India`s New Patent Regime
Patent is a monopoly or exclusive right granted by State in favour of an inventor in respect
of an invention. It is granted to the person who is entitled for it and who fulfills the prescribed conditions imposed by state for such grant. It may also be described as an official document which gives the patentee right of ownership of an invention. The fundamental object behind the Patent Law is to encourage scientific
research, new technology and industrial progress. The price of the grant of the monopoly is the disclosure of the invention at the Patent Office, which after the expiry of period of monopoly, passes into public domain. A patent is granted only to those inventions that are novel, having an inventive step and industrial applicability
Historical background of Patent Law in India
The origin of the term of Patent can be attributed to the term "Letters Patent" which were issued under great seal of the king of England addressed by the crown to the subjects conferring certain rights and privileges on one or more persons. These were in respect of inventions and were, referred to as the grants made by the crown to a subject enabling the grantee to prevent all persons other than himself and those whom he authorizes for making, using or vending that which is the subject-matter of "Letter Patent". In other words, "Letters Patent" were grant of a form of trade monopolies. It was a document granting some right or privilege, issued under Governmental seal and open to public inspection.
Introduction of Patent Law in India took place in 1856 whereby certain exclusive privileges to the inventors of new inventions were granted for a period of 14 years. However the formal Patent protection in India was introduced by way of Patent Act, 1911. Thereafter, various acts appeared on the façade of the patent law pattern.
Presently, the provisions with respect to Patents in India are governed by The Patents Act 1970 as amended by The Patents (Amendments) Act, 2005 and The Patents Rules, 2003 as amended by The Patents (Amendments) Rules, 2005. Both Act and the Rules are an outcome of various amendmeds made in the Patent Act 1970 and Patent Rules 2003 done mainly to meet the requirements of TRIPS so as to tune up the Indian patents regime with International standards and meet India’s obligations under International agreements.
The main rationales responsible for triggering 2005 amendment is that India being a signatory to Trade Related Intellectual Property Rights (TRIPS) agreement earlier known as GATT have to mandatoraly introduce product patents for drugs, food products and chemicals (food, medicines and drugs) by 01.01.2005.
Under the new patent regime venturing in
pharmaceutical sector is made encouraging to multinational corporations due to their enormous R&D budgets. The Indian pharmaceutical majors will also have to pool in greater amounts in the field of R&D in order to search for new molecules to compete with the inflow of the multinational corporations. However the smaller pharmaceutical companies will face hurdles in their way due to their smaller budgets for R&D, they may have to think positively for mergers or collaborations to increase their budget size or alternatively may take up assignments from the major players.The present Act is skillfully drafted in order to meet India’s major obligations under international agreements. Apart from major changes, one of the positive aspects of the present Act is that by amending the various sections rigidity in the time-line is replaced by greater flexibility. The present legislation will have great impact on the overall society as well as economy of India. The new Act would encourage Indian pharmaceutical companies to emphasize R & D based innovative growth. Complying with WTO membership requirements would open up trade with the world for India. It would result in more economic activity and more employment. The Indian pharmaceutical and biotecch industry offers a huge scope for outsourcing of research. Now with the right legal framework in place for the protection of the results of such research, India could become a global research hub.