Intellectual Property Rights (IPR) refers to the legal rights granted to the creators of original works of art, literature, music, and inventions. These rights provide the creators with exclusive rights to use, license, and sell their creations for a certain period. The protection of IPR is crucial to encourage innovation and creativity, as it allows the creators to reap the benefits of their hard work and investment. The IPR Index is a tool used to assess a country’s IPR environment and determine its effectiveness in protecting and enforcing IPR. In this article, we will discuss what IPR is, the IPR Index, India’s ranking in the Index, the parameters of ranking, the fall in India’s rank, the condition of India’s competitors, and what India can do to improve its rank in the Index.
Intellectual Property Rights (IPR) are a set of exclusive legal rights granted to the creators of original works of art, literature, music, and inventions. IPR includes patents, trademarks, copyrights, and trade secrets. Patents protect new and useful inventions, trademarks protect names and logos that identify goods and services, copyrights protect original creative works such as books, music, and art, and trade secrets protect confidential information used in business.
IPR laws are designed to encourage innovation and creativity by granting creators exclusive rights to use, license, and sell their creations. The protection of IPR is essential to promote economic growth and development, as it provides creators with the incentive to invest in their ideas, and in turn, stimulates the economy by creating jobs and increasing trade.
The IPR Index is a tool used to assess a country’s IPR environment and determine its effectiveness in protecting and enforcing IPR. The Index is published annually by the Global Intellectual Property Center (GIPC), which is a division of the US Chamber of Commerce. The Index assesses the IPR environment in 53 economies, which account for over 90% of global GDP. The Index is based on 45 indicators across six categories, including patents, trademarks, copyrights, trade secrets, enforcement, and international treaties. The indicators are weighted according to their importance, and each country is given a score out of 100 based on its performance.
The IPR Index assesses a country’s IPR environment based on six categories, each of which is divided into several indicators. The six categories are as follows:
Patents: This category assesses the strength of a country’s patent protection system. The indicators include the duration of patent protection, the availability of patent term extensions, and the ease of obtaining a patent.
Trademarks: This category assesses the strength of a country’s trademark protection system. The indicators include the duration of trademark protection, the availability of multiple-class trademark applications, and the ease of registering a trademark.
Copyrights: This category assesses the strength of a country’s copyright protection system. The indicators include the duration of copyright protection, the availability of statutory damages, and the ease of obtaining copyright protection.
Trade secrets: This category assesses the strength of a country’s trade secret protection system. The indicators include the availability of civil and criminal remedies, the scope of protection, and the ease of obtaining trade secret protection.
Enforcement: This category assesses the effectiveness of a country’s IPR enforcement system. The indicators include the strength of civil and criminal remedies, the availability of border measures, and the effectiveness of law enforcement agencies.
International treaties: This category assesses a country’s participation in international treaties related to IPR. The indicators include the ratification of international treaties, the strength of the country’s commitments, and the level of compliance.
India’s ranking in the IPR Index has been a matter of concern for policymakers and stakeholders. In 2014, India was ranked 29th out of 30 economies in the Index, with a score of 5.32 out of 10. However, in the latest edition of the Index published in 2021, India’s rank has improved to 40th out of 53 economies, with a score of 38.46 out of 100. This improvement in India’s rank can be attributed to the country’s efforts in strengthening its IPR regime through legislative and policy measures.
Prior to 2014, a lot of landmark judgements over the topic of IPR established the law of the land over the subject one of them being Bajaj Auto Ltd Vs. TVS Motor Company Limited[1] in which the Apex Court in 2010 directed all courts to work towards speedy disposal of cases relating to IPR infringements.
India’s fall in the IPR Index in 2014 was mainly due to concerns raised by the international community regarding the country’s IPR regime. Some of the instances that caused the fall of India’s rank in the Index are as follows:
Compulsory Licensing of Patented Drugs – In 2012, India issued its first compulsory license to Natco Pharma to manufacture a generic version of Bayer’s cancer drug Nexavar. The move was seen as a violation of Bayer’s patent rights and raised concerns among the international community regarding India’s IPR regime.
Lack of Adequate Patent Protection – India’s patent laws were seen as restrictive and narrow, which limited the scope of patent protection. The country’s patent laws did not provide for the protection of software and business methods, which limited the scope of innovation in these fields.
Weak Enforcement of IPR – India’s enforcement of IPR was seen as weak and ineffective, which led to a high level of piracy and counterfeiting. The lack of effective enforcement mechanisms raised concerns among the international community regarding the country’s IPR regime.
