2. WHY THE NAME BASMATI
BrandAssociation
Reputation
Marketshare
Superior features/characteristics
Confusing the customers into buying their
product (Passing Off)
3. 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.
4. Basmati Rice Patent Case
CASE NUMBER: 493
CASE PNEMONIC: 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
5. 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).
6. BASMATI RICE
Basmati means the “queen of fragrance or the
perfumed one”.
Origin: India and Pakistan.
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.
8. 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.
9. 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.
10. COMPANY’S WORDS
“We are absolutely confident in our
patent and viability and legality.
There is no basis for challenging the
patent”.
11. 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
Having characteristics similar or superior to those of good quality
basmati rice
The invention provides a method for breeding these novel lines
Starch index (SI) of a rice grain can predict the grain's cooking and
starch properties
12. 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
13. 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.
14. DISADVANTAGE OF PATENT TO INDIA
AND PAKISTAN
Economic loses.
Global trade losses.
Both countries lose their global
market share.
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. RESULT
RiceTec Inc. took back 15
claims out of 20
They also took back its
claim on the name
“Basmati”.