A Project On:: Hidayatullah National Law University, Raipur (C.G.)
A Project On:: Hidayatullah National Law University, Raipur (C.G.)
ACKNOWLEDGEMENTS
I would like to take this opportunity to express my deep sense of gratitude towards my
course teacher, Mr. Sandeep Suman for giving me constant guidance and encouragement
throughout the course of the project.
I would also like to thank the University for providing me the Internet and library
facilities, which were indispensable for getting relevant content on the subject, as well as
subscriptions to online databases, and journals, which were instrumental in writing
relevant text.
Special thanks goes out to my seniors who have been relentless in their help and
supporting providing any material whenever required and my colleagues, who always
stood by me, irrespective of the decisions taken by me. Without their support this project
would not have seen the light of the day.
VIVEK GURNANI
B.A. LL.B. (HONS.)
HIDAYATULLAH NATIONAL LAW UNIVERSITY,
RAIPUR (CHHATTISGARH)
INTRODUCTION
Following the Agreement on Trade related aspects of Intellectual Property Rights
(TRIPS) in the World Trade Organization (WTO), most countries are committed to the
provision of certain minimum standards for the protection of intellectual property. Such
intellectual property rights (IPRs) raise crucial issues for the future development of
agriculture and are particularly important for a developing country like India. These
issues are being extensively debated in India and have contributed to the preparation of
legislation on IPRs with respect to plant variety protection, patents and geographical
indications. Basmati Case was an eye- opener for India, in the sense that it brought into
spotlight an instance of gross exploitation of developing county rights.Geographical
Indications are relatively new instruments which are gaining rapid popularity in the trade
and economic scenario, which recognize the heritage of a country in certain specialized
goods and seek to protect the same. GI indicates the special protection that particular
goods enjoy by the virtue of their geographical origin, which renders them special and
peculiar quality.
THE FACTS
Originally from India and Pakistan, Basmati became a controversial issue after
RiceTec, a Texas-based company, in 1997, patented some types of rice they
developed as American basmati.
RiceTecInc, had been trying to enter the international Basmati market with brands
like Kasmati and Texmati. Ultimately, the company claimed to have
developed a new strain of aromatic rice by interbreeding basmati with another
variety. They sought to call the allegedly- new variety as Texmati or American
Basmati.
RiceTecInc, was issued the Patent number 5663484 on Basmati rice lines and
grains on September 2, 1997.
Centre for Food Safety, an international NGO that campaign against biopiracy,
and the Research Foundation for Science, Technology and Ecology, an Indian
environmental NGO who filed legal petitions in the United States. The Centre for
THE ISSUES
Various issues have been raised following the controversy, the answers to which are
hoped to be answered through the emerging law of patents and geographical indications.
Some of the major issues are:
Whether the term basmati is a generic one to describe aromatic rice, or does it
refer specifically to the long aromatic rice grown in India and Pakistan?
Whether the strain developed by RiceTec is a novelty?
Whether RiceTec is guilty of biopiracy?
Whether US governments decision to grant a patent for the prized Basmati rice
violates the International Treaty on Trade Related Intellectual Property Rights
(TRIPS)?
Whether the basmati patent should be revoked in the light of protests from India?
G
Rice is an important aspect of life in the Southeast and other parts of Asia. For centuries,
it has been the cornerstone of their food and culture. During this period, farming
communities throughout the region developed, nurtured, and conserved over a hundred
thousand distinct varieties of rice to suit different tastes and needs.1 It is for this reason
that patenting of Basmati by RiceTec Inc. is perceived as not only intellectual property
and cultural theft, but it also directly threatens farm communities in Southeast Asia.
