Close on the heels of the allegation by the foreign banks that India is not playing by the rules in revealing the names of account holders in foreign banks, another controversy is awaiting to happen. That is the stand of the United States Trade Representative (USTR) to review patent regime in India and to find out whether Indian authorities are adhering to tenets of compulsory licensing, data protection and incremental innovation. The problem is mostly with the pharmaceutical companies based in US and operating in India. Some of the companies, which have raised their voice against Indian patent regime are having a long term association with Indian market.
A proper understanding about about the Indian health sector is important in this regard. Only a fraction of Indian population has an health cover to take care of their needs. An average citizen will have to spend a lot once he or she visits a doctor not only in terms of doctor's fee but also for medicines that one buys. He or she is not getting any reimbursement for such medicines and has to bear from his or her sources unlike the case in the US or in other developed countries. Things are worst, if they are afflicted with a terminal diseases like cancer or a chronic disease like diabetes or blood pressure, which are very common in India. The government is planning comprehensive health plans through the insurance route. But its coverage is too little. Even where the coverage is there, high incidence of disputes by the insurance companies deny any quick benefits to the common man. The rural health schemes, initiated by the earlier dispensation has not made any dent. There are widespread scams and mismanagement in the scheme, which prevent the benefits being percolated to the grassroots.
Given this situation, it is difficult for the government to de-regulate all medicines. Recently, the government had taken a long list of medicines out from the administered prices and allowed the prices to be determined by the market forces. The prices all on a sudden shot up, leading to public uproar. So far the discontentment is through whispers and innuendos. Once the honeymoon period of the government is over, the media will actively pickup the issue to the discomfiture of the government in power.
Interestingly, many US companies like PEPSI, Honeywell, Boeing etc, which are operating in other sectors have indicated their satisfaction about the operation of the IPR rules in India. Even if thy have any concern, it is not orchestrated at high decibels. They feel that these issues can be sorted out through bilateral discussions and an approach of give and take. One has to keep in mind that these companies are operating in sectors which are not immediately relevant to the common man. That is the not the case with pharmaceuticals.
Also, pharma companies have to bear in mind that the incremental progress in the IPR regime of India. Even in the case of pharmaceutical comapnies, India had come a long way in granting the product patents as against process and becoming a signatory to the Paris Convention. As years roll by, there will be improvement in these spheres also. One point about the compulsory licensing. it is something that can be resorted to under WTO agreement on TRIPS. However, there is merrit in the assertion of th multinational companies that there should be a dialogue for that and it should not be unilateral unless vitiated by emergencies or stubborn positioning of the patent holder.
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