Intellectual Property Rights- U.S wants to tame India

Dark clouds are looming as far as the once strong trade ties between India and the United States is concerned. The present scenario is one abounded by arguments and counter-arguments, especially when it comes to policies concerning the intellectual property rights violations where surprisingly, the U.S is branding itself the affected party.

U.S. lawmakers have asked President Barack Obama to tell India that it should consider constructive ways to address the deteriorating trade and investment climate, especially policies pertaining to intellectual property rights violations. In a letter dated June 18, 171 Congressmen requested Barack Obama to give these concerns due consideration and sort these out with India through the highest level diplomatic meetings and other modes of bilateral communication. While the letter acknowledges India as a strong ally, it raises questions about India’s recent move to block the import of various goods from the U.S, citing intellectual property violations, a rule strictly implemented by the policymakers and courts of India.

The U.S is particularly affected by India’s strict intellectual property standing on issues concerning information technology outsourcing, renewable energy and bio-pharmaceuticals. Last year, the Indian courts revoked the patents of several U.S based bio-pharmaceutical companies, and denied their ensuing appeals concerning products (some life-saving drugs too) that were being exported to India or manufactured in India, exclusively for the local market. The U.S views this as a serious hindrance for future investments with regards to these sectors in India.

Two further points of concern for the U.S include its vast workforce (nearly 40million strong = 30% of the overall U.S workforce) that is currently employed directly or indirectly in operational sectors that could be affected from these intellectual property related wrestling matches between India and the U.S. The U.S acknowledges that a negative scenario could impact it severely while it also wants India to understand the deep impact it can have on its own unfurling economy. The second point of concern for the U.S lies in the fact that India has emerged to be a strong role-model, a mentor in its region and to other economies in Asia. In all likelihood, India’s strict stand and U.S’s buckling under this pressure could ‘inspire’ other Asian countries to follow suit. A diplomatic disaster is looming large unless India and U.S can chalk out this problem through high level dialogues.

Or maybe, this is the start of the taming of the U.S of A.