Global players' clout: Govt cautions pharma cos

The government on Tuesday cautioned the domestic pharmaceutical industry against attempts by global giants to 'harass' them through their 'deep pockets' and means outside the World Trade Organization.

With the growing voice of developing countries like India, Brazil and China, the big pharmaceutical firms will not be able to get the WTO's Trade-Related Intellectual Property Rights agreement changed to their advantage, Commerce Secretary Rahul Khullar said in New Delhi.

Alternatively, they would resort to "every trick in the book for ever-greening of their patents", he said at a Federation of Indian Chambers of Commerce and Industries seminar.

When a drug patent is renewed after its expiry on frivolous grounds to retain a monopoly, it is referred to as 'ever-greening'.

India recently dragged the European Union to the World Trade Organisations against repeated seizures of off-patent Indian drugs en route to Africa and Latin America.

The TRIPS Agreement is considered favourable to the drugs and pharmaceutical industry of developing nations, which have excelled in off-patent, affordable medicine.

Leveraging on off-patent generic drugs, India has a strong $22 billion pharmaceutical industry, grossing in about $10 billion from exports.

Khullar said India, Brazil and South Africa have emerged as influential voices in the multilateral fora.

"I can't see them (developed countries) on Tuesday having the clout all the way to go to the WTO and actually try to brazen through a revised TRIPS agreement, which will be heard and accepted by China, Brazil, South Africa and India.

"That day is over," he said.

Khullar said in this backdrop, new ways are being attempted to form cartels among the rich nations to safeguard their markets and industries.

"And now what they can do outside that (WTO). . . they can form little clubs (like ACTA) to harass you (developing nations) to lobby against you," Khullar, India's chief negotiator at the WTO, said.

An Anti-Counterfeiting Trade Agreement is being negotiated between 11 economies, including the US, European Union, Japan and Canada, which proposes to widen the scope of protection and set higher standards for enforcement of intellectual property rights.

Khullar also asked the industry to keep the government informed about the trade barriers they are facing so that the negotiators could take up these issues at multi-lateral fora.

"Provide your feedback. . . if you (industry) want us (government) to be intelligent negotiators," he said.