New Patent Regime and Implications on Indian Economy

5.1 Introduction
Over past couple of decades the theorisation of economic reforms has become growth
industry not only in the field of economics but also in the entire area of social sciences.
There is no point of disagreement in accepting the fact that the economic reforms in
India, like in other developing countries, fall in the agenda of globalisation or neoliberalism,
which are reflected in global and transnational interconnectedness of various
elements of global order - communities, states, international institutions, nongovernmental
organisations and MNCs. All these elements necessitate the political
structures responsible for governance. While conceptualising the economic reforms and
analysing their implications the academics, not only in India but all across the world, are
broadly divided in two diagonally opposite streams - ones, who profoundly argue that
free market economy based on neo-liberalism provides complete solution to the crises of
modem society, and others, who favour state interventionist approach, are critical of
substitution of state by market forces. In the liberal school of thought the discourse of
economic reforms was marked with confidence and triumphalism with the hegemonic
interpretation of so called America's victory in cold war 'as a victory for a set of political
and economic principles - democracy and free market.'' It is clear that any change in the
global power structure favour some and disfavour others.
Wherever India stands globally today at certain level of economic development, was
only possible through a calculated and effective measures in a faced manner such as
setting up five year plans, industrial licensing, mixed economy and opening economy in
nineties etc. The most distinguished features of Indian socio-economic system which are
influencing Indian economic system profoundly are divergent geographical conditions,
heterogeneous socio political paradigms and unequal resource endowments. There is
diversified social structure and very few accounts for the highest stratum in society.

New patent regime and transfer of technology

The access to the technology is generally the result of licenses and technology transfer
agreements. The fact of the matter is that the prospective technology seekers in
developing countries face serious difficulties in their commercial dealings with
technology holders in the developed countries due to lack of experience and skill of
enterprises in addition to the administrative and legislative policies.^'
The TRIPS Agreement envisages a balance between the promotion of technological
innovation and the transfer and dissemination of technology which can be garnered from
several provisions of the Agreement. The most important of these provisions are the
provisions on the objectives and principles of the Agreement, the provisions relating to
transfer of technology and exceptions to exclusive rights. The objective of the IP system
under the Agreement set out in Art. 7, 'is to promote technological irmovation and the
transfer and dissemination of technology to the mutual benefit of innovators and
consumers and in a manner conducive to social and economic welfare, and to the balance
of rights and obligations'. The principles upon which the balance is to be achieved are
stated in article 8 of the Agreement. First, states in formulating or amending their laws
may adopt measures necessary for the protection of public health and nutrition and
measures to promote public interests in sectors of vital importance to socio-economic and
technological development. Second, members may adopt appropriate measures to
prevent the abuse of IPRs by right holders or resort to practices that unreasonably restrain
trade or adversely affect the international transfer of technology.