India not worried about US downgrading IPR regime

NEW DELHI: The government is not worried by the US Trade Representative’s decision of an ‘out of cycle’ review of India’s intellectual property (IP) regime.

The USTR had been reviewing India’s IP regime for a possible downgrade to ‘priority foreign country’, which could trigger American trade sanctions against India.

The decision could have been prompted by the ongoing election in India, as a downgrade would have upset the new government in India. The mid-cycle review would also give USTR an opportunity to renew pressure on India.

"We are very confident that we are fully compliant to WTO laws as far as IPR is concerned. We will take this head on” a senior government official told ET.

“USTR seems to be working under the pressure of one pharma company, Pfizer. The report is simply a tool to maintain pressure on India, and we will rebut it", said the official who did not want to be identified.

ET had reported last month that US pharma giant Pfizer, Inc. had complained about India’s intellectual property regime to the Indian Ambassador to the US, Dr S Jaishankar.

“It is critical that India look holistically at the challenges of public health and prevention and not sacrifice the investment of innovators before identifying sustainable solutions to healthcare financing, infrastructure, environmental and societal factors,” the company had told ET in its response.

The USTR is reviewing whether India’s intellectual property environment has deteriorated enough to warrant. On Wednesday, in its annual to Section 301 review, USTR deferred a decision but passed scathing comments on India’s intellectual property regime.

‘IP protection and enforcement challenges are growing, and there are serious questions regarding the future of the innovation climate in India across multiple sectors and disciplines’ it said.



“USTR has done a balancing act in the report. US knows that it cannot take such action against India and go scott free. At the same time they have not displeased their domestic lobbies”, said Biswajit Dhar, director general, Research and Information System for Developing Countries. “

"India’s IPR laws are TRIPS compliant and the country has the right to protect interests of its citizens. India is not here to please the American lobby’, Dhar added.

The report says that the US would monitor developments around compulsory licensing of patents in India. It also expressed concern over India promoting compulsory licensing in its National Manufacturing Policy as a tool for government entities to implement technology transfer in the clean energy sector.