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Introduction
A patent is a monopoly right granted to person who has invented a
new and useful article or an improvement of an existing article or
an improvement of an existing article or a new process of making
an article. It consists of an exclusive right to manufacture the
new article invented or manufacture an article according to the
invented process for a limited period. During the term of patent
the owner of the patent, i.e. the patentee can prevent any other
person from using the potential invention. But the creation of
patent is territorial in extent where it has been created by a
statute.
Object of
a Patent Law: In the case of Bishawanath Prasad Radhey Shyam
V/s Hindustan Metal Industries, (1979) 2SCC, 511 it has been held
by the Supreme Court," the object of patent law is to encourage
scientific research, new technology and industrial progress. Grant
of exclusive privilege to own, use or sell the method or the
product patented for a limited period stimulates mew inventions of
commercial utility. The price of the grant of monopoly is the
disclosure of the invention at the Patent Office, which after
expiry of the fixed period of monopoly, passes into the public
domain."
History of
Patents
The term 'patent' has been derived from the word "Letters Patent"
issued by the British Crown". The history of patents can mainly be
traced in Britain. But the history of patents goes back to
thousand-year back. Although we often think of information
commodification as a new process, the history of intellectual
property goes back to some of the farthest reaches of our recorded
history. In fact, according to a scholar the book was one of the
very first commodities. Greece in the 5th century B.C and its
active book trade, for the first examples of buying and selling
information. The rise of this intellectual market coincided with a
renewed acknowledgment within the culture of the existence of the
individual creative self, as well as with the development of
commerce and urban societies. Previously, it had been not
originality, but craftsmanship within established forms, that had
been valued; oral cultures like that of the earlier Greek
societies had viewed creative works as collectively produced, and
as entities to be imitated and built upon by others. Later on
medieval era patent system was present in some form or other in
every society. There were communities and persons who were only
authorized to make a particular product.
The patent
history can be well illustrated by following time line.
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A number of international
conventions on intellectual property have been adopted since last
century covering different areas of industrial property, copyright
law and other specialized matters (such as breeders' rights). The
World Intellectual Property Organization (WIPO) and UNESCO are
responsible for administering the main conventions in force.
The TRIPS negotiations were conducted within GATT, and the
provisions of the resulting Agreement are enforceable within the
framework of the WTO -- a forum without any tradition of work in
the field of IPRs.
International Treaties/ Conventions
The Paris convention created by treaty in 1886 whose primary
function is to guarantee a uniform worldwide priority date across
all member countries. An applicant may file in any member country
of the convention up to one year after an initial filing, without
losing the priority date of the initial filing. The last revision
of the convention took place in 1970 known as the Stockholm
revision. By 1982 , 93 countries had ratified to the same
including U.K, U.S.A. India is signatory to it. China has so far
not opted for it. However, it could not provide the much-required
International Patent system in legal and organizational term.
So, was
born the Patent cooperation treaty (Washington, 1970). It allows
an applicant to institute applications in numerous countries by a
single procedure and to delay his final decision to apply in a
number of countries (official fee etc) for a period of 20 months
after his priority date. Thus, it streamlines the filing of
multiple national patent applications. However it does not provide
for an international patent .In 1995, 98 states participated in it
with U.S.A, U.K, CHINA as its other members. As per the European
patent convention (EPC) of 1973, a successful applicant would
secure at the end of the process a bundle of national patents
(normally in common form) for such participant countries as is
designated in the application. Amongst other countries U.K and
U.S.A are its members.
Two years
later was signed the community patent convention by the EEC states
including The Great Britain. As per this convention, if a patent
is sought for any ECC state, a single patent for the whole
community will be granted by a single main proceeding. However, it
becomes inevitably complex, as process would involve national
courts.
