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Strong patent protection will boost Indo-US ties

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CIOL Bureau
New Update

CHENNAI: By initiating strong patent, copyright, and trademark protection for all products produced through the "intellectual process", India will be well on the road to ensuring that it is a global player in innovative technology and enjoys a world class services sector in the 21st century, according to David T Hopper, consul general at the US Embassy here.

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Addressing the inaugural session of the Indo-US Seminar and Workshop on IPR Enforcement and its Tangible Benefits, organized by the Confederation of Indian Industry (CII) here today, Hopper said that the US companies are excited about future prospects in India, both in terms of introduction of innovative products and the potential for R&D investment and collaboration. However, a country must have strong intellectual property protection to facilitate the investments and collaborations.

"The strong patent protection standards in India are important for the strong Indian-US relationship and for attracting foreign direct investments," he said further.

Hopper announced that the US Embassy in India would be soon getting an experienced US Patent and Trademark Office attorney to work exclusively on furthering US-India cooperation on IPR.

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"Numerous studies have shown that a country's system of intellectual property protection has a substantial effect in relatively high technology sectors and on the kinds of technology transferred to that country and the amount of direct investment in that country. That is why we have made strong IPR protection one of our top economic priorities with all our important trading partners, including India, both in multilateral and bilateral fora," Hopper said.

He said that though the effective protection of inventions, protection of copyrighted works like software, music, and movies, and protection of the trademark reputation of firms, etc are complex task, the effort over the years in countries like India has been quite successful.

Hopper pointed out that among the US's most effective tool in promoting IPR regime is its annual Special 301 review, which has vastly improved intellectual property standards around the world.

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The Special 301 list warns a country of the US's concerns over IPR standards and warns potential investors in that country about the potential IPR risks.

Usha Amonkar, chairperson, CII Alliance on Counterfeiting & Piracy, and head - Legal Affairs, Mahindra & Mahindra in her address highlighted that fake products of stamps, pharmaceuticals, FMCG products, auto components, especially software, music, films, etc resulted in heavy loss to India and evasion of tax duties.

She said that in the IT sector, the trade losses due to IP theft, infringement and piracy touch Rs 2,160 million every year. The loss to the government exchequer on account of the gray market is estimated to be around Rs 400 million annually and the Indian music industry in a span of last three years lost Rs 1,800 million on account of music piracy. The FMCG sector loses approximately 15 per cent to counterfeit goods and several top brands lose up to 30 per cent of their business.

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“Surveys indicate that 8 out of 10 consumers in India have been victims of counterfeits,” Usha said, pointing out that India did not have an exclusive law to address counterfeiting as in the US. “However, the country offers various statutory remedies in civil and criminal sections. Trade Marks Act, 1999 and The Indian Penal Code and Copyright Act, 1957 are the two important acts that save the interest of the innovators in India,” she said in this regard.

She said that India needs alert and well-informed brand protection cells to follow up on the information on counterfeits. The role of investigating agency in identifying production and storage is vital for enforcement. She also emphasized the need to amend IP laws to make them TRIPs compliant and set up special IP protection cells within the police force which have helped in addressing the problem.

Jonathan Tracy, attorney advisor, Office of the Enforcement, United States Patent and Trademark Office said that stronger IPR regime is important for the public health and safety, development of the local industry and increased flow of foreign investment.

Justice S Jagadeesan, former chairman, Intellectual Property Appellate Board and Former Judge of the Madras High Court said that the US is the role model in protecting the IPR. India needs to create a strong enforcement channel to effectively implement Trademarks, patents and copyrights, the three important IPR tools.

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