Know ur rights

THE CONSUMER PROTECTION ACT ENSHRINES
THE FOLLOWING RIGHTS OF CONSUMER:
Right to be protected from hazardous goods and services

Right to be informed about the quality and performance of goods and services

Rights to free choice of goods and services

Right to be heard in decision making process concerning consumer interests
Right to redressal if consumer rights are infringed
Right to consumer education

THE PATIENT AS A CONSUMER


Traditionally, patients in India have unquestioning trust in their doctors. Most doctors deserve it. But in some cases, medical negligence has resulted in severe harm physical, mental and financial . In addition, Unqualified practitioners have brought suffering to gullible patients. Doctors have been liable to prosecution in civil court, but few malpractice victims sue for compensation, fearing years (even decades) of costly litigation. Fortunately, in 1995 the Supreme Court decreed the medical profession to be a "service" under the Consumer Protection Act, 1986.It set aside a writ Petition challenging the same by the Indian medical Association.

WHAT IS MEDICAL NEGLIGENCE?

Medical negligence is defined as a failure to exercise reasonable skill and care in diagnosis and treatment as per the prevalent standards as that particular point of time. An aggrieved patient who believes that he is a victim of medical negligence can now approach the Consumer Courts for fair compensation, and expect results in a relatively shorter period of two to three years. The procedure is comparatively simple and inexpensive.

THE PATIENT'S RIGHTS

In the interest of a healthy doctorpatient relationship, A patient should Know his rights as a consumer:

1. You have a right to be told all the facts about your illness; to have your medical records explained to you; and to be made aware of risks and side effects, if any, of the treatment prescribed for you do not hesitate to question your doctor about any of these aspects.
2. When you are being given a physical examination, you have a right to be handled with consideration and due regard for your modesty.
3. You have a right to know your doctor's qualifications. If you cannot evaluate them yourself, do not hesitate to ask someone who can.
4. You have a right to complete confidentiality regarding your illness.
5. If you are doubtful about the treatment prescribed and especially an operation suggested, you have a right to get a second opinion from any specialist.
6. You have a right to be told in advance what an operation is for and the possible risks invoved. If this is not possible because of your being unconscious or for some other reasons, your nearest relatives must be told before they consent to the operation.
7. If you are to be discharged or moved to another hospital, you have a right to be informed in advance and to make your own choice of hospital of nursing home, in consultation with the doctor.
8. You have a right to get your case papers upon request.

A PATIENT'S PRECAUTIONS UNDERGOING OR PLANNING MEDICAL TREATMENT

1. Make sure you have told all relevant facts to the doctor before deciding any treatment.
2. Unless it is a life threatening emergency, the final decision about the treatment should be taken after proper deliberation and/or second opinion.
3. Please seek clarification for all the doubts regarding diagnosis/treatment/investigation.
4. Discuss with your doctor the cost of the treatment. Please make sure the cost includes possible complications.
5. During the treatment, If you are not satisfied with any aspect and/or have doubts, seek clarification from the doctor.
6. Keep all receipts/prescriptions/reports/discharge cards safely and keep extra photo copies.
7. After treatment clarify all doubts regarding bills/payments etc before discharge.
8. Involve your family physician in the discussion with the specialist doctor.
9. In case of a deth during the treatment, if you are not satisfied with the cause of death, demand a post mortem examination and get copies of the entire Indoor Case Record. This is the right of every patient/legal heir.
10. It is necessary and correct to discuss with the concerned doctor all the doubts before resorting to any legal action. Many of the complications/delays/mishaps in any medical treatment can be genuine.
11. In case you require expert medical advice regarding the legitimacy of your complaint about medical malpractice or deficiency in service you may approch the Association for Consumer Action on Safety and Health (ACASH) or any similar organisation.

