The US has raised concerns at India’s high customs duties on IP-intensive products such as information and communications technology products, solar equipment, medical pharmaceuticals, and capital goods. In its Annual Special 301 Report, the US said that India’s Working Paper on Generative Al and Copyright, which proposes to give a mandatory blanket licence to AI developers for using all legally accessed copyright-protected works, has “raised deep concerns among stakeholders”.
“The paper has raised deep concerns among stakeholders, copyright holders and creators, as well as tech industry and Al developers, particularly regarding the recommendation for statutory licenses and mandatory extended collective management of rights,” the US Trade Representative (USTR) said, adding that
Washington will “closely follow developments in this area” including the planned publication of a second Working Paper.
The US again placed India on the ‘Priority Watch List’ along with China and Russia and four others, for lack of adequate intellectual property rights protection and enforcement. New Delhi has been figuring on the list for more than a decade.
On trade secret protection, the report stated that US and Indian companies had identified it as a growing concern and supported adoption of trade secret legislation that comprehensively addresses these concerns.
“One particular issue highlighted by stakeholders is the requirement for companies to disclose their source code for telecom equipment undergoing required certification and security testing at designated Indian facilities,” it said.
Among other concerns, the USTR highlighted the potential threat of patent revocations and the procedural and discretionary invocation of patentability criteria under the Indian Patents Act impact companies across different sectors, especially pharmaceuticals.
“Despite India’s justifications of limiting IP protections as a way to promote access to technologies, India maintains high customs duties directed to IP-intensive products
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