India’s competitors in the region, including China and ASEAN countries, have been making significant progress in strengthening their IPR regimes. China, in particular, has made significant strides in improving its IPR regime, and in the latest edition of the IPR Index, China has been ranked 14th, with a score of 57.64 out of 100. China’s success can be attributed to its efforts in strengthening its legal framework, improving enforcement mechanisms, and enhancing public awareness regarding IPR.
ASEAN countries have also been making efforts to improve their IPR regimes. The ASEAN countries have adopted a common approach to IPR through the ASEAN Intellectual Property Rights Action Plan, which aims to promote cooperation, capacity building, and awareness regarding IPR. In the latest edition of the IPR Index, the ASEAN countries have been ranked higher than India, with Singapore leading the pack, ranked 4th, with a score of 84.29 out of 100.
The top rankers in the World Intellectual Property Right Index are countries that have comprehensive IPR protection and enforcement regimes. These countries have robust legal frameworks that protect the interests of creators, innovators, and investors. They also have strong enforcement mechanisms that deter IPR infringement and punish offenders.
The top-rankers of the Index are performing well in the areas of IPR law enforcement and infringement control. Which are as follows:
United States of America:
The United States of America (USA) consistently ranks as the top performer in the World Intellectual Property Right Index. The USA has a comprehensive legal framework that protects various forms of IPR, including patents, copyrights, trademarks, and trade secrets. The country has also established specialized courts to handle IPR disputes, such as the United States Court of Appeals for the Federal Circuit. The USA’s IPR enforcement mechanisms are also very strong, with federal agencies like the Federal Bureau of Investigation (FBI) and the United States Customs and Border Protection (CBP) working closely with industry stakeholders to prevent IPR infringement. The USA has also implemented various measures to deter IPR infringement, such as civil and criminal penalties, injunctions, and seizure of infringing goods.
United Kingdom: The United Kingdom (UK) is another top performer in the World Intellectual Property Right Index. The UK has a well-established legal framework that protects various forms of IPR, including patents, copyrights, trademarks, and designs. The country also has specialized courts to handle IPR disputes, such as the Intellectual Property Enterprise Court. The UK’s IPR enforcement mechanisms are also robust, with various government agencies like the Intellectual Property Office (IPO) and the Police Intellectual Property Crime Unit (PIPCU) working closely with industry stakeholders to prevent IPR infringement. The UK also has civil and criminal penalties, injunctions, and seizure of infringing goods as measures to deter IPR infringement.
Japan: Japan is a top performer in the World Intellectual Property Right Index, with a comprehensive legal framework that protects various forms of IPR, including patents, copyrights, trademarks, and designs. Japan also has specialized courts to handle IPR disputes, such as the Intellectual Property High Court.
Japan’s IPR enforcement mechanisms are also robust, with various government agencies like the Japan Patent Office (JPO) and the National Police Agency (NPA) working closely with industry stakeholders to prevent IPR infringement. The country also has civil and criminal penalties, injunctions, and seizure of infringing goods as measures to deter IPR infringement.
India rank has fallen from 20 to 42 from 2014 to 2023 respectively, which is owed to various reasons one of them majorly being weak IPR law enforcement which suggests that there is a lot of room for improvement. Here are some steps that India could take to improve its ranking in the World Intellectual Property Rights Index:
Strengthen legal framework: India needs to strengthen its legal framework to provide greater protection for intellectual property rights. The government could consider introducing more stringent penalties for IP infringement and improving the effectiveness of the judicial system in enforcing IP laws.
Reduce backlog of cases: There is a significant backlog of cases in Indian courts, which can lead to delays in resolving IP disputes. The government could invest in the judicial system to reduce the backlog of cases and improve the speed and efficiency of IP enforcement.
Increase public awareness: India could take steps to increase public awareness about the importance of intellectual property rights. This could include educational programs for businesses and the general public, as well as campaigns to promote respect for IP rights.
Improve IP education: The government could also improve IP education in schools and universities to promote a culture of innovation and respect for IP rights among the next generation of innovators and entrepreneurs.
Enhance IP infrastructure: India could invest in improving its IP infrastructure, including the patent office, trademark registry, and copyright office. This could include increasing the capacity of these offices to handle applications and improve the quality of examination and registration of IP rights.
Promote innovation: The government could introduce policies and incentives to promote innovation and creativity in India, such as tax incentives for research and development, grants for startups, and IP commercialization programs.
Overall, India has made significant progress in improving its IP regime, but there is still work to be done. By taking steps to strengthen its legal framework, reduce backlog of cases, increase public awareness, improve IP education, enhance IP infrastructure, and promote innovation, India can continue to improve its ranking in the World Intellectual Property Rights Index.
[1] Bajaj Auto Ltd vs TVS Motor Company Limited JT 2009 (12) SC 103
Author: Animesh Chaturvedi
Juris Centre 