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GLOBLISATION’S INFLUENCE ON INDIA’S PATENT LAW
REGIME: AN IN-DEPTH ANALYSIS
ML 1.5 Seminar Paper - I Patent Law and Policy
Submitted by
Rahul Parihar
UID: PG2023-33
LL.M. 1st Year 1st Semester
Submitted to
Prof. Dr. Jagdish Khobragade
(Assistant Professor of Law)
OCTOBER 2023
MAHARASHTRA NATIONAL LAW UNIVERSITY, NAGPUR
i
List of Statutes
The Indian Patents and Designs Act 1911
The Indian Patents Act 1950
The Indian Patents Act 1970
List of Cases
Bayer Corporation v. Union of India 22
Microsoft Corp. v. AT&T Corp. 18
Union of India v. Novartis AG 21
WesternGeco LLC v. ION Geophysical Corp. 18
List of Abbreviations
ASEAN Association of Southeast Asian Nations
EU European Union
ARIPO African Regional Intellectual Property Organisation
GATT
IMF International Monetary Fund
IP Intellectual Property
IPAB Intellectual Property Appellate Board
IPR Intellectual Property Rights
MERCUSUR Southern Common Market were among the regional organisations that
emerged in the 20th century
OAPI African Intellectual Property Organization
OECD Organization for Economic Co-operation and Development
PCT Patent Cooperation Treaty
TRIPS The Trade-Related Aspects of Intellectual Property Rights Agreement
USITC United States International Trade Commission
WIPO World Intellectual property Organisation
WTO World Trade Organization
ii
Contents
List of Statutes .................................................................................................................... i
List of Cases........................................................................................................................ i
List of Abbreviations........................................................................................................... i
Contents............................................................................................................................. ii
CHAPTER-I INTRODUCTION ......................................................................................... 1
1.1 Statement of Problem................................................................................................ 1
1.2 Objectives of the Study ............................................................................................. 3
1.3 Research Hypothesis/Questions................................................................................. 3
1.3.1 Research Hypothesis........................................................................................... 3
1.3.2 Research Questions............................................................................................. 4
1.4 Literature Review...................................................................................................... 4
1.5 Rationale of Study..................................................................................................... 5
1.6 Research methodology .............................................................................................. 5
1.7 Scope and Limitations............................................................................................... 6
1.7.1 Scope................................................................................................................. 6
1.7.2 Limitations......................................................................................................... 6
CHAPTER-II HISTORICAL OVERVIEW OF INDIAN PATENT LAW AND IMPACT OF
GLOBALISATION............................................................................................................ 7
2.1 Introduction.............................................................................................................. 7
2.2 Evolution of Indian Patent Law ................................................................................. 7
2.2.1 Colonization Phase............................................................................................. 7
2.2.2 Post-Independence Phase.................................................................................... 7
2.2.3 Globalization Phase............................................................................................ 8
2.3 Key Milestones in Globalisation................................................................................ 8
2.4 Relevance of Theories of Globalisation in Patent Law................................................ 9
2.4.1 Neoliberalism..................................................................................................... 9
2.4.2 World Systems Theory ..................................................................................... 10
2.4.3 Cultural Theory................................................................................................ 10
2.5 Legal Perspectives on Globalization’s Impact.......................................................... 10
2.5.1 Global Patent Law Harmonization..................................................................... 10
2.5.2 Quality Control and Substantive Patent Law Harmonization .............................. 11
2.6 Conclusion.............................................................................................................. 11
CHAPTER-III GLOBAL TRENDS IN PATENT LAW..................................................... 13
3.1 Introduction............................................................................................................ 13
iii
3.2 WIPO Report.......................................................................................................... 13
3.3 OECD Report......................................................................................................... 14
3.4 Comparative Analysis of Worldwide Patent Laws.................................................... 14
3.5 Influential International Agreements and Treaties..................................................... 16
3.6 Impact of Globalisation on Legal Precedents............................................................ 18
3.7 Economic Impacts and Transfer of Technology........................................................ 18
3.8 Conclusion.............................................................................................................. 19
CHAPTER-IV GLOBALISATION AND INDIAN PATENT LAW REGIME................... 20
4.1 Introduction............................................................................................................ 20
4.2 Legal Challenges of Globalisation ........................................................................... 20
4.3 Notable Case Laws..................................................................................................21
4.4 Conclusion.............................................................................................................. 22
CHAPTER-V CONCLUSION AND SUGGESTIONS ...................................................... 23
5.1 Suggestions............................................................................................................. 23
5.2 Conclusion.............................................................................................................. 24
Bibliography ..................................................................................................................... iii
I. Printed Sources....................................................................................................... iii
1. Books .............................................................................................................. iii
2. Articles............................................................................................................ iii
II. Electronic Source................................................................................................. iv
1. Webliography .................................................................................................. iv
1
CHAPTER-I INTRODUCTION
1.1 Statement of Problem
India’s trajectory under globalisation, post-colonialism, and post-independence is mirrored in
the historical development of its patent system and its effect on innovation in the
pharmaceutical sector. By utilising TRIPS Agreement flexibilities like as the prohibition on
evergreening, the issuance of compulsory licences, the retention of pre-grant opposition, and
the introduction of post-grant opposition, the Indian patent regime has been capitalising on
these advantages.Asa resultof India’sinvolvementin the discussionsaroundthe incorporation
of intellectualproperty into the GATTframework and itsultimate accessionto the World Trade
Organization (WTO), the country’s patent laws have been substantially strengthened.1
The Indian IPR law has been significantly impacted by globalisation, as globalisation and
liberalisation have increased the influx of large corporations into India, resulting in the
acquisition of several smaller enterprises.2 The Patent Cooperation Treaty (PCT) oversees the
international patent system,which aids applicants in their pursuit of patent protection for their
inventions across borders, supports patent offices in their determinations regarding patent
granting, and facilitates public access to technical information pertaining to those inventions.3
The exponential growth of patent applications over the last twenty years has given rise to a
numberof difficulties,includingheightenedglobalisation,an excessive reliance on the internet
as a dissemination medium, and increasing innovation in the service sector.4
In the context of patent law, the theoretical foundation of globalisation is a complicated and
varied subject. Academics that examine patent law from an economic perspective generally
aim to develop a set of pertinent legal principles that optimise the advantages of the patent
system while reducing its expenses. The “incentive to invent” idea is the prevailing rationale
for the patent system. It posits that without patents, inventors would be devoid of a financial
motivation to allocate resources towards research and development. Nevertheless, this form of
1
Uday S. Racherla, “Historical Evolution of India’s Patent Regime and its Impact on Innovation in the Indian
Pharmaceutical Industry”, Kung-Chung Liu and Uday S. Racherla (eds.), INNOVATION, ECONOMIC
DEVELOPMENT,ANDINTELLECTUAL PROPERTYININDIAAND CHINA, 1st
ed. 2019, pp. 271-298.
2
Vanshika Priya Mathur, IMPACT OF GLOBALISATION ON THE INDIAN IPR REGIME,
https://www.iplink-asia.com/article-detail.php?id=918, (Visited on October 20, 2023).
3
World Intellectual Property Organisation, PCT – THE INTERNATIONAL PATENT SYSTEM,
https://www.wipo.int/pct/en/, (Visited on October 20, 2023).
4
Organisation forEconomic Co-OperationandDevelopment,PATENTSANDINNOVATION:TRENDSAND
POLICYCHALLENGES,https://www.oecd.org/science/inno/24508541.pdf, (Visited on October 20, 2023).
2
cost-benefit analysis does not consistently yield definitive conclusions; in certain situations, it
may even result in an impasse.5
The effectsof globalisation on IPRhave beenboth advantageousanddetrimental.Strengthened
IPR protection ought to stimulate innovation and boost the profits on international technology
transfer. Nevertheless, this development has given rise to several complications, including but
not limited to online piracy, illicit reproduction of physical books, and difficulties in achieving
international patent law harmonisation.6 The PCT oversees the international patent system,
which aids applicants in their pursuit of patent protection for their inventions across borders,
supports patent offices in their determinations regarding patent granting, and facilitates public
access to technical information pertaining to those inventions.7 The exponential growth of
patent applications over the last twenty years has given rise to a number of difficulties,
including heightened globalisation, an excessive reliance on the internet as a dissemination
medium, and increasing innovation in the service sector.8
In recent decades, the correlation between intellectual property protection and international
trade has emerged as a highly contentious subject in international discussions. The Trade-
Related Aspects of Intellectual Property Rights (TRIPS) Agreement, which was established as
a foundational component of the World Trade Organization and was signed in 1994, stands as
the preeminent endeavour to ensure worldwide uniformity in the safeguarding of intellectual
property. However,worldwide patent law harmonisation has not yet been achieved; hence,in
contrast to the highly nationalistic systems of the present, a truly global patent system becomes
essential.9
In recent decades, the correlation between intellectual property protection and international
trade has emerged as a highly contentious subject in international discussions. In addition to
endeavoursto fosteradherence to the TRIPSagreement,it is imperative to implementmeasures
5
OferTur-Sinai,“BeyondIncentives: ExpandingtheTheoreticalFramework forPatentLawAnalysis”,AKRON
LAW REVIEW, Vol. 15 Issue 1 2015, pp. 243-289.
6
Francis Gurry and Debora Halbert. “Globalization, Development, and Intellectual Property: New Challenges
and NewOpportunities.”AMERICANSOCIETYOFINTERNATIONAL LAW, Vol. 99 2005, pp. 291–300.
7
Daniele Archibugi and Andrea Filippetti, “The Globalisation of Intellectual Property Rights: Four Learned
Lessons and Four Theses”, GLOBAL POLICY, Vol. 1 Issue 2 2010, pp.137-149.
8
Yoga Prihastomo,et al.,“TheoreticalFrameworkofSmart IntellectualPropertyOffice in DevelopingCountries
Author Links Open Overlay Panel”, PROCEDIA COMPUTER SCIENCE, Vol. 161 2019, pp. 994-1001.
9
RandyL.Campbell, GLOBAL PATENT LAWHARMONIZATION:BENEFITSANDIMPLEMENTATION,
https://mckinneylaw.iu.edu/iiclr/pdf/vol13p605.pdf, (Visited on October 20, 2023.
3
that tackle issues of public interest, including but not limited to environmental preservation,
health, and nutrition in developing nations.10
The ramifications of globalisation on Indian patent legislation and the historical development
of India’s patent system have been substantial in terms of their influence on innovation,
economic expansion, and worldwide commerce. In the backdrop of globalisation, the
equilibrium between social objectives, priorities, and economic objectives has been a crucial
factorin determiningIndia’spatentlaws. Thisseminarpaperwillaim to do an in-depth analysis
of these factors of globalisation on Indian patent law regime.
1.2 Objectives of the Study
1. Examine the progression of the Indian Patent Law system throughout history with
respect to the phenomenon of globalisation.
2. In order to evaluate the theoretical frameworks that attempt to elucidate the correlation
between patent laws and globalisation.
3. Determine the effect that international patent law trends have had on the Indian legal
system.
4. In order to examine the economic ramificationsof globalisation on the patent system in
India, with a specific emphasis on the transfer of technology and market dynamics.
5. In order to assess the legal complexities and disputes that emerge at the convergence of
Indian Patent Law and globalisation.
1.3 Research Hypothesis/Questions
1.3.1 Research Hypothesis
The researcher has formulated the hypothesis that innovation, economic growth, and
international commerce have been profoundly influenced by the historical development of
India’s patent regime and the impact of globalisation on Indian patent legislation. In the
backdrop of globalisation, achieving the equilibrium between social objectives, priorities, and
economic objectives is a crucial factor in determining India’s patent laws.
10
CalestousJuma,INTELLECTUAL PROPERTYRIGHTSANDGLOBALIZATION: IMPLICATIONSFOR
DEVELOPING COUNTRIES,
https://www.iatp.org/sites/default/files/Intellectual_Property_Rights_and_Globalization.pdf,(Visited on October
20, 2023).
4
1.3.2 Research Questions
1. How has globalisation affected the historical development of the Indian patent law
regime?
2. Which theoretical frameworks are pertinent to comprehending the ways in which
globalisation influences patent laws?
3. To what extent do worldwide developments in patent legislation influence the legal
environment in India?
4. In specifically, how has globalisation affected the Indian patent system economically,
with regard to technology transfer and market dynamics?
5. What legal complexities and disputes arise when globalisation and Indian patent law
intersect?
1.4 Literature Review
To formulate a research problem and to avail the information of a certain facet, it is required
to study the literature available on the subject thoroughly in order to understand the topic in an
overall sense and to get a complete understanding of all the aspects and feature of the topic.
Many authors have written about the principles that govern this particular topic. Hence, ample
amount of literature was available to the researcher to conduct this study:
“Historical Evolution of India’s Patent Regime and Its Impact on Innovation in the Indian
Pharmaceutical Industry” by Uday S. Racherla describes how the three periods of the Indian
patent regime—colonization, post-independence,and globalization—impacted the patent laws
and pharmaceutical business in India. It examines the significant provisions and modifications
that have occurred in Indian patent legislation between 1947 and 2005. Additionally,the report
examines several significant casesand disputes that pertain to the Indian patent system and its
adherence to the TRIPS Agreement.
