Catalyzing Innovation: Unveiling India’s Approved National Intellectual Property Rights Policy
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Catalyzing Innovation: Unveiling India’s Approved National Intellectual Property Rights Policy
Intellectual Property
Government approves National Intellectual Property Rights Policy: “Creative India; Innovative India” – The
Government of India has approved the National Intellectual Property Rights (“IPRs”) Policy which is stated will lay
the future roadmap for intellectual property in India. The Policy has the following objectives:
IPR awareness and promotion: Outreach and Promotion – To create public awareness about the economic,
social and cultural benefits of IPRs among all sections of society.
Creation of IPRs – To stimulate the generation of IPRs.
Strong and effective legal and legislative framework, consistent with national priorities and international
obligations and which balance the interests of rights owners with larger public interest.
Strengthening IP administration and management of IP rights and user oriented services.
To get value for IPRs by augmenting commercialization.
To facilitate effective and speedy adjudication and promote awareness and respect for IPRs by strengthening
enforcement and adjudication mechanisms for combating IPR infringements.
Strengthening and expanding human capital development, institutions and capacities for teaching, training,
research and skill building in IP.
The National IPR Policy recognizes that India has a well-established TRIPS-compliant legislative, administrative
and judicial framework to safeguard IPRs, which meets its international obligations while utilizing the flexibilities
provided in the international regime to address its developmental concerns. It reiterates India’s commitment to the
Doha Development Agenda and the TRIPS agreement.
Oil & Gas
Government to launch auction of 67 discovered small fields – The Indian government plans to launch the
auction of a total of 67 small oil and gas fields in 46 contract areas on May 25, 2016 (26 on land, 18 offshore in
shallow water and two in deep water). Interested parties have been invited to register for the launch. These are
discoveries surrendered by stated owned Oil and Natural Gas Corporation Ltd (“ONGC”), and Oil India Limited
(“OIL”) due to their size, prohibitive development costs, technological constraints and/or unviable price regimes.
These fields will be offered under the new revenue sharing model, under which the bidders will quote revenues to
be shares with the Government at the low and high end of price and production band. The auction will be a test of
the recent Hydrocarbon Exploration and Licensing Policy of the Government.
Directorate General of Hydrocarbons codifies Good International Petroleum Industry Practices (“GIPIP”) –
The Ministry of Petroleum and Natural Gas has approved the GIPIP 2016 for the reference and guidance of all
exploration and production operators in India. The Production Sharing Contract prescribes adoption of GIPIP in
carrying out petroleum operations efficiently, safely, prudently and in an environmentally sustainable manner.
However, until now, there was no codified set of GIPIP standards though safety regulations and standards have
been formulated by Oil Industry Safety Directorate. Issues related to codification of GIPIP have also been examined
by the Comptroller and Auditor General (“CAG”) during the audit of a block when the CAG stated that the GIPIP is
not a clear, unambiguous and self evident “gold standard”, but “reasonable judgment” exercised by operators. The
Rangarajan Committee in its report on the “Production Sharing Contract Mechanism in the Petroleum Industry” had
also recommended the codification of GIPIP. The approved GIPIP provides guidelines to be followed in the
following crucial areas: exploration, discovery, appraisal, declaration of commerciality, field development,
production, testing and analysis – reservoir and production, health, safety and environment (HSE)/abandonment
and procurement procedures.
Banking
Ownership in private sector banks – The Reserve Bank of India (“RBI”) has fixed ownership limits for all
shareholders in private sector banks in India based on categorization of the shareholders under two broad
categories viz. (i) natural persons (individuals) and (ii) legal persons (entities/institutions). Further, non-financial
and financial institutions, and among financial institutions, diversified and non-diversified financial institutions will
have separate limits for shareholding as under:
Higher shareholding, strategic investments by promoters/non-promoters through capital infusion by domestic or
foreign entities/institutions will be permitted on a case to case basis.
# In case any promoter / promoter group is eligible for higher shareholding as per the licensing guidelines, then the
same will apply and the limits prescribed for all shareholders in the long run in the matrix will not apply.
Shareholders permitted 10% or more in a bank will be subject to a minimum holding period of five year
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