According to a statement from the Prime Minister’s office in India, “ it is after three years of a dispute that erupted over the seizure by EU authorities of Indian-made generics as they were being shipped through Europe that India and the European Commission have come to an interim deal that restricts the 27 member EU states from seizing medicines unless there is evidence that drugs will be diverted in the European Union.”

The previous seizures were made after EU authorities in various countries, starting with The Netherlands, maintained the generics violated intellectual property rights and were, therefore, counterfeit and the actions infuriated Indian generic drugmakers. Because exporters would be forced to find alternative routes to send shipments, which would increase costs and hurt competitiveness.

“India has reiterated the core principle of the Understanding that the mere fact that medicines are in transit through EU territory, and that there is a patent title applicable to such medicines in the EU territory, does not in itself constitute enough grounds for customs authorities in any Member State to suspect that the medicines at stake infringe patent rights,” according to India’s prime minister.

As part of the deal, the EU Commission has also agreed to propose a new regulation to replace the existing version that allowed seizures. However,India’s Prime Minister’s Office notes thatIndiareserves the right to continue with the case filed with the WTO if the new regulation is deemed unsatisfactory.