Loophole in Patents Bill

MUMBAI: The government appears to have deliberately left a loophole in the Patents (Second Amendment) Act of 1999 approved by Parliament, which could allow Indian companies to copy patented products even after January 1, 2005 for exports.
This has been done by leaving one condition for compulsory licensing in the original Patents Act of 1970 untouched.
This condition says a compulsory licence can be granted for a patented product if ‘a market for export of the patented article manufactured in India is not being supplied or developed.’
Since an MNC, who owns the patented products, may choose to make the product only for Indian market and leave other markets unexplored, the provision allows an Indian firm to locate just such a market and use a compulsory licence granted by the Indian government to make and sell the product to that market.
This clause will essentially keep a window of opportunity open for Indian companies who will be prohibited from making patented drugs by a different process and selling them in India after January 1, 2005. However if this provision is utilised, it will bring them in competition with the big innovator firms operating in such markets.