CPA AND MEDICAL NEGLIGENCE

The Consumer protection Act 1986 (CPA) is a unique legislation which provides for speedy and economical redressal in a simple manner. It has been held in a number of cases under CPA that instances of medical negligence are covered by CPA. Given below is a brief of the provisions under CPA.
Those unfortunate enough to experience gross malpractice may approach (in writing or in person) the District Consumer Disputes Redressal Forum when the compensation claims amount to less than Rs.5 Lakhs. Claims between Rs.5 Lakhs and Rs.20 Lakhs may be taken to the State Consumer Dispute Commission. Claims above Rs.20 Lakhs may be placed before the National Consumer Disputes Redressal Commission. The addresses of the above bodies may be obtained from your local consumer organisation. All complaints must be endored by the written opinion of two expert specialists in the medical field.

CHECK IF YOUR COMPLAINT COVERS THE FOLLOWING POINTS

1. Name and Address of the complainant in full.
2. Name and Address of the opposite parties.
3. When and where cause of the complaint arose.
4. Particulars of the complaint in detail along with supporting documents as exhibits.
5. Relief prayed. such as replacement/removal of defect or return of price/compensation for expenses incurred & physical/mental torture, if any. While asking for claims the amount should be within reasonable limits and justifiable.
6. The entire set of papers regarding the complaint, along with exhibits, is to be given in 1+3 sets and one set each for every aditional opposite party.

INSTRUCTIONS

1. The relief claimed by you should be in clear word.
2. The complaint can be sent in Marathi,Hindi or English. If the company's office is in another State, it is better to make the complaints in English.
3. The complaint should not be on a post card.
4. Three copies of the complaint, together with all the annexures for the Forum and extra sets for each of the opponents should be filed, together with the above three copies.
5. The complaint can be sent by post.
6. Complaints of a representative nature may be filed by registered Consumer Organisations Like Consumer Guidance Society of India.

WHAT ARE RATIONS ?

Rations are the monthly quotas of certain essential commodities distributed at special rates to ration card holders by the goverment under the Public Distribution System (PDS). Rations are essential for people with limited incomes hence card holders need to know their rights and assert them in order to get their rations regularly. The purpose of the Public Distribution System is to exercise some control over prices of essential food grains and commodities in the open market ensure supply of these to the average citizen an those living below the poverty line. For adivasis and people living below the poverty line, the goverment subsidises the cost of essential commodities, thus further reducing Prices for these sections. But in some areas these ration are not made avilable to them.

RATIONING RULES AND CARD HOLDERS RIGHTS

1. THE WEEKLY QUOTE IS NOT FORFEITED IF NOT PURCHASED: For the convenience of consumer who cannot buy the fortnightly quote at one time, purchase of rations on a weekly basic is permitted. If a card holder cannot purchase his rations in the first fortnight of a month. he can do so in the second. Sugar is available owing to shortage or strikes by shopkeepers, truckers or godown employees in a particular month, these quotas will be made available in the next month by the government.

2. DISPLAY OF SAMPLES: Samples of food grains, etc are to be displayed in sealed plastic bags. The general impression that rations are of poor quality is not correct.They have to be clean. The state goverment is supposed to lift stocks from the Food Corporation of India only after proper examination. It does not accept spoilt stocks. If the grains are of bad quality you have a right to complain and have then exchanged. Samples of the available food grains have to be displayed in the ration shops in sealed plastic bags bearing the number of the godown and the date of delivery. The card holder can compare the quote given to him with the sample in the bag and ensure that he is given the same quality. If samples are displayed in plates you could be cheated.

3. ENSURE THAT YOU GET A RECEIPT: The receipt is yellow in colour and in simple language. If the figures are not clear ask the shopkeeper to write them down legibly. The receipt should give the date of purchase, details of the rations supplied and the number of the ration shop in Marathi only. There is no rule that the ration can be purchased only once a day. You may make more purchase separately on the same day.
If the shopkeeper has no change, ask him to write the amount due on the back of your receipt and to sign below so that the amount can be adjusted against your next bill.

4. You are entitled to buy only the commodities you require. The shopkeeper cannot insist that you buy Wheat or rice in order to get your quota of kerosene or sugar.

5. A fee of Rs.5/- is charged for new card. The fee for replacement of a lost card is Rs.10/-. There is no charge for issuing a temporary card, or for adding or deleting names in the ration card.

6. When applying for a new card or adding names to a card, verification will be carried out after your application is received and the card will be made available within 10 days.

