India's Trade Concession Raises Alarms in IP Licensing

India's new free trade agreement with the UK includes language that limits its ability to issue compulsory licenses for life-saving technologies, according to GTRI. The agreement emphasizes adequate remuneration to patent holders and promotes voluntary licensing, potentially delaying access to affordable medicines and green tech during emergencies.

India's acceptance of language in the intellectual property chapter of its free trade agreement with the UK curtails its ability to issue compulsory licenses, Global Trade Research Initiative (GTRI) has observed. Compulsory licenses are crucial for accessing life-saving technologies in emergencies, such as pandemics, where quick access to affordable medicines is vital.

The agreement also establishes 'adequate remuneration' norms for compulsory licensing in the pharmaceutical sector, which may lead to delays in access to affordable medicines. Ajay Srivastava, GTRI founder, noted that this is a binding bilateral obligation that constrains India's flexibility under domestic law.

The deal promotes voluntary licensing alongside 'fair, reasonable, and non-discriminatory' (FRAND) practices, favoring patent holders over public needs. While India retains the right to issue compulsory licenses, the raised bar for transparency, royalties, and voluntary mechanisms may scrutinize India's licensing decisions globally, compromising its ability to act swiftly in future emergencies.

(With inputs from agencies.)