Intellectual property rights continue to be a concern for U.S. companies operating in India, as the country has a poor record in protecting and enforcing patents, trademarks, and copyrights. In fact, the country has been placed on the Office of the U.S. Trade Representative’s 2024 Special 301 Watch List for inadequate protection of intellectual property. This can have severe implications for companies that depend on their intellectual property assets to drive business growth and maintain competitive advantage.
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The government of India is a signatory on several international trade agreements and has taken steps towards strengthening IP by enacting legislation that protects intellectual property rights. India has made positive statements on the need to introduce a stronger IP environment and has undertaken IP reforms especially in the pharmaceutical industry. Despite these promising actions, India has remained at the bottom of the Global Intellectual Property Center (GIPC) index rankings, which measures performance on IP protection and enforcement. India lags behind other nations in formal patent filings. It averages around 9,500 filings per year, compared to 269,000 in the United States. Unlike in the United States, there is insufficient economic encouragement of intellectual property in India and few incentives to innovate. The GIPC cites other major causes for concern like the troubling history and current practices of using compulsory licensing for commercial and non-emergency situations, the challenging enforcement environment, and high levels of physical and online piracy in India. The joint efforts of the United States and India on IP are encouraging, but there is plenty of room for improvement.
There are three recommendations we make to narrow differences on intellectual property rights between the United States and India:
IP is an international issue, so it is critical to continue to keep the dialogue open between the United States and India through summits, forums, and task forces. There have been positive steps taken by Obama and Indian Prime Minister Narendra Modi, but progress needs to extend past the terms of individual leaders.
Developing and enforcing domestic legislation for intellectual property protection is key. The GIPC recommends that India address online piracy and goods counterfeiting. It also suggests stronger IP enforcement through civil remedies and criminal penalties.
To create a welcoming environment for innovators and encourage them to develop new products for the marketplace, the governments should encourage patenting so that Indian innovators could reap the financial awards resulting from their creativity.
https://www.brookings.edu/articles/india-u-s-relations-intellectual-property-rights/