Date: 13 July 2011

Indian pharmaceutical exports total about USD 10 billion per annum, most of which are generic drugs. The government wants to raise these exports to USD 25 billion in the next three years and actions like the seizure of
consignments can be a major irritant.

Source: Economic Times

NEW DELHI: European Union members will not seize Indian medicines passing through Europe on allegations of intellectual property right ( IPR) violations, as per an understanding reached between India and EU. A formal `Letter of Understanding` will be exchanged between the two sides within the next two weeks, an official told PTI.
"EU has sent a final draft to us and we agree with the changes in their rules. It has accepted India`s stand and within two weeks, both the sides will exchange a `Letter of Understanding` regarding this," he said.

As per the understanding, none of the customs authorities in the 27-nation EU bloc will confiscate any drug despatch meant for third country destinations like Latin America or Africa. Some of the EU customs authorities, mainly the Netherlands and France, had confiscated several Indian off-patent generic drug consignments going to Brazil via European ports and airports over alleged infringement of EU intellectual property rights (IPR). India, together with Brazil, had filed a case against the EU in the World Trade Organisation protesting the action.
In the last couple of years, there have been about 17 such cases where consignments belonging to reputed Indian drug manufacturers were seized. India had argued that such seizures were against the multilateral Trade
Related Intellectual Property Rights ( TRIPS) agreement, as the medicines were off-patent both in India and the country where they were being exported.

Keywords: EU / India / Despatch