FOR IMMEDIATE RELEASE: June 18^th, 2012

Paulsen Leads Bipartisan Letter Pressing For Action on India’s Intellectual Property Violations

Urges Administration to Address an End to Trade Discrimination

Washington, D.C. – Rep. Erik Paulsen (R-MN), member of the House Ways and Means Committee, continued his efforts to level the playing field for U.S. workers and businesses competing abroad and to help foster U.S. job creation by leading a bipartisan letter to President Obama pushing for action on India’s intellectual property violations. Over the past year, the Government of India has taken a number of actions to favor Indian-based companies over U.S. exporters. Rep. Paulsen was joined by Rep. John Larson (D-CT) and 170 other members in sending the letter to the Administration in advance of Secretary of State John Kerry’s scheduled trip to India next week.   

“Indian policies are harming an array of U.S. and Minnesotan industries including high-tech, agriculture, and biopharmaceuticals,” said Rep. Paulsen. “The Government of India is needlessly invalidating U.S. patents, putting  up burdensome barriers to U.S.-made products, and creating forced localization requirements for IP-intensive manufacturing – jeopardizing jobs and innovation here at home. The Administration should make this issue a top priority at the upcoming U.S.-India Strategic Dialogue to address the deteriorating trade and investment climate in India which is jeopardizing U.S. jobs and innovation.”                 

Full text of the letter below: 

Dear Mr. President:

We are deeply concerned about the growing trade imbalance between the United States and India, which we believe is due in no small part to policies by the Government of India to favor domestic producers over U.S. exporters.  The House Ways and Means Subcommittee on Trade recently held a hearing to explore these issues, out of which came several troubling developments we wish to call to your attention.

Over the last year, Indian policymakers and courts have taken a series of actions designed to block imports by forcing local production of a wide range of manufactured goods. For example, the Indian Government recently demanded that as much as 100 percent of its market for certain information technology and clean energy equipment must be satisfied by firms based domestically.

In particular, the intellectual property (IP) climate has become increasingly challenging in India.  U.S. companies have suffered from a whole host of IP issues in areas including information technology, renewable energy, and biopharmaceuticals.  For example, last year several biopharmaceutical companies inappropriately had their patents revoked or their appeals denied by the Indian courts to market a variety of life-saving drugs in India.  Additionally, the Indian Government issued its first compulsory license (CL) on a stage three liver and kidney cancer drug.  It has been reported that additional drugs may be subject to CLs imminently and that the decisions related to these CLs are being improperly driven by an interest in growing the pharmaceutical market in India. These actions by the Indian Government greatly concern us because innovation and the protection of intellectual property are significant driving engines of the U.S. economy.     

Nearly 40 million workers – 30 percent of the American workforce – are employed directly or indirectly in intellectual property intensive industries.  These industries will dictate U.S. success or failure in the global marketplace, and are increasingly important for the Indian economy as well.  On a bipartisan basis, we understand that the U. S. must demonstrate strong leadership in protecting IP rights and ensure that our trading partners pursue high standards of IP protection.  The chilling effect on global R&D investment, both in the US and in India, as a result of India’s IP policies could have a significant negative impact on jobs and investment in the United States.  

Moreover, India is a thought leader among emerging countries, and others have already begun emulating India’s IP policies. The U.S. Government must send a strong signal to the Indian Government that these actions are inconsistent with India’s international obligations, set a bad precedent, and undermine the culture of innovation that Indian Prime Minister Manmohan Singh himself has been promoting.   

India is a highly-valued strategic partner and we support strong, continued growth in the trade and investment relationship.  In an effort to continue this positive trajectory, the Indian Government should consider constructive ways to address the deteriorating trade and investment climate in India.  Therefore, we urge you to make sure these issues are raised at the highest levels of the Indian government and that they are a top priority at the upcoming U.S.-India Strategic Dialogue and other bilateral and multilateral meetings.  

We appreciate your continued attention to this important matter.  

Read entire letter and view all 170 co-signers here. 

Paulsen, a champion of small business and advocate of free enterprise, entrepreneurship, and innovation, serves on the House Ways and Means Committee, the bicameral Joint Economic Committee, and is co-chair of the Congressional Medical Technology Caucus.

For more information on Rep. Paulsen’s work in Congress visit www.paulsen.house.gov.

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