India: IP CRIME: "Rising Threats To Intellectual Property Rights"

INTRODUCTIONIn today's era, Indian economy relies upon the Intellectual property (IP) to drive economic growth at a fast pace. Every company is now understanding the need of IP, R&D is being taken recourse to extensively, foreign brands are entering the market and high rate of FDI is being witnessed in the Sector. In spite of the undeniable benefits, Indian economy is facing a serious problem which one is seriously taking note of, a problem which is slowly hampering the root of the country's economy. Taking examples from every day life of which we are all aware viz. fake watches, stamps, cigarettes, cosmetics, pharmaceuticals, FMCG products, auto components, software, music, movies etc which is resulting in significant loss to companies & their rightful owners corresponding evasion of tax duties and violation of the rights of the consumer.

India: IP CRIME: "Rising Threats To Intellectual Property Rights"

SOCIO-ECONOMIC IMPACT OF IP CRIMEWorld Health Organisation (WHO) states that approximately 10 per cent of all pharmaceutical drugs in the world are counterfeit, rising to 60 per cent in certain poor and developing nations.1 According to a report the daily sale of particular brand of Scotch whisky is greater than its monthly worldwide sales. It can only be possible if the real bottles have counterfeit liquor in them which makes the sale at a very alarming rate. Due to this reason the empty bottles of this particular brand have a major resale value of 250 rupees each (approximately 4 US dollars)2. Some of the following impacts of IP crime are as follows :Heavy loss to the industry because of pirated and counterfeit goods.Major loss of taxes to the government.The real owners and creators of IP from different countries and technology are not remunerated.The real loss to the consumer as he gets poor value for money or may be feel cheated when suffer from this IP crime.Due to this IP crime , the overall growth of the industry lacks behind and results in severe loss to business or IP related investment coming into the country.

India: IP CRIME: "Rising Threats To Intellectual Property Rights"

brand names,  logo,  trademarks depicting on apparels which are easily available  on  streets  or  in  local  markets  in  India  clearly  shows  a  wide example  of  IP  CRIME. According to the recent studies by Industry association i.e The Confederation of Indian Industry (CII) estimates that the FMCG sector loses approximately 15% of its revenue to counterfeit goods with several top brands losing up to 30% of their business due to IP crime.3 Deputy M.D., Tata Tea informed that 65% of total tea sold, is sold as loose tea, which has some form or other of tampering done to it, Food grade color is added to husk and this mixed with loose tea. Some tea bags are even rebagged. A G.M, Legal Affairs HUL, explained how "Fair and Lovely" became "Flair and Lovely"

India: IP CRIME: "Rising Threats To Intellectual Property Rights"

In India judiciary is not equipped to deal with the cases on a speedy basis. In certain industries there are thousands of cases registered in various courts of India but due to a massive backlog they are just gathering dust. Moreover some cases are not even been heard by the courts. On the other hand serious shortage of experienced lawyers in the country affects the IP crime and those having knowledge ask for such high demand which can only be afforded by big companies. Lack of knowledge and awareness is also the main concern for the growth of IP crime in India.

India's IPR decisions have hit pharma sector the most, says John J

Castellani, CEO, Pharmaceutical Research and Manufacturers of

America

What are your reservations regarding India's IPR policies?Effective patent protection is necessary for continued investments in innovative lifesaving drugs. All World Trade Organisation members have committed to ensuring favourable policy environment that supports continued research for new medicines through a system of patents. If countries show scant respect for IP protection, the future of new medicines is at risk, because incentives for the research-based pharmaceutical industry to invest over $ 1 billion and 10-15 years in the development of a single new medicine will be undermined. To truly improve access to medicines in India, we will need to continue to work together to advance sustainable policy solutions to healthcare financing, infrastructure, and human resources challenges, among others, rather than focus on compulsory licences or other ways of undermining patent protection of innovative medicines.Are US businesses divided on the issue of India's IPR policy, since Honeywell International and Boeing, in their testimonies to the US government, have backed the IPR environment in India?The current system for intellectual property protection provides the necessary incentives for innovators in all fields of technology to devote time and resources in creating the next generation of products and services for the global economy. That said, negative IP decisions in India have targeted the innovative biopharmaceutical industry far greater than other sectors.

Abbott, the largest drugmaker in India by market share, has also told the US government that it is not facing any significant challenges in India on IPR issues. Do the Big Pharma companies differ on the magnitude of challenge that India's IPR regime poses?While Abbott is not a member of PhRMA, their response to the USITC is in the public domain and states: "The Trade Related Aspects of Intellectual Property Rights (TRIPS) Agreement provides an important framework for that protection and it is important that all World Trade Organisation members meet their obligations under TRIPS. Abbott is not currently facing any significant challenges with respect to intellectual property protection in India." We don't see any dissonance in this view.India's pharma industry believes Pfizer is getting isolated in its campaign against India's IPR policies. What are your views?All our member companies believe that strong patent laws will encourage and sustain innovation in the research-based and technology-intensive pharmaceuticals industry. Pfizer, like our other member companies, remains committed to collaborating with the Indian government and other stakeholders to find sustainable solutions that address the need for more accessible medicines, within a robust IP environment

Abbott, the largest drugmaker in India by market share, has also told the US government that it is not facing any significant challenges in India on IPR issues. Do the Big Pharma companies differ on the magnitude of challenge that India's IPR regime poses?While Abbott is not a member of PhRMA, their response is in the public domain and states: "The Trade Related Aspects of Intellectual Property Rights (TRIPS) Agreement provides an important framework for that protection and it is important that all World Trade Organisation members meet their obligations under TRIPS. Abbott is not currently facing any significant challenges with respect to intellectual property protection in India." We don't see any dissonance in this view.India's pharma industry believes Pfizer is getting isolated in its campaign against India's IPR policies. What are your views?All our member companies believe that strong patent laws will encourage and sustain innovation in the research-based and technology-intensive pharmaceuticals industry. Pfizer, like our other member companies, remains committed to collaborating with the Indian government and other stakeholders to find sustainable solutions that address the need for more accessible medicines, within a robust IP environment