RiceTec, an American company, obtained a patent from the US Patent Office to call its aromatic rice "Basmati", which India objected to as Basmati rice is traditionally grown in India and Pakistan. India argued that granting the patent violated the concept of geographical indications (GIs) under trade rules. While RiceTec was confident in its patent, allowing the company to label its non-Basmati rice as Basmati could negatively impact Indian and Pakistani exports and farmers. Following pressure from the Indian government, RiceTec withdrew 15 of its 20 patent claims and stopped claiming the name "Basmati" for its rice varieties.

1. BASMATI RICE
PATENT RIGHTS
SUBMITTED BY
JASHWANT K
17TUCS050
III CSE A

2. WHY THE NAME BASMATI
BrandAssociation
Reputation
Marketshare
Superior features/characteristics
 Confusing the customers into buying their
product (Passing Off)

3. INTELLECTUAL PROPERTY
Intellectual property (IP) is a legal
concept which refers to creations of
mind for which exclusive rights are
recognized.
Under intellectual property law, owners
are granted certain exclusive rights to
their tangible and intangible assets.

4. Basmati Rice Patent Case
CASE NUMBER: 493
CASE PNEMONIC: Basmati
CASE NAME: India-US Basmati Rice Dispute
Patent number: US5663484 A
Publication type: Grant
Application number: US 08/272,353
Publication date: Sep 2, 1997
Filing date: Jul 8, 1994

5. BASMATI RICE AND ASIA
 Rice is an important aspect of life in the Southeast and other
parts of Asia.
 For centuries, it has been the cornerstone of their food and
culture.
Basmati has been grown in the foothills of the Himalayas
for thousands of years.
Basmati rice is being grown in subcontinent for centuries.
 Its flavour and aroma has been developed through selective
breeding for thousands of years.
 It is common knowledge that what Champagne is to France,
Basmati is to subcontinent (Pakistan and India).

6. BASMATI RICE
Basmati means the “queen of fragrance or the
perfumed one”.
Origin: India and Pakistan.
 Indian varieties are Safidon, Haryana, Kasturi (Baran,
Rajasthan), Basmati 198, Basmati 217, Basmati 370,
Kasturi, Mahi Suganda.
 Pakistani varieties Basmati 370, Super Basmati, Pak
(Kernal) Basmati, Basmati 386, Basmati 385 and
Basmati 198.

7. IDENTIFICATION OF BASMATI RICE

8. THE CASE ISSUE
In the late 1997, when an American company RiceTec Inc. was
granted a patent by the US patent office to call the aromatic rice
grown outside India "Basmati", India objected to it. India has been one
of the major exporters of Basmati to several countries and such a
grant by the US patent office was likely to affect its trade. Since
Basmati rice is traditionally grown in India and Pakistan, it was opined
that granting patent to RiceTec violated the Geographical Indications
Act under the TRIPS agreement. A geographical indication
(sometimes abbreviated to GI) is a name or sign used on certain
products which corresponds to a specific geographical location or
origin (e.g.. a town, region, or country). The use of a GI may act as a
certification that the product possesses certain qualities, or enjoys a
certain reputation, due to its geographical origin. RiceTec's usage of
the name Basmati for rice which was derived from Indian rice but not
grown in India, and hence not of the same quality as Basmati, would
have lead to the violation of the concept of GI and would have been a
deception to the consumers.

9. RICETEC COMPANY DETAILS
Owned by Prince Hans-Adam of
Liechtenstein.
120 company employees.
Annual sales 10 million US Dollars.
 Rice developed by RiceTec are: Bas 867, RT
1117, RT 112.

10. COMPANY’S WORDS
“We are absolutely confident in our
patent and viability and legality.
There is no basis for challenging the
patent”.

11. RICETEC INC. PATENT CLAIMS
RiceTec put 20 claims about their product from which few
ones are:
 semi-dwarf in stature
 substantially photoperiod insensitive
 high yield
Having characteristics similar or superior to those of good quality
basmati rice
The invention provides a method for breeding these novel lines
Starch index (SI) of a rice grain can predict the grain's cooking and
starch properties

12.  Claiming that “Aroma” has been developed by
RiceTech Inc. is misleading
 RiceTech Inc. claimed that it tool them 10
years to develop the Aroma in their rice line
 Branding a Basmati lookalike as Basmati
They used inbreeding of ordinary american rice
with sub continental Basmati rice and patented this
hybrid as Basmati`
RICETEC INC. PATENT CLAIMS

13. PATENT ADVANTAGE TO RICETECH
RiceTec able to not only call its aromatic rice
Basmati within the US, but also label it Basmati
for its exports.
Captures the whole US trade market.
Exclusive use of the term “basmati”.
 Monopoly on breeding 22 farmer-bred Pakistani
basmati varieties with any other varieties in the
Western Hemisphere.
 Proprietary rights on the seeds and grains from
any crosses.

14. DISADVANTAGE OF PATENT TO INDIA
AND PAKISTAN
Economic loses.
Global trade losses.
Both countries lose their global
market share.

15. GOVERNMENT OF INDIA RESPONSE TO
PATENT
Government of India under severe
pressure from its exporters and farmers
logged an appeal with USPTO.
They submitted the evidence to
USPTO.

16. RESULT
RiceTec Inc. took back 15
claims out of 20
They also took back its
claim on the name
“Basmati”.