Intellectual Property Rights Access to Genetic Resources and Indian Shrimp Aquaculture: Evolving Policy Responses to Globalization

• DOI: http://doi.org/10.1111/jwip.12030
• Published date: 01 March 2015
• Date: 01 March 2015
• Author: Anitha Ramanna‐Pathak

Intellectual Property Rights Access to Genetic

Resources and Indian Shrimp Aquaculture: Evolving

Policy Responses to Globalization

Anitha Ramanna-Pathak

Consultant, Pune, India

Globalization of the aquaculture industry raises important questions regarding the means to ensure a balance

between intellectual property rights (IPRs) and access to resources. Advocates of IPRs endorse convergence towards

implementing Trade-Related Aspects of Intellectual Property (TRIPs) agreement as a method for promoting

innovation, while others support divergence from global standards in order to uphold access to resources. This study

analyzes the impact of the convergence–divergence debate on IPRs and access to resources in India's shrimp

aquaculture sector. The Indian shrimp sector is at a crucial juncture, moving towards greater globalization and

integration with international markets, along with the introduction of new species, new technologies and an increasing

role for foreign companies. India requires access to foreign-improved breeding material and technology, but must also

create incentives for companies and institutions to invest in genetic material. In response to globalization, India's

policy demonstrates both convergence and divergence with global standards. This paper outlines the policy options for

India and points out that India's policy choices need not be restricted to one model, but can be based on innovative

strategies to ensure a balance between IPRs and access over aquatic resources.

Keywords Intellectual Property Rights (IPRs); access to resources; shrimp; aquaculture; globalization; convergence;

transvergence; India

Introduction

Globalization of the aquaculture industry is occurring worldwide through greater privatization and

commercialization of aquatic resources, the application of modern biotechnology to aquaculture and

the expansion of legal and biological methods to protect aquatic material. Globalization can be def‌ined as

the integration of economies, industries, markets, cultures and policymaking around the world.

1

A key

feature of the aquaculture industry today is a greater focus on global markets. Aquaculture is one of the

fastest growing industries in the world, and approximately 50% of the total world f‌ish harvest is

internationally traded (Garcia and Grainger, 2005). As compared to 9% for meat products, 37% of world

aquatic production is traded internationally (Gura, 2009). Some experts predict an increase in future

aquaculture trade, with India, Latin America and Africa becoming signif‌icant exporters of aquaculture

products during the next two decades (Garcia and Grainger, 2005). Food and Agriculture Organization

(FAO) notes an increasing globalization of the f‌isheries value chain, in which processing is being

outsourced to Asia (e.g. China, Thailand and Vietnam) and, to a lesser degree, Central and Eastern Europe

(e.g. Poland and Baltic countries) and North Africa (Morocco) (Gura, 2009). Mergers and acquisitions

within the aquaculture industry are increasing and the market penetration of aquaculture genetics

companies in the North is already very high (around 70% in salmon and trout seed) (Gura, 2009).

Hailed as ushering in ‘blue revolution’, aquaculture's promise is that, within the next three decades, it

could produce most of the world's marine produce, help to alleviate poverty and food shortages in some of

the world's poorest countries

2

. Mirroring developments in the green revolution, the blue revolution has

seen companies breeding f‌ish to improve traits, such as their growth rate, conversion of feed into f‌lesh,

©2015 John Wiley & Sons Ltd 41

The Journal of World Intellectual Property (2015) Vol. 18, no. 1–2, pp. 41–64

doi: 10.1111/jwip.12030

resistance to disease, tolerance of cold and poor water and fertility.

3

As genetic engineering and genomics

facilitate more patentable innovations, patents and other forms of intellectual property rights (IPRs) are

likely to become more attractive to the aquaculture industry. (Olesen et al., 2007).

The globalization of the aquaculture industry raises important questions regarding rights and access

over genetic resources. Internationalization would lead to greater demands for IPRs and biological

protection of innovations and improvement of genetic material. Breeding companies would seek to ensure

economic returns on their investments, particularly as they expand into overseas markets. Simultaneously,

breeders and farmers would face pressures to gain affordable access to improved genetic material and

technology. Therefore, achieving the right balance between access and protection would be an important

goal for national governments.

India is an interesting case study as its shrimp industry is currently undergoing a process of greater

globalization. A greater shift to the global stage is evident in India's shrimp sector, with the introduction of

new species, new technologies and an increasing role for foreign companies. India has also played an

active role in international negotiations dealing with access to genetic resources and IPRs, and is among

the f‌irst developing countries to have established laws on biodiversity and access and benef‌it sharing

(ABS) pertaining to genetic resources. India is rich in aquatic biodiversity, has a vast coastline and has

possibly one of the richest multi-species f‌isheries areas in the world (James, 2000).

The impact of globalization has led to a debate about whether nations and domestic actors are

converging towards a single model (convergence) or are exhibiting diversity in their responses

(divergence). Those who stress convergence claim globalization compels countries, industries and f‌irms to

converge towards a single, most eff‌icient or adaptive, pattern (Guillen, 2000). Others point to divergence,

noting that actors strive to be different, namely, to leverage their unique economic, political and social

advantages in the global marketplace (Guillen, 2000). Applying the convergence–divergence debate to the

study of India's shrimp sector, this paper raises the following questions: (1) Does India's policy response to

globalization in the shrimp sector differ from or follow global standards? 2) What are the likely

implications for access to resources of such convergence/divergence in India's policy? 3) What are the

policy options for India for ensuring access to resources for farmers and breeders, while simultaneously

promoting investment and innovation in the shrimp sector? The paper is structured as follows: The f‌irst

section describes the theoretical framework of the convergence–divergence debate. The second part

outlines the evolving global standards and policies in the aquaculture sector and compares India's policies

with these global standards. Implications for access to resources are analyzed in the third section. The f‌inal

part evaluates the policy options available to India, utilizing business models of crossvergence and

transvergence.

Globalization and Convergence–Divergence

A current debate with regard to globalization focuses on how domestic actors respond to greater

internationalization. The theories of convergence and divergence address this question from different

viewpoints. Convergence points out that countries and organizations respond to globalization by moving

towards a universal model of economic success (Guillen, 2000). Divergence scholars point out that

globalization is not about convergence to best practice, but rather about leveraging difference in an

increasingly borderless world to gain differentiated positions and advantages (Guillen, 2000).

Convergence denotes a process wherein distinctive domestic institutions and economic policies are

replaced by common economic structures that are considered more eff‌icient (Cao, 2006). Convergence

scholars assert that as the countries liberalize their markets, develop institutions and adopt modern

technology, nations and organizations would gravitate towards a supposedly universal model of economic

success in order to cope with globalization (Gupta and Wang, 2004; Guillen, 2000). They subscribe to the

Anitha R. Pathak IPRs, Access to Genetic Resources and Indian Shrimp Aquaculture

©2015 John Wiley & Sons Ltd

42 The Journal of World Intellectual Property (2015) Vol. 18, no. 1–2