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Strong Intellectual Property LAWS: Need of the Time

Intellectual Property Right is an exclusive right given by a government to an inventor to


preclude others from the sale, use or import of an invention for a limited period of time. This
exclusive right awards the inventor with the ability to charge a monopolistic price for the
invention that exceeds what would be charged in a perfectly competitive market with several
suppliers. This price also allows inventors to get back their investment of time and capital
devoted to the R & D of an invention and prospectively also accumulate profit, arguably creating
an economic incentive for innovation.

Presently World Economy is suffering a slow down, growth rate of major economies of the
world are either declining or is stagnant. Whereas India with growth rate of 7.6% has emerged as
the fastest growing economy 1.Indian Economy is facing the most robust changes ever since the
liberation policy of 1991. With allowance of FDI in every sector, Indian economy is today
considered more open than the economy of United States of America. Because of these liberal
policies India replaced China as the most preferred FDI nation

It is a fact that more the FDI, it will be better for the economy of the Country. Strong and
Powerful economy will give more opportunities and resources to its citizens. For continuance
and increase in FDI there is a huge need of strong Intellectual Property laws. As these laws only
give confidence of safe and lucrative investment to any investor.

Practice of weaker IPR laws has resulted in poor or very minimal innovation in India, especially
in patents. With stronger IPR laws there will be pressure of Competition on Indian Companies to
invest more and more in R& D for competing with other International Companies. This is a view
subtly echoed by the Mashelkar Committee, which in its report on Indian patent law in 2009
recommended inter alia that: incremental innovations involving new forms, analogs, etc. but
which have significantly better safety and efficacy standards, need to be encouraged

Transparency and predictability in the application of IP laws is critical to a healthy innovation in


economy, but not sufficient to drive innovative output. To stimulate innovation in the home
market and attract foreign investment in innovative sectors, a country's IP system should achieve
two things: First, it should establish adequate incentives under law for would-be innovators to
invest in long-term, high-risk research and development spending; second, it should provide
sufficient enforcement capabilities and resources to serve as a deterrent against infringement so

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http://www.business-standard.com/article/economy-policy/at-7-6-in-fy16-india-is-now-the-fastest-growing-
economy-116053101080_1.html
that such incentives are not undermined by illicit trade. The doubt on the capabilities of
Domestic Sector prevented India from liberalizing policies before things went beyond Control.
Thus this time it is need of the hour to learn from past and take action in advance and Implement
World Class intellectual Property Regime.