According to DrVandana Shiva, director of a Delhi-based research foundation which
monitors issues involving patents and biopiracy, the main aim for obtaining the patent by
RiceTec Inc. is to fool the consumers in believing there is no difference between spurious
Basmati and real Basmati. Moreover, she1claims the theft involved in the Basmati patent
is, therefore, threefold: a theft of collective intellectual and biodiversity heritage on
Indian farmers, a theft from Indian traders and exporters whose mark ets are being
stolen by RiceTec Inc., and finally a deception of consumers since RiceTec is using a
stolen name Basmati for rice which are derived from Indian rice but not grown in India,
and hence are not the same quality.2 In fact, Basmati rice has been one of the fastest
growing export items from India in recent years. In the year to March 1997, India
exported more than half a million tonnes of Basmati to the Gulf, Saudi Arabia, Europe
and the United States, a small part of its total rice exports, but high in value. More
substantively, Indian farmers export $250 million in Basmati every year and U.S. is a
target market. RiceTec Inc. had attempted to sell its long-grain rice in Europe under such
brand names as Texmati and Kasmati but not as Basmati. However, if the patent is not
revoked, RiceTec Inc., can now sell its rice under the brand name Basmati which will
definitely cut into Indias and Pakistans global market share, especially as the rice grown
in the US could be sold cheaper than the Indian and Pakistani varieties.3
CASE ANALYSIS
RiceTec has got a patent for three things: growing rice plants with certain characteristics
identical to Basmati, the grain produced by such plants, and the method of selecting
1 K.C. Kailasa, Law of Trade Marks & Geographical Indications (Wadhwa, Nagpur, 2003).
2 http://www.rediff.com/business/1998/mar/12rice.htm visited on 10.09.2007.
3 http://www.american.edu/TED/basmati.htm visited on 01.09.2007.
ricebased on a starch index (SI) test devised by RiceTec, Inc.4 The patent was
challenged on the fact that the plant varieties and grains already exist as a staple in India.5
75 percent of U.S. rice imports are from Thailand and that the remainder is from India
and Pakistan and both varieties are rice that cannot be grown in the United States. The
legal theory is that the patent is not novel and for an invention that is obvious, being
based on rice that is already being imported in the United States, therefore it should not
have been granted in the first place.
Indias attorneys also seek to challenge the use of the term basmati in conjunction with
the patent and in marketing of the rice.6Such use of the term creates confusion as to
geographic origin and usurps the goodwill and recognition established with basmati rice
grown and sold from India. As a result of the re-examination application filed by the
Indian government, RiceTec agreed to withdraw several of the claims. In January 29,
2002, the United States Patent and Trademark Office issued a Reexamination Certificate
canceling claims 1-7, 10, and 14-20 (the broad claims covering the rice plant) out of 24
claims and entered amendments to claims 12- 13 on the definition of chalkiness of the
rice grains7
Trademark law could also be a basis for challenging the use of basmati. RiceTec and to
prevent it from marketing basmati rice in a way that creates confusion with the Indian
product. But, in order to be successful on such a claim, the Indian government would
have to show likelihood of confusion among consumers.8RiceTec did not trademark the
term basmati and it has been careful in marketing its product so as not to use the term
basmati as an indication of source. For example, in the United Kingdom, RiceTec
markets the product as Texmati rice, since British law protects the use of the term basmati
to refer to rice coming from India and Pakistan. RiceTec also uses Texmati in its U.S.
4 Basmati Rice: US Firm Withdraws Patent Claim, The Hindustan Times (September 28, 2000) at http://
www.hindustantimes.com/nonfram/280900/fryNAT05.asp visited on 07.10.2007.
5 Dr. Vandana Shiva, Basmati Biopiracy: Ricetec Must Withdraw All Patent Claims For Basmati Seeds
And Plants, The Hindustan Times (November 20, 2000) at http://www.vshiva.net/Articles/Basmati
%20Biopiracy.htm visited on 07.10.2007
6 Ibid
7Re-examination Certificate C1 (4525th)(Jan. 29, 2002).
815 USC 1114(a)-(b) (specifying likelihood of confusion as an element of trademark infringement
claim).
