IPR Protection in Pakistan: Stoking the Debate

In the wake of the recent announcement by Glaxo Smith Kline (GSK) that it would slash prices of its patented drugs in 50 of the poorest countries, interest in Intellectual Property Rights (IPR) has again been stoked. Should MNCs, or for that matter local companies, be allowed to use IPR as a shield against sale of generic drugs which could cure millions of disease? When I was advising the UNDP on CSR issues in Pakistan, I had recommended--following Oxfam's position on the issue--that pharmaceuticals in Pakistan be goaded to adopt a tiered pricing structure, of the kind that GSK has now announced; initial discussions with the Pharma Bureau in Pakistan were very encouraging but this line of advocacy could not be pursued.

IPR are a thorny issue in developing countries, viewed often as a tool for either entrepreneurial asphyxiation, a source of unbridled profits, a reason for continuing disease and poverty or all of the above. The other side of the coin of course is that in the absence of IPR, there would be little incentive for companies to invest in R&D and thus for innovation and the pursuit of better solutions to perennial problems. The growing interest in Open Source and Creative Common licensing, has given the debate a new twist to deal with.

Given that IPR is now a key aspect of the multilateral trade regime under the TRIPS and TRIMS, Pakistan too has been paying due attention to promote IPR enforcement and compliance. But with a chequered past on IPR, to say that IPR enforcement in Pakistan is a challenge would be a gross understatement. My friend and classmate, Ameed Riaz, experienced this first hand when his enthusiasm for reviving the music industry in Pakistan when he took over EMI Pakistan, was ground to dust because of the well entrenched and thriving music piracy in the country (click here to read about it). A similar predicament was faced by another dear friend Akbar Yezdani, CEO of Fire Records--the music label of the Geo Network--although Fire Records has played it smarter and used Geo's corporate muscle to successfully deal with mass piracy of its releases. Akbar assures me however, that it's a huge battle he has to fight every day at work.

Small wonder then that the office of the United States Trade Representative (USTR) recently 'elevated' it to the 'priority watch list' as mentioned in their 2008 Special 301 Report--an annual review of the global state of IPR protection, although Pakistan has rather aggressively challenged this position and questioned the whole ranking system ab initio. Other stakeholders such as the International Federation of the Phonographic Industry (IFPI) have off and on been praising Pakistan's efforts, as the country strives to up the ante on this front, mobilizing the Intellectual Property Organisation of Pakistan, headed by a private sector professional and engaging with MNC's such as Microsoft, which recently conducted a special training program for officials of the Federal Investigation Agency, to help raise awareness of copyright infringement, different forms of copyright infringement, detection of counterfeit software, and investigation of software evidence leading to prosecution of the culprits.

That said, as with all developing countries, Pakistan will continue to be stretched on both sides of the divide, as it strives to walk the line on IPR.