November 24, 2023

Pharmaceutical regulation and its impact on IPR in India

This article has been written by Mr. A Raj Singh, a 3rd-year law student of JEMTEC Department of Law, Greater Noida.

 

ABSTRACT 

Pharmaceutical businesses are strongly encouraged to spend on research and development by IPR, especially patents. It gives the creator exclusive rights, creating a competitive atmosphere that promotes creativity in the search and development of new drugs. The pharmaceutical sector in India is essential to the global supply chain. For Indian businesses to compete internationally and form alliances with foreign pharmaceutical corporations, they must comprehend and navigate international intellectual property restrictions. In India, pharmaceutical regulation and intellectual property rights are closely intertwined, with continuous discussions and court cases reshaping the sector’s environment. For legislators and regulatory agencies, finding a balance between promoting innovation and safeguarding public health is an ongoing problem. India’s intellectual property environment has seen substantial changes as a result of the TRIPS Agreement, especially in the pharmaceutical industry. Legislative modifications to IPR and pharmaceutical legislation, such as digitization and expedited approval procedures, show how flexible India is in updating regulatory frameworks. Ayushman Bharat and the PLI program are examples of initiatives that demonstrate a commitment to support local manufacturers and improve healthcare accessibility.

 

INTRODUCTION 

Over the years, there have been substantial regulatory changes affecting the pharmaceutical business in India. In the past, the nation’s system of price controls and restricted patent protection encouraged a thriving industry for the production of generic drugs. With the implementation of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), as part of the World Trade Organisation (WTO) accords in 1995, the regulatory environment underwent a significant transformation. Prior to TRIPS, India only permitted process patents for pharmaceuticals, which meant that although the final product was protected, the technique of producing the drug was not. This strategy promoted the development of a strong generic medication market. Nevertheless, TRIPS required product patents, necessitating an update of India’s patent laws to bring them into line with global norms. The dynamics of the pharmaceutical industry were significantly altered by the introduction of product patents in 2005. It was intended to promote innovation by giving new treatments more protection, but worries about how it would affect the availability of reasonably priced medications surfaced. A new drug must be protected from unauthorized usage during the drawn-out and expensive process of bringing it to market. Pharmaceutical businesses can recover their investment through intellectual property protection, which promotes ongoing research and development. The ongoing endeavor to maintain equilibrium among innovation, affordability, and public health emphasizes the necessity of flexibility in a world that is changing quickly.

 

HISTORICAL OVERVIEW OF PHARMACEUTICAL REGULATION IN INDIA 

India had lax pharmaceutical laws before independence. One significant piece of early legislation, the Drug Act of 1940, dealt mostly with sales and import laws. Following attaining independence in 1947, India started creating its regulatory framework for pharmaceuticals. Ensuring the safety and quality of drugs was the main focus.

  • Patent Act, 1970: This statute, which switched from product to process patents, was a historic breakthrough. A turning point in the development of India’s pharmaceutical business can be attributed to the Patents Act of 1970. It promoted the expansion of the generic pharmaceutical industry by enabling Indian businesses to produce generic versions of medications using alternative manufacturing techniques.
  • TRIPS Agreement (1995): India’s intellectual property laws had to be modified to comply with the TRIPS Agreement. India had to change from a framework for process patents to one for product patents by 2005 in order to comply.
  • Modifications to the Patents Act (2005): In order to comply with TRIPS, India changed the Patents Act to include product patents for medications. Although the goal of this action was to improve intellectual property protection, worries regarding possible effects on patient access to medications surfaced.
  • Compulsory Licensing (2012): The introduction of compulsory licensing laws in India addressed issues of accessibility and price by permitting generic producers to create proprietary medications under certain conditions.
  • National Pharmaceutical Pricing Policy (NPPP): It was implemented with the aim of controlling medicine prices and guaranteeing their affordability. It sought to reconcile the requirements of the general public for healthcare with the interests of pharmaceutical companies.
  • New Drugs and Clinical Trials Rules, 2019: The regulations were redesigned to facilitate innovation and research by streamlining the regulatory process for medicinal approvals.

 

IPR LANDSCAPE IN INDIA 

In order to oversee the management of intellectual property rights, India established the Controller General of Patents, Designs, and TradeMarks in the 1950s.