“Comparative Legal Analysis and Intellectual Property Law: A Guide for Research” by Irene
Calboliprovidesa concise synopsisof comparative lawand delineatesthe systematic approach
that researchers employ to undertake comparative analysis across all legal disciplines. The
essay underscoresthe significance ofutilisingthisresearch approachin the realm of intellectual
property studiesand furnishesconcrete illustrationsof howcomparative legalanalysishasbeen
implemented in IP research through previous publications.
5
“Research Handbook on the World IntellectualPropertyOrganization:The First50 Yearsand
Beyond”by Sam Ricketson (editor) evaluatesthe activitiesand initiativesof WIPOthroughout
its initial fifty years, in addition to the obstacles it encounters in its subsequent decades. It
discusses the history, evolution, mission, activities, and inter-organizational interactions of
WIPO, among other topics.
“The Economics of Patents: An Overview” by Corinne Langinier and GianCarlo Moschini
review the economic effects of intellectual property rights and the main benefits and costs of
the patent system, focusing on the role that patents play in providing incentives for innovation,
in promoting the dissemination of knowledge, and in helping technology transfer and
commercialization of new technology.It reviews the issues related to how the patent system
influences the market structure and research and development investments.
1.5 Rationale of Study
The investigation into the effects of globalisation on the Indian Patent Law system is driven by
the imperative to understand the complex interplay between the legal system of a growing
country and the interconnected global community. As the rate of globalisation quickens, it is
critical to comprehend the ramifications that it has on intellectual property legislation,
particularly patents. India, being an innovative hub and a major player in the global economy,
is the appropriate subject for a case study. Through an examination of the historical
development, conceptual frameworks, economic ramifications, and legal obstacles, this
research endeavours to provide significant contributions to the fields of academia,
policymaking, and legal practise. The objective of this research is to contribute to ongoing
policy discussions and determinationsby promoting a comprehensive comprehension of how
India may effectively manage the international intellectual property arena while protecting its
own interests.
1.6 Research methodology
The research methodology for this study will be mixed methods,incorporating both qualitative
and quantitative analysis. In the qualitative component, an exhaustive examination of legal
texts, policy papers, and case studies will be conducted. In the context of Indian Patent Law
and globalisation, the quantitative component will involve the examination of statistical data
pertaining to technology transfer, foreign direct investment, and patent filings.
6
1.7 Scope and Limitations
1.7.1 Scope
The project’s scope is all-encompassing, incorporating diverse facets of the interplay between
globalisation and the patentlawregime in India.An examination of historical progressionswill
serve as the basis for comprehending the evolution of the patent system as a consequence of
globalisation. By doing an analysis of theoretical frameworks, one can enhance their
comprehension of the fundamental principlesthat govern this interaction. An examination of
worldwide patterns in patent legislation, the resulting economic ramifications, and legal
obstacles will be conducted, providing a comprehensive viewpoint.
1.7.2 Limitations
Although the study strives for comprehensiveness, it is important to highlight certain limits.:
1. Data Availability: There may be constraints on the accessibility of full and current
data, specifically regarding specific intricate facets of patent law.Every endeavour will
be to employ the most current and dependable sources possible.
2. Scope of Legal Analysis: The main emphasis of the legal study will be on patent
legislation. The wider intellectual property framework will be examined solely to the
extent that it is either directly impacted by patent regulationsor is influenced by them.
3. Changing Legal Landscape: Legislative modifications or policy advancements that
transpire subsequent to the knowledge cutoff date may not be comprehensively
integrated, hence requiring ongoing surveillance to identify revisions.
To ensure the study’s integrity and relevance are maintained, and to ensure that the results are
interpreted in accordance with the established framework and restrictions, it is critical to
acknowledge and confront these constraints.
7
CHAPTER-II HISTORICAL OVERVIEW OF INDIAN PATENT LAW AND
IMPACT OF GLOBALISATION
2.1 Introduction
The purpose of this chapter is to examine the historical development of India’s patent regime
and its influence on innovation within the Indian pharmaceutical sector. Specifically, it will
analyse India’s trajectory during the periods of colonialism, after independence, and
globalisation. By utilising the flexibilities granted by the TRIPS Agreement, the Indian patent
regime has implemented measures including the implementation of post-grant opposition,
retention of pre-grant objection, and prevention of evergreening. As a result of India’s
involvementin the discussionsaround the incorporation ofintellectualproperty into the GATT
framework and its ultimate accession to the World Trade Organization (WTO), the country’s
patent laws have been substantially strengthened.
2.2 Evolution of Indian Patent Law
The evolution of Indian patent law is a complex and multifaceted journey that reflects India’s
efforts to balance its social goals and priorities against its economic goals. The historical
evolution of the Indian patent regime can be divided into three distinct phases:
2.2.1 Colonization Phase
During the period of colonisation, the British drafted the Indian Patents and Designs Act of
1911, which established the initial patent legislation in India. The patent holder was given
exclusive rightsfora duration of fourteenyearsthrough thisaction.Nevertheless,the foreigner-
friendly patent legislation impeded the progress of the Indian pharmaceutical sector and
compelled independent India to import prohibitively expensive basic medications.11
2.2.2 Post-Independence Phase
Following the attainment of independence in 1947, India enacted the Indian Patents Act of
1950, an amended iteration of the Act from 1911. Nonetheless, this Act failed to advance the
interestsof the Indian pharmaceuticalindustryand rewarded foreigners. To evaluate the current
patent rules, the Indian government convened a powerful committee in 1949, led by the
11
Supra note 1.
8
distinguished jurist Bakshi Tek Chand. In 1957, a second committee, under the leadership of
Justice Rajagopala Ayyangar, was tasked with advising the government on the matter of
modifying the Patents Act.12 The Indian Patents Act of 1970 was implemented in response to
the committee’s recommendations, with the primary objectives of fostering scientific research,
economic growth, and the advancement of innovative technologies. Additionally, the Act
implemented the notion of compulsory licencing, which authorised the government to issue
licences to domestic producers in situations where international patent holders failed to
operate.13
2.2.3 Globalization Phase
Presently, India is an emerging global power whose patent system is in a state of constant
evolution. The exponential growth of patent applications over the last twenty years, propelled
by heightened globalisation, pervasive internet usage, and expanded service innovation, has
had a profound effect on India’s patent system and innovation ecosystem. In the context of
globalisation, the equilibrium between social objectives, priorities, and economic objectives
has been a determining factor in the development of India’s patent laws.14
Two expert committees laboured over the Indian Patent Act of 1970, which was the result of
extensive deliberation.Its implementation sparked a revolution in Indian sectors, particularly
the pharmaceutical sector. The purpose of the act was to foster the development of industrial
processes, promote ideas,and ensure that commercial applications of those inventionsoccur in
India. The act has continually worked to erect obstacles to the misuse of inventions and has
been a reliable resource for safeguarding intellectual property and its application. In addition
to bolstering the patent holder’s entitlements, the legislation promotes the nation’s
development in order to align it with contemporary countries.15
2.3 Key Milestones in Globalisation
India’s innovation environment and patent law have been profoundly influenced by
globalisation. Some significant globalisation milestones include:
12
O.M. Bagade, et al., “Evolving Pace of Patent in India and its Corollary in Past, Present and Future”,
AMERICAN JOURNAL OF ADVANCED DRUG DELIVERY, Vol. 2 No. 4 2015, pp. 503-521.
13
Soujanya Boxy, THE EVOLUTION OF PATENTS ACT 1970, https://judicateme.com/the-evolution-of-the-
patents-act-1970/, (Visited on October 21, 2023).
14
AkashVaradaraj,THEBRIEFHISTORYOFPATENT SYSTEMININDIA,https://vakilsearch.com/blog/the-
brief-history-of-patent-system-in-india/, (Visited on October 21, 2023).
15
Supra note 12.
9
1. During the late 18th and early 19th centuries, the Industrial Revolution revolutionised
international trade and the economy.16
2. The establishment of the World Trade Organization (WTO) in 1995, which promoted
intellectual property rights and the globalisation of trade.17
3. The proliferation of transnational mergers and acquisitions and the ascent of
multinational organisations have resulted in the procurement of numerous smaller
enterprises in India.
4. The exponential growth of patent applications over the last twenty years can be
attributed to the expansion of services innovation,the pervasive use of the internet, and
heightened globalisation.18
These significanteventshaveinfluencedthe developmentofIndia’spatentsystem anditseffect
on pharmaceutical innovation in the country. In the backdrop of globalisation,the equilibrium
between social objectives, priorities, and economic objectives has been a crucial factor in
determining India’s patent laws.
2.4 Relevance of Theories of Globalisation in Patent Law
The patent law has been profoundly affected by globalisation, necessitating a thorough
comprehension of the legal frameworks and underlying ideas that govern this correlation. This
examination will examine the importance of the various theories of globalisation to patent law,
in addition to the legal viewpoints on the effects of globalisation.
2.4.1 Neoliberalism
Neoliberalism is an economic philosophy that advocates for market integration, laissez-faire
principles, and free trade in relation to globalisation. To encourage innovation and
technologicaltransfer,neoliberalism emphasisesthe significanceof robustintellectualproperty
rights (IPR) protection in the context of patent law. Strong patent protection, according to
proponents of neoliberalism, is necessary to foster an inventive and competitive economy.19
16
Dr. Nayef R.F. Al-Rodhan, HISTORICAL MILESTONES OF GLOBALIZATION,
https://www.files.ethz.ch/isn/19456/historical%20milestones.pdf, (Visited on October 21, 2023).
17
PeterVanham,ABRIEFHISTORYOFGLOBALISATION, https://www.weforum.org/agenda/2019/01/how-
globalization-4-0-fits-into-the-history-of-globalization/, (Visited on October 21, 2023).
18
Ralf Michaels, GLOBALIZATION AND LAW: LAW BEYOND THE STATE,
https://scholarship.law.duke.edu/cgi/viewcontent.cgi?article=5540&context=faculty_scholarship, (Visited on
October 21, 2023).
19
Ruth L. Okediji and Margo A. Bagley (eds.), PATENT LAW IN GLOBAL PERSPECTIVE, 1st
ed. 2014.
10
2.4.2 World Systems Theory
World Systems Theory posits that the Global North and the Global South are in an unequal
relationship, and that globalisation only consolidatesthe authority of those who were already
dominant by virtue of sociopolitical manoeuvring and historical events. This theory
emphasises, within the framework of patent law, the discrepancies between developed and
developing nations with regard to IPR protection. This emphasises the necessity for a
worldwide patent system that is more just and considers the concerns of every country, namely
with the transfer of technologies and the availability of critical medications.20
2.4.3 Cultural Theory
Cultural theory asserts that on a local and global scale, globalisation influences epistemology
(ways of learning) and ontology (ways of being), hence influencing the manner in which
individuals learn and live in the world. Cultural theory stresses, in the context of patent law,
the significance of incorporating various social and cultural views into the formulation of
international intellectual property rights (IPR) norms. It emphasises the need for a patent law
strategy that is more inclusive, culturally sensitive, and considerate of the interests of various
communities and stakeholders.21
2.5 Legal Perspectives on Globalization’s Impact
2.5.1 Global Patent Law Harmonization
Harmonization of patent law on a global scale is essential for numerous reasons.The transition
of nations from knowledge-based to industrial-based economies is a primary factor. As
technological advancements reduce the distances and disparities between nations, a genuinely
global patent system becomes essential in contrast to the staunchly nationalistic systems that
currently prevail. Global patent law harmonisation has not yet been accomplished, despite
concerted efforts. Nevertheless, worldwide patent law harmonisation remains a crucial
objective, since it ensures the safeguarding of intellectual property rights and is vital for the
international commerce of services and products.
20
Supra note 9.
21
Sisir Botta andChristopherTsai,GLOBALIZATIONISACATALYST FOR CHANGEININTELLECTUAL
PROPERTY SYSTEMS: CASE STUDIES IN INDIA AND CHINA, https://ocw.mit.edu/courses/6-901-
inventions-and-patents-fall-2005/718d8c1a9dde1bfe60a7c87c59f856b4_fin_pro_bota_tsa.pdf, (Visited on
October 22, 2023).
11
2.5.2 Quality Control and Substantive Patent Law Harmonization
Quality control and substantive patent law harmonization are two related concepts in the field
of patent law. Quality control refers to the process of ensuring that the patents granted by
different patent office meet certain standards of novelty, inventive step, and industrial
applicability. Substantive patent law harmonization refers to the effort to establish a set of
uniform rules on these and other key aspects of patent law, such as grace period,prior art, and
exceptions and limitations. The main benefits of quality control and substantive patent law
harmonization are:22
1. Reducing duplication and inconsistency: By having a common set of criteria and
procedures for patent examination, patent offices can avoid granting conflicting or
overlappingpatents,and reduce the administrative burdenand costof processingpatent
applications.23
2. Facilitating international trade and technology transfer: By having a harmonized
patentsystem,patentapplicantscan obtain patentprotection more easily andefficiently
in multiple jurisdictions, and patent holders can enforce their rights more effectively
across borders.24
3. Promoting innovation and public interest: By having a high-quality and balanced
patent system, inventors can be rewarded for their creative efforts,and the public can
benefit from the disclosure and dissemination of new technologies.