A discussion
the international conventions and treaties would be in complete
with the mention of WTO's Trade related aspects of intellectual
property rights which was proposed in the Uruguay round which by
1993 had become one of the principal components in the overall
package of changes. Under the TRIPS agreement , the members
thereof ( which include China, U.K, U.S.A and India) must:
" Include virtually all-important commercial fields
within the ambit of patentable subject matter, a major change for
countries that have traditionally refused to enforce
pharmaceutical patents on public health/ access grounds.
" Test patent applications for
the presence of an initiative step and for industrial application.
" Include in patentees' bundle
of exclusive rights the right to control the market for imports of
the patented products.
" Eliminate or severely
curtail the practice of granting compulsory licences for patented
technology.
History of Patents Laws in India |
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Trips And Developing Countries
Technology-holders from industrialized countries, which generally
possess the resources to protect and enforce their rights
globally, will be able to trade under the exclusive rights
conferred by IPRs. Firms from developing countries, in contrast,
generally lack the means to seek and enforce protection for their
innovations in foreign countries, because of the high cost
involved and their lack of specialized knowledge. The TRIPs
Agreement could have an asymmetric impact on North-South trade
flows.
Special value is attached by large pharmaceuticals firms to the
availability of patent protection both for processes and for
products. They have pursued unilateral action and have been among
the most vigorous protagonists of multilateral negotiations with
respect to intellectual property in order to extend and reinforce
such protection. This is partly explained by the heavy expenditure
involved in the development of new drugs, estimated to average
around US$ 200 million per new chemical compound, as also by the
fact that new products may be imitated relatively easily, as
suggested by short imitation time-lags
Many developing countries did not begin to grant patent protection
for pharmaceutical products until the late 1980s, though the
majority did recognize process patents in the field. The
enforcement or threatened enforcement of section 301 of the US
Trade Act by the US Government and the GATT negotiations were
intended to secure changes in the legislation of these countries.
Facing the threat of trade retaliation, due to what was considered
to be their lack of or inadequate protection for pharmaceuticals,
many developing countries have thus responded in recent years by
changing their laws accordingly (Chile, Mexico, South Korea and
others). Others (e.g. Egypt, India, Jordan), however, have not so
far granted product protection and are considering availing
themselves of the possibility of the additional transition period
provided by the TRIPs Agreement. This would permit a delay in
providing patent protection for pharmaceutical products of up to
ten years for developing countries and sixteen for least developed
countries. Many developing countries are also introducing or
strengthening provisions concerning compulsory licences on grounds
of competition, health or public interest.
There are
strong arguments favouring such an approach. Pharmaceutical
products have wide social implications and governments are
particularly concerned with health aspects and with the impact of
patents on consumer prices and government health expenditures.
Developing countries also fear that the most dynamic segments of
the pharmaceutical market, where the prospects of growth are
highest, will be excluded for domestic firms as a result of the
new patenting rules. This is likely to be the case with respect to
drugs based on biotechnology, where `inventing around' (i.e.
developing drugs based on similar compositions) is more difficult,
particularly to the extent that the drug in itself replicates a
substance existing in nature.
Trips And Patent Act
India being a member to the WTO has to implement the TRIPS
agreement. This requires the modifications in patent law in India
to come in lines with the TRIPS agreement. But in making
modifications the issue of public interest should be a prime
consideration. In consonance of TRIPS India has amended the law
governing patents i.e. Patents Act, 1970 by Patent (Amendment)
Act, 2002.
Patents (Amendment) Act 2002:
With the obligation to bring the law in consonance of TRIPS and
obligation under WTO, the amendment of Patent Act, 1970 has been
amended. This law came into force on 20th May 2003. This Act makes
the Indian patent law in compliance of TRIPS but incorporates
other safeguards. Several provisions have been incorporated with
the view to simplifying and rationalizing procedures. There are
provisions in the Act by which Govt. can extinguish the patentees'
exclusive right immediately and acquire it if occasion warrants.
However, product patent regime for drugs, pharmaceuticals and
agro-chemicals, has not been contemplated in the present
amendment. The opportunity has also been utilized to harmonize the
patent granting procedures with procedures with international
practices and make the system user friendly.
