Note4Students
From UPSC perspective, the following things are important :
Prelims level: Patent Law, TRIPS
Mains level: Paper 3- Impact of IPR on right to access healthcare
Request for waiver
- Last year, India and South Africa requested WTO for a temporary suspension of rules under the 1995 Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).
- A waiver was sought to the extent that the protections offered by TRIPS impinged on the containment and treatment of COVID-19.
- The request for a waiver has, since, found support from more than 100 nations.
- But a small group of states — the U.S., the European Union, the U.K. and Canada among them — continues to block the move.
- These countries have already secured the majority of available vaccines.
- But for the rest of the world mass immunisation is a distant dream.
Grounds on which patent laws are justified
- Patent laws are usually justified on three distinct grounds:
- On the idea that people have something of a natural and moral right to claim control over their inventions.
- On the utilitarian premise that exclusive licenses promote invention and therefore benefit society as a whole.
- On the belief that individuals must be allowed to benefit from the fruits of their labour and merit.
- These justifications have long been a matter of contest, especially in the application of claims of monopoly over pharmaceutical drugs and technologies.
Patent laws in India
- In 1959, a committee chaired by Justice N. Rajagopala Ayyangar objected to monopolies on pharmaceutical drugs through colonial-era patent law.
- The committee found that foreign corporations used patents to suppress competition from Indian entities, and thus, medicines were priced at exorbitant rates.
- The committee suggested, and Parliament put this into law through the Patents Act, 1970, that monopolies over pharmaceutical drugs be altogether removed, with protections offered only over claims to processes.
- This change in rule allowed generic manufacturers in India to grow.
How TRIPS goes against the interest of developing countries
- WTO has into its constitution a binding set of rules governing intellectual property.
- Countries that fail to subscribe to the common laws prescribed by the WTO would be barred from entry into the global trading circuit.
- It was believed that a threat of sanctions, to be enforced through a dispute resolution mechanism, would dissuade states from reneging on their promises.
- With the advent in 1995 of the TRIPS agreement, this belief proved true.
- The faults in this new world order became apparent when drugs that reduced AIDS deaths in developed nations were placed out of reach for the rest of the world.
- It was only when Indian companies began to manufacture generic versions of these medicines as TRIPS hadn’t yet kicked in against India, that the prices came down.
Argument in support of the patent regime
- Two common arguments are made in response to objections against the prevailing patent regime.
- One, that unless corporations are rewarded for their inventions, they would be unable to recoup amounts invested by them in research and development.
- Two, without the right to monopolise production there will be no incentive to innovate.
Issues with the argument in support of patent regime
- Big pharma has never been forthright about the quantum of monies funnelled by it into research and development.
- Moderna vaccine in the U.S. emanated out of basic research conducted by the National Institutes of Health, a federal government agency, and other publicly funded universities and organisations.
- Similarly, public money accounted for more than 97% of the funding towards the development of the Oxford/AstraZeneca vaccine.
- Therefore, the claim that the removal of patents would somehow invade on a company’s ability to recoup costs is simply untrue.
- The second objection — the idea that patents are the only means available to promote innovation — has become something of a dogma.
- The economist Joseph Stiglitz is one of many who has proposed a prize fund for medical research in place of patents.
Consider the question “What are the issues with the patent regime under the TRIPS in the field of medicine?”
Conclusion
We cannot continue to persist with rules granting monopolies which place the right to access basic healthcare in a position of constant peril. In its present form, the TRIPS regime represents nothing but a new form of “feudal calculus”.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: RT-PCR Test
Mains level: Paper 2- Ct value in RT-PCR test
Recently, the Maharashtra government sought clarity from the Indian Council of Medical Research (ICMR) on the threshold Ct value to treat a person Covid-negative.
What is Ct value
- Short for cycle threshold, Ct is a value that emerges during RT-PCR tests.
- In an RT-PCR test, RNA is extracted from the swab collected from the patient.
- It is then converted into DNA, which is then amplified.
- Amplification refers to the process of creating multiple copies of the genetic material — in this case, DNA.
- Amplification takes place through a series of cycles — one copy becomes two, two becomes four, and so on.
