GS Analyst: Daily Current Affairs

India's patent system has faced criticism for arbitrary refusals, procedural inconsistencies, and allegations of corruption. Recent legal challenges and complaints highlight the need for reform in the administration of intellectual property (IP) rights.

Key Findings:

• Instances of arbitrary rejection of patent applications have raised concerns about the functioning of India's patent office.
• Allegations of corruption, including a case involving a Deputy Controller demanding a bribe, have further tarnished the office's reputation.
• Despite government efforts to address shortcomings, such as manpower shortages and procedural inefficiencies, challenges persist, leading to a high rate of withdrawn patent applications.
• The Delhi High Court's intervention in cases and the filing of complaints with oversight bodies like the Central Vigilance Commission (CVC) underscore the seriousness of the issues.

Challenges in the system

• Shortage of manpower in the patent office has contributed to delays and inconsistencies in processing patent applications.
• Allegations of corruption and mismanagement have eroded trust in the patent granting process.
• Engagement of contractual manpower and delegation of duties to external agencies have raised questions about the legality and effectiveness of administrative practices.

Implications:

• Delayed or arbitrary patent approvals hinder innovation and economic growth by discouraging investment in research and development.
• Allegations of corruption damage India's reputation as a destination for intellectual property protection and foreign investment.
• Reform efforts, including increased transparency, stricter oversight, and streamlined processes, are necessary to restore confidence in the patent system and promote innovation.

The Supreme Court has dismissed appeals against a tribunal order, reinforcing the National Financial Reporting Authority's (NFRA) jurisdiction, even for audits predating its creation in 2018. This development has significant implications for the oversight of corporate and financial sectors in India.

What is the issue?

• The National Financial Reporting Authority (NFRA) was established on October 1, 2018, according to a Ministry of Corporate Affairs (MCA)
• The rules governing NFRA were notified on November 13, 2018. However, the audits (in question) examined by NFRA were conducted for the financial year 2017-18, and the audit reports were issued before NFRA's establishment.
• This led to the argument that NFRA lacked jurisdiction to retrospectively review these audits.

Key Points:

• Legal Doctrine: The "doctrine of merger" establishes that when a higher court issues a decision on a case, the lower court's ruling becomes absorbed into it. This principle maintains legal hierarchy and prevents conflicting judgments.
• NFRA's Jurisdiction: The NFRA's retrospective jurisdiction was affirmed by the National Company Law Appellate Tribunal (NCLAT) in December 2023. The tribunal upheld the NFRA's authority over alleged audit lapses, even for audits conducted before its establishment.
• The Supreme Court's refusal to intervene in the NCLAT's decision solidifies NFRA's authority, including its retrospective jurisdiction.

Implications:

• The clarity on NFRA's retrospective powers ensures continuity in oversight of statutory audits, avoiding regulatory gaps.
• The Supreme Court's endorsement of the NCLAT's decision establishes NFRA's authority in setting financial reporting standards and norms.

Europe, through the Council of Europe (COE), has taken a significant step in AI governance by adopting the Framework Convention on Artificial Intelligence and Human Rights, Democracy, and the Rule of Law, known as the 'AI convention.' This convention addresses the complexities of governing AI and its implications on human rights and democracy.

Understanding the Convention

• Scope of the Convention: The convention aims to ensure that AI activities align with human rights, democracy, and the rule of law. It covers AI systems' lifecycle activities conducted by public authorities or private actors acting on their behalf. Private sector activities are also addressed to a certain extent, balancing flexibility with obligations.
• Addressing National Security Concerns The convention addresses national security concerns through exemptions in articles 3.2, 3.3, and 3.4, which include protection of national security interests, research, development, testing, and national defense. While these exemptions are broad, they don't entirely exclude the convention's applicability in such areas.
• General Obligations and Protection The convention emphasizes the protection of human rights, democratic processes, and the rule of law. It expects parties to take measures against issues like disinformation and deep fakes, ensuring effective remedies and procedural safeguards.

Need for the AI Convention

• The convention does not introduce new human rights specific to AI but emphasizes the protection of existing rights.
• It seeks to strike a balance between AI innovation and safeguarding human rights, addressing the pressing need for comprehensive AI governance.

In a significant move, ISRO's commercial arm, New Space India Limited (NSIL), has invited private firms to build India's heaviest rocket, LVM3. This step aims to boost private sector participation in India's space program, aligning with the growing demand for satellite launches worldwide.