Indian Stand Today
The sensitive issues such as product patents for drugs, all
agricultural chemical product, exclusive marketing rights are
still to be addressed as far as Indian law on patent stands today.
Therefore a separate legislation in this regard will be necessary
before 01.01.2005 WTO deadline. This span of time has to be
harmonized the patent granting procedures with international
practices and to make the system user friendly. The implications
will not be evident overnight. The new amendments still do not
provide for Patent protection to drugs. India is required to
provide such protection only by 2005, and the minister for
commerce has indicated that a subsequent amendment shall provide
for this. When this happens Indian companies will lose the
opportunity to develop processes for patent protected drugs in the
country. India will become dependant on MNCs for technology to
produce new drugs. Votaries of the new Patents Act argue that old
drugs will not be affected by this Act. While this is true, it
must be understood that the rate of obsolescence of old drugs are
extremely fast today. Further, technological dependence on MNCs is
the proverbial "thin edge" which will be used by the MNCs to
establish their dominance over the Indian drug market once again
(a position they had lost after the mid seventies). They will then
again start charging exorbitant prices for drugs in the Indian
market. Since the early eighties, the categories of drugs which
show the maximum rise in sales are categories which include
overwhelming majority of drugs still under Product Patent or whose
Product patents have expired recently. In other words if we had a
product patent regime today, the drugs showing fastest growth
would have been priced way beyond the capacity of the average
consumer.
Geographical Indications
Under Articles 1 (2) and 10 of the Paris Convention for the
Protection of Industrial Property, geographical indications are
covered as an element of IPRs. They are also covered under
Articles 22 to 24 of the Trade Related Aspects of Intellectual
Property Rights (TRIPS) Agreement, which was part of the
Agreements concluding the Uruguay Round of GATT negotiations.
Section 2(e) of the Geographical Indications of Goods
(Registration and Protection) Act has defined the geographical
indication, 1999. The "geographical indication", in relation to
goods, means an indication which identifies such goods as
agricultural goods, natural goods or manufactured goods as
originating, or manufactured in the territory of country, or a
region or locality in that territory, where a given quality,
reputation or other characteristic of such goods is essentially
attributable to its geographical origin and in case where such
goods are manufactured goods one of the activities of either the
production or of processing or preparation of goods concerned
takes place in such territory, region or locality, as the case may
be".
Some Basic Questions Regarding Geographical Indication
Every region has its claim to fame. Christopher Columbus sailed
from Europe to chart out a new route to capture the wealth of rich
Indian spices. English breeders imported Arabian horses to sire
Derby winners. China silk, Dhaka muslim, Venetian Glass all were
much sought after treasures. Each reputation was carefully built
up and painstakingly maintained by the masters of that region,
combining the best of Nature and Man, traditionally handed over
from one generation to the next for centuries. Gradually, a
specific link between the goods and place of production evolved
resulting in growth of geographical indications.
In December 1999, the Parliament had passed the Geographical
Indications of Goods (Registration and Protection) Act, 1999. This
Act seeks to provide for the registration and better protection of
geographical indications relating to goods in India. The Act would
be administered by the Controller General of Patents, Designs and
Trade Marks- who is the Registrar of Geographical Indications. The
Geographical Indications Registry would be located at Chennai.
1. What
is a Geographical Indication? X It is an indication
Document1
" It originates from a
definite geographical territory.
" It is used to identify
agricultural, natural or manufactured goods
" The manufactured goods
should be produced or processed or prepared in that territory.
" It should have a special
quality or reputation or other characteristics
2.
Examples of possible Indian Geographical Indications
" Basmati Rice Darjeeling Tea
" Kanchipuram Silk Saree
"Alphanso Mango
" Nagpur Orange
"Kolhapuri Chappal
" Bikaneri Bhujia
" Agra Petha
3. What
is the benefit of registration of geographical indications?
It confers legal protection to Geographical Indications in India
Prevents unauthorised use of a Registered Geographical Indication
by others. It provides legal protection to Indian Geographical
Indications, which in turn boost exports. It promotes economic
prosperity of producers of goods produced in a geographical
territory.
