India has failed to recognise IP rights; deterring investors

NEW DELHI: A US trade body has asked India to spur innovation and strengthen its intellectual property (IP) laws, saying failure to recognise IP rights was diss

NEW DELHI: A US trade body has asked India to spur innovation and strengthen its intellectual property (IP) laws, saying failure to recognise IP rights was dissuading investors and keeping Indian economy in a logjam.

"India has the potential be one of the world's leading markets for IP industries if it develops a knowledge-based economy that thrives on innovation," Mark Elliot, Executive VP of the Global Intellectual Property Center (GIPC) said.

Unfortunately, India has failed to recognise international property rights which is deterring investments in the country and keeping the economy in a logjam, he added.

The GIPC, an arm of the US Chamber of Commerce, is a body championing intellectual property (IP) rights.

Erosion of intellectual property is a key factor with respect to decisions being made regarding investment in India," the GIPC said.

It said that a recent study -- International Intellectual Property Index: Measuring Index -- showed India consistently ranked last among nearly every indicator, and called into question its commitment to promoting innovation and continuing its path toward creating a knowledge-based economy.

"Strong IP systems lead to strong foreign direct investment, thereby producing more jobs for the people, providing them better opportunities and pumping capital into the economy," GIPC said.

India has formulated Intellectual Property laws that discriminate against companies that are fostering innovation and don't coincide with the global Intellectual Property standards, it lamented.

According to GIPC, the decisions against the protection of intellectual property rights made in India over the past year are negatively impacting businesses' ability to invest in medical and technological advancements.

In April this year, Swiss pharma major Novartis AG lost a seven-year long legal battle for getting its blood cancer drug Glivec patented in India and to restrain Indian companies from manufacturing generic drugs, with the Supreme Court rejecting the multinational company's plea.

Novartis had approached the apex court in 2009 against the order of Chennai-based Intellectual Property Appellate Board (IPAB), which had rejected its claim for patent.

(Source: The Economic Times)