In recent times, IP rights have been the single important determinant of the changed trend in global trade relationships between nations. With globalization of culture, trade and communication, the patent system associated with a wealth of technological information has become an important resource for technological development, an aid in technology transfer and, thus, a significant factor in global economic growth. This is because patent information is of economic value owing to its ability to provide industry enterprises with technical information that may be used to commercial advantage. Considered by WIPO as an “engine for growth,” the patent system is envisioned to establish an IP-empowered society with raised living standards at all levels of the society. As the IP rights are being considered the driver for innovation and creativity, their correct governance through appropriate national legislations and policies is considered essential for a country’s economic and trade programs. Thus, globally, the IP rights are assuming increasing importance in trade, investment, economic relations and national growth. IP protection is conducive to increased investment in countries that provide for such protections. To avail global opportunities, IP system of nations has to be constantly upgraded through legislations and enforcement of IP laws.

Pre-TRIPS, the introduction of process patenting in our country has given the needed impetus for our pharmaceutical industry to be self-sufficient. TRIPS, while enshrining the rights of inventors, fails to protect TK, which is collective IP accumulated over generations. This imbalance in the system of IP rights granting monopoly rights to technology on one hand and denying it to the TK reserve of indigenous communities on the other has generated a global push to privatize BD. Because of the current scientific and commercial interest attached to TK, many developed nations and the large businesses they support increasingly want control over biological resources and the knowledge associated with them for commercial purposes. IP regime has greatly facilitated such moves. Booming global trade in herbal products, demand for exotic herbs and other natural materials, and associated rampant trade have thus made economy, a driving factor, tilting even governmental decisions (in developing nations holding TK) in favor of biotrade in the name of profitable overseas trade and research ventures.

TK about herbal drugs is realized to be an invaluable resource of newer leads for new drug development. The world over, there is a frantic quest for newer drugs from traditionally used plant drugs. Using the instrument of IP rights, large businesses are trying to appropriate TK on herbal drugs in the form of patents without the need to acknowledge and share the benefits with the communities holding such TK. While there are global concerns about securing TK to its rightful owners, its implementation is still far away, unless there is an international consensus, such as its inclusion in TRIPS for IP protection.

To protect its BD and TK, India has brought about legislative changes that are meant to be a check against biopiracy. With the right amendments to Indian Patent Act using in-built flexibilities of TRIPS agreement, the country appears well geared to be a successful pharma player in the global scenario post-TRIPS.

These amendments are also favorable to promote newer herbal drug formulations and development of standardization protocols amenable to herbal drug analysis. Indian TKDL is a digital database documenting TK in several languages, thus making it accessible to patent examiners the world over.

With these initiatives, it is hoped that India will assertively utilize its vast BD and wealth of TK on medicinal herbs to carve out a place for itself in the world herbal market.