Under Nepal’s current law, a seller can put “Gulmi” on a bag of coffee with no legal consequence, wherever the beans were grown. A draft bill published for public consultation would change that.
Peoples’ Review reported on June 28 that the Ministry of Industry, Commerce and Supplies has released the draft Industrial Property Act, 2082. It would replace the Patent, Design and Trademark Act of 1965, which the paper said has struggled to keep up with artificial intelligence, startups, digital technologies and globalization.
Place names get protection
The headline change is legal recognition of geographical indications. Ilam tea, Jumla apples, Marpha apples, Gulmi coffee and Bhaktapur Juju Dhau could be registered, which would stop producers outside those regions from using the names. The measure is expected to curb counterfeits and give genuine producers better returns.
Trade secrets and community knowledge
Trade secrets would be recognized for the first time. Current or former employees and business partners who leak confidential formulas, customer databases or business plans could face legal action.
The bill also covers traditional knowledge. Domestic and foreign firms would not be allowed to patent traditional medicinal practices, herbal knowledge or indigenous innovations without approval from the community concerned, and would have to share commercial benefits with the people who hold that knowledge. Integrated circuit layout designs and startups also get a place in the framework.
Bigger fines
Penalties rise sharply. Trademark infringement, misuse of geographical indications and unfair competition could draw fines of Rs 1 million to Rs 1.5 million, against a current maximum of Rs 100,000. Patent infringement and trade secret theft could cost Rs 500,000 to Rs 1 million. Violations involving industrial designs and circuit layouts could bring Rs 300,000 to Rs 500,000. Repeat offenders would pay double, compensate victims for actual losses and see counterfeit goods confiscated and destroyed.
Micro, small and startup enterprises would get a 50 percent discount on application fees.
Medicines and a new office
In a national emergency, a public health crisis, or a case of excessive pricing or artificial shortage, the government could authorize domestic production of patented medicines or technologies without the patent holder’s consent. Patent owners would still receive reasonable royalties or compensation.
Registrations now sit with a small unit under the Department of Industry. The draft would create an autonomous Industrial Property Office led by a joint secretary, plus an Industrial Property Promotion Council chaired by the industry minister. Initial examination of applications would have to finish within 35 days, with up to 90 days for applicants to supply missing documents. Notices of registration, renewal and opposition would be published electronically.
The draft also lines Nepal’s rules up with the World Trade Organization’s TRIPS Agreement and the Paris Convention.
