The intellectual property regime (IPR) in India has been a major area of concern for foreign investors. Though the country’s overall score in the GIPC International IP Index has improved marginally, to 7.23 in 2014 from 6.95 in 2013, the country remains a low performer.
This was primarily because of the decision to revise the Preferential Market Access policy.
The good part is that the sentiments have improved since the NDA government, led by prime minister Narendra Modi came to power in May last year.
The government’s national IPR think-tank recently released the Draft National IPR Policy, which recognised the fundamental links between IP, innovation, and the successful development of innovative products. Additionally, the formation of a high-level IP working group as part of the Trade Policy Forum is being seen as a move which will help implement measurable and sustainable changes to India’s IP system.
But for any significant pick-up in investments, the government needs to show some action on the ground to address the concerns. India’s patentability requirements remain outside the established international best practices, there is a lack of specific IP rights for the pharma sector and the enforcement environment remains challenging with high levels of physical and online piracy. The US International Trade Commission’s (USITC) report on India’s trade, investment and industrial policies has also raised issues related to IPR, customs and tariff barriers, and FDI policies. The biggest hurdle for US firms in India, the report has listed, are financial regulations followed by Intellectual Property and local-content requirements policies.
