Patents edict to push drug, IT exports: Nath

Commerce and Industry Minister Kamal Nath today said the Ordinance on patents, effective from January 1, 2005, would provide an enabling environment for both pharmaceuticals and information technology sectors.

The pharmaceuticals sector is now poised to achieve an annual compounded growth rate of 30 per cent and will double exports in three years, he said addressing a press conference here.

Explaining the rationale for the Ordinance, he said since the final comments of stakeholders and parties were received on December 21, it was impossible to introduce the Bill in the winter session of Parliament.

"The Ordinance is an interim measure to fulfil our legal obligations within the stipulated time. It will be discussed in detail in Parliament in the budget session," he said.

Detailing some of the provisions of the Bill, he said a clause for patenting of software that is embedded in hardware had been introduced. The Ordinance also provides for a definite pre-grant opposition procedure as against the earlier Bill which only had a post-grant opposition, with a weak pre-grant representation.

"We have rationalised the time lines, so as not to leave everything open ended, but have a definite time-table within which each of the stages should take place. This halves the maximum time it would take for the processing of an application from more than nine years to about four," he said.

The minister said the Ordinance also provides for patent rights for mailbox applications to be available "prospectively and not retrospectively". There are around 12,000 applications in the mailbox which would be opened on January 1, 2005.

Commenting on the concerns of the Left parties regarding patents, Nath said:, "Like every party, the Left is entitled to its point of view. We have had consultations with the Left. They have made their suggestions to us in writing."

Nath said the BJP had also been consulted on the issue.

"They didn't need much explaining. The Ordinance contains all the provisions of the Bill introduced by them with some modifications."

In fact, they had suggested a re-look at the pre-grant opposition which we have done. I think they are wiser than before."

The minister also dismissed fears of an increase in prices of drugs as "unfounded".

"We must realise that the fact that 97 per cent of all drugs manufactured in India are off-patent and will remain unaffected. In fact, a feature of patent protection is that it spurs research, so that alternatives keep appearing in the market. Often the alternatives are better ones. Thus, price control is inherent in the system."

Nath said the patent act contained sufficient provisions to take care of the public with respect to availability and prices.

"The act has strong provisions under Chapter XVII for outright acquisition of the patent to meet the national requirements. There is also the Drug Price Control Order administered by the National Pharmaceutical Price Authority. With this framework in place, it is clear that the concerns and fears expressed by various sections are wholly misplaced."