Congress President Sonia Gandhi has convened a meeting of the party's Legislative Affairs Committee in Parliament tomorrow. According to party sources, a clear stand is likely to emerge after the meeting. The Bill, however, was fully supported by the Congress when it was introduced in the Rajya Sabha on December 16. The chairman of the party's Media Department Raj Patil too said the Congress will not create any hurdle in passing the Bill in Parliament. However, the Congress has yet to take a formal stand on the issue.

A section of the party, described as `swadeshis', are opposed to granting exclusive marketing rights, as they feel it will affect the economy.

This section, led by Prithvi Raj Chavan, has conveyed its objections to Sonia Gandhi. The group has also objected to the reported meeting of former Finance MinisterManmohan Singh with Prime Minister Atal Behari Vajpayee and expressed resentment at this. Manmohan Singh has denied that he met the Prime Minister. Party spokesman Ajit Jogi also contradicted the report.

Manmohan Singh and Pranab Mukherjee, Chief Whip of the party in the Rajya Sabha, are known advocates of this Bill. According to them, the passage of the Bill will serve the country's long term interests. They have argued that as per the WTO agreement, trade restrictions can be imposed, in case India does not conform to the patent regime some years from now.

In case restrictions are imposed, it will severely hit exports, as more than 50 per cent export income comes from goods sent to the United States and the European community.

Similar differences surfaced in the Congress on the Insurance Regulatory Authority (IRA) Bill. However, the Bill has been sent to the Joint Select Committee of the Parliament.

The general argument against granting Exclusive Marketing Rights (EMRS) is that, an exclusivemarketing right is more than just an automatic five-year patent. It is a grant of monopoly over the domestic market to an importer, without any scrutiny.

The critics point out that most developing countries have chosen not to implement EMRS provisions. Pakistan and two other small countries are the only ones to date, that have introduced an EMRS regime.

The Patent Bill seeks to amend the Indian Patent Act, 1972, to make the Indian patent system at par with the advanced countries of the world. It provides for the grant of product patents among others in agro chemicals and pharmaceuticals, giving exclusive marketing rights and establishment of a mail box for receiving patent applications, in accordance with the TRIPS agreement of the World Trade Organisation. The Bill removes restrictions under Section 39 of the existing Patent Act on application of patents outside India. The amended law gives freedom to any Indian to patent his products anywhere.

The supporters of the Bill in the party and outside arguethat India as a member of WTO has to fall in line with the IPR regime agreement by 2005. According to them, the new patent regime will usher in an environment of innovation, faster transfer of technology, larger flow of foreign direct investment, particularly in the pharmaceutical sector, and boost domestic research and development.

There may be transitional difficulties, but India is bound to gain in the long term.