'Focus on software IPR issues'

INTELLECTUAL PROPERTY RUGHTS/ India's patent productivity still remains low

A milestone in the ongoing "internationalisation" of India's intellectual property rights (IPR)-related laws was the amended laws on trademark and geographical indications of goods, which came into effect in September 2003.

The changed legislation enabled compatibility of India's IPR legal structure with the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement. The proposed changes would be in tune with the rise in economic value of trademarks as corporate assets.

Despite this, patent productivity, which means the number of patents filed by the number of firms in a sector, in India is much lower as compared across the world.

Speaking to Business Standard, Patrick Lloyd, partner, Reddie & Grose "� a UK-based group of patent attorneys in IT, speaks on how Indian companies can climb up the ladder in terms of patenting their ideas.

Indian IT companies are mainly seen as a provider of services which are helpful in developing products, so how does the IPR issue come in?

In India, a lot of companies are doing the first stage of development of software that will help in developing products. Since it's the first stage, the idea could be patented. But the question is who has developed the idea; and basing on the mutual agreement between the two parties, one company could file for a patent.

How can companies protect software related innovations?

Companies can protect software related innovations in two ways "� one by going for copyrights and the other is by filing for a patent.

In the case of copyrights, only the expression of idea is protected and not the idea behind it. On the other hand, a patent offers broader protection and by filing for a good patent the idea behind the software innovation would be protected.

Can IPRs check counterfeiting and piracy in software?

If the software is counterfeited or pirated one cannot do much. But if the software is patented, it is easy to prove in a court and further counterfeiting and piracy can be stopped.

How can bioinformatic companies handle their IP portfolio?

The patent protection for bioinformatic companies is similar to that of software companies. The only major difference is that in the case of bioinformatic companies, patents protect research tools and does not protect the end products.

What are the intricacies in Indian Patent Law related to IT and bioinformatics sector?

As an outsider, I find the patent laws in India changing. The new patent regime in the country allows for wider availability of technical patents.

The new law needs to be clearer on the issue of software patenting. The authorities concerned need to develop guidelines on what is allowed and what cannot be allowed in terms of software patenting.

How long do you think this would take?

Looking at the trends from the past, I do not think it would take more than three to four years for the software patenting laws to be implemented in India.

What are the cost-effective methods to obtain intellectual property protection in India and abroad?

In India, it is not very expensive to file a patent but here it is very difficult to find a good attorney who specialises in patent procedures.

For filing of international patents, a company can file through the Patent Cooperation Treaty (PCT). India joined it about five years back and the PCT helps companies who wish to file international patents.

The trick here for a company is not to go and file patents in many countries but pick important countries where they wish to file the patents.

According to you, patent laws across the world are not harmonised. So how do you think an effective solution can be found for a way forward?

In the last 20 years, a lot has happened on the laws relating to patents. One area where there has to be more development is on the software side.

There are two ways that this can be addressed, one by having modifications to the TRIPS agreement and the other by having talks at government levels, in the same way as it happened in other cases. I think the second option would be the better way of doing it.

Indian patent productivity is very low at 9.11 per cent. So what is the way forward for the Indian companies in this regard?

The way forward would be to increase awareness. As if the companies are not aware and well educated then international companies may beat companies in India and authorities here need to act really quickly before it is too late.

Post-2005, will Indian patent law be sufficient enough to attract MNCs for their R&D set up and introduction of their patented products?

The transition would be a smooth affair but the biggest challenge would be for the courts to uphold patent procedures.

In this regard, the important thing for the authorities in India is to one have a good system and two after having a good system to enforce the laws seriously.