  • Patent Law: The Patent Act 1970 was once centered on process patents, which permitted domestic businesses to manufacture generic copies of medications. By allowing product patents for a broader variety of ideas, the 2005 modification brought the law into compliance with worldwide standards.
    • Compulsory Licencing: Provisions that strike a balance between the need for patent protection and access to medications provide forced licensing under certain circumstances.
  • Trade Marks Act, 1999: It enhanced trademark protection by superseding the previous Trade Marks Act. It brought forth rules for collective markings, service marks, and trademark registration and protection.
    • Geographical Indications: Goods with a specific geographical origin, like Basmati rice or Darjeeling tea, are protected by the Geographical Indications of Goods (Registration and Protection) Act, 1999. These distinguishing marks can serve as a metaphor for their offerings or caliber of work, encourage healthy competition, and provide the buyer with decision-making information.
  • Copyright Act, 1957: This law was passed in 1957 and has since undergone amendments to reflect changes in technology. It includes written works of fiction, artistic productions, movies, music, and computer software.
    • Digital Rights: Amendments ensured that digital works are protected and addressed concerns about piracy and unapproved dissemination. They also addressed the difficulties presented by digital content.
  • TRIPS Agreement and Compliance: When India signed the agreement in 1995, it pledged to harmonize its domestic intellectual property laws with those of other countries.

 

THE TRIPS AGREEMENT AND INDIA’S COMPLIANCE 

When the TRIPS Agreement came into effect on January 1, 1995, India had to give up some of its long-held positions in the area of intellectual property in order to abide by the agreement’s requirements as a WTO member. This is a summary of its effects:

  • Patent (Amendment) Act, 2005: In order to comply with TRIPS, India revised its Patents Act and added product patents for medications. While this brought India’s patent rules into line with global norms, it also sparked discussions about how it would affect the generic medication market.
  • Compulsory Licensing (Amendment) 2012: Modifications to the compulsory licensing clauses gave authorities greater latitude in handling medical emergencies about public health, permitting the manufacturing of generic substitutes for patented medications in times of medical emergency.
  • Recognition of India’s IPR Regime Worldwide India has received international recognition for its efforts to bring its intellectual property laws into compliance with international norms. The legal system of the nation is thought to be tackling its particular healthcare issues while adjusting to international standards.
  • Enforcement and Digitization: As a reflection of India’s dedication to keeping up with technology developments, amendments have also addressed issues brought on by digital piracy and the unauthorized use of intellectual property.

 

REGULATORY BODIES FUNCTION IN BALANCING PUBLIC HEALTH AND IPR

In India, the Central Drugs Standard Control Organisation (CDSCO) is essential to the regulation of medical equipment and medicines. This is a breakdown of its purposes and effects:

  • Regulatory Monitoring: Before pharmaceutical products and medical devices are put on the market, CDSCO must approve and license them in order to guarantee that they fulfill safety, effectiveness, and quality criteria. CDSCO oversees and authorizes clinical trials, protecting the welfare and rights of study participants while making sure moral principles are upheld.
  • Inspections and Quality Control: To make sure pharmaceutical producers follow Good Manufacturing Practises (GMP), CDSCO performs inspections and upholds quality standards. To safeguard the public’s health, the organization keeps an eye on the market for compliance and takes appropriate action against subpar or counterfeit medications.
  • Global Cooperation: In order to make its standards consistent with best practices around the world, CDSCO works with foreign regulatory bodies. This helps Indian pharmaceutical products get accepted into foreign markets.
  • Policies for Public Health: CDSCO works with the government to develop regulations that strike a balance between the defense of intellectual property rights and the need for reasonably priced and easily accessible medications. The group supports laws such as the National Pharmaceutical Pricing Policy (NPPP), which sets caps on medicine prices to guarantee the public may continue to obtain them at reasonable costs.
  • In response to crises in public health: In times of public health emergencies, such as the COVID-19 pandemic response, CDSCO helps expedite the approval of necessary pharmaceuticals. This shows how flexible the company is in responding to last-minute medical emergencies.