7. To obtain a ration card, applicants do not need to have a fixed residence. Tenants, sub-tenants, pavementdwellers,temporary construction workers,contract labours and hostels can all obtain ration cards after inspection to verify produce a "no objection" certificate from the owner of the premises.

8. If a card holder is moving from one Locality of greater Mumbai to another, there is no need to surrender his card. A slip giving the address of the rationoing office for the new residence, reference number and the number of the new ration shop (ARS No.) will be attached to his ration card by the rationing office. The card holder should first go to his change of residence; the officer in change will guide him regarding the steps to be taken.

9. If the card holder is moving to mumbai from distrcts or from outside the state, he will have to get a surrender slip from his old rationing office and present it at the new rationing office. If the card holder did not have a ration card in his former home he will have to get a certificate from the 'talathi' of his district to this effect. In case where documentary evidence cannot be produced, the Rationing Inspector will inspect the home, verify the statement of the applicant and issue a temporary card.

10. Card holders should not be intimated by threats made by the shopkeeper. He has no powers to seize, change or cancel their cards.

INFORMATION TO BE DISPLAYED

The ration shop has to display:
a. The registration number of the ration shop (ARS No.).
b. The number, address and phone number of the ration office.
c. The inspector's name and the time of his weekly visit.
d. The stock position of all rationed commodities in units.
e. The official price list.
f. The total number of ration cards registered with the shop.
g. The total number of units.

A complaints book has to be available to card holders.

HOW TO GET A RATION CARD

You can obtain an application from for ration cards from your ration office or district office on payment of Re.1/- There are three types cards, Yellow, orange and white. The yellow cards are given to families below the poverty line, i.e. those having an annual income between Rs.15,000/- and Rs.1 Lakh. Those families having an annual income of over Rs.1 Lakh are given white cards.
Listed below are the various types of forms to be filled up by card holders.

a. To obtain a new ration card, fill up form No.1, attach all the required documents and pay a fee of Rs.5/- only. The card should be received within 10 days.
b. For deleting names from the card, fill up Form No.9 and get a certificate from the ration office to this effect. This should be done the same day or at most the next day.
c. For adding names fill up from No. 8. The change should be made within 7 days.
d. To replace a lost or mutilated ration card, fill up from No. 15. The card should be replaced within 10 days.
e. For other alternations such as change of address fill up from No. 14. The change should made within 7 days.
Approach the Public rations Officer at Window No. 1 for Free assistance. Do not involve any middlemen who approach you.
llliterate applicants or those who do not know Marathi should seek help at Window No.2 to get their forms filled up. Completed forms for new ration cards are also accepted at this window.
Application for increase in the number of units will be received and registered at window No.3. People wishing to surrender their ration cards can get a receipt for the same at this window.
Distribution of ration cards, registration and accounts will be handled at window No.4.

RATIONING SYSTEM URBAN AND RURAL

The Food and Civil Supplies Department of the state goverment controls the functioning of the PDS, Policy decisions are taken by the Rationing Controller.
In the Greater Mumbai and Thane Industrial Zone there are 6 zonal offices:
1) Zone A-Office Nos. 1,3,5,6,9,11 and 13
2) Zone C-Office Nos. 15,16,17,18,19,20 and 21
3) Zone D-Office Nos. 22,23,24,25,26 and 29
4) Zone E-Office Nos. 30,31,32,33,34,35,44 and 45
5) Zone F-Office Nos. 36,37,38,39, and 40
6) Zone G-Office Nos. 27,28,42 and 43
The head of a rationing office is the Rationing Officer. The Asst. Rationing Inspector and the staff help in the day to day Functioning of the office. The staff helps to redress the grievances of the public and guide them.

THE RURAL SECTOR

In rular Maharashtra the Addl. District Collector is in over all charge of the P.D.S but the District Supply Officer operates on his behalf. At the taluka level the Tehsildar heads the rationing operations. There is a head clerk to assist him and a rationing inspector who is charge of 100-125 villages. Hence, it is impossible for the inspector to physically inspect them often. In rural areas, card holders obtain Kerosene from authorised kerosene suppliers. The Chairman of various co-operative societies are required to certify that the quota given to the shop has been properly distributed before a fresh quota is supplied.

