Ambiguity over changes in patents law

NEW DELHI: The government's inability to amend the patents law during the winter session of Parliament has led to apprehensions over the modalities related to pre-patent opposition rights and operation of compulsory licence. While various lobbies are still trying to influence the modifications, the government is likely to take a final view next week. Highly-placed government sources said there was no option, but to issue an ordinance to amend the patents law and the final shape of the ordinance would be decided by the Union Cabinet next week. India has to introduce product patents by January 1 as per commitments made to the World Trade Organisation (WTO) and failure to do so may result in imposition of trade barriers against Indian products. The government feels that failure to meet the deadline might give a handle to major trading partners to stymie the dismantling of the textile export quota regime with effect from January 1. While an ordinance seems to be a foregone conclusion now, the two main issues under debate are the right of the domestic industry to oppose patents before they are issued and the way in which compulsory licensing would be implemented. The government is considering a time-bound mechanism for pre-grant opposition, giving the domestic industry two months to submit all arguments against a patent under consideration. Multinational pharma companies feel that if pre-grant opposition drags on, the very idea of bringing in product patents would be defeated. In the case of compulsory licensing, the government feels that domestic production should be mandatory to satisfy operation of such licences. Imports alone should not suffice and domestic production should be made mandatory, they feel. Multinational companies feel that the government should not insist on domestic production. The views of the domestic industry are diametrically opposite, the sources said. In case the government had introduced an amendment bill in Parliament, detailed discussions would have become possible. Now that the government is left only with the option of an ordinance, there is no possibility of a discussion before the new rules come into force. Moreover, Left parties and the NDA have their own reservations and the views of the group of ministers (GoM) headed by Pranab Mukherjee, which discussed the proposed amendments in detail, do not seem to be final. Even if an ordinance is issued now to meet WTO requirements, the governments needs to get the amendments passed in both houses of Parliament, the sources said. Therefore, the objections of the Left and the NDA are crucial. The GoM had recommended pre-grant opposition rights and favoured domestic production for operation of compulsory licensing to avoid scarcities. It is not clear if the Cabinet would also go by these recommendations. Introduction of products patents has also become a political hot potato in view of the apprehensions about spiralling prices of pharma products.

Ambiguity over changes in patents law

The government's inability to amend the patents law during the winter session of Parliament has led to apprehensions over the modalities related to pre-patent opposition rights and operation of compulsory licence.

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