sales, but does use the term basmati in its packaging. The Indian government could argue
that this use of the term basmati is what creates confusion among consumers. The term
basmati need not be federally
registeredasatrademarkforIndiatoraisetheclaim.9However,RiceTeccouldhaveacounter
argument that India cannot bring an infringement action because basmati could not be
protected as a trademark, it really being a descriptive mark; the word means fragrant and
hence describes a major attribute of the product.10Descriptive marks are protected only if
they have secondary meaning, that is, the term makes the ordinary consumer recognize
the source of the product as opposed to the product itself.11In this vein, RiceTec could
also argue thatthe term basmati has become a generic term for a particular category of
rice and hence cannot be protected.12 However, now it is much a settled position that
geographical indicators need not necessarily indicate the place of origin, it could signify
the product itself as long as it is known to possess certain qualities by the virtue of its
belonging to certain place.13
If India loses the fight against RiceTec, the issue remains of what India can strategically
do to protect its rights in basmati rice. U.S. trademark law does not offer a successful
avenue for India. The TRIPS agreement expressly protects indicators of geographic
origin and permits legal recourse through the WTO process to discontinue use of
misleading geographic indicators. The problem with relying on TRIPS is the basmati is
not a geographic indicator; the word literally, describes the scent of the rice, not its
geographic source. One tactic that the government has recently pursued is to enact its
own law granting protection to marks that indicate geographic origin. Basmati is arguably
protected under these recently enacted provisions. One argument that the Indian
government made in challenging RiceTecs patent is that basmati should be treated like
915 USC 1125(a) (allowing claims for confusing or deceptive marks even if the marks are not
registered).
10 15 USC 1052(e)(1) and 15 USC 1052(f) (statutory limits on registrability of descriptive marks
absent showing of secondary meaning),
11 5 USC 1052(f);
12ShubhaGhosh, Traditional Knowledge, Patent and New Mercantilism, 85 J. Pat. & Trademark Off.
Socy 885.
13JayashreeWatal, Intellectual Property Rights in Agriculture, Indian Council for Research on
Inernational Economic Relations.
context that the act was enacted.20 The act provides registration in two parts Part A is
related to the registration of GIs; Part B relates to the registration of authorized
users/proprietors such as names, addresses and descriptions are indicated.
The Indian judiciary has played a significant role, particularly in the absence of any
enforced legislation, in protecting GIs. They have entertained petitions in cases of
infringement of GIs that misleads the consumer as to the place of origin or constitutes
unfair competition. India has also taken legislative measures by enacting the
Geographical Indications of Goods (Registration and Protection) Act, 1999 along with the
Geographical Indications of Goods (Registration and Protection) Rules, 2002 which on
implementation would go a long way to protect GIs and provide a model for other
countries to follow.21
In Imperial Tobacco Co v. Registrar, Trademarks22the Calcutta High Court explained to
the following concept of geographic term namely:
Geographical terms and words in common use designate a locality, a country, or a
section of country which cannot be monopolized as trademark s; but a geographical
name not used in geographical sense to denote place of origin, but used in an arbitrary
or fanciful way to indicate origin or ownership regardless of location, may be sustained
as a valid trademark ......A geographical name according to its ordinary signification is
such mark inherently or otherwise incapable of registration subject to minor exceptions.
Section 2(e) of the [Indian] Geographical Indications of Goods (Registration and
Protection) Act, 1999 defines GIs in relation to goods to mean:
An indications which identifies such goods as agricultural goods, natural goods or
manufactured goods as originating, or manufactured in the territory of country, or a
region or locality in that territory, where a given quality, reputation or other
characteristic of such goods is essentially attributable to its geographical origin and in
20Statement of Objects and Reasons of the Geographical Indications (Registration and Protection) Bill.
21 Suresh C. Srivastava, Geographical Indications and Legal Framework in India, Economic and Political
Weekly, September 20, 2003
22 AIR 1977 Cal 413 at 422
case where such goods are manufactured goods one of the activities of either the
production or of processing or preparation of the goods concerned takes place in such
territory, region or locality, as the case may be.