2.6 Conclusion
Significantimplicationshave resulted from the historicaldevelopmentof India’spatentregime
and the influence of globalisation on Indianpatentlegislation with regard to internationaltrade,
economic expansion,and innovation.In the backdropof globalisation,the equilibrium between
social objectives, priorities, and economic objectives has been a crucial factor in determining
India’s patent laws. The trajectory of the Indian patent system exemplifies India’s ongoing
22
Rochelle CooperDreyfussand Jerome H.Reichman, “WIPO’sRole in ProceduralandSubstantivePatent Law
Harmonization”, Sam Ricketson (ed.), RESEARCH HANDBOOK ON THE WORLD INTELLECTUAL
PROPERTY ORGANIZATION: THE FIRST 50 YEARS AND BEYOND, 1st
ed. 2020, pp. 108-130.
23
CarlosM.Correa,ANAGENDA FOR PATENT REFORM ANDHARMONIZATIONFOR DEVELOPING
COUNTRIES,
https://www.wipo.int/export/sites/www/meetings/en/2006/scp_of_ge_06/presentations/scp_of_ge_06_correa.pd
f, (Visited on October 22, 2023).
24
United StatesPatent and Trademark Office, PATENT LAW HARMONIZATION,https://www.uspto.gov/ip-
policy/patent-policy/patent-law-harmonization, (Visited on October 22, 2023).
12
endeavours to align with the evolving international environment, all the while protecting its
domestic interests and fostering economic growth and innovation.
The intricate correlation between patent law and globalisation is comprehensively illuminated
by the diverse legal perspectives and theories of globalization’s effects. In order to encourage
innovation, neoliberalism emphasises the significance of robust IPR protection, but World
Systems Theory emphasises the need for a more equitable global patent system. The
significance of adopting a patent law strategy that is more inclusive and culturally sensitive is
emphasised by cultural theory. In order to promote a more efficient and effective worldwide
patentsystem and to handle the issuescreated by the globalisation of patentlaw,harmonisation
and quality control of global patent law is indispensable.
13
CHAPTER-III GLOBAL TRENDS IN PATENT LAW
3.1 Introduction
The past few years have witnessed notable trends and advancements in international patent
law, which can be attributed to the effects of globalisation and the evolving technological and
innovative environment. A number of authoritative publicationsoffer valuable perspectives on
these worldwide developments in patent law.
3.2 WIPO Report
In 2022, a record amount of patent applications was filed globally, according to the World
Intellectual Property Organization (WIPO), and global patenting activity experienced a
significant surge, setting fresh milestones. The report emphasised the substantial increase in
patent applications, which was fuelled in particular by Chinese and Indian entrepreneurs.
Germany, the United States, China, Japan, and the Republic of Korea filed the most patent
applications in 2022. The majority of IP filing activity, regardless of origin, occurs in Asia,
according to the report, with Asia accounting for a substantial proportion of worldwide patent
filing activity.25
A report published by the WIPO analyses global patenting patterns and identifies globalisation
as a significant factor in the increase in patent applications. The report emphasises that future
patent applications, primarily in additional nations, significantly contributed to the global
increase in patent filings. The escalating utilisation of patents by public research institutions
and enterprises to safeguard their ideas is intricately linked to recent developments in
innovation processes, the economy, and patent regimes. In order to continue fostering
innovation and technological dissemination while enabling the patent system to confront new
problems, the report underscores the importance of implementing policies that are more global
in scope and informed.26
25
World IntellectualPropertyOrganisation, WORLDINTELLECTUAL PROPERTYINDICATORSREPORT:
RECORD NUMBER OF PATENT APPLICATIONS FILED WORLDWIDE IN 2022,
https://www.wipo.int/pressroom/en/articles/2023/article_0013.html, (Visited on October 23, 2023).
26
Carsten Fink, et al., EXPLORING THE WORLDWIDE PATENT SURGE,
https://www.wipo.int/edocs/pubdocs/en/wipo_pub_econstat_wp_12.pdf, (Visited on October 23, 2023).
14
3.3 OECD Report
The Organization for Economic Co-operation and Development (OECD) has also emphasised
the substantial transformations in patent regimes and the growing reliance of corporations and
public research organisationson patents to safeguard their ideas. As the economic significance
of patents grows, the number of patent applications filed in Europe, Japan, and the United
States increased substantially, according to the OECD report. A global approach to patent
policy is emphasised in the report in order to handle emerging problems and ensure that the
patent system continues to foster innovation and the diffusion of technologies.27
3.4 Comparative Analysis of Worldwide Patent Laws
Conducting a comparative examination of patent laws around the globe is an intricate and
diverse undertaking that demands a profound comprehension of the legal frameworks of other
nations as well as the multitude of determinants that impact their patent legislation. Numerous
seminal sources offer significant perspectives on this subject matter, elucidating the
convergence of intellectual property (IP) law and comparative law, the criticality of
harmonising global patent law, and the examination of patterns in worldwide patent
applications.
A chapter of an academic publication explores the intersection of comparative law and
intellectual property law, along with the role of comparative legal analysis as a research
methodology utilised by IP scholars.28 The prominence of comparative legal analysis in the
field of intellectual property law began with the passage of the Berne Convention in 1886 and
the Paris Convention for the Protection of Industrial Property in 1883. Beginning at the end of
the 19th century, “internationalisation” of intellectual property law resulted in the adoption of
standardised principles in a number of nations.29 The aforementioned pattern persisted
throughout the twentieth century and culminated in the 1994 signing of the Agreement on the
Trade-Related Aspects of Intellectual Property Rights (TRIPS).
27
Supra note 4.
28
Irene Calboli, “Comparative Legal Analysis and Intellectual Property Law: A Guide for Research”, Irene
Calboli and Maria Lillà Montagnani (eds.), HANDBOOK OF INTELLECTUAL PROPERTY RESEARCH:
LENSES, METHODS, AND PERSPECTIVES, 1st
ed. 2021, pp. 46-66.
29
Sam Ricketson and Jane Ginsburg, INTERNATIONAL COPYRIGHT AND NEIGHBOURING RIGHTS:
THE BERNE CONVENTION AND BEYOND, 3rd ed. 2022.
15
During the 1990s and the last two decades, a number of other pertinent WIPO treaties were
ratified. These treaties encompassed agreements about the harmonisation processes of national
intellectual property offices with respect to the registration of patents and trademarks.
Simultaneously,bilateraland regionalinternationaltrade agreementshaveemerged asa further
platform for establishing intellectual property standards. This has resulted in a succession of
modifications to the domestic legislation of nations that have ratified certain FTAs.30 The
European Union (EU), the African Intellectual Property Organization (OAPI), the African
Regional Intellectual Property Organization (ARIPO), the Association of Southeast Asian
Nations (ASEAN), and the Southern Common Market were among the regional organisations
that emerged in the 20th century (MERCUSUR).31
Administrative cooperation and harmonisation of IP laws have been significantly advanced by
these organisations. This includes the establishment of region-wide IP rights in certain areas
(e.g., OAPI for trademarks, patents, design, and geographical indications, and the EU for
trademarks, design, and geographical indications), as well as the development of centralised
systems for national registrations in other areas (e.g. ARIPO facilitates national registrations
for all IP rights across member states, while the European Patent Office facilitates the filing
and registration of patents across members states).32
The centralization of registration proceduresand thissystem of harmonisation ofIPregulations
have been advantageous for the owners of IP rights. Nevertheless, this procedure has also
encountered criticism due to the fact that it frequently favours mostly multinational
corporations.Criticscontend thatthe processofinternationalharmonisingintellectualproperty
(IP) law has frequently resulted in the imposition, rather than the importation, of greater
protection standards from industrialised countries onto the domestic legislation of poorer
nations. There have been assertions that the degree of protection provided by these standards
was superfluous or unwarranted in light of the developmental status of certain underdeveloped
countries that were obtaining them at the time.33
30
Raymundo Valdés and Maegan McCann, “Intellectual Property Provisions in Regional Trade Agreements:
Revision and Update, Rohini Acharya (ed.), REGIONAL TRADE AGREEMENTS AND THE
MULTILATERAL TRADING SYSTEM, 1st
ed. 2016, pp. 497–607.
31
FernandosdosSantosandPatrick JuvetLowéGnintedem, “RegionalFrameworksforProtection ofIntellectual
Property in Africa”, Adejoke Oyewunmi et al. (eds.), INTELLECTUAL PROPERTY LAW, PRACTICE AND
MANAGEMENT: PERSPECTIVES FROM AFRICA, 1st
ed. 2018, pp. 592, 593–94.
32
Ibid.
33
GrahamDutfield andUma Suthersanen,“HarmonisationorDifferentiation in IntellectualPropertyProtection?
The Lessons of History”, 23 PROMETHEUS 2 (2005), pp. 131-147.
16
Undoubtedly, this has been the situation and continues to be so in notable situations. However,
affluent nations have also transmitted certain restrictions on intellectual property rights over
the past few decades, namely with copyright fair use.34 In contrast, several emerging
economies, such as China, have exhibited a growing concern for intellectual property
legislation in tandem with their economic expansion.35 Conversely, an efficacious framework
for global harmonisation necessitates an adequate degree of adaptability to accommodate
evolving national conditions and varying degrees of progress.
3.5 Influential International Agreements and Treaties
International treaties and agreements of significant influence are crucial in determining the
course of patent law on a global scale. The primary objectives of these agreements are to
facilitate the international interchange of technology and innovation,establish minimum levels
of protection, and foster uniformity and efficiency in patent procedures. Prominent
international agreements and treaties pertaining to patent law comprise the following:
Paris Convention (1884): The initial significant global accord concerning the safeguarding of
intellectual property rights, encompassing patents, established common normsin the realm of
substantive patent law, national treatment, and the right of priority.36
Patent Cooperation Treaty (1970): A treaty overseen by the World Intellectual Property
Organization (WIPO) that permits residents or nationals of a contracting state to submit a
solitary patentapplication eitherto the receivingoffice of WIPOorto their own nationalpatent
office. This facilitates the process of filing patent applications and aids innovators in securing
global patent protection.37
Budapest Treaty (1977): By removing the requirement to deposit microorganisms in each
country seeking patent protection, this treaty permits the submission of a microbe to an
34
Peter Decherney, “Fair Use Goes Global, Critical Studies”, MEDIA COMMUNICATION Vol. 31 Issue 2
(2014), pp. 146-152.
35
Xuan-ThaoNguyen,“TheChina We Hardly Know: RevealingtheNewChina’sIntellectualProperty Regime”,
55 ST. LOUIS U. L.J. (2011), pp. 773-810.
36
World Intellectual Property Organisation, PATENT-RELATED TREATIES ADMINISTERED BY WIPO,
https://www.wipo.int/patent-law/en/treaties.html, (Visited on October 23, 2023).
37
United States Patent and Trademark Office, INTERNATINOAL IP TREATIES, https://www.uspto.gov/ip-
policy/international-ip-treaties, (Visited on October 23, 2023).
17
“international depositary authority” in order to fulfil the deposit obligations stipulated by the
national patent laws of treaty members.38
Hague Agreement (1975): An international registration system that permits the filing of a
single international application in a single language to receive protection for up to one hundred
industrial designs in specified member nations and intergovernmental organisations.39
Strasbourg Agreement Concerning the International Patent Classification (1971): An
internationally recognised framework that is consistently revised to categorise inventions
included in patent applications across all technological domains, hence facilitating the quicker
and more effective retrieval of patent data.40
Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) (1994):
TRIPS, which is an integral component of the World Trade Organization (WTO) agreement,
sets down minimalcriteria to ensure thatWTO members’intellectualproperty rights, including
patents, trademarks, and copyrights are safeguarded.41
Munich Convention on the Grant of European Patents (1973/2000): The Convention
establishes a unified framework for European States to grant patents, permitting any citizen of
the globe to submit patent applications under its jurisdiction.
Madrid System (1896): Establishes a framework for the global registration of trademarks in
accordance with the Madrid Agreement, which permits the protection of trademarksin many
countries or regions upon meeting certain conditions.
The primary objective of these international accords and treaties is to establish a standardised
and effective structure for safeguarding patents, thereby fostering worldwide innovation and
the flow of technologies.
38
World Intellectual Property Organisation, BUDAPEST TREATY ON THE INTERNATIONAL
RECOGNITION OF THE DEPOSIT OF MICROORGANISMS FOR THE PURPOSES OF PATENT
PROCEDURE, https://www.wipo.int/export/sites/www/treaties/en/registration/budapest/pdf/wo_inf_12.pdf,
(Visited on October 23, 2023).
39
Ibid.
40
Supra note 36.
41
Keith E. Maskus,INTERNATIONAL AGREEMENTSONINTELLECTUAL PROPERTYRIGHTS: TRIPS
AND BEYOND, https://www.colorado.edu/faculty/kmaskus/sites/default/files/attached-
files/maskus_chapter_0.pdf, (Visited on October 23, 2023).