HOW TO LODGE A COMPLAINT

Quite often, kerosene, Wheat and rice are not available or the sugar is less than 500 grams. People wish to complain against the shopkeeper but are afraid that he may be abusive or confiscate their card. At such times to whom should one complain? First, one should ask for the complaint book in the ration shop and enter the complaint in the book. Then inspector examines the book every time he visits the shop. If the inspector does not redress your complaint, you should complaint to the tehsilder/rationing officer. If there is steel no action complain to the Collector/Addl. Collector or District Supply Officer / Controller of Rationing. Regarding Policy matters, suggestions or complaints should be sent to the Secretary, Department of foods Civil Supplies and Consumer Affairs or to the Minister. To ensure implementation of the rules and assert one's rights is diffcult for one person, hence it is necessary to from local organisations of ration card holders. Local groups, women's groups and party branches should take the lead in solving card holder's problems. For this complaints redressal committees.need to be set up.Card holder, ration shopkeepers and ration inspector should be member of this committees.
Such a committee could be for one ration shop or for 4 - 5 ration shops jointly. Problems that cannot be sloved by the committee can be referred to the Controller or the Department. The PDS covers all of Maharashtra. Rationing Problems affect everyone from city dwellers to adivasis. it is essential that those oganisations which are working on behalf of cards holders should come together in the form of a federation to ensure proper working of the PDS.

Outsourcing To India - Legal And Tax Considerations:

Over the last few years, India has emerged as a leading destination for companies wishing to outsource their software development, and business process requirements. International companies have either entered into contracts with Indian service companies or set up their own facilities through Joint Ventures and Indian subsidiaries.

Indian Government has been a catalyst in the growth of the Indian software and BPO industry through the tax incentives provided to exporters. These incentives are aimed largely at maximizing exports, thereby resulting in an inflow of foreign exchange into India. Industrial policy reforms have eliminated the licensing requirements except for certain select sectors, removed restrictions on investment and expansion and facilitated easy access to foreign technology and direct investment. This has contributed to increased inflow of foreign exchange into India.

Foreign Investment Policy
Foreign investment is permitted in virtually every sector, except those of strategic concern such as defence (opened up recently to a limited extent) and rail transport. Foreign companies are permitted to set up Wholly Owned Subsidiaries in India. No prior approval from the exchange control authorities (RBI) is required, except for certain specified activities. The investment should be in accordance with the prescribed guidelines and the details of the investment should be filed with the authorities within the prescribed time limit. This investment procedure is commonly known as the "automatic approval route".
Foreign Investment Promotion Board (FIPB) of the Government of India is constituted mainly to promote inflow of FDI into the country, as also to provide appropriate institutional arrangements, transparent procedures and guidelines for investment promotion and to consider and approve proposals for foreign investment.

Automatic approval route and FIPB route
Foreign investment into India is governed by the Foreign Direct Investment (FDI) policy of the Government and the Foreign Exchange Management Act, 1999 (FEMA). With increasing liberalisation of the Indian economy, generally, there is no need to obtain prior approval of the Government of India for a fresh investment to be made into an Indian company (only procedural filings have to be made with the Reserve Bank of India (RBI), the Indian central bank). In certain cases, however, and also for investment in certain specified sectors, prior approval is required. Further, investment in certain specified sectors is subject to foreign equity caps.

Outsourcing vs. Software Development Centre
The determination of whether to outsource to an Indian software services company or set up one’s own facility is largely a business decision. A long term requirement could make investment in a subsidiary worthwhile. Recent transfer pricing regulations may however have an impact on the pricing of the services provided by the subsidiary. A requirement for highly specialized work may also point to setting up one’s own facility. The need to exercise control over valuable intellectual property and maintenance of confidentiality is also a key factor. The slowdown since 2001 has also seen some hybrid structures, for e.g., where the Indian company sets up a separate entity, is assured a steady stream of business and grants the customer an option to purchase the business later. This would have the effect of leveraging on the benefits of outsourcing while sheltering the associated risks.

