Lack of IP protection hampering foreign investment

ISLAMABAD: As the Intellectual Property Organization (IPO) Pakistan has been functioning without a chief and functioning policy board for over a year, Overseas Investors Chamber of Commerce and Industry (OICCI) has shown serious concerns over the violation of Intellectual Property Rights (IPRs) which according to the chamber is hampering foreign investment in the country.

OICCI, which is the collective body of over two hundred foreign investors, has conducted a survey through which it has revealed that the only government body of ensuring protection of IPRs is without head for over a year.

As per the results of OICCI IPR Survey 2022, the chamber has expressed concern that IPR enforcement is lukewarm, and is not top of the agenda of key stakeholders including the government authorities.

The chamber has recommended substantial increase in penalties for IPR (Intellectual Property Rights) violations to attract FDI in high value research-based products and services in Pakistan.

The Intellectual Property Organisation of Pakistan (IPO) the regulatory body for IPR is without a Chairman since May 2021, and there has not been any significant action taken to strengthen the IPR Tribunals, especially in Karachi. IPR violations have caused the government significant revenue loss besides endangering the life and well-being of the public exposed to counterfeit products including medicine.

Interestingly, the survey has not mentioned the absence (non-functioning) of the policy board of IPO, of which a member is also included from OICCI. The policy board, according to sources, has also been dysfunctional for over a year.

As per the survey the research based foreign pharmaceutical companies based in Pakistan are quite concerned that there is no linkage between Patent Law and Drug Regulatory Authority of Pakistan (DRAP) Product Registration, who continue to issue registrations to companies infringing patents, forcing the patent holders to approach court for protection of IPR at a heavy cost.

Lengthy processing timelines for granting IP rights, complicated procedure for registration and long drawn judicial procedure for the protection of IP rights are the key issues highlighted in the OICCI IPR Survey 2022. More than 50% of the respondents believe that Trademarks and Copyrights get registered in 1 – 3 years whereas 53% of the respondent (vs 46% in previous survey) reported that it takes more than 3 years to resolve an IPR dispute. While the majority of the members expressed that IPR tribunals are functional in major cities, excluding Karachi, yet 32% believe there is no improvement in the protection of IP rights and enforcement of IP laws. OICCI members, however, have appreciated the increasing focus of the Custom IPR Wing at Karachi Port for closely monitoring the import of counterfeit products.

However, an official at IPO claimed that the OICCI survey lacks much information about performance of the government body. The OICCI’ survey is usually based on the response of a few companies in Karachi. In fact, he claims, Pakistan has climbed 12 positions in the Global Innovation Index released by WIPO last month. “We are now ranked at 87 globally. We improved 7 positions last year as well. The report makes several positive references to Pakistan,” he added.

“Pakistan has also been removed from USTR priority watch list for consecutive 5th year, which reflects a constant improvement and strict enforcement in IPR compliance,” the official claimed.

It may be added here that the IPO Pakistan, is an important department under the Commerce Ministry and responsible for effective protection of Intellectual Property Rights (IPRs) consisting of copyrights, patents and trademarks.

Ghulam Abbas
Ghulam Abbas
The writer is a member of the staff at the Islamabad Bureau. He can be reached at [email protected]

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