Does Pakistan need IPR ?
WITH the day approaching, 26th April, as usual we will see the regular propaganda about the importance of Intellectual Property Rights (IPR) for all.
The indispensable nature of it being put forward by concerned authorities, highlighting its benefits accruing to not only MNCs but also local SMEs (this year’s theme is IP & SMEs: Taking your ideas to market) and the end consumers.
But is IPR favourable for a developing country like Pakistan? Is the claim that developing countries have been hurt by TRIPS, and their injuries are greater than the gains reaped by developed countries, correct? Is IPR important for economic growth?
Debates have ensued about the influence of such rights in diverse areas such as trade and industrial policy, public health, food and agriculture and biodiversity and biotechnology.
These debates have become increasingly complex, involving arguments from the perspectives of international law, human rights and social and economic development.
This complexity is coupled with controversy, as critics challenge the existing intellectual property regimes based on their implications for developing countries, in particular their impact on a development agenda, whether positive or negative. There are theoretical arguments against stronger IPRs in developing countries.
Due to IPR the country loses on 1) making cheaper drugs available for the poor. This is especially ever so important for Pakistan where most of the health expenditures are out-of-pocket. 2) making more and cheaper food.
The patent protection for fertilizers and pesticides led to higher prices of food for the poor.
In February 2021, Pakistan Kissan Mazdoor Tehreek (PKMT) and Roots for Equity had critiqued the Plant Breeders’ Rights Act, 2016 and the Seed (Amendment) Act, 2015, labelling it as dictation by the World Trade Organisation (WTO) under the Trade-Related Aspects of Intellectual property rights (TRIPS) Agreement. IPR thus undermine food security.
In general, large deadweight losses from higher prices. 3)making printed knowledge accessible for everyone.
The copyright protection for informational products discourages education and technology transfers.
This makes one question the laws when considering the high illiteracy in Pakistan i.e., 29% for males and 51% for females. 4) creating jobs in local imitative industries. Which would mean a reduction in social welfare.5) Strong IPR can increase market power.
The market power effect can reduce the elasticity of demand facing the foreign firm, inducing them to produce less of its patentable product in the host country, or products made by a patentable process.
IPRs reduce competition among firms. IPR is also said to undermine Pakistan’s ability to adapt catch-up strategies to face the increasing pressures of an interdependent global economy.
What are IPR? Most Pakistanis are not aware of the word IP. They do not know the meaning as well as the concept of IP.
IP is an all-inclusive term for tangible property which is a product of human intellect. It is categorized into Industrial property and Copyrights.
The former covers patents, trademarks, industrial designs, and geographical indications. While the latter includes literary and artistic works.
The negotiations to ratify the World Trade Organization’s (WTO) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) acted as a catalyst to bring discussions of intellectual property (IP) to the forefront of policy debates.
Signed in 1994, TRIPS provides a minimum standard of protection for intellectual property and provides a dispute resolution system for entities to challenge breaches of these standards.
The IP Organization of Pakistan(IPO-P) Act 2012 was an important change to the legislation surrounding IP in Pakistan.
The enforcement of IP laws in Pakistan has been a hefty task thronged with many challenges.
Pakistan lacks the technological capacity to ensure adherence, which has led to difficulties in implementing effective licensing practices.
The paltry efforts made by the government to control manufacture of counterfeit and pirated goods has resulted in a destructive reputation of Pakistan.
The enforcement of Judicial orders is a big challenge. The infringers continue to violate the proprietors’ IPR in sheer disregard of the law and the order’s worth decreases.
The penalties are not enough to act as deterrent. For example, the penalty of counterfeiting any trademark is a either a fine of Rs.0.1 million and/or up to three years of imprisonment.
Additionally, the court proceedings are not only costly but very time consuming. The lengthy proceedings defeat the purpose of litigation. By the time the market potential is engulfed by the counterfeits.
Another issue is the outdated facilities at the IP offices. Inadequately trained staff are unable to handle IP applications effectively.
The shortage of employees aggravates the problem as the time duration between the filing of the application and the registration of IP, exceeds the prescribed timeline.
For example, the Certificate of Copyrights issuance takes from one and a half years to sometimes two years instead of the six months’ rule mentioned in the Copyrights Ordinance 1962.
Pakistan needs to build at least a critical minimum level of productive and technological capacity to make full use of both proprietary and non-proprietary mechanisms to foster innovation.
It is clear that, in respect of IPR regimes, one size does not fit all. According to UNCTAD, in countries with weak scientific and technological infrastructure, IPRs play little role in stimulating innovation.
In Pakistan, building capacity to implement a suitable IPR regime that can fully exploit the scope of TRIPS flexibilities is crucial.
This is a critical time to try to stem the tide of counterfeiting and piracy, both for consumers and businesses. Perhaps it is time to try a different approach.
—The writer is PhD scholar, Department of Economics, IBA, Karachi.