 

RECENT ADVANCEMENTS AND REFORMS 

Atmanirbhar Bharat Abhiyaan, India’s flagship program designed to encourage self-reliance, increase manufacturing, and record growth, has the pharmaceutical industry as one of its major pillars. An ecosystem of regulations and a strong IPR framework will foster innovation and R&D in order for current and future partnerships to coexist and co-create. The recent developments in the pharmaceutical sector and IPR are explained as follows:

    1. The New Drugs and Clinical Trials Rules, 2019: The regulations are designed to make the process of authorizing new medications and carrying out clinical trials more straightforward and quick. This is essential for encouraging creativity and more quickly introducing novel treatments to the market.
    2. Pharmaceutical and Medical Device Regulations, 2020: By streamlining laws pertaining to both medical devices and pharmaceuticals, these regulations foster a more effective and integrated regulatory environment. Improving openness and facilitating ease of doing business are the objectives.
  • The National Digital Health Mission(NDHM): NDHM, which was introduced to digitize medical records and enable better healthcare delivery, has effects on the pharmaceutical industry. Digital health data can help to improve patient care and research and development procedures.
    1. Pharmaceutical Production-Linked Incentive (PLI) Scheme: By offering pharmaceutical firms financial incentives, the PLI program encourages companies to grow and improve their manufacturing capacities. The objective of this project is to enhance India’s standing in the worldwide pharmaceutical industry and lessen reliance on imports.
  • Initiatives of the National Medicinal Plants Board (NMPB): The NMPB’s initiatives are centered around encouraging the use of medicinal plants in farming, providing funding for studies in traditional medicine, and incorporating these practices into the healthcare system. This fits with the current global trends in complementary and alternative medicine.
  1. Patent Rules Amendments, 2020: In an effort to modernize and expedite the patent application process, the revisions include provisions for the digital filing of documents pertaining to patent applications.
  2. The Geographical Indications of Goods (Registration and Protection) Rules Amendment, 2020: The purpose of the amendments is to strengthen the protection and registration of GIs for commodities, particularly pharmaceuticals. This is in favor of the protection and identification of goods linked to particular geographic areas.
  3. The Copyright (Amendment) Rules, 2021: The revisions clarify matters pertaining to digital copyright, such as licensing in the digital sphere. This is especially important for the pharmaceutical industry, which uses digital platforms more and more for marketing and research among other things.

 

CONCLUSION 

India’s dynamic response to both internal and international issues is reflected in the evolution of its pharmaceutical rules, which have always strived to strike a balance between innovation, affordability, and accessibility to medications. Significant turning points and adjustments have molded the sector, impacting viewpoints on pharmaceutical governance from a national and worldwide standpoint. India’s modifications exhibit a dedication to global norms while skillfully striking a balance between promoting innovation and guaranteeing the availability of necessary medications. The dynamic nature of the international framework for intellectual property rights is reflected in the laws’ continuous evolution. India’s dedication to promoting innovation, guaranteeing regulatory effectiveness, and tackling public health issues in the pharmaceutical industry is evident in the latest advancements and modifications. The industry is positioned for sustained growth and worldwide competitiveness due to the convergence of digital transformation, regulatory changes, and government initiatives. Ongoing discussions, court cases, and policy changes demonstrate how dynamic pharmaceutical regulation and intellectual property rights (IPR) are in India. The complex interactions between legislation, intellectual property rights, and public health concerns define India’s pharmaceutical industry. The nation’s dedication to meeting specific issues and maintaining pace with international standards highlights how dynamic this important sector is.

 

REFERENCES 

  1. The article “Intellectual Property Rights and Indian Pharmaceutical Industry: Present Scenario” originally written by  Ajay Prakash, Phulen Sarma, Subodh Kumar, and Bikash Medhi and published on the National Center for Biotechnology Information website. The link for the same is herein:

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6044128/ 

  1. The article “Indian Patent Law and Its Impact on the Pharmaceutical Industry: What Can China Learn from India?” originally written by Juan He and published on the Springer Link website. The link for the same is herein:

https://link.springer.com/chapter/10.1007/978-981-13-8102-7_11 

  1. The article “Competition and Intellectual Property Policies in the Indian Pharmaceutical Sector”  originally written by Shamim S. Mondal Shamimsm and Viswanath Pingali and published on the Sage Journals website. The link for the same is herein:

https://journals.sagepub.com/doi/full/10.1177/0256090917704561 

  1. The article “Role of Strong IPR Framework in Driving India’s Atmanirbharta” originally written by Suresh Pattathil and published on the Economic Times website. The link for the same is herein:

https://www.google.com/amp/s/health.economictimes.indiatimes.com/amp/news/pharma/role-of-strong-ipr-framework-in-driving-indias-atmanirbharta/100263351 

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