The document discusses India's intellectual property (IP) crime and its rising threats. Some key points: - IP crime in India includes production of fake watches, cigarettes, etc. resulting in losses for companies and tax evasion. - IP crime has socio-economic impacts like heavy losses for industries, loss of taxes, consumers getting poor quality goods. - Studies show FMCG sector loses 15% of revenue to counterfeits, with some brands losing up to 30%. - India's judiciary is not equipped to deal with large number of IP crime cases in a timely manner.

1. India: IP CRIME: "Rising Threats To
Intellectual Property Rights"
INTRODUCTION
In today's era, Indian economy relies upon the Intellectual
property (IP) to drive economic growth at a fast pace. Every
company is now understanding the need of IP, R&D is being taken
recourse to extensively, foreign brands are entering the market
and high rate of FDI is being witnessed in the Sector. In spite of
the undeniable benefits, Indian economy is facing a serious
problem which one is seriously taking note of, a problem which is
slowly hampering the root of the country's economy.
Taking examples from every day life of which we are all aware
viz. fake watches, stamps, cigarettes, cosmetics, pharmaceuticals,
FMCG products, auto components, software, music, movies etc
which is resulting in significant loss to companies & their rightful
owners corresponding evasion of tax duties and violation of the
rights of the consumer.

2. India: IP CRIME: "Rising Threats To
Intellectual Property Rights"
SOCIO-ECONOMIC IMPACT OF IP CRIME
World Health Organisation (WHO) states that approximately 10 per cent of all
pharmaceutical drugs in the world are counterfeit, rising to 60 per cent in
certain poor and developing nations.1 According to a report the daily sale of
particular brand of Scotch whisky is greater than its monthly worldwide sales. It
can only be possible if the real bottles have counterfeit liquor in them which
makes the sale at a very alarming rate. Due to this reason the empty bottles of
this particular brand have a major resale value of 250 rupees each
(approximately 4 US dollars)2. Some of the following impacts of IP crime are as
follows :
Heavy loss to the industry because of pirated and counterfeit goods.
Major loss of taxes to the government.
The real owners and creators of IP from different countries and technology are
not remunerated.
The real loss to the consumer as he gets poor value for money or may be feel
cheated when suffer from this IP crime.
Due to this IP crime , the overall growth of the industry lacks behind and results
in severe loss to business or IP related investment coming into the country.

3. India: IP CRIME: "Rising Threats To
Intellectual Property Rights"
brand names, logo, trademarks depicting on apparels which are easily
available on streets or in local markets in India clearly shows a wide
example of IP CRIME. According to the recent studies by Industry
association i.e The Confederation of Indian Industry (CII) estimates that
the FMCG sector loses approximately 15% of its revenue to counterfeit
goods with several top brands losing up to 30% of their business due to
IP crime.3 Deputy M.D., Tata Tea informed that 65% of total tea sold, is
sold as loose tea, which has some form or other of tampering done to
it, Food grade color is added to husk and this mixed with loose tea.
Some tea bags are even rebagged. A G.M, Legal Affairs HUL, explained
how "Fair and Lovely" became "Flair and Lovely"

4. India: IP CRIME: "Rising Threats To
Intellectual Property Rights"
In India judiciary is not equipped to deal with the cases on a speedy
basis. In certain industries there are thousands of cases registered in
various courts of India but due to a massive backlog they are just
gathering dust. Moreover some cases are not even been heard by the
courts. On the other hand serious shortage of experienced lawyers in
the country affects the IP crime and those having knowledge ask for
such high demand which can only be afforded by big companies. Lack of
knowledge and awareness is also the main concern for the growth of IP
crime in India.

5. India's IPR decisions have hit
pharma sector the most, says John J
Castellani, CEO, Pharmaceutical
Research and Manufacturers of
America

6. What are your reservations regarding India's IPR policies?
Effective patent protection is necessary for continued investments in innovative
lifesaving drugs. All World Trade Organisation members have committed to ensuring
favourable policy environment that supports continued research for new medicines
through a system of patents. If countries show scant respect for IP protection, the
future of new medicines is at risk, because incentives for the research-based
pharmaceutical industry to invest over $ 1 billion and 10-15 years in the development
of a single new medicine will be undermined. To truly improve access to medicines in
India, we will need to continue to work together to advance sustainable policy
solutions to healthcare financing, infrastructure, and human resources challenges,
among others, rather than focus on compulsory licences or other ways of
undermining patent protection of innovative medicines.
Are US businesses divided on the issue of India's IPR policy, since Honeywell
International and Boeing, in their testimonies to the US government, have backed
the IPR environment in India?
The current system for intellectual property protection provides the necessary
incentives for innovators in all fields of technology to devote time and resources in
creating the next generation of products and services for the global economy. That
said, negative IP decisions in India have targeted the innovative biopharmaceutical
industry far greater than other sectors.

7. Abbott, the largest drugmaker in India by market share, has also told the US
government that it is not facing any significant challenges in India on IPR issues. Do
the Big Pharma companies differ on the magnitude of challenge that India's IPR
regime poses?
While Abbott is not a member of PhRMA, their response to the USITC is in the public
domain and states: "The Trade Related Aspects of Intellectual Property Rights (TRIPS)
Agreement provides an important framework for that protection and it is important
that all World Trade Organisation members meet their obligations under TRIPS.
Abbott is not currently facing any significant challenges with respect to intellectual
property protection in India." We don't see any dissonance in this view.
India's pharma industry believes Pfizer is getting isolated in its campaign against
India's IPR policies. What are your views?
All our member companies believe that strong patent laws will encourage and sustain
innovation in the research-based and technology-intensive pharmaceuticals industry.
Pfizer, like our other member companies, remains committed to collaborating with
the Indian government and other stakeholders to find sustainable solutions that
address the need for more accessible medicines, within a robust IP environment

8. Abbott, the largest drugmaker in India by market share, has also told the US
government that it is not facing any significant challenges in India on IPR issues. Do
the Big Pharma companies differ on the magnitude of challenge that India's IPR
regime poses?
While Abbott is not a member of PhRMA, their response is in the public domain and
states: "The Trade Related Aspects of Intellectual Property Rights (TRIPS) Agreement
provides an important framework for that protection and it is important that all
World Trade Organisation members meet their obligations under TRIPS. Abbott is not
currently facing any significant challenges with respect to intellectual property
protection in India." We don't see any dissonance in this view.
India's pharma industry believes Pfizer is getting isolated in its campaign against
India's IPR policies. What are your views?
All our member companies believe that strong patent laws will encourage and sustain
innovation in the research-based and technology-intensive pharmaceuticals industry.
Pfizer, like our other member companies, remains committed to collaborating with
the Indian government and other stakeholders to find sustainable solutions that
address the need for more accessible medicines, within a robust IP environment