Research-Based Sector and Generics Makers Dispute India IP Law

Controversy over India's new patent regime continues, with both multinationals and generic drugmakers voicing concerns, albeit for very different reasons.

In an interview with a London newspaper, the CEO of UK-based drug major GlaxoSmithKline, Jean-Pierre Garnier, indicated that the company will call on the UK's government to make new intellectual property laws a condition of trade with countries such as China and India. Garnier highlighted the fact that, although India's new patents framework would be a positive move, the authorities' failure to resource patent protection efficiently could pose a threat to future investment. With thousands of filings likely to be submitted by local producers, it is feared that bottlenecks in patent approvals could effectively render the reforms meaningless. The company now claims that it will be "holding off" on investment plans until it is satisfied that India can provide adequate intellectual property protection.

Meanwhile, speakers at a forum on the global generics industry in India claim that US generic drugmakers are likely to be hardest hit by the new legislation. Such manufacturers purportedly depend on low-cost Indian imports, which are likely to be affected by the quality and patent criteria of India's new pharmaceuticals environment.

Furthermore, international charity Medecins Sans Frontieres has yet again added its voice to claims that the World Trade Organisation's TRIPS agreement, which allows governments to issue emergency compulsory licences, will have little meaning if large portions of India's generics industry cease to exist as a result of the new law. Nevertheless, as both sides of the argument await the approval of the amended patents act, India's drug industry as a whole is unlikely to benefit from the current state of uncertainty.