Software Outsourcing Arrangements
Contractual Protection
Where at least one party is a foreign entity, the parties can choose the law governing the contract. The negotiating power of international customers would typically weigh in favor of choosing a governing law of the customer. The parties may also choose a foreign venue for arbitration. A Foreign arbitral award would be recognized in India if the country of venue has signed either the New York or Geneva conventions and has been notified as having reciprocal relations with India in the matter of enforcement of foreign awards. A foreign arbitral award would generally be more easily enforced in India than a foreign court judgment.

If dispute resolution is to be held in India, it is generally recommended that the parties opt for arbitration because litigation in India can be long drawn and subject to delays. However, it is possible to obtain quick injunctive relief in case of intellectual property violations.

Contract Liability Concerns
Indian law does not contain statutory provisions or case law dealing specifically with liability issues arising from development of software. However, customers should keep in mind that under Indian law, compensation can be awarded for breach of contract only in relation to damages that naturally arise in the usual course of things and which the parties knew would result from such breach. It cannot extend to any remote or indirect losses. Further, Indian courts rarely award large damages for breach of contract. Delays in the justice system also make speedy recovery of money difficult. This may impact the ability of customers to recover fees paid or obtain damages in Indian courts.

Copyright and Protection of Intellectual Property
It is generally difficult to patent software programmes in India. Under copyright law, the software developer, being an independent contractor, would be the author of the works and therefore, the owner. However, Indian law permits the parties to agree that the customer would be the owner of the copyright. Under Indian law, in the absence of anything to the contrary, it is presumed that an assignment or license of a copyright work would be limited to 5 years and to the territory of India. Further, the assignment may lapse if the work product is not made use of within one year. Accordingly, the contract would need to mention specific language to overcome these presumptions. An assignment agreement must also specifically describe the work to be assigned. It is important to note that the knowing violation of copyright in India is a criminal offence. It is possible to obtain reasonably quick injunctive relief from Indian courts for intellectual property violation. However, it is important that the customer chooses an IP friendly jurisdiction. The Business Software Alliance has had some success in obtaining Anton Pillar orders from Indian courts and conducting raids on distributors of pirated software. Another remedy that could be used is criminal breach of trust, if the developer has misused proprietary software or know-how provided by the customer.

India does not have a statute governing the protection of confidential information and trade secrets. Further, there is no statute dealing with data protection or privacy matters. One would typically obtain protection through a civil action under common law. Recently, the central government and some state governments have expressed an interest in bringing forth a separate legislation for data protection in an effort to attract more investment in BPO activities. Another option would be to file an action for criminal breach of trust. This is based on the principle that confidential information is provided “in trust" and any misuse would amount to a breach of trust. Criminal action has its advantages in that the individuals involved will be put to inconvenience in terms of personal appearance before the court, the perceived stigma and the restrictions on traveling out of India.

Tax Issues
Under Indian law, software and BPO companies would typically be exempt from tax in relation to income earned from export of software out of India if the fees are received in convertible foreign currency. This may affect certain types of outsourcing arrangements, for example, where the customer wishes to outsource the work from its existing Indian subsidiary. Payment of fees in Indian Rupees could significantly increase the cost, because the developer would seek to recover the tax payable on its margins. Another important issue is the possibility that the customer may be held to have a permanent establishment in India if it transfers testing equipment to the developer for use while developing the software.

Another relevant issue is the taxation on Information Technology related services. In an attempt to boost the growth of software exporting, Government of India has exempted export of services and also secondary services consumed in exported services from service tax.

As mentioned earlier, India’s software companies are largely exempt from tax. However, it is possible that the exemption may be removed or substantially reduced in the future. In such event, the Vendor would seek to increase its fees. The customer must recognize this as a reasonable possibility and perhaps, obtain fixed, tax inclusive costs, at least in the short term.

Outsourcing Through Ownership Model
Foreign Investment Regulations
Software development and BPO services is now under the automatic route and no foreign investment approvals are required to set up a wholly owned subsidiary; only certain filings need to be made after receipt and issue of share capital. However, acquisition of shares in an existing Indian company may still require a prior foreign investment approval.

