Case Study on Basamati Rice Patent Battle

Intellectual Property Case Study on Basamati Rice Patent Battle Issue

1. Basmati Rice Patent Battle 31-01-2016

2. Intellectual Property Intellectual property (IP) is a legal concept which refers to creations of mind for which exclusive rights are recognized. Under intellectual property law, owners are granted certain exclusive rights to their tangible and intangible assets.

3. Basmati Rice Patent Case CASE NUMBER : 493 CASE MNEMONIC : Basmati CASE NAME : India-US Basmati Rice Dispute Patent number: US5663484 A Publication type: Grant Application number: US 08/272,353 Publication date: Sep 2, 1997 Filing date: Jul 8, 1994

4. Basmati Rice and Asia Rice is an important aspect of life in the Southeast and other parts of Asia. For centuries, it has been the cornerstone of their food and culture . Basmati has been grown in the foothills of the Himalayas for thousands of years. Basmati rice is being grown in subcontinent for centuries. Its flavour and aroma has been developed through selective breeding for thousands of years. It is common knowledge that what Champagne is to France, Basmati is to subcontinent (Pakistan and India).

5. Basmati Rice Basmati means the “queen of fragrance or the perfumed one”. Origin: Pakistan and India Indian varieties are Safidon, Haryana, Kasturi ( Baran , Rajasthan), Basmati 198, Basmati 217, Basmati 370 , Kasturi , Mahi Suganda . Pakistani varieties Basmati 370, Super Basmati, Pak ( Kernal ) Basmati, Basmati 386, Basmati 385 and Basmati 198.

6. Identification of Basmati Rice

7. The Case Issue In the late 1997, when an American company RiceTec Inc. was granted a patent by the US patent office to call the aromatic rice grown outside India "Basmati", India objected to it. India has been one of the major exporters of Basmati to several countries and such a grant by the US patent office was likely to affect its trade. Since Basmati rice is traditionally grown in India and Pakistan, it was opined that granting patent to RiceTec violated the Geographical Indications Act under the TRIPS agreement. A geographical indication (sometimes abbreviated to GI) is a name or sign used on certain products which corresponds to a specific geographical location or origin (e.g.. a town, region, or country). The use of a GI may act as a certification that the product possesses certain qualities, or enjoys a certain reputation, due to its geographical origin. RiceTec's usage of the name Basmati for rice which was derived from Indian rice but not grown in India, and hence not of the same quality as Basmati, would have lead to the violation of the concept of GI and would have been a deception to the consumers.

8. RiceTec Company Details Owned by Prince Hans-Adam of Liechtenstein. 120 company employees. Annual sales 10 million US Dollars. Rice developed by RiceTec are: Bas 867, RT 1117, RT 112.

9. Company’s Words “We are absolutely confident in our patent and viability and legality . There is no basis for challenging the patent”.

10. RiceTec Inc . Patent Claims RiceTec put 20 claims about their product from which few ones are: semi-dwarf in stature substantially photoperiod insensitive high yield H aving characteristics similar or superior to those of good quality basmati rice The invention provides a method for breeding these novel lines S tarch index (SI) of a rice grain can predict the grain's cooking and starch properties

11. Claiming that “Aroma” has been developed by RiceTech Inc. is misleading RiceTech Inc. claimed that it tool them 10 years to develop the Aroma in their rice line Branding a Basmati lookalike as Basmati They used inbreeding of ordinary american rice with sub continental Basmati rice and patented this hybrid as Basmati RiceTec Inc . Patent Claims ( Contd …)

12. Patent Advantage to RiceTech RiceTec able to not only call its aromatic rice Basmati within the US, but also label it Basmati for its exports . Captures the whole US trade market. Exclusive use of the term “basmati”. Monopoly on breeding 22 farmer-bred Pakistani basmati varieties with any other varieties in the Western Hemisphere. Proprietary rights on the seeds and grains from any crosses.

13. Disadvantage of Patent to India and Pakistan Economic loses. Global trade losses. Both countries lose their global market share.

14. Why the Name Basmati Brand Association Reputation Market share Superior features/characteristics Confusing the customers into buying their product (Passing Off)

15. Government of India Response to Patent Government of India under severe pressure from its exporters and farmers logged an appeal with USPTO. They submitted the evidence to USPTO.

16. India exports about 400,000 - 500,000 metric tons of Basmati annually. In 1996-97, India exported approximately 523,000 tonnes of Basmati to Europe.

17. Government of Pakistan Response No official response was given to the situation. It is speculated that because share of Indian Basmati is more in International Market, hence, the more severe response from them. So do you think Pakistani Government and Exporters need more education in IPRs?

18. Result RiceTec Inc. took back 15 claims out of 20 They also took back its claim on the name “Basmati”.

19. THANK YOU