18
3.6 Impact of Globalisation on Legal Precedents
Over the past few years, a number of patent cases have served as illustrations of how
globalisation affectslegalprecedents. One suchcase is WesternGeco LLCvs.ION Geophysical
Corp.,42 where in specific circumstances of infringement, the U.S. Supreme Court determined
that a patent owner might obtain foreign-based damages. This decision opened the possibility
thatinfringersmay be required to pay increased damagesin patentcasesinvolvinginternational
supply chains, highlighting the global nature of modern business operationsand the need for
legal precedents to reflect this reality.43
Another case that exemplifies the impact of globalization on legal precedents is Microsoft
Corp. vs. AT&T Corp.,44 where the U.S. Supreme Court ruled that U.S. patents do not have
extraterritorial reach, limiting the ability of patent owners to enforce their rights overseas. This
case underscored the challenges of enforcing patent rights in a globalized economy and the
need for international agreements to address these challenges.45
3.7 Economic Impacts and Transfer of Technology
The economic ramificationsofglobalisation on patentlaware readily apparentin the escalating
velocity of cross-border technology and information transfers on a worldwide scale. The
dissemination of technology across national boundaries has been significantly accelerated by
globalisation, according to research by the International Monetary Fund (IMF). This has
facilitated countries’ access to foreign expertise and encouraged the dissemination of
technology and information.46 Foreign direct investment and market dynamicsare profoundly
affected by this, as nations with access to foreign technology and expertise are in a stronger
position to attract investments and stimulate economic expansion.
The escalatingvelocity of worldwide information transferslikewise affectstechnology transfer
and innovation.The utilisation of patentsforthe protectionof inventionsin businessand public
research is on the rise, according to a study by the Organization for Economic Co-operation
42
138 S. Ct. 2129 (2018).
43
Brian T. Yeh, PATENT OWNERS MAY RECOVER FOREIGN-BASED DAMAGES IN CERTAIN
INFRINGEMENT CASES, https://crsreports.congress.gov/product/pdf/LSB/LSB10173,(Visited on October24,
2023).
44
550 U.S. 437 (2007).
45
Supra note 43.
46
Aqib Aslam, et al., GLOBALIZATION HELPS SPREAD KNOWLEDGE AND TECHNOLOGY ACROSS
BORDERS, https://www.imf.org/en/Blogs/Articles/2018/04/09/globalization-helps-spread-knowledge-and-
technology-across-borders, (Visited on October 24, 2023).
19
and Development(OECD).Moreover,patentsserve asa vitalincentive and recognition system
for creative and innovative endeavours. Patents can, however, restrict the diffusion of
technological advancements and establish market dominance, both of which can result in
increased pricing for consumers, according to the study. This underscores the necessity for a
patent law framework that strikes a balance between fostering innovation and knowledge
transfer, boosting competition, and safeguarding consumer welfare.47
As the significance of intellectual property rights (IPRs) in investment decisions rises, the
effects of globalisation on patent law become increasingly apparent in the context of foreign
direct investment. There are signs that increasing IPRs can be an effective inducement for
inward FDI, according to research by the United States International Trade Commission
(USITC); nevertheless, this finding is only one component of a larger set of considerations. In
addition, the study discovered that intellectual property rights (IPRs) are intricate matters that
force market actors to make difficult trade-offs; hence, governments may wish to dedicate
much thought and analysis to developing methods for ensuring their effective protection.48
3.8 Conclusion
To conclude, numerous recent cases and studies demonstrate the economic ramifications of
patent law and the influence of globalisation on judicial precedents. These instances illustrate
the necessity for international treaties and agreements to promote the cross-border
dissemination of information and technology and to solve the difficulties of enforcing patent
rights in a worldwide economy.Furthermore,theyemphasise the importance ofa well-rounded
approach to patentlegislation thatfosterscompetitionand consumerwelfare while encouraging
innovation and knowledge transfer.
47
Corinne Langinier and GianCarlo Moschini, THE ECONOMICS OF PATENTS: AN OVERVIEW,
https://www.card.iastate.edu/products/publications/pdf/02wp293.pdf, (Visited on October 24, 2023).
48
OIbafemi Elegbede, FOREIGN DIRECT INVESTMENT AND INTELLECTUAL PROPERTY
INNOVATION IN THE UNITED STATES: A PROFILE OF GLOBAL AND U.S. INNOVATORS,
https://www.trade.gov/sites/default/files/2022-06/FDIandIPUSReport2022.pdf, (Visited on October 24, 2023).
20
CHAPTER-IV GLOBALISATION AND INDIAN PATENT LAW REGIME
4.1 Introduction
India has faced several legal challenges and controversies in recent years, particularly in the
areas of conflicts arising from globalization and disputes and resolutions in Indian patent law.
This chapter will discuss these challenges and some prominent case laws that have seen the
impact of global trends on patent laws.
4.2 Legal Challenges of Globalisation
India encounters numerous obstacles while attempting to harmonise its patent legislation with
international benchmarks. A few of these obstacles consist of:
Lengthy and uncertain legislative process: Recent years have seen numerous revisions to
India’s patent law; yet, the legislative process remains protracted and unclear, which causes
setbacks in bringing the legislation into conformity with international benchmarks. The
intricacies and inconsistencies of patent law in India manifest in its interpretation and
implementation, specifically concerning crucial domains like pre-grant opposition hearings,
regulations controlling the issuance of compulsory licences, and the delineation of patentable
subject matter.49
In order to conform to international norms, the Indian Patents Act of 1970 has undergone
multiple amendments.These modificationshave incorporated provisions for product patents
on pharmaceuticals and chemicals, as well as adherence to the Agreement on Trade-Related
Aspects of Intellectual Property Rights (TRIPS). Nevertheless, the execution and enforcement
of these modifications have proven to be arduous, resulting in a state of unpredictability and
incongruity regarding the understanding and utilisation of patent legislation in India.50
Balancing domestic needs and international obligations: India is obligated to harmonise its
intellectualproperty rightslegislation with the TRIPS agreement,given its status asa signatory
to the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) and
49
International Trade Administration, INDIA – PROTECTING INTELLECTUAL PROPERTY,
https://www.trade.gov/country-commercial-guides/india-protecting-intellectual-property,(Visited on October25,
2023).
50
Megha Bindal, THE PATENTS ACT 1970, https://www.lawyersclubindia.com/articles/the-patents-act-1970-
14371.asp#:~:text=The%20current%20Patents%20Act%2C%201970%2C%20came%20into%20effect,patents
%20to%20include%20food%2C%20drugs%2C%20chemicals%2C%20and%20microorganisms., (Visited on
October 25, 2023).
21
membership in the World Trade Organization.51 In order to accomplish this, the Indian
government must reconcile the rights of patent holders with the requirements of its population.
Despite India’s endeavours to enhance the functioning of the Indian Patent Office (IPO) and
streamline the patent application procedure, the effective implementation and enforcement of
patentlawscontinue to presentobstacles.52 Thismay cause industriesto experience uncertainty
and make strategic IP enforcement decisions more difficult.
Addressing emerging technological challenges: Protection and enforcement of intellectual
property rights have been confronted with unprecedented issues by the advent of the digital era
and the rise of new technologies, including spatial computing, artificial intelligence, and 3D
printing. It is imperative forIndia to revise itspatentlegislation in orderto effectively safeguard
intellectual property and confront these difficulties.53
Addressing trade secrets: While India doesnothave a specialstatute concerningtrade secrets
and know-how, Indian courts acknowledge their significance and provide protection for them
in accordance with common law. Unauthorized disclosure of know-how, breaches of
confidentiality, and misuse of trade secretsare allissuesthatcan be resolved via legal remedies
and common law principles. Nevertheless, the absence of precise legislation may give rise to
ambiguity and hinder the safeguarding of such intellectual property.54
4.3 Notable Case Laws
In the case of Union ofIndia vs.NovartisAG,55 the validity of Section 3(d)of the Indian Patents
Act, which specifies the criteria for pharmaceutical product patentability, was challenged. In
affirming the legality of Section 3(d), the Supreme Court of India further specified that
incremental improvements or alterations to established substances cannot be granted patent
protection unless they yield a substantial enhancement in effectiveness. The aforementioned
51
Ranjan Narula and Suvarna Pandey, INDIA: CHALLENGES FACED IN THE PROTECTION AND
ENFORCEMENTOFPATENT RIGHTS,https://www.managingip.com/article/2a5bsc7vmakvohn4kh3i8/india-
challenges-faced-in-the-protection-and-enforcement-of-patent-rights, (Visited on October 25, 2023).
52
https://www.drishtiias.com/loksabha-rajyasabha-discussions/perspective-indian-patents-making-a-mark,
(Visited on October 25, 2023).
53
European Innovation Council and SMEs Executive Agency, CONTEMPORARY CHALLENGES AND
THREATS TO INTELLECTUAL PROPERTY RIGHTS IN INDIA, https://intellectual-property-
helpdesk.ec.europa.eu/news-events/news/contemporary-challenges-and-threats-intellectual-property-rights-
india-2023-07-24_en, (Visited on October 25, 2023).
54
Ibid.
55
[2013] 13 S.C.R. 148.
22
decision carries substantial ramifications for the pharmaceutical sector and the equilibrium
between affordability of medications and innovation.56
The legal dispute in the case of BayerCorporationvs.Union ofIndia,57 wasto a contestagainst
the obligatory licence that Natco Pharma was issued by the Indian government to produce and
distribute a generic iteration of Bayer’s trademarked cancer medication Nexavar. In its
decision, the Intellectual Property Appellate Board (IPAB) affirmed the issuance of the
compulsory licence,reasoning that it was necessary to enable affordable access to medications
due to the drug’s exorbitant price. The ramifications of this ruling on the implementation of
compulsory licencing as a strategy to enhance medication accessibility in developing nations
are substantial.
The difficulties encountered by India in harmonising its patent legislation with international
benchmarks are illustrated through these statutes and case laws. These obstacles consist of
balancing the interests of patent holders with the objective of facilitating affordable medicine
accessibility, as well as the complexities associated with the efficient implementation and
enforcement of patent laws. In recent years, India has witnessed notable advancements,
including an upsurge in patent applicationsand enhancements to the commercial environment,
notwithstanding these obstacles.
4.4 Conclusion
In summary, India encounters numerous obstacles in its endeavour to harmonise its patent
legislation with international benchmarks. Addressing increasing technological problems,
achieving a balance between domestic and international commitments, successfully
implementing and enforcing patent laws, and safeguarding trade secrets and know-how are
some of these obstacles.In recent years,India has witnessed notable advancements, including
an upsurge in patent applications and enhancements to the commercial environment,
notwithstanding these obstacles.
56
William J. Bennett,“Indian PharmaceuticalPatent Lawand the Effectsof NovartisAgv. Union of India”,13
WASH. U. GLOBAL STUD. L. REV. (2014), pp. 535-557.
57
MANU/SC/0655/2014.
23
CHAPTER-V CONCLUSION AND SUGGESTIONS
5.1 Suggestions
Indian patent law has had a dynamic evolution, marked by substantial challenges and
transformations. The inception of the Indian patent system may be traced back to the pre-
independence era, when the Indian Patents and Designs Act of 1911 became the nation’s first
patent statute. This was replaced by the Patents Act of 1970, and later revisions,including the
establishment of product patents in the pharmaceutical and chemical industries, have been
adjusted to conform to international norms. Patent law exists primarily to encourage scientific
research, economic growth,and the creation of novel technologies. Aligning Indian patent law
with worldwide standards,on the otherhand,presentsa numberof obstacles,such asbalancing
domestic requirements and international commitments,interpreting and applying patent law,
and resolving developing technical concerns.58
Incorporating international standards into Indian patent law presents a significant obstacle in
the form of patent law interpretation and application. Particularly in crucial areas like as
establishing the extent of patentable subject matter, pre-grant opposition proceedings, and
regulations controlling the issuance of compulsory licences, the interpretation and application
of patent law in India can be capricious and contradictory. This may cause industries to
experience uncertainty and make strategic IP enforcement decisions more difficult.59
A further difficulty is striking a balance between domestic and international duties. India is
obligated to ensure that its intellectual property rights legislation is in accordance with the
TRIPS agreement, given its status as a signatory to the Agreement on Trade-Related Aspects
of Intellectual Property Rights (TRIPS) and membership in the World Trade Organization. In
orderto accomplish this,the Indian governmentmustreconcile the rightsof patentholderswith
the requirements of its population. Protection and enforcement of intellectual property rights
have been confronted with unprecedented issues by the advent of the digital era and the rise of
new technologies, including spatial computing, artificial intelligence, and 3D printing. It is
imperative for India to revise its patent legislation in order to effectively safeguard intellectual
property and confront these difficulties.
58
Rashmita Das, DEVELOPMENT OF INDIAN PATENT LAW TILL 2022,
https://blog.ipleaders.in/development-of-indian-patent-law-till-2022/, (Visited on
59
Supra note 1.