ISRO's Collaboration Plan:

• The selected private entity will collaborate with ISRO for 14 years.
• The initial two years focus on technology transfer, followed by 12 years for manufacturing 4 to 6 LVM3 rockets annually.
• Beyond LVM3, private players are also invited to manufacture the Small Satellite Launch Vehicle (SSLV) and PSLV, ISRO's mainstay.

Benefits and Opportunities:

• Commercialization has the potential to expand India's presence in the global space market.
• It will enable ISRO to concentrate on developing the Next Generation Launch Vehicle (NGLV) for ambitious projects like setting up a space station and lunar missions.
• The timings of this decision are strategic, as other major players face constraints or are in testing phases, creating an opportunity for India to secure a place in the market.
• India's move to involve private firms in rocket manufacturing reflects a strategic approach to harness the potential of the space economy.

Hong Kong and Singapore recently recalled certain spice mix products of Indian brands over the presence of a higher than prescribed level of the sterilising agent Ethylene Oxide (ETO). Though, steps are initiated several measures to ensure that Indian spices comply with food safety standards, the Indian spice market has got impacted.

India’s Spice Market

• In 2023-2024, India exported spices worth USD 4.4 billion (nearly 14 lakh tonnes), which is 12.3% higher than the FY 2022-2023.
• Largest exported products (spice) in FY 2022-23: Chilli, spice oils and oleoresins, curry powder and paste, cumin, mint products, cardamom and pepper
• Production: Garlic, ginger and chilli were the top three spices produced in FY23.
• Important markets for Indian spices: China, Bangladesh, west Asian countries and the U.S.

India faced a trade deficit with nine out of its top ten trading partners in the fiscal year 2023-24, according to official data. While the deficit widened with some countries, it narrowed with others, influencing India's overall trade balance.

Key Points:

• Deficit Trends: India's trade deficit increased with China, Russia, Korea, and Hong Kong in 2023-24 compared to the previous fiscal year.
  • However, the deficit narrowed with the UAE, Saudi Arabia, Russia, Indonesia, and Iraq during the same period.
• Trade Partners: China emerged as India's largest trading partner with $118.4 billion in two-way commerce, surpassing the US. Bilateral trade with the US stood at $118.28 billion in 2023-24.
• Free Trade Agreements: India has free trade agreements with Singapore, the UAE, Korea, and Indonesia, contributing to its trade dynamics.
• Surplus and Deficit: India maintained a trade surplus of $36.74 billion with the US in 2023-24, along with surpluses with the UK, Belgium, Italy, France, and Bangladesh.
• However, the overall trade deficit for India decreased to $238.3 billion compared to the previous fiscal.
• Negative impacts of trade deficit: Currency depreciation, increased borrowing from foreign lenders, and decreased foreign investment.

Indian-American astronomer Shrinivas Kulkarni won the Shaw Prize for Astronomy in 2024. He was awarded for his research on the physics of astronomical transients.

What is a Transient in Astronomy?

• Astronomical transients are celestial objects whose brightness changes quickly.
• They're interesting because they're usually linked to violent events in space.
• Examples of Astronomical Transients:
  • Supernovae: These occur when big stars explode, becoming incredibly bright.
  • Active Galactic Nuclei (AGN): Massive galaxies' centers host supermassive black holes that sometimes consume nearby matter. These interactions make the matter glow with changing brightness.
  • Fast Radio Bursts (FRBs): Discovered in 2007, these are mysterious bursts of radio waves that release huge amounts of energy in milliseconds. Despite being hard to detect, hundreds have been found.

The World Intellectual Property Organization (WIPO) adopted a groundbreaking treaty on Intellectual Property, Genetic Resources, and Associated Traditional Knowledge. This marks the 27th treaty under WIPO and the first in a decade.

Background:

• Negotiations began in 2021, originating from a proposal by Colombia in 1999.
• The diplomatic conference in Geneva finalized the treaty, showcasing a historic moment.