- Put simply, the Ct value refers to the number of cycles after which the virus can be detected.
- The lower the Ct value, the higher the viral load — because the virus has been spotted after fewer cycles.
Why Ct value is important
- According to the ICMR, a patient is considered Covid-positive if the Ct value is below 35.
- If the benchmark were to be lowered to 24 — the value mentioned in Maharashtra’s letter — it would mean that Ct values in the range 25-34 would not be considered positive.
- A benchmark of 35, therefore, means that more patients would be considered positive than we would get if the benchmark were 24.
- The ICMR has said lowering Ct threshold parameter may lead to missing several infectious persons.
Does Ct score indicate the severity of disease
- A small study published in the Indian Journal of Medical Microbiology in January this year found that there was no correlation between Ct values and severity of disease or mortality in patients with Covid-19 disease.
- It found that the time since the onset of symptoms has a stronger relationship with Ct values as compared to the severity of the disease.
- The Ct value tells us about the viral load in the throat and not in the lungs.
- The Ct value does not correlate with severity – only with infectivity.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Women Judges in the SC
Mains level: Paper 2- Issue of women representation in the judiciary in Inda
The article highlights the issue of women representation and its implications for the role of the judiciary.
Improving representation of women
- Presently, the Supreme Court is left with only one woman judge, who is also going to retire next year, after which, the SC will be left without a woman judge.
- The collegium failed to take timely steps to elevate more women judges in the SC.
- In the 71 years of history of the SC, there have been only eight women judges — the first was Justice Fathima Beevi, who was elevated to the bench after a long gap of 39 years from the date of establishment of the SC.
- In the submissions filed by the AG on the issue states that improving the representation of women in the judiciary could go a long way towards attaining a more balanced and empathetic approach in cases involving sexual violence.
- The AG also brought up the fact that there has never been a woman Chief Justice of India (CJI).
Women representation in developed countries
- The situation is not any different in developed countries such as the US, UK, Ireland, France and China.
- According to the data collected by Smashboard, a New Delhi and Paris-based NGO, not only has no woman ever been appointed as the CJI, the representation of women across different courts and judicial bodies is also abysmally low.
Way forward
- In the last few meetings of the collegium, there has been some talk of promoting women to the apex court.
- In this regard, if Justice B V Nagaratha of the Karnataka High Court is elevated to the Supreme Court, she could become the first woman CJI in February 2027.
- But her elevation will lead to the supersession of 32 senior judges.
- Supersession itself is perceived as a threat to an independent judiciary
- Seniority combined with merit is the sacrosanct criteria for promotion in the judiciary.
- New CJI should secure the trust of members of his collegium to fill the backlog of 411 vacancies across high courts and six vacancies in the SC.
Consider the question “What are the various structural issues faced by the judiciary in India? Suggest the measures to deal with them.”
Conclusion
A greater number of women in the Supreme Court would eventually lead to a woman CJI. This would be a gratifying change, which may mark the beginning of a new era of judicial appointments.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: ARCs
Mains level: Paper 3- RBI report on ARCs
Key takeaways from the RBI report
- The RBI report states that notwithstanding the rise in the number of Asset Reconstruction Companys (ARCs), the growth in their assets under management (AUM) has been largely trendless except for a major spurt in FY14.
- The growth of the ARC industry has not been consistent over time and not always been synchronous with the trends in non-performing assets (NPAs) of banks and non-banking financial companies (NBFCs).
- During 2019-20, asset sales by banks to ARCs declined, which could probably be due to banks opting for other resolution channels such as IBC and SARFAESI.
- The acquisition cost of ARCs as a proportion to the book value of assets declined, suggesting lower realisable value of the assets.
Overview of ARCs in India
- The ARC industry began with the establishment of the Asset Reconstruction Company India Ltd (ARCIL) in 2003.
- Of the total AUM, about 62 per cent and 76 per cent was held by the top-three and top-five ARCs in March 2020, respectively.
- After remaining subdued in the initial years of their inception, a jump was seen in the number of ARCs in 2008, and then in 2016.
- Although the number of ARCs has risen over time, their business has remained highly concentrated.
Role of the government
- Indian ARCs have been private sector entities registered with the Reserve Bank.
