Patents edict likely next week

Ordinance will also include embedded software and hardware

The Cabinet is expected to clear the promulgation of an Ordinance for the introduction of a product patents regime, which will also cover embedded software and hardware, next Wednesday.

A decision on Ordinances on patents and setting up a pension regulator was deferred today since the winter session of Parliament had not been prorogued.

Developing country members of the World Trade Organisation, including India, have committed to the introduction of a product patents regime by January 1, 2005.

"The Cabinet discussed the Patents (Amendments) Bill. Various options were discussed and we will take a final decision shortly," Commerce and Industry Minister Kamal Nath told reporters after the meeting.

Asked if the country would be able to meet the January 1 deadline, he said that the Cabinet had discussed all options, including "meeting, not meeting and how to meet" the obligation.

Commerce ministry sources said the government still had a week's time to comply with the deadline but a failure to do so could result in punitive action on textiles.

At present, the country only allows process patents, which have played a key role in keeping the prices of drugs low. The amendments seek to allow for pre-grant opposition along with post-grant opposition.

The pre-grant applications would, however, have to be disposed of within 48 months. The government also proposes to restrict mailbox applications from being retrospective. Applications would only be valid from the date of the grant of patents.

Exclusive marketing rights (EMR)are also being done away with while embedded software and hardware are being brought under the purview of the product patents regime.

To factor in the developments on compulsory licensing, the government can waive patents rights in the pharma sector by granting licenses to third parties in case any medicine is not available in the country.

The Cabinet Committee on Security, which also met today, approved foreign secretary-level meetings between India and Pakistan, Defence Minister Pranab Mukherjee told reporters. Besides, a defence cooperation agreement between India and Armenia was approved.

Cabinet decisions

• The Cabinet deferred a decision on setting up a Pension Fund Development and Regulatory Authority
• The Cabinet Committee on Security approved the foreign secretary-level meetings between India and Pakistan
• The CCS also approved the revised cost estimate of Rs 2,800 crore for the Kaveri engine project for the light combat aircraft