Key Provisions:

• This is the first WIPO Treaty to address the interface between intellectual property, genetic resources and traditional knowledgeand the first WIPO Treaty to include provisions specifically for Indigenous Peoples as well as local communities.
• Once it enters into force, the treaty will establish in international law a new disclosure requirement for patent applicants whose inventions are based on genetic resources and/or associated traditional knowledge.
• It addresses concerns about patents derived from traditional knowledge, a prevalent issue.
• Broadly, where a claimed invention in a patent application is based on genetic resources, each contracting party shall require applicants to disclose the country of origin or source of the genetic resources.
• Where the claimed invention in a patent application is based on traditional knowledge associated with genetic resources, each contracting party shall require applicants to disclose the Indigenous Peoples or local community, as applicable, who provided the traditional knowledge.
• Significance for India:
  • India, with its vast biodiversity and traditional knowledge, finds the treaty crucial. India holds 7-8 per cent of global biodiversity and a rich repertoire of knowledge based on these genetic resources. 
  • The treaty underscores collective efforts to address pertinent issues, despite some unresolved nuances.
• Challenges: Despite progress, the treaty doesn't fully tackle biopiracy concerns. Non-disclosure of traditional knowledge sources in patents remains unaddressed.

The spectre of nuclear conflict is resurfacing due to heightened rhetoric and tensions among global powers, particularly with recent developments involving France, Russia, and China. The rhetoric of world leaders, the changing dynamics of nuclear power, and the implications of these developments on international relations are key areas of focus.

Rising Nuclear Tensions and Rhetoric

• Introduction to the Issue: The increasing nuclear threats from nations like Russia and the subsequent responses from global leaders, such as France’s President Emmanuel Macron, highlight the growing concerns of a potential nuclear conflict. This rhetoric is reminiscent of Cold War-era tensions, raising alarms about the future of global security.
• Statements by Leaders: French President Macron's warnings about nuclear annihilation and the enhanced French nuclear deterrent underscore the gravity of the situation. Macron's perspective is influenced by the ongoing Ukraine conflict and Russian President Vladimir Putin’s nuclear threats, which he believes should not be dismissed lightly.
• Russia's Position: Putin's remarks during the Victory Day Parade about Russia's nuclear forces being always on alert and the country's readiness to prevent but also respond to any threats further escalate the nuclear discourse. Additionally, Russia’s revocation of the Comprehensive Test Ban Treaty (CTBT) ratification exacerbates global concerns.

Global Security Concerns and Policy Implications

• Historical Context: The current scenario is reminiscent of the Cuban Missile Crisis of 1962, indicating a significant regression in global nuclear diplomacy. The absence of influential global leaders and the economic turmoil in many parts of the world contribute to the escalating nuclear threat.
• Impact on Global Nuclear Regimes: Russia’s revocation of the CTBT and the international community's hostile reaction highlight the fragility of the global nuclear arms regime. This move undermines decades of progress towards nuclear disarmament and non-proliferation, shaking the foundations of international trust.
• China's Advancements: China's continued enhancement of its nuclear capabilities, including the development of new aircraft carriers and advanced military technologies, adds another layer of complexity to the global nuclear landscape. This escalation by another major power underscores the need for renewed international dialogue and cooperation.

India-U.S. Nuclear Deal: A Model for Diplomatic Engagement

• Historical Significance: The U.S.-India nuclear deal (2005-08) serves as a case study in successful diplomatic negotiations, transforming bilateral relations and enhancing nuclear cooperation. The deal overcame significant hurdles, including India’s non-signatory status to the Nuclear Non-Proliferation Treaty (NPT) and the Comprehensive Test Ban Treaty (CTBT).
• Key Provisions and Outcomes: The deal required India to separate its civilian and military nuclear programs, accept permanent safeguards, and adhere to export control regulations. In return, the U.S. amended its domestic laws, facilitated India's access to the Nuclear Suppliers Group (NSG), and helped negotiate an India-specific Safeguards Agreement with the IAEA.
• Broader Implications: The successful negotiation of the deal highlights the importance of overcoming psychological and ideological divides in international relations. It demonstrates that with mutual concessions and trust, countries can achieve significant progress in nuclear cooperation and broader diplomatic ties, setting a precedent for resolving current nuclear tensions.

UPSC Mains Questions:

Q. Evaluate the significance of the U.S.-India nuclear deal in transforming bilateral relations. What lessons can be drawn from this agreement to address current global nuclear challenges?

The Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM-JANMAN) was launched to improve the socio-economic conditions of Particularly Vulnerable Tribal Groups (PVTGs). However, challenges in implementation, especially in the registration process via a mobile app, hinder the scheme’s effectiveness and accessibility.