24
5.2 Conclusion
Harmonising Indian patent law with international benchmarkspresents a number of obstacles,
encompassingthe interpretation and implementation of patentlegislation,the harmonisationof
domestic requirements and international commitments, and the resolution of emerging
technological complexities.In order to confront these difficulties, India ought to contemplate
a multitude of legislative initiatives and reforms. These encompass measures such as
optimising the patent application procedure, diminishing patent application fees,and fortifying
intellectual property rights enforcement. In order to effectively safeguard intellectual property
and tackle new technological challenges, it is advisable for India to contemplate the revision
of its patent legislation. India ought to maintain its involvement with foreign organisations and
partners in order to guarantee that its patent legislation continues to conform to worldwide
benchmarks and optimal methodologies.
iii
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challenges-faced-in-the-protection-and-enforcement-of-patent-rights
xxvii. https://www.drishtiias.com/loksabha-rajyasabha-
discussions/perspective-indian-patents-making-a-mark
xxviii. https://intellectual-property-helpdesk.ec.europa.eu/news-
events/news/contemporary-challenges-and-threats-intellectual-property-
rights-india-2023-07-24_en
xxix. https://blog.ipleaders.in/development-of-indian-patent-law-till-2022/

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PG 23-33 1.5 Patent Law and Policy Final Draft.pdf

  • 1. GLOBLISATION’S INFLUENCE ON INDIA’S PATENT LAW REGIME: AN IN-DEPTH ANALYSIS ML 1.5 Seminar Paper - I Patent Law and Policy Submitted by Rahul Parihar UID: PG2023-33 LL.M. 1st Year 1st Semester Submitted to Prof. Dr. Jagdish Khobragade (Assistant Professor of Law) OCTOBER 2023 MAHARASHTRA NATIONAL LAW UNIVERSITY, NAGPUR
  • 2. i List of Statutes The Indian Patents and Designs Act 1911 The Indian Patents Act 1950 The Indian Patents Act 1970 List of Cases Bayer Corporation v. Union of India 22 Microsoft Corp. v. AT&T Corp. 18 Union of India v. Novartis AG 21 WesternGeco LLC v. ION Geophysical Corp. 18 List of Abbreviations ASEAN Association of Southeast Asian Nations EU European Union ARIPO African Regional Intellectual Property Organisation GATT IMF International Monetary Fund IP Intellectual Property IPAB Intellectual Property Appellate Board IPR Intellectual Property Rights MERCUSUR Southern Common Market were among the regional organisations that emerged in the 20th century OAPI African Intellectual Property Organization OECD Organization for Economic Co-operation and Development PCT Patent Cooperation Treaty TRIPS The Trade-Related Aspects of Intellectual Property Rights Agreement USITC United States International Trade Commission WIPO World Intellectual property Organisation WTO World Trade Organization
  • 3. ii Contents List of Statutes .................................................................................................................... i List of Cases........................................................................................................................ i List of Abbreviations........................................................................................................... i Contents............................................................................................................................. ii CHAPTER-I INTRODUCTION ......................................................................................... 1 1.1 Statement of Problem................................................................................................ 1 1.2 Objectives of the Study ............................................................................................. 3 1.3 Research Hypothesis/Questions................................................................................. 3 1.3.1 Research Hypothesis........................................................................................... 3 1.3.2 Research Questions............................................................................................. 4 1.4 Literature Review...................................................................................................... 4 1.5 Rationale of Study..................................................................................................... 5 1.6 Research methodology .............................................................................................. 5 1.7 Scope and Limitations............................................................................................... 6 1.7.1 Scope................................................................................................................. 6 1.7.2 Limitations......................................................................................................... 6 CHAPTER-II HISTORICAL OVERVIEW OF INDIAN PATENT LAW AND IMPACT OF GLOBALISATION............................................................................................................ 7 2.1 Introduction.............................................................................................................. 7 2.2 Evolution of Indian Patent Law ................................................................................. 7 2.2.1 Colonization Phase............................................................................................. 7 2.2.2 Post-Independence Phase.................................................................................... 7 2.2.3 Globalization Phase............................................................................................ 8 2.3 Key Milestones in Globalisation................................................................................ 8 2.4 Relevance of Theories of Globalisation in Patent Law................................................ 9 2.4.1 Neoliberalism..................................................................................................... 9 2.4.2 World Systems Theory ..................................................................................... 10 2.4.3 Cultural Theory................................................................................................ 10 2.5 Legal Perspectives on Globalization’s Impact.......................................................... 10 2.5.1 Global Patent Law Harmonization..................................................................... 10 2.5.2 Quality Control and Substantive Patent Law Harmonization .............................. 11 2.6 Conclusion.............................................................................................................. 11 CHAPTER-III GLOBAL TRENDS IN PATENT LAW..................................................... 13 3.1 Introduction............................................................................................................ 13
  • 4. iii 3.2 WIPO Report.......................................................................................................... 13 3.3 OECD Report......................................................................................................... 14 3.4 Comparative Analysis of Worldwide Patent Laws.................................................... 14 3.5 Influential International Agreements and Treaties..................................................... 16 3.6 Impact of Globalisation on Legal Precedents............................................................ 18 3.7 Economic Impacts and Transfer of Technology........................................................ 18 3.8 Conclusion.............................................................................................................. 19 CHAPTER-IV GLOBALISATION AND INDIAN PATENT LAW REGIME................... 20 4.1 Introduction............................................................................................................ 20 4.2 Legal Challenges of Globalisation ........................................................................... 20 4.3 Notable Case Laws..................................................................................................21 4.4 Conclusion.............................................................................................................. 22 CHAPTER-V CONCLUSION AND SUGGESTIONS ...................................................... 23 5.1 Suggestions............................................................................................................. 23 5.2 Conclusion.............................................................................................................. 24 Bibliography ..................................................................................................................... iii I. Printed Sources....................................................................................................... iii 1. Books .............................................................................................................. iii 2. Articles............................................................................................................ iii II. Electronic Source................................................................................................. iv 1. Webliography .................................................................................................. iv
  • 5. 1 CHAPTER-I INTRODUCTION 1.1 Statement of Problem India’s trajectory under globalisation, post-colonialism, and post-independence is mirrored in the historical development of its patent system and its effect on innovation in the pharmaceutical sector. By utilising TRIPS Agreement flexibilities like as the prohibition on evergreening, the issuance of compulsory licences, the retention of pre-grant opposition, and the introduction of post-grant opposition, the Indian patent regime has been capitalising on these advantages.Asa resultof India’sinvolvementin the discussionsaroundthe incorporation of intellectualproperty into the GATTframework and itsultimate accessionto the World Trade Organization (WTO), the country’s patent laws have been substantially strengthened.1 The Indian IPR law has been significantly impacted by globalisation, as globalisation and liberalisation have increased the influx of large corporations into India, resulting in the acquisition of several smaller enterprises.2 The Patent Cooperation Treaty (PCT) oversees the international patent system,which aids applicants in their pursuit of patent protection for their inventions across borders, supports patent offices in their determinations regarding patent granting, and facilitates public access to technical information pertaining to those inventions.3 The exponential growth of patent applications over the last twenty years has given rise to a numberof difficulties,includingheightenedglobalisation,an excessive reliance on the internet as a dissemination medium, and increasing innovation in the service sector.4 In the context of patent law, the theoretical foundation of globalisation is a complicated and varied subject. Academics that examine patent law from an economic perspective generally aim to develop a set of pertinent legal principles that optimise the advantages of the patent system while reducing its expenses. The “incentive to invent” idea is the prevailing rationale for the patent system. It posits that without patents, inventors would be devoid of a financial motivation to allocate resources towards research and development. Nevertheless, this form of 1 Uday S. Racherla, “Historical Evolution of India’s Patent Regime and its Impact on Innovation in the Indian Pharmaceutical Industry”, Kung-Chung Liu and Uday S. Racherla (eds.), INNOVATION, ECONOMIC DEVELOPMENT,ANDINTELLECTUAL PROPERTYININDIAAND CHINA, 1st ed. 2019, pp. 271-298. 2 Vanshika Priya Mathur, IMPACT OF GLOBALISATION ON THE INDIAN IPR REGIME, https://www.iplink-asia.com/article-detail.php?id=918, (Visited on October 20, 2023). 3 World Intellectual Property Organisation, PCT – THE INTERNATIONAL PATENT SYSTEM, https://www.wipo.int/pct/en/, (Visited on October 20, 2023). 4 Organisation forEconomic Co-OperationandDevelopment,PATENTSANDINNOVATION:TRENDSAND POLICYCHALLENGES,https://www.oecd.org/science/inno/24508541.pdf, (Visited on October 20, 2023).
  • 6. 2 cost-benefit analysis does not consistently yield definitive conclusions; in certain situations, it may even result in an impasse.5 The effectsof globalisation on IPRhave beenboth advantageousanddetrimental.Strengthened IPR protection ought to stimulate innovation and boost the profits on international technology transfer. Nevertheless, this development has given rise to several complications, including but not limited to online piracy, illicit reproduction of physical books, and difficulties in achieving international patent law harmonisation.6 The PCT oversees the international patent system, which aids applicants in their pursuit of patent protection for their inventions across borders, supports patent offices in their determinations regarding patent granting, and facilitates public access to technical information pertaining to those inventions.7 The exponential growth of patent applications over the last twenty years has given rise to a number of difficulties, including heightened globalisation, an excessive reliance on the internet as a dissemination medium, and increasing innovation in the service sector.8 In recent decades, the correlation between intellectual property protection and international trade has emerged as a highly contentious subject in international discussions. The Trade- Related Aspects of Intellectual Property Rights (TRIPS) Agreement, which was established as a foundational component of the World Trade Organization and was signed in 1994, stands as the preeminent endeavour to ensure worldwide uniformity in the safeguarding of intellectual property. However,worldwide patent law harmonisation has not yet been achieved; hence,in contrast to the highly nationalistic systems of the present, a truly global patent system becomes essential.9 In recent decades, the correlation between intellectual property protection and international trade has emerged as a highly contentious subject in international discussions. In addition to endeavoursto fosteradherence to the TRIPSagreement,it is imperative to implementmeasures 5 OferTur-Sinai,“BeyondIncentives: ExpandingtheTheoreticalFramework forPatentLawAnalysis”,AKRON LAW REVIEW, Vol. 15 Issue 1 2015, pp. 243-289. 6 Francis Gurry and Debora Halbert. “Globalization, Development, and Intellectual Property: New Challenges and NewOpportunities.”AMERICANSOCIETYOFINTERNATIONAL LAW, Vol. 99 2005, pp. 291–300. 7 Daniele Archibugi and Andrea Filippetti, “The Globalisation of Intellectual Property Rights: Four Learned Lessons and Four Theses”, GLOBAL POLICY, Vol. 1 Issue 2 2010, pp.137-149. 8 Yoga Prihastomo,et al.,“TheoreticalFrameworkofSmart IntellectualPropertyOffice in DevelopingCountries Author Links Open Overlay Panel”, PROCEDIA COMPUTER SCIENCE, Vol. 161 2019, pp. 994-1001. 9 RandyL.Campbell, GLOBAL PATENT LAWHARMONIZATION:BENEFITSANDIMPLEMENTATION, https://mckinneylaw.iu.edu/iiclr/pdf/vol13p605.pdf, (Visited on October 20, 2023.
  • 7. 3 that tackle issues of public interest, including but not limited to environmental preservation, health, and nutrition in developing nations.10 The ramifications of globalisation on Indian patent legislation and the historical development of India’s patent system have been substantial in terms of their influence on innovation, economic expansion, and worldwide commerce. In the backdrop of globalisation, the equilibrium between social objectives, priorities, and economic objectives has been a crucial factorin determiningIndia’spatentlaws. Thisseminarpaperwillaim to do an in-depth analysis of these factors of globalisation on Indian patent law regime. 1.2 Objectives of the Study 1. Examine the progression of the Indian Patent Law system throughout history with respect to the phenomenon of globalisation. 2. In order to evaluate the theoretical frameworks that attempt to elucidate the correlation between patent laws and globalisation. 3. Determine the effect that international patent law trends have had on the Indian legal system. 4. In order to examine the economic ramificationsof globalisation on the patent system in India, with a specific emphasis on the transfer of technology and market dynamics. 5. In order to assess the legal complexities and disputes that emerge at the convergence of Indian Patent Law and globalisation. 1.3 Research Hypothesis/Questions 1.3.1 Research Hypothesis The researcher has formulated the hypothesis that innovation, economic growth, and international commerce have been profoundly influenced by the historical development of India’s patent regime and the impact of globalisation on Indian patent legislation. In the backdrop of globalisation, achieving the equilibrium between social objectives, priorities, and economic objectives is a crucial factor in determining India’s patent laws. 10 CalestousJuma,INTELLECTUAL PROPERTYRIGHTSANDGLOBALIZATION: IMPLICATIONSFOR DEVELOPING COUNTRIES, https://www.iatp.org/sites/default/files/Intellectual_Property_Rights_and_Globalization.pdf,(Visited on October 20, 2023).