Choice of Vehicle - Private Company
Most foreign corporations set up their subsidiaries as private limited companies with liability limited by share capital. This entity is similar but not identical to an unlisted C Corporation in the USA and has no flow-through taxation. A private company can have a maximum of 50 shareholders (excluding employees), must restrict the transferability of its shares and is prohibited from making invitations to the public for subscription to shares, debentures or deposits. A private company is generally less regulated than a public company. It must have at least 2 shareholders. Regulations relating to personal presence of shareholders at shareholder meetings, and limitations on transfer of shares under exchange control laws would require a careful structuring of share capital investment into the subsidiary.

Funding the Venture
Restrictions imposed by Indian exchange control laws on the ability of an Indian company to obtain short term debt from abroad make it difficult to fund the subsidiary through loan funds. Inflexible buy back regulations make a buyback of share capital difficult. Hence, the parent would typically seek to fund only the capital costs through share capital. One could possibly consider funding the operating expenses by the holding company making trade advances to the subsidiary for services to be performed.

Software Technology Park Units
Most foreign corporations interested in engaging in development of software and BPO services in India set up their Indian subsidiaries as Software Technology Park (STP) Units. This is not a separate legal entity but merely a status obtained from the government. The STP status entitles the company to substantial tax benefits, subject to it meeting certain export commitments.

An STP unit would need to be a customs bonded area. This means that it can be at a location of the Company’s choosing but must be in an area demarcated specifically for STP operations. Some formalities on entry and removal of goods would apply. In practice, most companies handle these requirements with ease.

Activities of an STP
The permitted activities of an STP do not cover just software development activities. An STP’s activities could include (a) software development (b) hardware design, digital signal processing; and (c) business process outsourcing, including medical transcription services, customer relations, document processing and call centres. On site services through deputed personnel would also be covered.

Because an STP is supposed to be engaged primarily in export activities, its ability to make sales within the Indian market is limited to the equivalent of 50% of its total exports. Further, restrictions under both STP regulations and tax laws would limit the ability of the Indian subsidiary to outsource work to another Indian STP.

Export Requirements for STP Units
The export related commitments that need to be satisfied by an STP Unit are driven largely by the Government’s objective of maximizing the country’s foreign exchange reserves. These commitments are as follows:

# Exports of US$ 0.25 million or 5 times the CIF value of imported capital goods, whichever is higher (if no capital goods are imported, the US$ 0.25 million requirement would apply).

# An annual Net Foreign Exchange Earnings as a Percentage of Exports (NFEP) of 10%. This means that the inflow of foreign exchange earned by the company should be at least 10% more than the outflow of foreign exchange out of India.

Both the requirements need to be satisfied over a period of 5 years. The value of capital goods would cover the entire CIF value - cost, insurance and freight. However, the value of exports would cover only the landed cost. Further, it may be noted that in considering the outflow of foreign exchange, the dividend distributed to the holding company would also need to be considered.

Income Tax Benefits
An STP Unit in India would be entitled to enjoy the remainder of a 10 year tax holiday commencing from April 1, 2000 to March 31, 2009. (The Indian tax year runs from April 1 to March 31). The tax benefit would apply only if the software/service is exported out of India and payment is received in convertible foreign exchange. It would also not cover profits earned from domestic business or income other than from STPI services. The tax holiday will not cover dividend distribution.

The STP Unit cannot be set up as a result of the re-organization or break up of an existing business and not more than 20% of its hardware should constitute hardware previously used by another business. Hence, in an acquisition, a careful structuring may be required in order to preserve the tax holiday.

Transfer Pricing Regulations
Indian tax laws have recently included provisions relating to transfer pricing, requiring pricing of transactions between associated enterprises to be at arms length. Even in the case of a tax exempt software company, this assumes significance because if the tax authorities conclude that the consideration payable to the Indian subsidiary is not at arms length, the enhanced income determined by the authorities would be subject to tax and would be the basis of possible penalties. Typically, companies opt for a cost plus method (between 7-15%) or standard per diem rates. Since these developments are relatively recent, there is no consensus yet on what would be an acceptable pricing formula.

