The US Chamber of Commerce’s Global Intellectual Property Centre (GIPC) has urged India to encourage innovation in the country and strengthen its Intellectual Property (IP) laws to utilize its vast knowledge pool and create more jobs.
The Chamber, on behalf of the business community, had recently written to President Barack Obama, urging him to hold detailed discussions with the Indian Prime Minister Dr Manmohan Singh when the latter visited the US.
“India has the potential to be one of the world’s leading markets for IP industries if it develops a knowledge-based economy that thrives on innovation. Unfortunately, India has failed to recognize international intellectual property rights which is deterring investments in the country and keeping the economy in a logjam. The world is questioning the country's commitment to promoting innovation and continuing its path toward creating a knowledge-based economy,” said Mark Elliot, executive vice president of the GIPC.
IP is a critical driver of trade, jobs, competitiveness and investment and growth of a country. In the US, IP industries account for 40 million jobs and those in the sector get 40 per cent higher wages compared to other industries, a trend that is seen all over the world. Strong IP systems lead to strong foreign direct investment, thereby producing more jobs for the people, providing them better opportunities and pumping capital into the economy. Erosion of intellectual property is a key factor with respect to decisions being made regarding investment in India. One obvious way to encourage private sector investment in India at the same levels as the US, Japan, and South Korea would be to have IP protections in India, that more closely meet the levels of those US, Japan, and South Korea, GIPC said.
In the recent study by GIPC, 'International Intellectual Property Index: Measuring Momentum', it was revealed that India ranked last in nearly all five indicators including patents, trademarks, copyrights, enforcement, and international treaty participations. Moreover, the country also has the lowest score on the pharmaceutical IP index due to significant gaps in the biopharmaceutical IP rights environment. On the surface, India appears to be a hotbed of clinical trials with its pool of facilities, trained research personnel, low costs of operation, and a large potential market but inadequate IPR laws have restricted clinical trials as well as research and development.
Former President Pratibha Patil declared 2010-2020 as the ‘Decade of Innovation’ while President Pranab Mukherjee has also stated recently that India needs favourable environment to incentivize innovation. However despite these public addresses, India has formulated IP laws that discriminate against companies that are fostering innovation and don’t coincide with the global Intellectual Property standards, the GIPC said.
“From unprecedented patent revocations and denials to insufficient copyright enforcement, India has established itself as an outlier in the global economy. If this is truly to be India’s ‘Decade of Innovation,’ the government must promote robust IP policies that incubate both home-grown and international innovators,” Mark Elliot added.
According to GIPC, the decisions against the protection of intellectual property rights made in India over the past year are negatively impacting businesses’ ability to invest in tomorrow’s medical and technological advancements. Therefore, India needs appropriate legislation, policies and legal decisions to reaffirm its stand on innovation and Intellectual Property.
GIPC works around the world to champion IP rights as vital to creating jobs, saving lives, advancing global economic growth, and generating breakthrough solutions to global challenges.
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