  • 8. 4 1.3.2 Research Questions 1. How has globalisation affected the historical development of the Indian patent law regime? 2. Which theoretical frameworks are pertinent to comprehending the ways in which globalisation influences patent laws? 3. To what extent do worldwide developments in patent legislation influence the legal environment in India? 4. In specifically, how has globalisation affected the Indian patent system economically, with regard to technology transfer and market dynamics? 5. What legal complexities and disputes arise when globalisation and Indian patent law intersect? 1.4 Literature Review To formulate a research problem and to avail the information of a certain facet, it is required to study the literature available on the subject thoroughly in order to understand the topic in an overall sense and to get a complete understanding of all the aspects and feature of the topic. Many authors have written about the principles that govern this particular topic. Hence, ample amount of literature was available to the researcher to conduct this study: “Historical Evolution of India’s Patent Regime and Its Impact on Innovation in the Indian Pharmaceutical Industry” by Uday S. Racherla describes how the three periods of the Indian patent regime—colonization, post-independence,and globalization—impacted the patent laws and pharmaceutical business in India. It examines the significant provisions and modifications that have occurred in Indian patent legislation between 1947 and 2005. Additionally,the report examines several significant casesand disputes that pertain to the Indian patent system and its adherence to the TRIPS Agreement. “Comparative Legal Analysis and Intellectual Property Law: A Guide for Research” by Irene Calboliprovidesa concise synopsisof comparative lawand delineatesthe systematic approach that researchers employ to undertake comparative analysis across all legal disciplines. The essay underscoresthe significance ofutilisingthisresearch approachin the realm of intellectual property studiesand furnishesconcrete illustrationsof howcomparative legalanalysishasbeen implemented in IP research through previous publications.
  • 9. 5 “Research Handbook on the World IntellectualPropertyOrganization:The First50 Yearsand Beyond”by Sam Ricketson (editor) evaluatesthe activitiesand initiativesof WIPOthroughout its initial fifty years, in addition to the obstacles it encounters in its subsequent decades. It discusses the history, evolution, mission, activities, and inter-organizational interactions of WIPO, among other topics. “The Economics of Patents: An Overview” by Corinne Langinier and GianCarlo Moschini review the economic effects of intellectual property rights and the main benefits and costs of the patent system, focusing on the role that patents play in providing incentives for innovation, in promoting the dissemination of knowledge, and in helping technology transfer and commercialization of new technology.It reviews the issues related to how the patent system influences the market structure and research and development investments. 1.5 Rationale of Study The investigation into the effects of globalisation on the Indian Patent Law system is driven by the imperative to understand the complex interplay between the legal system of a growing country and the interconnected global community. As the rate of globalisation quickens, it is critical to comprehend the ramifications that it has on intellectual property legislation, particularly patents. India, being an innovative hub and a major player in the global economy, is the appropriate subject for a case study. Through an examination of the historical development, conceptual frameworks, economic ramifications, and legal obstacles, this research endeavours to provide significant contributions to the fields of academia, policymaking, and legal practise. The objective of this research is to contribute to ongoing policy discussions and determinationsby promoting a comprehensive comprehension of how India may effectively manage the international intellectual property arena while protecting its own interests. 1.6 Research methodology The research methodology for this study will be mixed methods,incorporating both qualitative and quantitative analysis. In the qualitative component, an exhaustive examination of legal texts, policy papers, and case studies will be conducted. In the context of Indian Patent Law and globalisation, the quantitative component will involve the examination of statistical data pertaining to technology transfer, foreign direct investment, and patent filings.
  • 10. 6 1.7 Scope and Limitations 1.7.1 Scope The project’s scope is all-encompassing, incorporating diverse facets of the interplay between globalisation and the patentlawregime in India.An examination of historical progressionswill serve as the basis for comprehending the evolution of the patent system as a consequence of globalisation. By doing an analysis of theoretical frameworks, one can enhance their comprehension of the fundamental principlesthat govern this interaction. An examination of worldwide patterns in patent legislation, the resulting economic ramifications, and legal obstacles will be conducted, providing a comprehensive viewpoint. 1.7.2 Limitations Although the study strives for comprehensiveness, it is important to highlight certain limits.: 1. Data Availability: There may be constraints on the accessibility of full and current data, specifically regarding specific intricate facets of patent law.Every endeavour will be to employ the most current and dependable sources possible. 2. Scope of Legal Analysis: The main emphasis of the legal study will be on patent legislation. The wider intellectual property framework will be examined solely to the extent that it is either directly impacted by patent regulationsor is influenced by them. 3. Changing Legal Landscape: Legislative modifications or policy advancements that transpire subsequent to the knowledge cutoff date may not be comprehensively integrated, hence requiring ongoing surveillance to identify revisions. To ensure the study’s integrity and relevance are maintained, and to ensure that the results are interpreted in accordance with the established framework and restrictions, it is critical to acknowledge and confront these constraints.
  • 11. 7 CHAPTER-II HISTORICAL OVERVIEW OF INDIAN PATENT LAW AND IMPACT OF GLOBALISATION 2.1 Introduction The purpose of this chapter is to examine the historical development of India’s patent regime and its influence on innovation within the Indian pharmaceutical sector. Specifically, it will analyse India’s trajectory during the periods of colonialism, after independence, and globalisation. By utilising the flexibilities granted by the TRIPS Agreement, the Indian patent regime has implemented measures including the implementation of post-grant opposition, retention of pre-grant objection, and prevention of evergreening. As a result of India’s involvementin the discussionsaround the incorporation ofintellectualproperty into the GATT framework and its ultimate accession to the World Trade Organization (WTO), the country’s patent laws have been substantially strengthened. 2.2 Evolution of Indian Patent Law The evolution of Indian patent law is a complex and multifaceted journey that reflects India’s efforts to balance its social goals and priorities against its economic goals. The historical evolution of the Indian patent regime can be divided into three distinct phases: 2.2.1 Colonization Phase During the period of colonisation, the British drafted the Indian Patents and Designs Act of 1911, which established the initial patent legislation in India. The patent holder was given exclusive rightsfora duration of fourteenyearsthrough thisaction.Nevertheless,the foreigner- friendly patent legislation impeded the progress of the Indian pharmaceutical sector and compelled independent India to import prohibitively expensive basic medications.11 2.2.2 Post-Independence Phase Following the attainment of independence in 1947, India enacted the Indian Patents Act of 1950, an amended iteration of the Act from 1911. Nonetheless, this Act failed to advance the interestsof the Indian pharmaceuticalindustryand rewarded foreigners. To evaluate the current patent rules, the Indian government convened a powerful committee in 1949, led by the 11 Supra note 1.
  • 12. 8 distinguished jurist Bakshi Tek Chand. In 1957, a second committee, under the leadership of Justice Rajagopala Ayyangar, was tasked with advising the government on the matter of modifying the Patents Act.12 The Indian Patents Act of 1970 was implemented in response to the committee’s recommendations, with the primary objectives of fostering scientific research, economic growth, and the advancement of innovative technologies. Additionally, the Act implemented the notion of compulsory licencing, which authorised the government to issue licences to domestic producers in situations where international patent holders failed to operate.13 2.2.3 Globalization Phase Presently, India is an emerging global power whose patent system is in a state of constant evolution. The exponential growth of patent applications over the last twenty years, propelled by heightened globalisation, pervasive internet usage, and expanded service innovation, has had a profound effect on India’s patent system and innovation ecosystem. In the context of globalisation, the equilibrium between social objectives, priorities, and economic objectives has been a determining factor in the development of India’s patent laws.14 Two expert committees laboured over the Indian Patent Act of 1970, which was the result of extensive deliberation.Its implementation sparked a revolution in Indian sectors, particularly the pharmaceutical sector. The purpose of the act was to foster the development of industrial processes, promote ideas,and ensure that commercial applications of those inventionsoccur in India. The act has continually worked to erect obstacles to the misuse of inventions and has been a reliable resource for safeguarding intellectual property and its application. In addition to bolstering the patent holder’s entitlements, the legislation promotes the nation’s development in order to align it with contemporary countries.15 2.3 Key Milestones in Globalisation India’s innovation environment and patent law have been profoundly influenced by globalisation. Some significant globalisation milestones include: 12 O.M. Bagade, et al., “Evolving Pace of Patent in India and its Corollary in Past, Present and Future”, AMERICAN JOURNAL OF ADVANCED DRUG DELIVERY, Vol. 2 No. 4 2015, pp. 503-521. 13 Soujanya Boxy, THE EVOLUTION OF PATENTS ACT 1970, https://judicateme.com/the-evolution-of-the- patents-act-1970/, (Visited on October 21, 2023). 14 AkashVaradaraj,THEBRIEFHISTORYOFPATENT SYSTEMININDIA,https://vakilsearch.com/blog/the- brief-history-of-patent-system-in-india/, (Visited on October 21, 2023). 15 Supra note 12.
  • 13. 9 1. During the late 18th and early 19th centuries, the Industrial Revolution revolutionised international trade and the economy.16 2. The establishment of the World Trade Organization (WTO) in 1995, which promoted intellectual property rights and the globalisation of trade.17 3. The proliferation of transnational mergers and acquisitions and the ascent of multinational organisations have resulted in the procurement of numerous smaller enterprises in India. 4. The exponential growth of patent applications over the last twenty years can be attributed to the expansion of services innovation,the pervasive use of the internet, and heightened globalisation.18 These significanteventshaveinfluencedthe developmentofIndia’spatentsystem anditseffect on pharmaceutical innovation in the country. In the backdrop of globalisation,the equilibrium between social objectives, priorities, and economic objectives has been a crucial factor in determining India’s patent laws. 2.4 Relevance of Theories of Globalisation in Patent Law The patent law has been profoundly affected by globalisation, necessitating a thorough comprehension of the legal frameworks and underlying ideas that govern this correlation. This examination will examine the importance of the various theories of globalisation to patent law, in addition to the legal viewpoints on the effects of globalisation. 2.4.1 Neoliberalism Neoliberalism is an economic philosophy that advocates for market integration, laissez-faire principles, and free trade in relation to globalisation. To encourage innovation and technologicaltransfer,neoliberalism emphasisesthe significanceof robustintellectualproperty rights (IPR) protection in the context of patent law. Strong patent protection, according to proponents of neoliberalism, is necessary to foster an inventive and competitive economy.19 16 Dr. Nayef R.F. Al-Rodhan, HISTORICAL MILESTONES OF GLOBALIZATION, https://www.files.ethz.ch/isn/19456/historical%20milestones.pdf, (Visited on October 21, 2023). 17 PeterVanham,ABRIEFHISTORYOFGLOBALISATION, https://www.weforum.org/agenda/2019/01/how- globalization-4-0-fits-into-the-history-of-globalization/, (Visited on October 21, 2023). 18 Ralf Michaels, GLOBALIZATION AND LAW: LAW BEYOND THE STATE, https://scholarship.law.duke.edu/cgi/viewcontent.cgi?article=5540&context=faculty_scholarship, (Visited on October 21, 2023). 19 Ruth L. Okediji and Margo A. Bagley (eds.), PATENT LAW IN GLOBAL PERSPECTIVE, 1st ed. 2014.
  • 14. 10 2.4.2 World Systems Theory World Systems Theory posits that the Global North and the Global South are in an unequal relationship, and that globalisation only consolidatesthe authority of those who were already dominant by virtue of sociopolitical manoeuvring and historical events. This theory emphasises, within the framework of patent law, the discrepancies between developed and developing nations with regard to IPR protection. This emphasises the necessity for a worldwide patent system that is more just and considers the concerns of every country, namely with the transfer of technologies and the availability of critical medications.20 2.4.3 Cultural Theory Cultural theory asserts that on a local and global scale, globalisation influences epistemology (ways of learning) and ontology (ways of being), hence influencing the manner in which individuals learn and live in the world. Cultural theory stresses, in the context of patent law, the significance of incorporating various social and cultural views into the formulation of international intellectual property rights (IPR) norms. It emphasises the need for a patent law strategy that is more inclusive, culturally sensitive, and considerate of the interests of various communities and stakeholders.21 2.5 Legal Perspectives on Globalization’s Impact 2.5.1 Global Patent Law Harmonization Harmonization of patent law on a global scale is essential for numerous reasons.The transition of nations from knowledge-based to industrial-based economies is a primary factor. As technological advancements reduce the distances and disparities between nations, a genuinely global patent system becomes essential in contrast to the staunchly nationalistic systems that currently prevail. Global patent law harmonisation has not yet been accomplished, despite concerted efforts. Nevertheless, worldwide patent law harmonisation remains a crucial objective, since it ensures the safeguarding of intellectual property rights and is vital for the international commerce of services and products. 20 Supra note 9. 21 Sisir Botta andChristopherTsai,GLOBALIZATIONISACATALYST FOR CHANGEININTELLECTUAL PROPERTY SYSTEMS: CASE STUDIES IN INDIA AND CHINA, https://ocw.mit.edu/courses/6-901- inventions-and-patents-fall-2005/718d8c1a9dde1bfe60a7c87c59f856b4_fin_pro_bota_tsa.pdf, (Visited on October 22, 2023).