Challenges in Registration and Implementation

• Mobile App Usage: The 'Awaas+' app is intended to register PVTG households for the housing scheme. It records geographical location, household profiles, and bank details. However, widespread deletion of MGNREGA jobcards and discrepancies between village lists in the app and MGNREGA Management Information System create confusion and ineligibility issues.
• Data Mismatch: The registration process is plagued by data mismatches between entered details and Aadhaar records, leading to wrongful deletions and registration failures. These mismatches are critical as they determine eligibility for the housing benefits under PM-JANMAN.
• Network Issues and Complexity: The app's geo-tagging function faces network issues, causing chaos during registration. The complex dropdown lists for selecting banks add to the registration difficulties, making the process cumbersome for both beneficiaries and officials.

Inclusivity and Accessibility Challenges

• Lack of PVTG-specific Data: The app does not explicitly capture PVTG-specific information, defaulting to 'ST' in the social category field. This oversight results in non-PVTG registrations, prompting local officials to demand additional certification from sarpanches/mukhiyas, which can be problematic in mixed communities.
• Banking Options: Despite the establishment of the India Post Payments Bank (IPPB) to enhance financial inclusion, it is not listed in the app’s banking options. This omission complicates the financial transactions for PVTG households in remote areas.
• Community Engagement: Involving gram sabhas and reinstating deleted jobcards could improve scheme effectiveness. However, the current lack of proactive community engagement initiatives hampers the program’s reach and impact.

Ensuring Effectiveness and Support

• Streamlining Registration: Simplifying the registration process, updating the app to include the IPPB, and addressing technical issues can facilitate better participation of PVTGs. Accurate data collection and alignment with existing records are crucial for the success of the scheme.
• Proactive Measures: Reinstating deleted jobcards, ensuring proper guidance for registrations without Aadhaar, and providing clear instructions within the app can mitigate many challenges faced by PVTGs.
• Enhancing Inclusivity: Recognizing the unique needs of PVTGs and tailoring the app and support mechanisms accordingly can foster a more inclusive and equitable implementation of the housing scheme.

UPSC Mains Questions:

Q. Discuss the challenges faced by Particularly Vulnerable Tribal Groups (PVTGs) in accessing welfare schemes. How can technology be leveraged to overcome these challenges?

 The International Criminal Court (ICC) Prosecutor, Karim Khan, has requested arrest warrants for five individuals involved in the Gaza conflict, including Israeli Prime Minister Benjamin Netanyahu and Hamas leaders. This significant move raises questions about the legal basis, implications, and jurisdiction of the ICC in such matters.

Legal Basis and Jurisdiction

• Rome Statute Foundation: The ICC, established by the Rome Statute, addresses grave international crimes like genocide, war crimes, and crimes against humanity. It focuses on individual criminal responsibility, not state or group culpability.
• Allegations Against Hamas and Israel: The Prosecutor alleges war crimes and crimes against humanity by Hamas, including murder, rape, and torture. Israeli officials are accused of crimes such as persecution and extermination since October 8, 2023.
• Jurisdictional Precedents: Although Israel is not a party to the Rome Statute, the ICC can exercise jurisdiction if crimes occur in the territory of a state party, like Palestine. Similar precedents include ICC actions in Bangladesh/Myanmar and the arrest warrant against Vladimir Putin.

Implications of Arrest Warrants

• Obligation to Cooperate: States party to the Rome Statute are obligated to cooperate with the ICC, including arresting individuals with ICC warrants. Past instances, such as the non-arrest of Omar al-Bashir in South Africa, highlight challenges in enforcement but underscore the legal obligations of member states.
• International Legal Dynamics: The ICC's move against prominent figures in the Gaza conflict tests international law's efficacy. This action emphasizes accountability and the rule of law, asserting that individuals cannot commit international crimes with impunity.

Broader Impact and Significance

• Rule of Law: The ICC's actions reinforce the importance of international legal standards and the pursuit of justice for grave crimes. This step signals that accountability is crucial and that the international community is watching.
• Parallel Proceedings: Separate proceedings at the International Court of Justice (ICJ) focus on state responsibility, as seen in South Africa’s case against Israel for genocide violations. These proceedings are distinct from the ICC's focus on individual criminal responsibility.

UPSC Mains Questions:

Q. Discuss the significance of the International Criminal Court (ICC) in upholding international justice. How does the ICC ensure accountability for war crimes and crimes against humanity?