Context:
India has been placed again on the U.S. Trade Representative’s (USTR) 2025 Priority Watch List due to ongoing concerns over the protection and enforcement of intellectual property (IP) rights.
- Challenges Noted: Despite efforts to improve the IP regime, India’s enforcement of IP remains inconsistent, with significant challenges regarding patents and the interpretation of the Indian Patents Act.
- Specific Concerns: The report highlights issues such as unauthorised file sharing, signal theft by cable operators, and problems in protecting trade secrets as ongoing points of contention for stakeholders.
What is U.S. Intellectual Property Rights?
Patents
- Purpose: Protect new inventions (products, processes, or designs).
- Rights Granted: Exclusive right to prevent others from making, using, selling, or importing the invention.
- Authority: Issued and managed by the U.S. Patent and Trademark Office (USPTO).
Copyrights
- Purpose: Protect original works of authorship (e.g., literary, musical, artistic).
- Rights Granted: Control over reproduction, distribution, public performance, and display.
- Authority: Registered through the U.S. Copyright Office (Library of Congress).
Trademarks
- Purpose: Protect brand identity and distinguish goods/services in the marketplace.
- Rights Granted: Exclusive right to use symbols, names, or logos identifying a brand.
- Authority: Registered with the USPTO.
Trade Secrets
- Purpose: Safeguard confidential business information with economic value.
- Protection Mechanism: Maintained through reasonable efforts to preserve secrecy (e.g., NDAs, access controls).
- No Formal Registration: Protection depends on maintaining confidentiality.
Other Forms of IP Protection
- Includes:
- Industrial designs
- Right of publicity (commercial use of personal identity)
- Plant variety protections
Significance of IP Rights
- Encourages Innovation: By granting exclusive rights, IP incentivizes R&D and creative efforts.
- Supports Economic Growth: Enhances competitiveness, protects brand value, and fosters job creation.
- Government Role: Active enforcement of IP laws both domestically and globally to deter infringement and protect U.S. interests.
Inconsistent IP Progress in India
- Patent Issues: The vagueness in the interpretation of patent laws continues to be a major concern, particularly for businesses operating in technology and pharmaceuticals sectors.
- IP Enforcement: Although efforts to strengthen the operations of the IP Office have been noted, overall enforcement remains insufficient.
Broader Global Context
- Other Countries on the List: In addition to India, countries like China, Russia, Indonesia, and Argentina also appear on the Priority Watch List due to similar IP protection challenges.
- Global Impact: The report’s concerns are especially pertinent as the U.S. seeks to negotiate trade deals and address tariffs and non-tariff barriers with several countries.
India’s High Customs Duties
- IP-Intensive Products: India maintains high customs duties on IP-intensive products such as ICT products, medical devices, pharmaceuticals, and solar energy equipment, further complicating the IP landscape.
- Commercial Violations: Reports of unauthorised photocopying, piracy in video games, and academic book reprints continue to be widespread, exacerbating concerns over IP enforcement.
Uncertainty for Businesses
- Legal Protection for Trade Secrets: There is significant uncertainty among companies regarding legal mechanisms to protect trade secrets in India, which could influence foreign investments and international trade negotiations.
