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.