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Intellectual Property Rights

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December 27, 2017

Do you think the stringent standard set for patents in India degrades innovation and public welfare? Justify. (200 words)

Refer – The Hindu

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IAS Parliament 6 years

KEY POINTS

·         In 2005, India has made some remarkable amendments to the Indian Patents Act of 1970.

·         Through this, it has evolved strong standards for patents in India.

Strong Standards

·         It includes, Section 3(d), which is responsible for over 65% of all pharmaceutical patent rejections in India.

·         This section provides for rejecting applications that are mere variants of known compounds and lack a demonstrable increase in therapeutic value.

·         Basic patentability criteria are that the invention should be new, involve a significant inventive step, and should be capable of industrial application.

·         Not meeting one of these was the most frequently used grounds for rejection.

Its effect on innovation

·         These standards actually help to weed out non-serious patent applications.

·         It filters the bad patent from the good, with the lowest possible administrative and financial burden.

·         It equips Indian patent office (IPO) with a yardstick to evaluate patents that are merely trivial innovations over existing technology.

·         In cases where the invention is a variant of a known substance, the criterion for patentability is proof of a necessary improvement in its performance for its designated use, i.e., increased efficacy.

·         This results in the arrival of far better product in the market in order to qualify for patent protection.

Its effect on Public welfare

·         These strong standards resulted in effectively keeping medicines low priced and affordable in the country.

·         Because, such standards provides the advantage of questioning an application at the IPO itself.

·         Without these provisions, the only alternate will be the expensive and time consuming litigation.

·         In such cases, disputes are often settled before reaching a conclusion, in pay-for-delay settlements negotiated by patent owners.

·         Patent claimers usually pay off generic manufacturers to stay off the market, which effectively increases the cost of medicines.

·         Hence, without these standards, Indian public would have to either bear the burden of invalidating a bad patent through litigation or the cost of expensive medicines.

·         Thus, the stringent standards set for patents in India have actually led to the promotion of real innovation and protection of the consumers, with lowest financial burden.

 

Taniya 6 years

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