However, keeping in mind the recent bonhomie of sorts between both countries, the Office of the USTR, an agency of the US government, has refrained from imposing an out-of-cycle review (OCR) of India's IPR laws, unlike last year.
"In late 2014, India initiated a process of soliciting widespread stakeholder input regarding its development of a draft national IPR policy. USTR encourages continued engagement with interested stakeholders, as India continues to develop this policy framework," said the report, released on Thursday.
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It lauded the efforts of the National Democratic Alliance government towards "increased bilateral engagement" between both countries in matters pertaining to IPR.
The report says the US expects India will keep the momentum going, indicating expediting the rolling out of the national IPR policy, leading to "substantial and measurable improvements" in the country's IPR and patent laws. "We are not announcing another OCR at this time but will monitor the progress over the coming months and are prepared to take further action if necessary," the USTR said.
In September last year, the government here had announced it would come out with an IPR policy by early this year. For this, it has set up a think tank under the aegis of the department of industrial policy and promotion.
The draft policy, released last year for comments by stakeholders, came under an attack from the pharmaceuticals lobby and non-governmental organisations. The draft policy was silent on the issue of compulsory licensing in pharmaceuticals, for which Indian IPR laws have been criticised by the West. It also failed to address concerns of the domestic sector and did not pay heed to the long-pending demand of a separate court for IPR cases.
India and the US had initiated a separate dialogue on IPR issues, under the strategic dialogue between both countries announced during the visit of Prime Minister Narendra Modi to the US in September 2014. This was followed by USTR Michael Froman visiting India for the India-US Trade Policy Forum.
The USTR reviewed the IPR laws of 72 partner countries, of which 37 were on the 'priority watch list' or 'watch list', including China, Canada, Mexico, Chile and Vietnam.