REGISTRATION
Section 9 prohibits the registration of GIs (i) the use of which is likely to deceive or cause
confusion, or (ii) the use of which would be contrary to any law for the time being in
force, or (iii) which comprises or contains scandalous or obscene matter, or (iv) which
comprises or contains any matter likely to hurt the religious feeling of any class or
section of citizens of India, or (v) which would otherwise be disentitled to protection in a
court, or (vi) which are determined to be generic names or indications of goods and are,
therefore, not or ceased to be protected in the country of origin or which have fallen into
disuse in that country, or (vii) which although literally true as to the territory, region or
locality in which the goods originate, but falsely represent to the persons that the goods
originate in another territory, region or locality. The registration of a GIs shall be for a
period of 10 years or for a period till the date on which the registration of geographical
indication in respect of which the authorized users is registered expires whichever is
earlier. After the registrar accepts an application for registration the GIs will be
registered. Registration is a prima facie evidence of the validity of the GIs. No person
shall be entitled to institute any proceeding to prevent or recoverdamages for the
infringement of unregistered GIs. It also provides that nothing in this act shall be deemed
to affect the right of action against any person for passing off goods as the goods of
another person.23A registration of GIs shall, if valid, give to the registered proprietor and
all authorized user whose name has been entered in the register, the right to obtain relief
in respect of infringement of the GIs. However, authorized users alone shall have the
exclusive right to the use of the GIs in relation to the goods in respect of which the GIs
are registered. This right is subject to the conditions and limitations to which the
registration is subject. Two or more authorized users of a registered GIs shall have coequal rights.
PROTECTION
Among criminal remedies, the Geographical Indications of Goods (Registration and
Protection) Act, 1999 contains penal provision for violation of various provisions relating
to GIs given below
.
(iv) Improperly describing a place of business as connected with the GIs registry.
use the said expression Article 1(2) of the Convention used the expressions appellation
of origin and indications of source. The scope of the aforesaid expression has been
delineated in Lisbon and Madrid agreement. The former delineates the appellation of
origin to mean28:geographical name of a country, region, or locality, which serves to
designate a product originating therein, the quality and characteristics of which are due
exclusively or essentially to the geographic environment, including natural and human
factors
The country of origin is the country whose name, or the country in which is situated the
region or locality whose name, constitutes the appellation of origin which has given the
product its reputation29.The latter defines the expression indications of source to mean30:
Goods bearing a false or deceptive indications by which one of the countries to which
this agreement applies, or a place situated therein, directly or indirectly indicated as
being the country or place of origin.
However, the expression GIs under in the TRIPS Agreement has been defined as
"a good originating in the territory of a member, or a region or locality in that territory,
where a given quality, reputation, or other characteristic of the good is essentially
attributable to its geographical origin."
Geographical indications (GIs) as an instrument of intellectual property protection are
very much an invention of the TRIPS Agreement. TRIPS Article 22.1 defines
geographical indications more broadly as :indications which identify a good as
originating in the territory of a Member, or a region or locality in that territory, where a
given quality, reputation or other characteristic of the good is essentially attributable to
its geographical origin.
A careful reading clarifies the broadness of the notion31:
GIs are to be understood as a general concept that point to the geographical origin
of a product in a given country, region or locality: in other words, the notion now focuses
on indications which identify a good. Denominations that are not direct geographical
names (such as Basmati) are also feasible.
EMERGING CONCERNS
Domestic Legislation
In the wake of the problems with patents that India has experienced in recent years, the
importance of enacting laws for conserving biodiversity and controlling piracy as well as
intellectual protection legislation that conform to international laws has been realized.
There is a widespread belief that RiceTec Inc., took out a patent on Basmati only because
of weak, non-existent Indian laws and the governments philosophical attitude that
natural products should not be patented. According to some Indian Experts in the field of
genetic wealth, India needs to formulate a long-term strategy to protect its bio-resources
from future bio- piracy and or theft.33 India and Pakistan have agreed to tackle the crisis
jointly to have a strong case against RiceTec Inc. British traders are also supporting India
and Pakistan. According to Howard Jones, marketing controller of the UKs privately
owned distributor Tilda Ltd, True Basmati can only be grown in India or Pakistan. We
31 Agriculture Trade and Food Security: Issues and Options in the WTO Negotiations from the
Perspective of Developing Countries, FAO, 1999.
32 Suresh C. Srivastava, Geographical Indications and Legal Framework in India, Economic and Political
Weekly, September 20, 2003.
