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Establishment restrictions

INDIA

Since 1946

Chapter Business mobility  |  Sub-chapter Quotas, Labour Market Tests, Limits of Stay
Foreigners Act, 1946 (No. 31 of 1946); The Passport (Entry into India) Rules Act (No. 34 of 1920)
In case a business visa is granted, which is required for independent service suppliers (ISS), the visa is awareded with a limit of six months each time separately the visitor enters, but it can be awarded for up to five years.
Coverage Horizontal
Sources
Establishment restrictions

INDIA

Since 1946

Chapter Business mobility  |  Sub-chapter Quotas, Labour Market Tests, Limits of Stay
Foreigners Act, 1946 (No. 31 of 1946); The Passport (Entry into India) Rules Act (No. 34 of 1920)
Employment visas are necessary for intra-corporate transferees (ICT) and contractual services suppliers. A business visa is only required for independent services suppliers (ISS). In case an employment visa (as opposed to a business visa), it is required an economic needs test: no employment visas should be granted for jobs for which qualified Indians are available, neither should the employment visa be granted to routine, ordinal and secretarial work.
Coverage Horizontal
Sources
Establishment restrictions

INDIA

Reported in 2017

Chapter Competition policy  |  Sub-chapter Competition
Burdensome licensing process
The US Trade Representative office (USTR) reports that India’s one-time licensing fee (approximately USD 500,000 for a service-specific license, or USD 2.7 million for an all India Universal License) for telecommunications providers serves as a barrier to market entry for small and medium-sized enterprises.
Coverage Telecommunication sector
Establishment restrictions

INDIA

Reported in 2013

Chapter Competition policy  |  Sub-chapter Competition
State-owened enterprise (SOE)
Bharat Sanchar Nigam Limited, the incumbent, is fully owned by the Government of India. BSNL (Bharat Sanchar Nigam Ltd.) provides all types of telecom services namely telephone services on landline, WLL and GSM mobile, Broadband, Internet, leased circuits and long distance telecom services.
Coverage Telecommunication sector
Establishment restrictions

INDIA

Since 2002

Chapter Intellectual Property Rights  |  Sub-chapter Other restrictive practices related to IPR
The Indian Patents Act of 1970, amendment in 2002
In 2002, the foreign filing license requirement was introduced in the Indian Patents Act of 1970. This requirement provides that any inventor who is a resident of India should file a patent application for his/her own invention first in India. Only after a period of six weeks after the date of filing of the patent application, the filing can be extended internationally. Alternatively, the inventor is required to obtain the controller’s permission for filing the patent application outside India. However, given that the process is reported as burdersome, filing an application first in India is the preferred way of complying with these provisions. There violation of such rule results in criminal liability under section 118 of the Indian Patent Act of 1970, with consequent monetary fine or imprisonment up to two years, in addition to the impossibility to proceed with the patent application.
Coverage Horizontal
Establishment restrictions

INDIA

Since 1996

Chapter Intellectual Property Rights  |  Sub-chapter Other restrictive practices related to IPR
Intellectual Property Management Policy of the Council of Scientific and Industrial Research
It is reported that the Intellectual Property Management Policy aims to protect the patent portfolio 'defensively and aggressively' to forge strategic alliances and international collaborations, to gain business advantage. The Council of Scientific and Industrial Research (CSIR) with its Internet Protocol (IP) policy aims "to maximise the benefits to CSIR from its intellectual capital by stimulating higher levels of innovation through a judicious system of rewards, ensuring timely and effective legal protection for its IP and leveraging and forging strategic alliances for enhancing the value of its IP".
Coverage Horizontal
Establishment restrictions

INDIA

Reported in 2017

Chapter Intellectual Property Rights  |  Sub-chapter Copyright
Inadequate enforcement of digital copyright
The US International Trade Commission reports that enforcement of India's copyright laws is weak, resulting in widespread digital piracy of movies, television shows, and unlicensed software. Additionally, the US Trade Representative office (USTR) reports that the value of losses from piracy of music and movies in India totals about USD 4 billion per year, while the commercial value of unlicensed software used in India is approximately USD 3 billion.
Coverage Digital content
Establishment restrictions

