation and claim to encompass the allied areas had enormously improved. In both the patents the introduction objectives and the methodologies are elaborate . The inventions are adequatly illustrated by experimental examples under varrying searches from 1932 to up to date on the relevant field is quoated making a new inventor little room for infringement. Intereting patents on the subjects are US3,30,179, US No, 34,552, 756 dt Nove .1985 ,US 4, 158,583, etc. These patents reveal intensive studies done on the subject with respect to both theoretical and experimental conditions. 7.2. Glycidyl Azide Polymer.
GAP is a high energy binder to be used in propellant formulations containing
HNF or ADN and other nitramine containing oxidisers like RDX, HMX etc.
Its usefulness has been
7.3 Ammonium Di nitramide (ADN)
ADN is a new generation advanced oxider for solid propellant capable of
replacing Ammonium perchlorate . Due to high energy content , in
combination with high energy binder materials , specific impulse of the
propellant can further be increased by another 10% . Russians
are credited with ADN synthesis and no patents had been filled by Russian
of their invention. The first patent on synthesis is based on US 2752225
of June 1956. But the R&D activities showed a spurt after 1992.
Starting from the US patent US 5198204 (March 93) , there are more than
20 patents on the subject. One of the latest is U.S. patent no: 5,976,483,
dt. 2-11-1999. The most important point is that most of these
patent are valid for at least next 15 years. They come under the
legal umbrella of TRIPS & WTO . As characterstics of US patent , these
patents are elaborate on technical contents, encompass all possible permutations
of chemistry and rawmaterials in the production of ADN , Potassium
dinitramide and propellants based on the same. Any indegenisation
efforts based on this patent require greater technical diligence.
8. Inference Based on the Case Studies
When a study of existing Indian patents on propellant chemcials was made
, it is observed that Indian inventors and scientists are not exposed properly
to both technical and legal requirements of patent under TRIPS and WTO
. The depth of invention , novelty and possible and potetntial expansion
of the inventions are not clearly perceptable. This open wides the
weakness during legal disputes, if there is any , on patent infringement
. There is always a reluctance on Indian inventors to patent .
This may be due to organisational or financial constraints and they require
to be overcome. The essence of protection of intellectual
property rights should be properly understood by the scientific community.
9. Conclusions
The new Millenium will witness a change in the manner in which Reserch
and Developement management is administered in India. Reverse engineering
and indegenisation of space chemicals and propellant have to be given a
second thought. New invention, synthesis,
Acknowledgement. Author wishes to place on record the help rendered by Dr. S. Venketachalam, Shri. N. Srinivasan and Shri. R. Muraleekrishanan, Vikram Sarabhai Space Centre in the preparation of this paper.
Some Relevant Patents
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