33 http://www.rediff.com/business/1998/mar/23rice.htm visited on 10.09.2007
will support them in any way if its necessary.34The Middle East is also showing support
by only labeling Indian or Pakistani rice as Basmati. Following the Basmati rice crisis,
India formulated legislation in the form of the Geographical Indications of Goods
(Registration and Protection) Act, 1999, however, the law in the regard is yet to solidify
and form a strong foundation. Also, training is required to equip emerging and new
lawyers in the legal fraternity with tools to combat these pressing issues.
Two-tiered Protection in TRIPS
Under the current provisions of the TRIPS Agreement, geographical indications for wines
and spirits are afforded near-absolute protection while geographical indications for all
other goods are only protected where the geographical indication fails the so-called
misleading test or constitutes an act of unfair competition35. Accordingly, under the
current TRIPS Agreement framework, use of the word Darjeeling to describe a type of
tea from India is entitled to a lower standard of protection than use of the word
Tennessee to describe whiskey from that U.S. state.36 The two-tiered system of
protecting geographical indications under the 1994 Agreement on Trade-Related Aspects
of Intellectual Property Rights has been the subject of increasingly heated debates within
the World Trade Organization over the past two years. Despite protests by the United
States and other WTO Members, a vociferous group of WTO Members at the November
2001 WTO Ministerial Conference in Doha, Qatar succeeded in improving the prospects
that the current system of geographicalindication protection will be revised.37 Proponents
of extended protection argue that the TRIPS Agreement should be amended so that all
goods receive the higher standard of protection currently accorded geographical
indications for wines and spirits.38
34 http://www.business-standard.com/98apr07/economy4.htm visited on 10.09.2007.
35TRIPS Agreement, Agreement on Trade-Related Aspects of Intellectual Property Rights, Apr. 15, 1994,
Art. 22; WTO Secretariat, Proposal from Bulgaria, Cuba, the Czech Republic, Egypt, Iceland, India,
Jamaica, Kenya, Liechtenstein, Mauritius, Nigeria, Pakistan, Slovenia, Sri Lanka, Switzerland, Turkey and
Venezuela, IP/C/W/247/Rev.1 at 1 (May 17, 2001)
36 WTO Secretariat, Communication from Argentina, Australia, Canada, Chile, Guatemala, New Zealand,
Paraguay and the United States, IP/C/W/289 at 4 (June 29, 2001)
37 World Trade Organization Ministerial Conference, Ministerial Declaration, WT/MIN(01)/DEC/1 (Nov.
20, 2001), http://www.wto.org
38 WTO Secretariat, Communication from Bulgaria, the Czech Republic, Egypt, Iceland, India, Kenya,
Liechtenstein, Pakistan, Slovenia, Sri Lanka, Switzerland and Turkey, IP/C/W/204/Rev. 1 at 2 (Oct. 2,
CONCLUSION
RiceTec has been forced to give up the title of its patent, it has been forced to give up 15
of its 20 claims, including those with the most far-reaching implications related to
biopiracy. Thesurviving claims now need to be challenged as part of the larger movement
against patents on life and patents on rice. The campaign against patent on rice is now
being launched by the Research Foundation against patents held by Monsanto and
Novartis, including patents on Golden Rice. Geographical Indications as a concept and
as a subject of legislation is relatively new in India and therefore it is required that the
arena is well-researched upon and academically as well as practically delved into so as to
ensure that we are better equipped to address such instanced of violation more promptly
in future.
Geographical Indications signify a core instrument in protecting the rights relating to the
culture and heritage of several manufacturers and producers of goods which have been
of traditional importance. Also in international trade scenario they are of vital
importance since they indicate specialization in natural resource and open new scope for
several countries, which might be otherwise lacking in technologically updated
resources. The layered structure of the TRIPS agreement in this aspect has become a
subject if major debate and needs to be addressed as soon as possible with opinion being
tak en equally from the developing and the developed world. Procedural and protective
provisions have to be highlighted such that the laws of the different countries are in
conformity with each other.
2000).
BIBLIOGRAPHY
Suresh C. Srivastava, Geographical Indications and Legal Framework in India,
Economic and Political Weekly
Agriculture Trade and Food Security: Issues and Options in the WTO
Negotiations from the Perspective of Developing Countries, FAO, 1999.
K.C. Kailasa, Law of Trade Marks & Geographical Indications (Wadhwa, Nagpur,
2003).