Parliament panel recommends review of India's IPR policy
Premium- The committee noted that the timeline of four years to file an examination report by the patent applicant is too extensive and recommended the industry department to shorten it
The bipartisan Parliamentary Standing Committee on Commerce has recommended a holistic review of India’s intellectual property rights (IPR) policy, including amendment of the Patents Act, at the earliest.
The committee in its report--Review of the Intellectual Property Rights Regime in India--noted the significance of IPRs in increasing Foreign Direct Investment (FDI) of countries, mainly of the developing nations, wherein a 1% improvement in protection of trademark, patent and copyright increases FDI by 3.8%, 2.8% and 6.8% respectively.
“It is of the opinion that strengthening IPRs in India would also spur economic development by encouraging foreign exchange inflow thereby increasing productivity and generation of employment opportunities in the country. Therefore, the Committee recommends the Department to undertake a comprehensive study of the resultant benefits of improvement in IPRs on the economy especially in terms of increase in GDP, employment generation, augmenting forex reserves, and boosting exports. The study must analyze the impact of IPR in creative and innovative sectors of India and its substantial contribution to the economy of the country," the report said.
The committee noted that the timeline of four years to file an examination report by the patent applicant is too extensive and recommended the industry department to shorten it to a reasonable time frame to avoid any unnecessary delay in examination and grants of patents.
The report also recommended establishing an exclusive apex level institution for IPR development which would enable a multi-disciplinary approach in analyzing and harnessing the full potential of IPRs for economic and social growth. “The Institution would assist in developing a pool of IPR professionals and experts in spheres such as policy and law, strategy development, administration and enforcement. This would also enhance institutional capacities in IPRs in areas such as policy development, teaching, training, research, and skill building," the report added.
The committee noted with concern that a major share of 64% of the patents filed in India are by non-residents or foreign entities wherein the patents filed by domestic entities comprise only 36%.
“It is also worrisome to learn that the lack of awareness about IPRs amongst Indians is responsible for the low share of patents filed by domestic entities vis-à-vis foreign entities. As a result, the innovators and creators in the country are being denied the benefits of IPRs including the generation of revenues and gains from the creation of their products. The Committee recommends that a holistic approach should be taken by the Department for disseminating awareness amongst MSMEs, small businessmen, traditional artisans and craftsmen located in remote areas and providing them insights about creation, ownership and protection of their IPRs," the report said.
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