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Patent Issue

An American company, RiceTec Inc., was granted a patent by the US Patent Office in 1997 to use the term "Basmati" to market its aromatic rice grown outside of India. This poses issues for India, as Basmati rice originated and is exclusively grown in certain regions of India and Pakistan. With the patent rights, RiceTec can label its rice as Basmati in the US and export markets, taking away market share from India's $250 million Basmati rice industry. India is challenging the patent as Basmati rice is fundamental to India's culture and economy, and the US patent system allowed the patent to be granted without public challenge.

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Pranay Kinra
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30 views9 pages

Patent Issue

An American company, RiceTec Inc., was granted a patent by the US Patent Office in 1997 to use the term "Basmati" to market its aromatic rice grown outside of India. This poses issues for India, as Basmati rice originated and is exclusively grown in certain regions of India and Pakistan. With the patent rights, RiceTec can label its rice as Basmati in the US and export markets, taking away market share from India's $250 million Basmati rice industry. India is challenging the patent as Basmati rice is fundamental to India's culture and economy, and the US patent system allowed the patent to be granted without public challenge.

Uploaded by

Pranay Kinra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Patent issue

Basmati

Issue
In late 1997, an American company
RiceTec Inc, was granted a patent by
the US patent office to call the
aromatic rice grown outside India
'Basmati'.
RiceTec Inc, had been trying to enter
the international Basmati market
with brands like 'Kasmati' and
'Texmati' described as Basmati-type
rice with minimal success.

Issue
However, with the Basmati patent rights, RiceTec will now
be able to not only call its aromatic rice Basmati within
the US, but also label it Basmati for its exports.
This has grave repercussions for India and Pakistan
because not only will India lose out on the 45,000 tonne
US import market, which forms 10 percent of the total
Basmati exports, but also its position in crucial markets
like the European Union, the United Kingdom, Middle East
and West Asia.
In addition, the patent on Basmati is believed to be a
violation of the fundamental fact that the long grain
aromatic rice grown only in Punjab, Haryana, and Uttar
Pradesh is called Basmati.

Description
Basmati rice means the "queen of fragrance or
the perfumed one." This type of rice has been
grown in the foothills of the Himalayas for
thousands of years.
Its perfumy, nut-like flavor and aroma can be
attributed to the fact that the grain is aged to
decrease its moisture content.
Basmati, a long-grained rice with a fine texture
is the costliest rice in the world and has been
favored by emperors and praised by poets for
hundreds of years.

Description
. According to the Agricultural and
Processed Food Products Export
Development Authority (APEDA), India is the
second largest producer of rice after China,
and grows over a tenth of the world's
. In 1993, Basmati rice attracted the highest
premium because it is a very-long grained
rice, with an aroma of its own which
enhances the flavors its mixed with.

Basmati For Indian Market


For centuries, it has been the cornerstone of
our food and culture .
During this period, farming communities
throughout the region developed, nurtured,
and conserved over a hundred thousand
distinct varieties of rice to suit different tastes
and needs. It is for this reason that patenting
of Basmati by RiceTec Inc. is perceived as not
only intellectual property and cultural theft,
but it also directly threatens farm
communities in Southeast Asia.

Basmati For Indian Market


In fact, Basmati rice has been one of the fastest
growing export items from India in recent years. In the
year to March 1997, India exported more than half a
million tones of Basmati to the Gulf, Saudi Arabia,
Europe and the United States, a small part of its total
rice exports, but high in value. More substantively,
Indian farmers export $250 million in Basmati every
year and U.S. is a target market.
If the patent is not revoked, RiceTec Inc., can now sell
its rice under the brand name Basmati which will
definitely cut into India's global market share,
especially as the rice grown in the US could be sold
cheaper than the Indian varieties.

Legal Procedures of obtaining Patent


The law firm representing India in the dispute,
Sagar and Suri, criticized the procedures for
granting patents in the US claiming it is
diametrically opposite to the one followed in
India and Europe.
. According to them, India first examines a
patent application, then widely publishes it for
third parties to challenge, and only then grants
the patent. However, the US keeps the patent
application a closely guarded secret and grants
it without allowing other parties to challenge it.

Legal Procedures of obtaining Patent


After the patent has been granted,
third parties are then allowed to
petition against the patent as India is
currently doing in the Basmati case.
This criticism clearly illustrates the
shortfalls in the patent process in the
US that ultimately needs to be
revised to prevent future cases like
this from occurring.

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