The term "intellectual property" relates to the defence of mental innovations. Owners of such property are granted special rights through a legal framework, which may be exploited for acclaim or monetary benefit. Copyrights, patents, trademarks, industrial designs, and geographic indications are some of the legal tools used to protect intellectual property. In developing nations, IPR protection has the power to promote innovation and the development of a robust market system that fosters economic progress.
In India, the protection of intellectual property is of utmost importance. In India, modifications have been made to IP policy and regulation during the last two or three decades to strengthen the protection of intellectual property, including patents, trademarks, copyrights, designs, and geographical indications. Since the main goal of patent law is to grant monopoly-like rights to the successful applicant, how these rights are desired, granted, and ultimately exercised involves concepts of investment, both financial and otherwise, and returns on such investment become crucial. More specifically, the economic analysis of patent law's central thesis is that while intellectual property rights generally have the positive effect of fostering innovation, they also have the negative effect of resulting in high prices and less-than-desirable sales of products incorporating the innovations.
Keywords
Patenting, Growth, Economy, TRIPS.
The patent policy in India has a long history and was developed after extensive research. India handles diverse patents differently than industrialised nations and regards patents as a tool for implementing public policy. India's approach is being put to the test by calls for IPR law change in order to comply with TRIPs. India limited the scope and duration of patents because it saw them as a tool for economic progress.4 A significant turning point in India's industrial growth is the Patents Act, 1970. The fundamental tenet of the Act is that patents are issued in order to promote inventions and ensure that they are quickly implemented on a commercial scale; they are not simply given in order to grant the patentee a monopoly on the importation of the patented item into the nation.
The aforementioned philosophy is being put into practise through compulsory licencing, registration of only process patents for food, medicine or drug, pesticides, and substances produced by chemical processes, which include items like alloys, optical glass, semi-conductors, inter metallic compounds, etc. in addition to chemicals as they are typically understood.
However, it should be remembered that certain goods, such as those used in agriculture and horticulture, atomic energy technologies, and all living beings, are not subject to the patent process. Therefore, it was anticipated that the Patents Act of 1970 would strike a suitable balance between the advancement of technology, the public interest, and the unique demands of the nation, on the one hand, and the necessary and effective protection of patents, on the other.
In many nations, especially in the developing world, intellectual property is still underutilised as a "power instrument" for economic growth and wealth creation. Every regime should take into account two primary factors when establishing IPR protection systems through laws. The first is to encourage investments in knowledge development and innovation by granting exclusive rights to use and market newly developed technologies, products, and services. This is because knowledge is a type of non-rival good that the general public may easily acquire. Without legal protection, counterfeiters can simply replicate cutting-edge technology without having to pay for the associated research costs.
The imitators can simply charge a lesser price than the innovators while making a higher profit. Therefore, in a circumstance where there is inadequate protection, they would be less eager to invest in the research and innovation process. IPR (intellectual property rights) protection contributes to economic growth in two ways. While it encourages innovation by giving inventions legal protection, it may impede learning and catch-up by limiting the spread of innovations. India's patent system has an indirect impact on the country's economic development.
A number of multinational corporations have started their research and development processes in India now that the country has adequate laws in place to protect intellectual property, and their implementation is reliable enough for one to have faith in them. This has indirectly boosted India's economic growth by increasing tax revenue and creating jobs for its citizens. Ranbaxy is a worldwide corporation with its headquarters in India. It was established in 1961 and is a research-based, integrated, international pharmaceutical company that produces a variety of high-quality, reasonably priced generic drugs. 10 It is one of the top 10 generic drug manufacturers in the world. In this company, 1,700 individuals were working in 2005, and by 2012, there were 10,983 workers there. It has been noted that India's economic progress is indirectly boosted by the sharp increase in the number of employees. Third-largest MNC in India, Dr. Reddy's offers a variety of generic and branded medications as well as active pharmaceutical components. The majority of Dr. Reddy's sales are of branded medications that are modified versions of medications with Western patents.
Conclusion
After India ratified the TRIPS agreement, the Indian Patent Law was updated to comply with the agreement. The most important clause drawn from international economic law with regard to economic development may turn out to be TRIPS. Numerous multinational corporations began investing in India as a result. MNCs also began their R&D processes in India, which has indirectly accelerated India's economic development and created jobs for Indians. For the time being, India needs to welcome more multinational corporations to invest and begin their R&D in India. India's economy will grow in this way. India's legislative and judicial practises merit careful consideration when promoting the growth of the domestic pharmaceutical industry, along with using TRIPS's latitude to ease access to medications, enacting compulsory licencing to increase the likelihood of voluntary licencing negotiations, and updating the standards for reviewing pharmaceutical applications to prevent perpetual greening of pharmaceutical patents.