- Public sector AMCs in other countries have often enjoyed easy access to government funding or government-backed.
- By contrast, capital constraints have often been highlighted as an area of concern for ARCs in India.
Scope for new ARC supported by the government
- The ARC proposed in the Budget will be set up by state-owned and private sector banks, and there will be no equity contribution from the Centre.
- The RBI report supported the government’s proposal for a new ARC, saying that “such an entity will strengthen the asset resolution mechanism further.”
- Introduction of a new asset reconstruction company for addressing the NPAs of public sector banks may also shape the operations of the existing ARCs, it added.
- The ARC, which will have an Asset Management Company (AMC) to manage and sell bad assets, will look to resolve stressed assets of Rs 2-2.5 lakh crore that remain unresolved in around 70 large accounts.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Disaster Management Act
Mains level: Paper 2- Powers of Election Commission
What prompted ECI to give clarification
- In its oral observations, the Madras High Court blamed the ECI for the second wave of COVID-19 in Tamil Nadu and Puducherry.
- The Madras High Court said the ECI was unable to ensure political parties followed the rules while campaigning for the Assembly elections.
What the ECI said
- The ECI said that the enforcement under the 2005 Act has to be ensured by the SDMA [State Disaster Management Authority] concerned and notified authorities under the Act.
- The Commission has always emphasised that the State authorities shall ensure COVID-19 compliance in the matter of public gatherings, etc. for campaign purposes.
- At no occasion, the Commission takes over the task of SDMA for enforcement of COVID-19 instructions.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Strait of Hormuz
Mains level: Paper 2- Iran-US nuclear deal
What happened
- An American warship fired warning shots when vessels of Iran’s paramilitary Revolutionary Guard came too close to a patrol in the Persian Gulf.
- Footage released on April 27 by the Navy showed a ship commanded by the Guard cut in front of the USCGC Monomoy.
- The incidents at sea almost always involve the Revolutionary Guard, which reports only to Supreme Leader Ayatollah Ali Khamenei.
Context of the nuclear deal
- Some analysts believe the incidents are meant in part to squeeze President Hassan Rouhani’s administration after the 2015 nuclear deal.
- The incident comes as Iran negotiates with world powers in Vienna over Tehran and Washington returning to the 2015 nuclear deal.
- It also follows a series of incidents across the Mideast attributed to a shadow war between Iran and Israel, which includes attacks on regional shipping and sabotage at Iran’s Natanz nuclear facility.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: SEBI
Mains level: Paper 3- Regulation of credit rating agencies
New framework for debt instrument
- The new framework requires that a rating will be considered provisional in cases where certain compliances that are crucial to the assignment of credit rating are yet to be complied with at the time of rating.
- Under the new framework, all provisional ratings (‘long term’ or ‘short term’) for debt instruments need to be prefixed as ‘provisional’ before the rating symbol.
- In no case shall a rating, including provisional rating, be assigned by a credit rating agency for an issuer or client evaluating strategic decisions such as funding mix for a project, acquisition, debt restructuring, scenario-analysis in loan refinancing,” SEBI said.
- On validity period, SEBI said provisional rating will be converted into a final rating within 90 days from the date of issuance of the instrument.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Bank governance
What the guidelines say
- The Reserve Bank of India recently issued certain instructions on the governance for banks.
- As per the instructions from the central bank, the post of Managing Director (MD) and Chief Economic Officer (CEO) MD or Whole Time Director (WTD) cannot be held by the same incumbent for more than 15 years.
- The individual will be eligible for re-appointment as MD&CEO or WTD in the same bank after a minimum gap of three years, subject to meeting other conditions.
- The upper age limit for MD & CEO and WTDs in private banks would continue to be 70 years.
- MD&CEO or WTD who is also a promoter/ major shareholder, cannot hold these posts for more than 12 years except in extraordinary circumstances.
- Banks are permitted to comply with these instructions latest by October 01, 2021.
Applicability
- These guidelines are applicable for banks, including private banks, Small Finance Banks (SFBs), Wholly Owned Subsidiaries of Foreign Banks.
- However, it added that this circular is not applicable to foreign banks operating as branches in India.
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