Product patents will not drive the Indian pharmaceutical companies out of business. No drug molecule patented before January 1995 could be patented in India. Most drugs marketed in India were "off patent" and the Patent Cooperation Treaty (PCT) indicted a strong global Intellectual Property strength in the pharmaceutical sector, according to Ms. Kiran Mazumdar Shaw, chairman and managing director, Biocon India Group.

In a key note address at the meet on the 'Amendments to the Patent Act 1970," sponsored by the Confederation of Indian Industry, Shaw said that 'reality' was different from 'perception' and argued in favour of product patents.

As a signatory to the World Trade Organisation (WTO) agreement, India is to extend to its product patent protection to food, drugs, pharmaceuticals and chemicals and in all fields of technology by January 1, 2005. This will be in line with the agreements on the Trade Related Intellectual Property Rights (TRIPS) under the WTO.

Being WTO and TRIPS compliant would also bring in more dollar earnings from which Indian companies would benefit. It was also not rue that product patenting would create monopolies. Prices of 15 odd new drugs released each year, many of them similar to the existing ones, would be determined by the market. Research and development costs involved in developing a new drug would have to be compensated by limited monopolies from which Indian companies can generate earnings, she said.