  • 15. 11 2.5.2 Quality Control and Substantive Patent Law Harmonization Quality control and substantive patent law harmonization are two related concepts in the field of patent law. Quality control refers to the process of ensuring that the patents granted by different patent office meet certain standards of novelty, inventive step, and industrial applicability. Substantive patent law harmonization refers to the effort to establish a set of uniform rules on these and other key aspects of patent law, such as grace period,prior art, and exceptions and limitations. The main benefits of quality control and substantive patent law harmonization are:22 1. Reducing duplication and inconsistency: By having a common set of criteria and procedures for patent examination, patent offices can avoid granting conflicting or overlappingpatents,and reduce the administrative burdenand costof processingpatent applications.23 2. Facilitating international trade and technology transfer: By having a harmonized patentsystem,patentapplicantscan obtain patentprotection more easily andefficiently in multiple jurisdictions, and patent holders can enforce their rights more effectively across borders.24 3. Promoting innovation and public interest: By having a high-quality and balanced patent system, inventors can be rewarded for their creative efforts,and the public can benefit from the disclosure and dissemination of new technologies. 2.6 Conclusion Significantimplicationshave resulted from the historicaldevelopmentof India’spatentregime and the influence of globalisation on Indianpatentlegislation with regard to internationaltrade, economic expansion,and innovation.In the backdropof globalisation,the equilibrium between social objectives, priorities, and economic objectives has been a crucial factor in determining India’s patent laws. The trajectory of the Indian patent system exemplifies India’s ongoing 22 Rochelle CooperDreyfussand Jerome H.Reichman, “WIPO’sRole in ProceduralandSubstantivePatent Law Harmonization”, Sam Ricketson (ed.), RESEARCH HANDBOOK ON THE WORLD INTELLECTUAL PROPERTY ORGANIZATION: THE FIRST 50 YEARS AND BEYOND, 1st ed. 2020, pp. 108-130. 23 CarlosM.Correa,ANAGENDA FOR PATENT REFORM ANDHARMONIZATIONFOR DEVELOPING COUNTRIES, https://www.wipo.int/export/sites/www/meetings/en/2006/scp_of_ge_06/presentations/scp_of_ge_06_correa.pd f, (Visited on October 22, 2023). 24 United StatesPatent and Trademark Office, PATENT LAW HARMONIZATION,https://www.uspto.gov/ip- policy/patent-policy/patent-law-harmonization, (Visited on October 22, 2023).
  • 16. 12 endeavours to align with the evolving international environment, all the while protecting its domestic interests and fostering economic growth and innovation. The intricate correlation between patent law and globalisation is comprehensively illuminated by the diverse legal perspectives and theories of globalization’s effects. In order to encourage innovation, neoliberalism emphasises the significance of robust IPR protection, but World Systems Theory emphasises the need for a more equitable global patent system. The significance of adopting a patent law strategy that is more inclusive and culturally sensitive is emphasised by cultural theory. In order to promote a more efficient and effective worldwide patentsystem and to handle the issuescreated by the globalisation of patentlaw,harmonisation and quality control of global patent law is indispensable.
  • 17. 13 CHAPTER-III GLOBAL TRENDS IN PATENT LAW 3.1 Introduction The past few years have witnessed notable trends and advancements in international patent law, which can be attributed to the effects of globalisation and the evolving technological and innovative environment. A number of authoritative publicationsoffer valuable perspectives on these worldwide developments in patent law. 3.2 WIPO Report In 2022, a record amount of patent applications was filed globally, according to the World Intellectual Property Organization (WIPO), and global patenting activity experienced a significant surge, setting fresh milestones. The report emphasised the substantial increase in patent applications, which was fuelled in particular by Chinese and Indian entrepreneurs. Germany, the United States, China, Japan, and the Republic of Korea filed the most patent applications in 2022. The majority of IP filing activity, regardless of origin, occurs in Asia, according to the report, with Asia accounting for a substantial proportion of worldwide patent filing activity.25 A report published by the WIPO analyses global patenting patterns and identifies globalisation as a significant factor in the increase in patent applications. The report emphasises that future patent applications, primarily in additional nations, significantly contributed to the global increase in patent filings. The escalating utilisation of patents by public research institutions and enterprises to safeguard their ideas is intricately linked to recent developments in innovation processes, the economy, and patent regimes. In order to continue fostering innovation and technological dissemination while enabling the patent system to confront new problems, the report underscores the importance of implementing policies that are more global in scope and informed.26 25 World IntellectualPropertyOrganisation, WORLDINTELLECTUAL PROPERTYINDICATORSREPORT: RECORD NUMBER OF PATENT APPLICATIONS FILED WORLDWIDE IN 2022, https://www.wipo.int/pressroom/en/articles/2023/article_0013.html, (Visited on October 23, 2023). 26 Carsten Fink, et al., EXPLORING THE WORLDWIDE PATENT SURGE, https://www.wipo.int/edocs/pubdocs/en/wipo_pub_econstat_wp_12.pdf, (Visited on October 23, 2023).
  • 18. 14 3.3 OECD Report The Organization for Economic Co-operation and Development (OECD) has also emphasised the substantial transformations in patent regimes and the growing reliance of corporations and public research organisationson patents to safeguard their ideas. As the economic significance of patents grows, the number of patent applications filed in Europe, Japan, and the United States increased substantially, according to the OECD report. A global approach to patent policy is emphasised in the report in order to handle emerging problems and ensure that the patent system continues to foster innovation and the diffusion of technologies.27 3.4 Comparative Analysis of Worldwide Patent Laws Conducting a comparative examination of patent laws around the globe is an intricate and diverse undertaking that demands a profound comprehension of the legal frameworks of other nations as well as the multitude of determinants that impact their patent legislation. Numerous seminal sources offer significant perspectives on this subject matter, elucidating the convergence of intellectual property (IP) law and comparative law, the criticality of harmonising global patent law, and the examination of patterns in worldwide patent applications. A chapter of an academic publication explores the intersection of comparative law and intellectual property law, along with the role of comparative legal analysis as a research methodology utilised by IP scholars.28 The prominence of comparative legal analysis in the field of intellectual property law began with the passage of the Berne Convention in 1886 and the Paris Convention for the Protection of Industrial Property in 1883. Beginning at the end of the 19th century, “internationalisation” of intellectual property law resulted in the adoption of standardised principles in a number of nations.29 The aforementioned pattern persisted throughout the twentieth century and culminated in the 1994 signing of the Agreement on the Trade-Related Aspects of Intellectual Property Rights (TRIPS). 27 Supra note 4. 28 Irene Calboli, “Comparative Legal Analysis and Intellectual Property Law: A Guide for Research”, Irene Calboli and Maria Lillà Montagnani (eds.), HANDBOOK OF INTELLECTUAL PROPERTY RESEARCH: LENSES, METHODS, AND PERSPECTIVES, 1st ed. 2021, pp. 46-66. 29 Sam Ricketson and Jane Ginsburg, INTERNATIONAL COPYRIGHT AND NEIGHBOURING RIGHTS: THE BERNE CONVENTION AND BEYOND, 3rd ed. 2022.
  • 19. 15 During the 1990s and the last two decades, a number of other pertinent WIPO treaties were ratified. These treaties encompassed agreements about the harmonisation processes of national intellectual property offices with respect to the registration of patents and trademarks. Simultaneously,bilateraland regionalinternationaltrade agreementshaveemerged asa further platform for establishing intellectual property standards. This has resulted in a succession of modifications to the domestic legislation of nations that have ratified certain FTAs.30 The European Union (EU), the African Intellectual Property Organization (OAPI), the African Regional Intellectual Property Organization (ARIPO), the Association of Southeast Asian Nations (ASEAN), and the Southern Common Market were among the regional organisations that emerged in the 20th century (MERCUSUR).31 Administrative cooperation and harmonisation of IP laws have been significantly advanced by these organisations. This includes the establishment of region-wide IP rights in certain areas (e.g., OAPI for trademarks, patents, design, and geographical indications, and the EU for trademarks, design, and geographical indications), as well as the development of centralised systems for national registrations in other areas (e.g. ARIPO facilitates national registrations for all IP rights across member states, while the European Patent Office facilitates the filing and registration of patents across members states).32 The centralization of registration proceduresand thissystem of harmonisation ofIPregulations have been advantageous for the owners of IP rights. Nevertheless, this procedure has also encountered criticism due to the fact that it frequently favours mostly multinational corporations.Criticscontend thatthe processofinternationalharmonisingintellectualproperty (IP) law has frequently resulted in the imposition, rather than the importation, of greater protection standards from industrialised countries onto the domestic legislation of poorer nations. There have been assertions that the degree of protection provided by these standards was superfluous or unwarranted in light of the developmental status of certain underdeveloped countries that were obtaining them at the time.33 30 Raymundo Valdés and Maegan McCann, “Intellectual Property Provisions in Regional Trade Agreements: Revision and Update, Rohini Acharya (ed.), REGIONAL TRADE AGREEMENTS AND THE MULTILATERAL TRADING SYSTEM, 1st ed. 2016, pp. 497–607. 31 FernandosdosSantosandPatrick JuvetLowéGnintedem, “RegionalFrameworksforProtection ofIntellectual Property in Africa”, Adejoke Oyewunmi et al. (eds.), INTELLECTUAL PROPERTY LAW, PRACTICE AND MANAGEMENT: PERSPECTIVES FROM AFRICA, 1st ed. 2018, pp. 592, 593–94. 32 Ibid. 33 GrahamDutfield andUma Suthersanen,“HarmonisationorDifferentiation in IntellectualPropertyProtection? The Lessons of History”, 23 PROMETHEUS 2 (2005), pp. 131-147.
  • 20. 16 Undoubtedly, this has been the situation and continues to be so in notable situations. However, affluent nations have also transmitted certain restrictions on intellectual property rights over the past few decades, namely with copyright fair use.34 In contrast, several emerging economies, such as China, have exhibited a growing concern for intellectual property legislation in tandem with their economic expansion.35 Conversely, an efficacious framework for global harmonisation necessitates an adequate degree of adaptability to accommodate evolving national conditions and varying degrees of progress. 3.5 Influential International Agreements and Treaties International treaties and agreements of significant influence are crucial in determining the course of patent law on a global scale. The primary objectives of these agreements are to facilitate the international interchange of technology and innovation,establish minimum levels of protection, and foster uniformity and efficiency in patent procedures. Prominent international agreements and treaties pertaining to patent law comprise the following: Paris Convention (1884): The initial significant global accord concerning the safeguarding of intellectual property rights, encompassing patents, established common normsin the realm of substantive patent law, national treatment, and the right of priority.36 Patent Cooperation Treaty (1970): A treaty overseen by the World Intellectual Property Organization (WIPO) that permits residents or nationals of a contracting state to submit a solitary patentapplication eitherto the receivingoffice of WIPOorto their own nationalpatent office. This facilitates the process of filing patent applications and aids innovators in securing global patent protection.37 Budapest Treaty (1977): By removing the requirement to deposit microorganisms in each country seeking patent protection, this treaty permits the submission of a microbe to an 34 Peter Decherney, “Fair Use Goes Global, Critical Studies”, MEDIA COMMUNICATION Vol. 31 Issue 2 (2014), pp. 146-152. 35 Xuan-ThaoNguyen,“TheChina We Hardly Know: RevealingtheNewChina’sIntellectualProperty Regime”, 55 ST. LOUIS U. L.J. (2011), pp. 773-810. 36 World Intellectual Property Organisation, PATENT-RELATED TREATIES ADMINISTERED BY WIPO, https://www.wipo.int/patent-law/en/treaties.html, (Visited on October 23, 2023). 37 United States Patent and Trademark Office, INTERNATINOAL IP TREATIES, https://www.uspto.gov/ip- policy/international-ip-treaties, (Visited on October 23, 2023).
  • 21. 17 “international depositary authority” in order to fulfil the deposit obligations stipulated by the national patent laws of treaty members.38 Hague Agreement (1975): An international registration system that permits the filing of a single international application in a single language to receive protection for up to one hundred industrial designs in specified member nations and intergovernmental organisations.39 Strasbourg Agreement Concerning the International Patent Classification (1971): An internationally recognised framework that is consistently revised to categorise inventions included in patent applications across all technological domains, hence facilitating the quicker and more effective retrieval of patent data.40 Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) (1994): TRIPS, which is an integral component of the World Trade Organization (WTO) agreement, sets down minimalcriteria to ensure thatWTO members’intellectualproperty rights, including patents, trademarks, and copyrights are safeguarded.41 Munich Convention on the Grant of European Patents (1973/2000): The Convention establishes a unified framework for European States to grant patents, permitting any citizen of the globe to submit patent applications under its jurisdiction. Madrid System (1896): Establishes a framework for the global registration of trademarks in accordance with the Madrid Agreement, which permits the protection of trademarksin many countries or regions upon meeting certain conditions. The primary objective of these international accords and treaties is to establish a standardised and effective structure for safeguarding patents, thereby fostering worldwide innovation and the flow of technologies. 38 World Intellectual Property Organisation, BUDAPEST TREATY ON THE INTERNATIONAL RECOGNITION OF THE DEPOSIT OF MICROORGANISMS FOR THE PURPOSES OF PATENT PROCEDURE, https://www.wipo.int/export/sites/www/treaties/en/registration/budapest/pdf/wo_inf_12.pdf, (Visited on October 23, 2023). 39 Ibid. 40 Supra note 36. 41 Keith E. Maskus,INTERNATIONAL AGREEMENTSONINTELLECTUAL PROPERTYRIGHTS: TRIPS AND BEYOND, https://www.colorado.edu/faculty/kmaskus/sites/default/files/attached- files/maskus_chapter_0.pdf, (Visited on October 23, 2023).