INDIA

Since 1957

Chapter Intellectual Property Rights  |  Sub-chapter Copyright
Copyright Act, Chapter XI – Infringement of Copyright
According to the Copyright Act only actions related to fair dealing for the purpose of private use or reporting current events do not constitute an infringement of copyright.
Coverage Internet intermediaries
Establishment restrictions

INDIA

In 2013

Chapter Intellectual Property Rights  |  Sub-chapter Patents
Court cases No. 50 and No. 76/2013
Based on complaints made by Micromax and Intex, Ericsson is under a fully-fledged investigation on its practices. The Competition Commission of India (CCI) has adjudicated on issues involving Standard Essential Patents (SEPs). It has given a preliminary categorical view that royalty calculation based on the entire value of a product using SEPs is unfair. While this preliminary decision does not appear to be an attempt to dilute the Internet Protocol rights of foreign players in India, it signals the direction that the competition regulator wishes to take.
Coverage Ericsson
Establishment restrictions

INDIA

Since 2003

Chapter Intellectual Property Rights  |  Sub-chapter Patents
Patents Act 1970 and the Patent Rules 2003
In India, applications for copyright, trademark and patents can be filed online, design applications can only be filed in person. Moreover, applicants that do not have a registered place of business in India are required to file applications through an Indian attorney or agent.
Coverage Horizontal
Establishment restrictions

INDIA

Reported in 2015

Chapter Intellectual Property Rights  |  Sub-chapter Patents
Legal injunctions
Legal injunctions in India have targeted both domestic and foreign companies. For example, Ericsson has sued Micromax (India) and Intex Technologies (India) seeking royalty on some of its patent technology used in mobile phones sold by these firms. The company has also sued Xiaomi (China) in India over alleged patent infringement.
Coverage Micromax, Intex Technologies, Xiaomi
Establishment restrictions

INDIA

Since 2013

Chapter Investment  |  Sub-chapter Other restrictive practices related to foreign investment
New Company Act (Law No. 18 of 2013)
Foreign companies (including those relating to B2B, B2C ecommerce, data interchange and other digital supply transactions, web based marketing, database services, online services such as telemarketing, telecommuting, telemedicine, education and information research and all related data communication services) even when not incorporated in India should register in India according to section 2(42) of the new Companies Act of 2013 when they are engaged in business in the country.
Coverage Foreign companies
Establishment restrictions

INDIA

Since April 2014

Chapter Investment  |  Sub-chapter Other restrictive practices related to foreign investment
Consolidated Foreign Direct Investment (FDI) Policy Circular 2014
Consolidated Foreign Direct Investment (FDI) Policy Circular 2014, foreign direct investment in telecom services (fixed, mobile and internet) is subject to observance of licensing and security conditions by licensee as well as investors.
Coverage Telecom service providers
Establishment restrictions

INDIA

Since April 2014

Chapter Investment  |  Sub-chapter Screening of investment and acquisitions
Consolidated Foreign Direct Investment (FDI) Policy Circular 2014
There are restrictions to foreign investment on cross-border mergers and acquisitions. According to section 6.2. of the Consolidated Foreign Direct Investment (FDI) Policy Circular 2014, government approval is required in cases where the control of an Indian company related to a sector/activity with cap is transferred on to a non-resident entity as a result of merger/de-merger or acquisition.
Coverage Sectors with caps, including telecommunications, audiovisual and mobile broadcasting services
Establishment restrictions

INDIA

Since April 2014

Chapter Investment  |  Sub-chapter Screening of investment and acquisitions
Consolidated Foreign Direct Investment (FDI) Policy Circular 2014
According to section 6.2. of the Consolidated Foreign Direct Investment (FDI) Policy Circular 2014, foreign investment in India is subject to approval depending on security conditions. Furthermore, there are various reports on tougher screening and review procedures regarding Chinese investments. Additionally, Indian carriers, which need to get security clearance from the Ministry of Home Affairs before they import equipment, have been denied to acquire equipment from Chinese manufactures (i.e. Huawei Technologies) due to national security concerns (see chapter standards for more information).
Coverage Horizontal