Professional Documents
Culture Documents
TO INDIAN IP LAWS
KRISHNAPRIYA.B
LLM 2019-2020.
TRIPS AGREEMENT
• The Agreement on Trade Related Aspects of Intellectual Property Rights, popularly
known as the TRIPS Agreement, is a multi-lateral agreement which provided a
framework for the protection of intellectual property and is regarded as a milestone in
the field of intellectual property development
• The TRIPS Agreement stipulates a set of minimum standards for the protection of
intellectual property rights with respect to WTO member nations and puts forward a
uniform global regime for the protection of intellectual property rights
Evolution of TRIPS Regime
• The General Agreement on Tariff and Trade (GATT) played a major role in governing
international trade and provided a framework for the international trade in goods. A
significant drawback of GATT was that intellectual property protection was not given
adequate consideration.
• Later on, the need for adequate safeguards for the protection of intellectual property was
recognised in the Uruguay Round of multilateral trade negotiations in April 1994 held at
Marrakesh.
• This served as an impetus for the establishment of the World Trade Organisation (WTO)
- which replaced GATT. This also led to the adoption of WTO-TRIPS Agreement which
became operative on 1st January 2005 and India being a signatory to WTO was bound to
comply with the changes mandated by the TRIPS Agreement
Changes to Patent law
The historical evolution of India’s patent regime can be divided into 2 time
periods-
• PRE-TRIPS REGIME
• POST TRIPS REGIME
PRE-TRIPS REGIME- Colonial Period
• Eg- In 1930, ‘Patents of Addition’ was incorporated –which is retained in the current
Act u/ss 54-56.
PRE-TRIPS REGIME-
Post Independence period
• After Independence, India was in abject poverty and misery due to the
aftermath of the war and the India – Pakistan partition.
• India was mainly an agrarian economy and MNCs controlled India’s drug
Industry.
• As a result, critical drugs such as penicillin and insulin were imported and
these drugs were highly priced.
• The High Court awarded the West German Chemical Giant Hoescht, an
injunction against the Indian drug maker Unichem Laboratories . This
created a lot of controversy.
• 1911 Act was amended in 1950 and 1952 in the wake of the Chand Report
with regard to compulsory licensing provisions .
PRE- TRIPS REGIME
Ayyangar Committee Report
• The Ayyangar Committee chaired by Justice N. Rajagopala Ayyangar was 2nd Govt-
Commissioned Committee was appointed in 1957.
• The Ayyangar Committee submitted its report in 1959 September- which examined the
Question of Revision of Patent Law and advised the govt accordingly.
• Backbone of Indian Patent System.
Key Recommendations of Ayyangar Committee Report-
• Changes to accommodate India’s technological advancement and industrialisation
• Need to encourage and reward inventors
• Increase the number of Indian research institutions and emphasis on technical
education
• Recommended the exclusion of product patents ie, prohibition of patents on
substances intended for use or capable of being used as food or medicine or drug.
PRE-TRIPS REGIME
Ayyangar Committee Report
• Ayyangar Report’s 3 Pronged Strategy-
i. Identification of types of inventions for which patent protection should be available
ii. Determination, either to prohibit granting of Indian patents to foreign entities or to require the
working of such patents in India and
iii. Determination to withstand International pressures on India to join International IP Conventions
such as Paris Convention, which required National Treatment.
• Ayyangar Committee Report recommended major changes in law which formed the basis of the
introduction of Patent Bill, 1965 but the bill lapsed.
• In 1967, an amended Bill was introduced which was referred to a Joint Parliamentary Committee.
On the recommendation of this, the Patents Act was passed, repealing and replacing the 1911 Act
PRE-TRIPS REGIME-
Patents Act 1970
• The most notable feature of Patents Act 1970 was its repeal of patentability for
pharmaceutical products.
• The impugned Act prohibited patents on ‘substances intended for use’ or ‘capable
of being used’ as food or medicine or drug relating to substances prepared or
produced by chemical processes (including alloys, optical glass, semi-conductors
and inter- metallic compounds) (Section 5 of Patents Act 1970).