  • 22. 18 3.6 Impact of Globalisation on Legal Precedents Over the past few years, a number of patent cases have served as illustrations of how globalisation affectslegalprecedents. One suchcase is WesternGeco LLCvs.ION Geophysical Corp.,42 where in specific circumstances of infringement, the U.S. Supreme Court determined that a patent owner might obtain foreign-based damages. This decision opened the possibility thatinfringersmay be required to pay increased damagesin patentcasesinvolvinginternational supply chains, highlighting the global nature of modern business operationsand the need for legal precedents to reflect this reality.43 Another case that exemplifies the impact of globalization on legal precedents is Microsoft Corp. vs. AT&T Corp.,44 where the U.S. Supreme Court ruled that U.S. patents do not have extraterritorial reach, limiting the ability of patent owners to enforce their rights overseas. This case underscored the challenges of enforcing patent rights in a globalized economy and the need for international agreements to address these challenges.45 3.7 Economic Impacts and Transfer of Technology The economic ramificationsofglobalisation on patentlaware readily apparentin the escalating velocity of cross-border technology and information transfers on a worldwide scale. The dissemination of technology across national boundaries has been significantly accelerated by globalisation, according to research by the International Monetary Fund (IMF). This has facilitated countries’ access to foreign expertise and encouraged the dissemination of technology and information.46 Foreign direct investment and market dynamicsare profoundly affected by this, as nations with access to foreign technology and expertise are in a stronger position to attract investments and stimulate economic expansion. The escalatingvelocity of worldwide information transferslikewise affectstechnology transfer and innovation.The utilisation of patentsforthe protectionof inventionsin businessand public research is on the rise, according to a study by the Organization for Economic Co-operation 42 138 S. Ct. 2129 (2018). 43 Brian T. Yeh, PATENT OWNERS MAY RECOVER FOREIGN-BASED DAMAGES IN CERTAIN INFRINGEMENT CASES, https://crsreports.congress.gov/product/pdf/LSB/LSB10173,(Visited on October24, 2023). 44 550 U.S. 437 (2007). 45 Supra note 43. 46 Aqib Aslam, et al., GLOBALIZATION HELPS SPREAD KNOWLEDGE AND TECHNOLOGY ACROSS BORDERS, https://www.imf.org/en/Blogs/Articles/2018/04/09/globalization-helps-spread-knowledge-and- technology-across-borders, (Visited on October 24, 2023).
  • 23. 19 and Development(OECD).Moreover,patentsserve asa vitalincentive and recognition system for creative and innovative endeavours. Patents can, however, restrict the diffusion of technological advancements and establish market dominance, both of which can result in increased pricing for consumers, according to the study. This underscores the necessity for a patent law framework that strikes a balance between fostering innovation and knowledge transfer, boosting competition, and safeguarding consumer welfare.47 As the significance of intellectual property rights (IPRs) in investment decisions rises, the effects of globalisation on patent law become increasingly apparent in the context of foreign direct investment. There are signs that increasing IPRs can be an effective inducement for inward FDI, according to research by the United States International Trade Commission (USITC); nevertheless, this finding is only one component of a larger set of considerations. In addition, the study discovered that intellectual property rights (IPRs) are intricate matters that force market actors to make difficult trade-offs; hence, governments may wish to dedicate much thought and analysis to developing methods for ensuring their effective protection.48 3.8 Conclusion To conclude, numerous recent cases and studies demonstrate the economic ramifications of patent law and the influence of globalisation on judicial precedents. These instances illustrate the necessity for international treaties and agreements to promote the cross-border dissemination of information and technology and to solve the difficulties of enforcing patent rights in a worldwide economy.Furthermore,theyemphasise the importance ofa well-rounded approach to patentlegislation thatfosterscompetitionand consumerwelfare while encouraging innovation and knowledge transfer. 47 Corinne Langinier and GianCarlo Moschini, THE ECONOMICS OF PATENTS: AN OVERVIEW, https://www.card.iastate.edu/products/publications/pdf/02wp293.pdf, (Visited on October 24, 2023). 48 OIbafemi Elegbede, FOREIGN DIRECT INVESTMENT AND INTELLECTUAL PROPERTY INNOVATION IN THE UNITED STATES: A PROFILE OF GLOBAL AND U.S. INNOVATORS, https://www.trade.gov/sites/default/files/2022-06/FDIandIPUSReport2022.pdf, (Visited on October 24, 2023).
  • 24. 20 CHAPTER-IV GLOBALISATION AND INDIAN PATENT LAW REGIME 4.1 Introduction India has faced several legal challenges and controversies in recent years, particularly in the areas of conflicts arising from globalization and disputes and resolutions in Indian patent law. This chapter will discuss these challenges and some prominent case laws that have seen the impact of global trends on patent laws. 4.2 Legal Challenges of Globalisation India encounters numerous obstacles while attempting to harmonise its patent legislation with international benchmarks. A few of these obstacles consist of: Lengthy and uncertain legislative process: Recent years have seen numerous revisions to India’s patent law; yet, the legislative process remains protracted and unclear, which causes setbacks in bringing the legislation into conformity with international benchmarks. The intricacies and inconsistencies of patent law in India manifest in its interpretation and implementation, specifically concerning crucial domains like pre-grant opposition hearings, regulations controlling the issuance of compulsory licences, and the delineation of patentable subject matter.49 In order to conform to international norms, the Indian Patents Act of 1970 has undergone multiple amendments.These modificationshave incorporated provisions for product patents on pharmaceuticals and chemicals, as well as adherence to the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). Nevertheless, the execution and enforcement of these modifications have proven to be arduous, resulting in a state of unpredictability and incongruity regarding the understanding and utilisation of patent legislation in India.50 Balancing domestic needs and international obligations: India is obligated to harmonise its intellectualproperty rightslegislation with the TRIPS agreement,given its status asa signatory to the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) and 49 International Trade Administration, INDIA – PROTECTING INTELLECTUAL PROPERTY, https://www.trade.gov/country-commercial-guides/india-protecting-intellectual-property,(Visited on October25, 2023). 50 Megha Bindal, THE PATENTS ACT 1970, https://www.lawyersclubindia.com/articles/the-patents-act-1970- 14371.asp#:~:text=The%20current%20Patents%20Act%2C%201970%2C%20came%20into%20effect,patents %20to%20include%20food%2C%20drugs%2C%20chemicals%2C%20and%20microorganisms., (Visited on October 25, 2023).
  • 25. 21 membership in the World Trade Organization.51 In order to accomplish this, the Indian government must reconcile the rights of patent holders with the requirements of its population. Despite India’s endeavours to enhance the functioning of the Indian Patent Office (IPO) and streamline the patent application procedure, the effective implementation and enforcement of patentlawscontinue to presentobstacles.52 Thismay cause industriesto experience uncertainty and make strategic IP enforcement decisions more difficult. Addressing emerging technological challenges: Protection and enforcement of intellectual property rights have been confronted with unprecedented issues by the advent of the digital era and the rise of new technologies, including spatial computing, artificial intelligence, and 3D printing. It is imperative forIndia to revise itspatentlegislation in orderto effectively safeguard intellectual property and confront these difficulties.53 Addressing trade secrets: While India doesnothave a specialstatute concerningtrade secrets and know-how, Indian courts acknowledge their significance and provide protection for them in accordance with common law. Unauthorized disclosure of know-how, breaches of confidentiality, and misuse of trade secretsare allissuesthatcan be resolved via legal remedies and common law principles. Nevertheless, the absence of precise legislation may give rise to ambiguity and hinder the safeguarding of such intellectual property.54 4.3 Notable Case Laws In the case of Union ofIndia vs.NovartisAG,55 the validity of Section 3(d)of the Indian Patents Act, which specifies the criteria for pharmaceutical product patentability, was challenged. In affirming the legality of Section 3(d), the Supreme Court of India further specified that incremental improvements or alterations to established substances cannot be granted patent protection unless they yield a substantial enhancement in effectiveness. The aforementioned 51 Ranjan Narula and Suvarna Pandey, INDIA: CHALLENGES FACED IN THE PROTECTION AND ENFORCEMENTOFPATENT RIGHTS,https://www.managingip.com/article/2a5bsc7vmakvohn4kh3i8/india- challenges-faced-in-the-protection-and-enforcement-of-patent-rights, (Visited on October 25, 2023). 52 https://www.drishtiias.com/loksabha-rajyasabha-discussions/perspective-indian-patents-making-a-mark, (Visited on October 25, 2023). 53 European Innovation Council and SMEs Executive Agency, CONTEMPORARY CHALLENGES AND THREATS TO INTELLECTUAL PROPERTY RIGHTS IN INDIA, https://intellectual-property- helpdesk.ec.europa.eu/news-events/news/contemporary-challenges-and-threats-intellectual-property-rights- india-2023-07-24_en, (Visited on October 25, 2023). 54 Ibid. 55 [2013] 13 S.C.R. 148.
  • 26. 22 decision carries substantial ramifications for the pharmaceutical sector and the equilibrium between affordability of medications and innovation.56 The legal dispute in the case of BayerCorporationvs.Union ofIndia,57 wasto a contestagainst the obligatory licence that Natco Pharma was issued by the Indian government to produce and distribute a generic iteration of Bayer’s trademarked cancer medication Nexavar. In its decision, the Intellectual Property Appellate Board (IPAB) affirmed the issuance of the compulsory licence,reasoning that it was necessary to enable affordable access to medications due to the drug’s exorbitant price. The ramifications of this ruling on the implementation of compulsory licencing as a strategy to enhance medication accessibility in developing nations are substantial. The difficulties encountered by India in harmonising its patent legislation with international benchmarks are illustrated through these statutes and case laws. These obstacles consist of balancing the interests of patent holders with the objective of facilitating affordable medicine accessibility, as well as the complexities associated with the efficient implementation and enforcement of patent laws. In recent years, India has witnessed notable advancements, including an upsurge in patent applicationsand enhancements to the commercial environment, notwithstanding these obstacles. 4.4 Conclusion In summary, India encounters numerous obstacles in its endeavour to harmonise its patent legislation with international benchmarks. Addressing increasing technological problems, achieving a balance between domestic and international commitments, successfully implementing and enforcing patent laws, and safeguarding trade secrets and know-how are some of these obstacles.In recent years,India has witnessed notable advancements, including an upsurge in patent applications and enhancements to the commercial environment, notwithstanding these obstacles. 56 William J. Bennett,“Indian PharmaceuticalPatent Lawand the Effectsof NovartisAgv. Union of India”,13 WASH. U. GLOBAL STUD. L. REV. (2014), pp. 535-557. 57 MANU/SC/0655/2014.
  • 27. 23 CHAPTER-V CONCLUSION AND SUGGESTIONS 5.1 Suggestions Indian patent law has had a dynamic evolution, marked by substantial challenges and transformations. The inception of the Indian patent system may be traced back to the pre- independence era, when the Indian Patents and Designs Act of 1911 became the nation’s first patent statute. This was replaced by the Patents Act of 1970, and later revisions,including the establishment of product patents in the pharmaceutical and chemical industries, have been adjusted to conform to international norms. Patent law exists primarily to encourage scientific research, economic growth,and the creation of novel technologies. Aligning Indian patent law with worldwide standards,on the otherhand,presentsa numberof obstacles,such asbalancing domestic requirements and international commitments,interpreting and applying patent law, and resolving developing technical concerns.58 Incorporating international standards into Indian patent law presents a significant obstacle in the form of patent law interpretation and application. Particularly in crucial areas like as establishing the extent of patentable subject matter, pre-grant opposition proceedings, and regulations controlling the issuance of compulsory licences, the interpretation and application of patent law in India can be capricious and contradictory. This may cause industries to experience uncertainty and make strategic IP enforcement decisions more difficult.59 A further difficulty is striking a balance between domestic and international duties. India is obligated to ensure that its intellectual property rights legislation is in accordance with the TRIPS agreement, given its status as a signatory to the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) and membership in the World Trade Organization. In orderto accomplish this,the Indian governmentmustreconcile the rightsof patentholderswith the requirements of its population. Protection and enforcement of intellectual property rights have been confronted with unprecedented issues by the advent of the digital era and the rise of new technologies, including spatial computing, artificial intelligence, and 3D printing. It is imperative for India to revise its patent legislation in order to effectively safeguard intellectual property and confront these difficulties. 58 Rashmita Das, DEVELOPMENT OF INDIAN PATENT LAW TILL 2022, https://blog.ipleaders.in/development-of-indian-patent-law-till-2022/, (Visited on 59 Supra note 1.
  • 28. 24 5.2 Conclusion Harmonising Indian patent law with international benchmarkspresents a number of obstacles, encompassingthe interpretation and implementation of patentlegislation,the harmonisationof domestic requirements and international commitments, and the resolution of emerging technological complexities.In order to confront these difficulties, India ought to contemplate a multitude of legislative initiatives and reforms. These encompass measures such as optimising the patent application procedure, diminishing patent application fees,and fortifying intellectual property rights enforcement. In order to effectively safeguard intellectual property and tackle new technological challenges, it is advisable for India to contemplate the revision of its patent legislation. India ought to maintain its involvement with foreign organisations and partners in order to guarantee that its patent legislation continues to conform to worldwide benchmarks and optimal methodologies.
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