Long years ago we made a tryst with destiny …
Powerful oratory from India’s first prime minister, Jawaharlal Nehru, in a speech made on the eve of India’s independence, when he famously said India was awakening to life and freedom “at the stroke of the midnight hour, when the world sleeps”. Nearly seven decades later, India’s destiny appears somewhat removed from the lofty principles Nehru went on to speak about. Instead, the future of the country hinges on the strength of the government that will emerge when elections to the 16th Lok Sabha, the lower house of parliament, are completed later this month.
Given the reality of Indian politics, there is little doubt that the winning party will need to cobble together a coalition. But will such a coalition be sufficiently strong to provide effective governance? And will the new government have the wherewithal to set India on a course for inclusive growth? For this to be achieved, vast sections of its legislative framework will need to be updated and overhauled. Even if the new government has the appetite for reform and the power to pursue it, this will be no mean feat. But neither will it be impossible.
For an example of what can be achieved, look no further than the recent introduction of India’s new Companies Act. The act may have been 10 years in the making, but as we discuss in A new era, its introduction is transforming the rules by which companies are run and organized.
Several sections of the act came into force on 1 April, and some of these, including the provisions governing related-party transactions, mark a seismic shift in the balance of power between majority and minority shareholders. What will this mean for domestic and international companies? Sujjain Talwar, a partner at Economic Laws Practice, warns that the provisions on related-party transactions “may be unworkable in closely held companies,” while Surbhi Kejriwal, a principal associate at Khaitan & Co, predicts that foreign companies will find it challenging to comply with the new corporate social responsibility norms.
Challenges related to the new Companies Act will hopefully be short-lived, as companies hone their compliance strategies and teething troubles are gradually ironed out. But other types of challenge are harder to eradicate.
One such challenge is the identification, management and mitigation of business risks. This challenge is particularly acute during times of economic or political uncertainly – times such as now, with India in the throes of a general election. In Commercial hazards, S Ramaswamy, the group general counsel at Escorts, discusses how managing such risks requires an understanding of the changing dynamics of the business environment. He also highlights the considerable challenge of anticipating new business risks that are not currently known or understood. These “new age” risks may know no national boundaries, and as such, may be difficult, if not impossible, to contain. All one can do is to remain vigilant and diligent in monitoring trends on a regular basis and updating risk management strategies accordingly.
This month, thousands of delegates will gather in Hong Kong for the 136th annual meeting of the International Trademark Association (INTA). India Business Law Journal is proud to a media partner of the meeting and copies of our April and May issues will be widely available to delegates.
In this issue, we conclude the special line-up of intellectual property features that we have presented to coincide with INTA’s meeting. The first such feature is this month’s Cover story, in which in-house counsel and legal practitioners share their tips and tricks on picking the best IP lawyers. India has thousands of IP-related service providers and choosing among them is no easy task, particularly for foreign companies and law firms that may lack local market intelligence.
As Prabhakar Sastry, the head of legal at Cairn Energy, explains: “IP rights issues are too precious to have the sub-optimal attention of my law firm.”
Ish Bali, the legal director of Coca-Cola India, adds that “IP law is an ever-changing law, especially in a country like India, where such laws are still developing”.
As such, making the right choice is crucial. Our coverage emphasizes the importance of getting it right and cautions against accepting second best in the belief that nothing better is available.
In this month’s Intelligence report, we look at IP protection from a different perspective and explore the challenges and solutions the lie in store for Indian companies protecting their IP in other parts of the world.
Our coverage provides an intriguing snapshot of global intellectual property regimes, threats and protection mechanisms. It includes insights from practitioners in numerous jurisdictions, including Brazil, Vietnam, Sweden, Australia and the US, which continues to be the biggest export market for Indian companies. As India Inc expands its business globally, getting the right international IP protection is vital.
This month, we’re also proud to introduce a new concept called Head to head, created in tandem with our sister publication, China Business Law Journal, as a means of comparing a key area of the law and practice in the world’s two largest emerging economies. In Head to head: A comparison of Indian and Chinese trademark law, Chinese law firm Wan Hui Da and India’s Anand and Anand discuss everything from registering and protecting your mark to the courts and compensation issues in the two jurisdictions. The comparison makes for fascinating reading. Expect more Head to head features exploring various practice areas in future.