4. Who
can apply for the registration of a geographical indication?
" Any association of
persons, producers, organisation or authority established by or
under the law can apply:
" The applicant must
represent the interest of the producers
" The application should
be in writing in the prescribed form
" The application should
be addressed to the Registrar of Geographical Indications along
with prescribed fee
5. Who
is a registered proprietor of a geographical indication?
" Any association of
persons, producers, organisation or authority established by or
under the law can be a registered proprietor.
" Their name should be
entered in the Register of Geographical Indication as registered
proprietor for the Geographical Indication applied for.
6. Who is an authorized user?
" A producer of goods
can apply for registration as an authorized user
" It must be in respect
of a registered geographical indication
" He should apply in
writing in the prescribed form along with prescribed fee
7. Who is a producer in relation to a Geographical
Indication?
" The persons dealing
with three categories of goods are covered under the term
Producer:
" Agricultural Goods
includes the production, processing, trading or dealing
" Natural Goods includes
exploiting, trading or dealing
" Handicrafts or
Industrial goods includes making, manufacturing, trading or
dealing.
8. Is a registration of a geographical indication
compulsory and how does it help the applicant?
" Registration is not
compulsory
" Registration affords
better legal protection to facilitate an action for infringement
" The registered
proprietor and authorised users can initiate infringement actions
" The authorised users can
exercise the exclusive right to use the geographical indication.
9. Who can use the registered geographical indication?
" An authorised user has
the exclusive rights to the use of geographical indication in
relation to goods in respect of which it is registered.
10. How long the registration of Geographical Indication is
valid?
" The registration of a
geographical indication is valid for a period of 10 years.
11. Can a Geographical Indication be renewed?
" It can be renew from
time to time for further period of 10 years each.
12. What is the effect if a Geographical Indication if it
is not renewed?
" If a registered geographical
indication is not renewed it is liable to be removed from the
register.
13. When is a registered Geographical Indication said to be
infringed?
" When an unauthorised
user uses a geographical indication that indicates or suggests
that such goods originate in a geographical area other than the
true place of origin of such goods in a manner, which mislead the
public as to the geographical origin of such goods.
" When the use of
geographical indication result in an unfair competition including
passing off in respect of registered geographical indication.
" When the use of
another geographical indication results in false representation to
the public that goods originate in a territory in respect of which
a registered geographical indication relates.
14. Who can initiate an infringement action?
" The registered
proprietor or authorised users of a registered geographical
indication can initiate an infringement action.
15. Can a registered geographical indication be assigned,
transmitted, etc?
" No. A geographical
indication is a public property belonging to the producers of the
concerned goods.
" It shall not be the subject
matter of assignment, transmission, licensing, pledge, mortgage or
such other agreement
" However, when an
authorised user dies, his right devolves on his successor in
title.
16. Can a registered geographical indication or a registered
authorised user be removed from the register?
Yes. The Appellate Board or the Registrar of Geographical
Indications has the power to remove the geographical indication or
an authorised user from the register. Further, on application by
an aggrieved person action can be taken.
17. How a geographical indication is different from a trademark?
" A trademark is a sign,
which is used in the course of trade, and it distinguishes goods
or services of one enterprise from those of other enterprises.
" Whereas a geographical
indication is an indication used to identify goods having special
characteristics originating from a definite geographical
territory.
Conclusion
India's perspective in WTO regime is to harmonize with national
interest and international obligation. But no compromise should be
at the cost of public interest. Areas like pharmaceuticals,
agro-chemical products should be taken into consideration while
changing Indian law as regards to patent. On the international
front India should raise its stand to endeavor to curb the
exploitative aspects in international patent regime. The
geographical indications should also be effectively implemented
and efforts should be made at international level to stop abuse of
geographical indications.
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Authored by Ramendra Sharma and can be reached at :
ramendrakumar@yahoo.com
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