• The processes for making such substances remained patentable but with an
extremely short patent term.
• License of Rights were provided (Sec 86 of Patents Act 1970)
• The exclusion of product patents led to greater affordability and accessibility of
drugs as it promoted reverse engineering of foreign drugs.
PRE-TRIPS REGIME-
Globalisation Era
• The Balance of Payment crisis that India faced led to the then Finance Minister
Manmohan Singh to establish License Raj. This was an impetus for the introduction of
LPG policy.
• When the GATT Uruguay Round trade negotiations were going on (1986-1994), India
opposed the inclusion of patents and intellectual property rights in the first 3 years.
• Framework for filing mailbox applications were only available during the transition
period that ended on 31st December 2004. It is now repealed.
• Article 65 of the TRIPS Agreement provided for transitional agreements.
POST-TRIPS REGIME
Patents (Amendment)Act 2002
Patents (2nd Amendment)Act 2002 made various changes such as-
• Section 2(1)(j) which defines ‘invention’ as a new product or process
involving an inventive step and capable of industrial application. The new
definition of an invention incorporates the ‘inventive step’ criteria of
patentability as provided in the TRIPS Agreement. It also simplifies the
definition of an ‘invention’ to fewer categories- products and processes in
accordance with TRIPS.
POST-TRIPS REGIME
Patents (Amendment)Act 2002
• Section 2(1)(ja) which defines ‘inventive step’ as a ‘ new product or
process involving an inventive step and capable of industrial applications.
Thus, India appears to have adopted a ‘non-obviousness-plus’ standard. In
order to be patentable, the invention must be
(1) Non obvious to a person skilled in the art
(2) Involve technical advance as compared to the existing knowledge or
have economic significance or both.
In the case of Bishwanath Prasad Radhey Shyam v. Hindustan Metal
Industries (1978), the Supreme Court of India equated ‘inventive step’ with
‘non-obviousness’.
POST-TRIPS REGIME
Patents (Amendment)Act 2002
• Section 3(i)- Amended in compliance with Article 27.2 of TRIPS Agreement)
• Insertion of words ‘diagnostic and therapeutic treatment’ of human beings or any process for a
similar treatment of animals u/s 3(i) as non-patentable inventions.
• Section 3(i)- any process for the medicinal, surgical, curative, prophylactic, [diagnostic,
therapeutic] or other treatment of human beings or any process for a similar treatment of
animals,
[ the words “or plants” omitted] to render them free of disease or to increase their economic
value or that of their products.
• Section 3(j)- plants and animals and excluded whilst micro-organisms are patentable.
• It excludes from patentability ‘plants and animals in whole or any part thereof other than
micro-organisms but including seeds, varieties and species and essentially biological processes
for production or propagation of plants and animals’. This was done to make it in consonance
of Article 27.3 of TRIPS Agreement
POST-TRIPS REGIME
Patents (Amendment)Act 2002
• India has chosen to exclude plants as well as varieties and species of plants and animals from
patentability, but provides sui generis protection for this subject matter under the Protection
of Plant Varieties and Farmer’s Rights Act 2001. (as per Article 27.3-TRIPS Agreement).
• The US Supreme Court case of Diamond v. Chakraborty (1980) recognised that micro-
organisms are patentable.
• The Calcutta High Court in the case Dimminaco A.G v. Controller of Patents, Designs and
Trademarks (2002) held that a process for the preparation of a vaccine, the end product of
which is a ‘live virus’ was an invention eligible for protection under the Patents Act.
• Thus, the court in the instant case overturned a long-standing policy of the Indian Patent
Office to refuse such process claims( 1991 circular by IPO). Thus, it opened the doors to
biotechnology patents in India.
POST-TRIPS REGIME
Patents (Amendment)Act 2002
• Patent term for all inventions of all fields has been extended to a period of 20
years from the date of filing of application under Section 53. (Art 33 TRIPS)
• Deleted the provision for ‘License of right’ from the compulsory license option
for TRIPS compliance.
