Unwanted action

It is unfortunate that Industry and Commerce Ministry took a departmental action against the Director General of Department of Industry just because he attempted to stick to legal proceedings and refused to comply with the minister's order. It is a shameful act, which could leave a deeper impact on the business world. For, the case has emerged over issuance of trade mark not registered here to a Nepali company. The minister ordered the department to cancel it for Indian companies, while the chief of the department refused on legal grounds. If the DG is proved wrong, none of the companies that have registered trade marks and designs would feel secure that their intellectual property will be protected.

Intellectual property right is protected through complex legal terms. Like every other cases, its battle has to be backed by a solid investigation. Cases related to counterfeiting of the property require proper investigation, and cannot be decided through minister's direct order. In the case that surfaced here, Sun brand of pipe fittings and Rajanigandha brand of pan masala were registered by the Nepali companies, whereas the companies that originally produced it bothered not to register here. So, the department's ruling that Nepali product is authentic and should be protected goes with the law. Now once the case was brought to the notice that the Nepali companies had counterfeited the Indian brands, the process should have been to conduct thorough investigation and deal with those legally. However, all that spirit of legal protection was flouted in the case.

However, Post's support for the legality of the case is not to undermine the ethics businessmen and companies must follow. Given that Nepal and India are not signatory of Madrid Convention that ensure global protection of marks once registered there, it is the responsibility of Indian companies to register their trade marks here. And it was also equally desired that Nepali companies stick to business ethics. Copying the trade marks of popular Indian and overseas brands just because those are not registered here is against business ethics. It is also cheating the consumers. Hence, the government must beef up the inspection process while granting trade marks to the companies. Strong mechanism should be developed to ensure that companies do not get hold of trade marks and designs of other companies. There must be hearing cells at the Department of Industry to facilitate original trademark holders to fight for their rights. Also the decades old Trade Mark, Patent and Design Act must be amended. Above all, the government must allow cases related to intellectual property rights to be addressed through due legal and administrative course rather than through discretionary decisions.

Source: The Kathmandu Post, May 25, 2007