Indirect Tax
An STP company can import capital goods and consumables without payment of any customs duty. However, the higher the value of imported goods, the higher will be the export commitment, as above. The company would also be exempt from payment of excise duty on manufacture of goods, when purchased from the manufacturer and can claim a refund on sales tax paid by the supplier on sale of the product to the STP.

Tax Benefits for Non-STP Companies
Even if a software exporting company does not have an STP unit, it can avail of the general exemption for profits derived from export of computer software under Indian tax laws. At present, 30% of such export income is tax exempt.

Procedure for Setting up the STP
Setting up the STP Unit involves compliance with numerous regulatory procedures that would typically take about 3 months. After company incorporation, a detailed STP application has to be prepared, that would include the prescribed application form, a project report, projected 5 year accounts and details of expenses and foreign exchange remittances. This would involve substantial work from the company officials. After obtaining the STP registration, certain other formalities need to be completed relating to customs bonding and obtaining tax registrations.

Operating a Business in India - Key Regulatory Issues
Company Law - Indian company law is based on the English Companies Act of 1948. Key requirements include mandatory board and shareholder meetings, shareholder approval in respect of certain matters, appointment of officers, restrictions on loans and investments, etc.

Exchange Control - The Indian Rupee is fully convertible on the current account though control remains on the capital account. Doing business in India involves wading through India’s complex exchange control regulations that restrict the remittance of foreign exchange out of India.

Employment Laws - Indian employee laws are considered to be somewhat restrictive in terms of requirements relating to lay offs, closure of business, etc. BPO companies need to be particularly concerned about rules relating to flexible working hours, holidays and employment of women at night as well as regulation of leave policies

Stock Options - Exchange control restrictions that limited the amount that an employee could remit out of India for purchase of foreign stock have been lifted in the case of listed stock of holding companies. Subject to the employer fulfilling certain requirements, employees receiving foreign stock can also claim a tax status similar to the ISO status in the USA.

To conclude in India many believe that it is just the right "climate" for entrepreneurial development and in 2007 India is the place to be in. It provides a great combination of skill and competency. Combine that with the right investment climate and the ever improving technological efficiency, you find that the great Indian time has arrived. The India boom is here to stay. The heat is on and it's only getting hotter.

Business Method Patents - Two Opposing Views

An invention which is a solution to a technical problem is protected by way of Patent. This protection is available for specified period (usually 20 years) during which the patentee holds certain exclusive rights with regard to exploitation of his invention. In return, the patent holder is obliged to publicly disclose his invention which adds into the technical knowledge bank of the world. The aim of granting patent protection is to encourage economic & scientific development by rewarding the inventor for his intellectual creations.

Business Method Patents are a special category of patents which are granted for an innovative way of doing business. The methods or process which can be patented under this category includes teaching methods, sales skills, financial services, investment services and marketing & advertising methods etc. Even skills for playing a game may be protected by way of Business Method Patents. Most of these patents are implemented by way of computers. Before 1998 patent protection was not available to business methods; however the decision of Court of Appeals for Federal Circuit (U.S.) in State Street Bank Case completely changed the situation. Between 1998 to present, the business method patent applications have increased significantly. From their beginning, business method patents are always in controversy to their subject matter. The issue is not confined to United States only but to major economies of the world. The Two major views came out of this controversy, one is against issuing patent protection to the subject matter (European Commission’s position) and second is advocating for business method patents (i.e. United States’ Position). The major arguments of the above two opposing views with regard to Business Method Patents are as follows:

A. The European Commission’s Position on the Impact of Business Method Patents:
The business method patents should not be allowed because:
1. Science is something different than business. Patent system and its principles are better for science and not for business.

2. Issuance of business method patents hampers free development of the Internet & e-commerce. Innovation comes from competition in an open and fair market and not from the monopolistic market.

3. Issuance of business method patents keeps the small and medium sized firms / individuals out of the game because big players will take out most of the patents and play the game as per their terms.

4. Issuance of business method patents does not stimulate innovation but rather it rewards existing monopoly right holders who do not distribute wealth and opportunities but rather it strengthens the present structure of power.