• Reversal of burden of proof u/s 104 A in case of alleged infringement of a
process patent has been inserted. (Art 34 TRIPS)
When the owner of a process patent in suit establishes that the product of the
accused infringer is identical to that obtained by the patented process, the court
under either of the 2 conditions may order the burden of proof shifted to the
accused infringer to disprove that its process is different from the patented
process
POST-TRIPS REGIME
Patents (Amendment)Act 2002
Those conditions are that -
(a)the patented process is one of that obtains a new product, or more typically, that
(b) there is a substantial likehood that the accused infringer is using the patented
process and the patent owner has been unable through reasonable efforts to determine
the process actually used by the accused infringer.
• Inclusion of Experimental/Research Exemptions u/ss 47(3) and 107 A (a) of the Patents Act
(in accordance with Article 30 of TRIPS Agreement).
According to Article 47(3), any person can use patented product or process for the purpose of
experiment or research including imparting of instructions to pupils.
This provision is merely for academic purpose and further research or experiment.
This exemption can be used as a statutory defence against infringement where the patented
invention has been used for research or experimental purpose
POST-TRIPS REGIME
Patents (Amendment)Act 2002
• The amended Section 107 A(a) states that –any act of making, selling or
importing a patented invention solely for uses related to the development
and submission of information does not amount to infringement of patent.
• Insertion of Section 3(p)- Traditional knowledge in the list of non patentable inventions.
The Patents Act excludes from patentability ‘an invention which in effect is traditional
knowledge or which is an aggregation or duplication of known properties of traditionally
known component or components.
This helps to prevent the exercise of proprietary rights in India's genetic resources and
indigenous knowledge.
POST-TRIPS REGIME
Patents (Amendment)Act 2002
• Revised Compulsory License provisions were inserted.
• Certain provisions were repealed from the Patent Act which include-
Section 95 ( Terms and conditions of compulsory licenses),
Section 96 (Licensing of related parts),
Section 97 (Special provision for compulsory licences on notification by Central Govt),
Section 98 (Order for license to operate as a deed between parties concerned)
2. Right of Priority- which allows foreigners who have previously filed an application for
patent in their home countries-, a 12 month Priority period in which to file application
directed to same invention in India. While retaining the benefit of their home country filing
date.
• As a PCT signatory, India had to begin accepting national phase filings of International
applications originally filed abroad under the PCT and designating India.
• Prior to 2002, Patent applications could only be filed directly with the Indian Patent Office.
POST-TRIPS REGIME
Patents (Amendment)Act 2005
• The 3rd and Final Amendment to the Indian Patents Act 1970 came into
effect on 1st January 2005.
• The Copyright law enacted in conformity with the Berne Convention had to
incorporate changes laid down by the TRIPS Agreement. While the Berne
Convention had allowed flexibility to developing countries to give protection
lesser than that provided in TRIPS Agreement in respect of right of
translation and right of adaptation, with the adoption of TRIPS Agreement,
the Copyright law had to be changed accordingly.
• The 1994 and 1999 Amendments to the Copyright Act 1957 came as a
reaction to the TRIPS Agreement, so as to make the Copyright Act in
conformity with the TRIPS Agreement.
CHANGES IN THE COPYRIGHT ACT 1957
• Protection of performers, producers of phonograms (sound recordings)
• As provided in Article 14 of the TRIPS Agreement as reflected in the 1994
amendment in the Copyright Act provides for a separate right for performers(u/s
38 ) and broadcasting organisations(u/s 37). The term of protection is also
provided which is similar to the term afforded to other copyright owners.
• The broadcast reproduction right subsists for a period of 25 years from the
beginning of the calendar of the following year in which the broadcast is made.
