Local Working of Patents: Law and Implementation in India

Abstract

Inventive activity is supposed to result in innovation, which further leads to technological advancement, industrial development and economic welfare. This is possible through local working of inventions. When it comes to patented pharmaceutical drugs, local working requirement becomes more crucial for it is concerned with health issues. Historically, patents in England have been granted with an intention to encourage local application of the invention through industrial establishment. In recent years, particularly after TRIPS, tremendous growth in patent activity has been seen. Local working of patents has been the most efficient way of transfer of technology which itself is one of the primary objectives of the patent system. However, it is noticed that these patents are not necessarily worked locally. This paper aims to examine the legal framework of local working requirement, its implementation and feasibility in India. This paper argues that, though there are favourable conditions for investment, patents are not worked in India on a commercial scale. The present trend of non-working of patents in India indicates that patenting is attractive merely due to the high economic gains from the large Indian market, and patented products are often imported with no actual transfer of technology. It also shows that the present patent system has deviated from its ultimate objective of socio-economic welfare.

Keywords: Local working requirement, Innovation, Working patented inventions, Compulsory licence, Patent

JEL Classification: 034