Nepal’s government is betting that a rewrite of intellectual property laws, untouched for nearly 60 years, can do more than protect patents. Officials see it as a lifeline for entire communities whose livelihoods depend on products tied to a specific place — Ilam tea, Marpha apples, Gulmi coffee, Bhaktapur Juju Dhau. The proposed Intellectual Property Bill, introduced to parliament this week, would for the first time give legal recognition to geographical indications.
That is a dry legal term for a powerful idea: a product’s name and reputation belong to the people who actually make it, in the place where it originates. Current law dates to 1965.
It predates the internet, startups, artificial intelligence and digital commerce. For generations, Nepali entrepreneurs and artisans operated under rules that offered little protection for new ideas. The bill tries to close that gap.
Officials at the Ministry of Industry, Commerce and Supplies have been working on the draft for years. They consulted with international bodies, including the World Intellectual Property Organization, to align Nepal’s framework with global standards.
The bill introduces protection for trade secrets, integrated circuit designs and traditional knowledge. It also sets up modern administrative systems for filing and enforcement. But the geographical indications section is what has drawn the most attention inside the ministry.
For families in the hills of Ilam, where tea has been grown for generations, or in the apple orchards of Marpha, the reform means their products can no longer be copied by outsiders without consequence. Anyone could market a product as “Ilam tea” with no legal penalty. That changes if the bill passes.
The enforcement side is still being worked out. The bill includes stronger penalties for infringement and creates a clearer process for registering rights.
But implementation will require training for customs officers, judges and local officials who have never dealt with such claims. Ministry sources say that is the next phase — capacity building, funded partly through technical assistance from international partners. Nepal’s current IP office is small.
It handles patents, trademarks and designs with a staff that has struggled to keep up with the volume of applications. The bill proposes restructuring that office, giving it more authority and resources.
Officials expect a surge in filings once the law takes effect, especially for geographical indications and traditional knowledge claims. The reform is not just for big companies. Startups, which barely existed in 1965, get explicit legal recognition for trade secrets and proprietary processes.
That matters in Kathmandu’s growing tech scene, where small firms build software and hardware without the patent protections available in other countries. There are skeptics. Some business groups worry that stronger IP enforcement could raise costs for small producers who rely on informal copying of designs or processes.
The government’s response has been to point to the long-term gains: branding, export value, market access. The bill still needs parliamentary approval.
That is not guaranteed. Nepal’s legislature has been slow to act on economic reform bills in the past. But officials involved in drafting say they have built broad support across parties.
The logic is hard to argue with: a country that wants to compete in a knowledge-based economy cannot do so with 1965 rules.
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