[Section 37(2) of Copyright Act]
• The performer’s right subsists for a period of 50 years from the beginning of the
calendar year following the year in which the performance is made.[Section
38(2)]
CHANGES IN THE COPYRIGHT ACT 1957
• Article 10 of the TRIPS Agreement has given protection to computer
programs whether in source or in object code to be protected as literary
works. Article 10.2 specifies that compilation of data or other material
whether in machine readable or other form, constitute intellectual creations
and shall be afforded protection. These provisions are reflected in the1994
Amendment incorporated under the Copyright Act in the definition of
literary work u/s 2(o).
• Section 2 (o) - “literary work” includes computer programmes, tables and
compilations including computer databases.
CHANGES IN THE COPYRIGHT ACT 1957
• The Designs Act 2000 was passed in a bid to make the Indian regime on
designs at par with the International standard laid down by the TRIPS
Agreement and promote design activity thereby leading to the promotion
of design element in a given article of production.
• Section 42 of the Designs Act provides for the avoidance of certain restrive
conditions in contracts, leases and certain licenses in a bid to control anti-
competitive practices in Contractual licenses (u/A 40 of TRIPS
Agreement).
LAW REGARDING GEOGRAPHICAL INDICATIONS
• Prior to 1999, India did not have any legislation governing geographical indications. In
order to meet the challenges posed by the lack of proper legislative framework in
accordance with international standards of protection, the Indian parliament was forced
to enact the Geographical Indications of Goods (Registration and Protection) Act 1999.
• The impugned Act defines the concept of ‘layout design’ as a layout of transistors and
other circuitry elements and it includes lead wires connecting these elements and
expressed in a semi-conductor integrated circuit u/s 2(h).
LAW REGARDING SEMICONDUCTOR AND
INTEGRATED CIRCUITS LAYOUT DESIGN
• The impugned legislation also defines a ‘Semiconductor Integrated Circuit’
as a product having transistors and other circuitry elements that are
inherently inseparable and formed on a semiconductor material or an
insulating material or inside the semiconductor material and designed to
perform an electronic circuitry function u/ s 2(r).
• The layout design registration remains valid in force for a term of 10 years
from the date of application or commercial exploitation in any nation,
whichever is prior in date u/s 15 of the Act.
• An infringement of a layout design is regarded as a criminal offence in
India apart from the civil remedies it provides. Infringement of the same is
punishable for a term extending to 3 years or fine of Rs 50,000 extending
up to Rs 10,00,000 or both. (Thereby recognising Art 61 of TRIPS which
provides for Criminal Procedures for enforcement.)
LAW REGARDING PLANT VARIETIES AND
FARMERS’ RIGHTS
• The Protection of Plant Varieties and Farmers’ Rights Act 2001, was a
remarkable development which resulted in a bid to conform with
internationally accepted standards laid down by the TRIPS Agreement. It is
indeed a milestone development because prior to this legislation, there was
no scope for the protection of plant varieties and farmers’ rights in India as
intellectual property.
• This legislation recognises and protects the rights of farmers with regard to
their role in the conservation, improvement and availability of plant genetic
resources for development of the new varieties. It recognises and protects
the rights of plant breeder and encourage investment for research and
development of new plant varieties.
LAW REGARDING PLANT VARIETIES AND
FARMERS’ RIGHTS
• The concept of benefit sharing was introduced and the procedure for
determining benefit sharing which is dealt under Section 26 of the impugned
Act.
• The establishment of a National Register for Plant Varieties maintained at the
head of the Registry.
• The period of protection of registration , ie, the certificate of registration shall
be valid for a period of nine years in case of trees and vines, and six years in
case of other crops which is subject to review.
• Section 24(6) of the Protection of Plant Varieties and Farmers’ Rights Act,
2001.
CONCLUSION
• This has led to the evolution in the field of intellectual property regime in
India in conformity with the international guidelines laid down by the
TRIPS Agreement. The result is that now India has a strong intellectual
property framework to protect and regulate the various forms of
intellectual property, thereby inducing creative activity and providing
incentives and reward for the creators of such intellectual property so that
they can bear the fruits of their intellectual labour.