India issues decree on patent law reform under the leadership of Kamal Nath – is this start of the end of Manmohan Singh’s Government?
Sudhir Chadda, Special Correspondent
December 27, 2004

India committed to World Trade Organization agreement issued a presidential decree to implement the Product Patent Law. The communists and the opposition vowed to reverse it to keep the price of essential drugs and medical procedures for the needy in India under control. Prices of many essential goods for common people in India will quadruple. Politicians and leftists are calling this decree as India’s official sellout to the Western nations to satisfy a few body traders known as outsourcing companies. The Western nations through WTO will reciprocate in allowing India to receive outsourcing contracts that use Indian youth at the cost of millions of rural sector that has to pay many times for the medicine and other essential things for every day life.

The government issued a presidential decree on Sunday to bring its patent laws into compliance with commitments under the World Trade Organisation (WTO) agreement, Commerce Minister Kamal Nath told Reuters. Although details of the decree were not available, it signals a breakthrough in patent reform, which had been stalled by political concerns that reforms would result in higher drug prices. The ruling Congress-led coalition has been under pressure from its powerful communist allies, who want adequate safeguards in the amended patent laws to ensure that prices of medicines would remain stable. India's communist parties and other political parties fear that firms holding product patents for life-saving drugs will increase prices once the new laws come into force. The government had been scheduled to introduce legislation on changing patent laws in the just-concluded winter session of parliament but could not do so due to differences with its communist allies. Commerce and Industry Minister Nath, a businessman turned politician, did not elaborate but told Reuters that he would hold a news conference on Monday to announce the details. India currently has patents for processes but not for products. It must implement them by Jan. 1, 2005, under WTO commitments. The change in India's patent laws is aimed at spurring innovative drug companies to switch away from making copycat generic drugs. New options include making generic drugs for booming export markets, contract research and manufacturing, and new drug research. 

The protest rally by the opposition and the left parties planned through out the country is massive and it will be interesting to see how the UPA Government withstands this.