Just
over a decade ago, the US brandished something called 'Special 301',
and had Indians scurrying for cover from American legislative hegemony.
The smarter ones, of course, decided to find out more about 'intellectual
property rights' (IPRs).
It's been a long time since then. Justice is
still justice, a universal issue. IPRs still matter, as do other
rights. And the long arm of international law is getting longer.
The difference is, Indians are ready to get up there and fight their
cases. Overseas.
On March 28, 1995, Suman K. Das and Hari Har
P. Cohly were granted a US Patent on the 'use of turmeric for wound
healing'. On October 28, 1996, India's own Centre for Scientific
and Industrial Research (CSIR) challenged the patent at the US Patent
and Trademark Office (USPTO), citing 32 references (even in Sanskrit)
to demonstrate that the applicant's claim was not anything new to
which somebody could lay exclusive claim. The patent was revoked.
Granted, it was a small victory. Fulminations
against 'biopiracy' and 'theft of India's biodiversity' still haven't
died down either, but the interesting thing is this. India's whiners
and US-phobes seem to be giving way to globally-aware lawyers and
case-makers.
It's a matter of adjusting to reality. As businesses
globalise and interests cross borders, international lawsuits involving
Indian companies are set to multiply. The question is: are they
equipped for this?
CHECK LIST
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» Check
the significance of the claim
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Undertake a detailed cost-benefit analysis
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File a claim at the appropriate time
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Carefully choose the arbitrator
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Check for the involvement of foreign laws
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Weigh the chances of a successful outcome
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Identify a team of effective Indian and foreign lawyers
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Calculate the costs involved in terms of legal fees and expenses
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Get the objective right. Consider the importance of obtaining
an interlocutory injunction.
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Apply to the court having jurisdiction over the subject matter
for interim preservatory measure, unless the contract/applicable
laws bar it.
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What They Need: Money
There's never enough of it. Especially to fight
a court case in dollars. ''As with any decision, litigation must
be preceded by serious cost-benefit analysis,'' says Amar Gupta,
a senior litigator with J. Sagar Associates. And the costs involved
could make anybody doing business in rupees balk. LML's 1998 arbitration
case against Piaggio, for instance, cost the Kanpur-based company
$7 million.
Remember, Indian-qualified lawyers can't practice
law in foreign jurisdictions without admission to the bar there.
International arbitration (which doesn't involve gavel-thumping
law courts) tends to be cheaper, but only because of speedy dispute
resolution. This is a dollar-drain too, since most foreign parties
(joint venture partners, for example) insist on arbitration in a
third country. And there too, even if Indian robes are welcome,
experience suggests that hiring foreign lawyers gives the case a
better hearing.
That's expensive. Fees of senior lawyers typically
hover around $450 per hour in the US or £435 in an arbitration
court in the UK. Add to this all the other costs, including travel
and the like. That's still not the end of it. If you file an application
to obtain expert opinion, you pay for it. If you file an application
for an adjournment, you pay for it. And if you lose, you pay for
the other party as well.
Of course, it works both ways. In 2000, Dr
Reddy's Laboratories (drl) won a case against Merck, and the court
had the latter reimburse its expert opinion expenses.
What They Don't Have: Time
Time is the other major problem that Indian
companies face. Unlike most managed processes, no deadline can be
set for a lawsuit. In the mid-1990s, a patent application was filed
claiming the anti-fungal properties of neem oil at the European
Patent Office (EPO). It was only after considerable effort by various
Indian interest groups over five years that the patent was rejected,
on the grounds that its use was already known in India.
It takes patience and time. Many managers think
of overseas cases as a waste of effort. Just eking out the time
to put a strategy together can be painful, and without a case strategy,
it's little point having a go at litigation.
According to Pallavi Shroff, Partner, Amarchand
Mangaldas, the biggest mistake a company can make is to treat the
case as a marginal issue till the very last hour. ''There are many
players on the scene,'' she explains, ''so you need to anticipate
all your options and be sure of what you want to achieve.'' The
world over, competitive practices extend to the deployment of legal
weapons as well. So, expect trouble even if you run an angelic business.
It's no good, for instance, waking up only after an anti-dumping
suit has been lodged against your business at the US Department
of Commerce.
In panic, unprepared Indian companies often
run straight to an overseas law firm, which leaves Indian law firms
grinding their teeth. ''Eighty per cent of the clerical work can
be done here in India,'' says Shroff. ''This actually speeds up
the process and is far more economical for the client.'' Harvansh
P. Chawla, Advocate, K.R. Chawla & Co, strengthens the case
for hiring Indian firms. ''Finding a set of lawyers who are honest
and loyal to the client is very difficult,'' he says. ''You need
to find the right combination of available time and relevant experience.''
What Could Work: Alliances
Thankfully, Indian law firms have begun coordinating
their efforts with overseas firms, to optimise cost and time for
Indian clients. The idea is to work together on an effective cross-border
strategy, exchanging information and sharing work.
Take a recent IPR-related case, for example.
Texas-based Rice Tec Inc had applied to the UK TradeMark Registry
for the use of 'Texmati' as its exclusive trademark for long-grain
aromatic rices. India's Agricultural and Processed Food Exports
Authority (APEDA) found the trademark violative of the collective
rights of 'Basmati', a name the global consumer associates with
rice from the Indian subcontinent, and hired Kumaran & Sagar
to fight its case. It won, thanks to ''a successful collaborative
effort between our firm, and the UK lawyers from Linklaters,'' says
Rajendra Kumar, partner, Kumaran & Sagar.
This is not to imply that getting justice overseas
is simply a matter of engaging the right lawyers. Unfortunately,
the credibility of Indian businesses remains low in the international
arena, and some foreign jurors probably club India with those benighted
parts of the world where any mention of the 'rule of law' evokes
laughter more than anything else.
Indeed, tales of discriminatory treatment account
for much of the lawphobia that still persists in India. But this
could change. The West is discovering that globalisation will work
only if it's seen to be an unbiased process, and Indians are beginning
to appreciate laws framed by people in distant lands.
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