5. Every method of doing business over Internet (i.e. e-commerce) involves technology which can be patented individually. Neither every method/way can be patented nor it is possible to license each of the associated patents. It will have exorbitant costs and will be very risky and uncertain to launch such a product based on the business method patent in the market.

6. Subject matter for most of the business method patents is obvious and issuance of business method patents on such broad subject matter will harm other businesses. Grant of 1-click patent to Amazon, severely harming the other online trading businesses.

7. The global patent industry acts as an unregulated monopoly and it is unbalancing the system of property rights that underpin the software industry.

B. The United States’ Position on the European allegations that Business Method Patents causes Uncertainties:
The business method should be evaluated like the other patents because:
1. The only constitutionally permissible purpose of the patent system is to promote Science and useful arts and the same should be applied with respect to business method patents. E-commerce is no different than science.

2. Patent system provides incentive to the creator for his research & development and promotes further innovation.

3. Earlier economy was based on the means of production but today’s economy is based heavily on information and knowledge and business method patents are a natural protection for useful applications of information and knowledge. It would be ironic if the patent system, which has been essential in creating the current economy, now has no place in the Information and knowledge age.

4. Patent system will promote disclosure of inventions. Once the business methods are employed on the Internet in e-commerce, they can be easily copied and this will help to promote innovation.

5. A business method patent may be the sole asset of an Internet startup company, other than the accumulated knowledge of the personnel. It also helps up to value the startup company and gives a competitive advantage. Investors are more likely to invest in a startup company if the company is easier to value and is able to offer security for an investment in the company.

6. Priceline.com (much criticized business method patent – reverse auction system) offers an example of a business method patent providing an incentive to innovate; it lured hundred of millions of investment dollars to finance its attempt to practice its business method patents. Without the patent protection, the investors are not going to invest with Priceline.com

7. Adoption of copyright principles to evaluate patentability of business method adds unnecessary complications without providing a benefit.

8. The mere listing of patents and litigation is not a sufficient evaluation of whether business method patent provide a net benefit to the society.

The issue is still open-ended and needs some better approach to harmonize of dissimilar interests.

However, if we go minutely, we will find that patent protection for business method patents is available in virtually every major market of the world provided that the business method must utilize some tangible technology such as hardware embedded softwares. The solutions provided by such business method patents are making a contribution in the development. Considering the importance of Business Method Patents in the era knowledge economy where e-commerce is expanding at an enormous speed, the world leaders should arrive at a consensus and such a consensus will be beneficial for all the nations and further economic & scientific development.

Unwilling to relinquish control

State governments unwilling to relinquish control

The Supreme Court issued six directives in 2006 on bringing about police reforms in the states to make the police free from political interference and accountable to the citizens. Kathyayini Chamaraj analyses the state governments' responses and finds much amiss.



16 September 2007 - Large sections of the police in India have come to believe that the only way to perform their role of peace-keepers and protectors of common citizens, is to meet violence against the state with violence against the perpetrators, with all the weaponry at their command. So much so that torture or so-called third degree method is resorted to as a matter of course to make not only criminals open their mouth but also to make hostile witnesses reveal details about wrong-doers. Many such episodes result in custodial deaths.

In the policemen's eagerness to prevent anticipated violence or to ensure that justice is meted out to criminals, terrorists or even alleged anti-state activists, which they fear may not be possible through long drawn out court cases, they often feel that taking the law into their own hands and eliminating such persons in kidnappings and ‘fake encounters’ helps maintain peace and quickens the administration of justice. Worse is when such ‘preventive measures’ are aimed at persons who later turn out to have been innocent. All this may happen due to a policeman’s misplaced effort at ‘saving the nation’ from supposed dissidents, secessionists, ultras, etc.



Illustration: Farzana Cooper

It is well documented that the police often act on behalf of the powers-that-be or the ruling elite to maintain the status quo of discrimination and oppression against the exploited and powerless and quell their struggle for human rights by using violence against them. Worst is when the police become handmaidens of fundamentalist communal or religious forces, hidden within the political forces controlling the state - or are themselves motivated by communal or religious biases - and deliberately become participants in sectarian riots and attack innocent citizens, women and children, to ‘teach them a lesson’ for imagined wrong-doings.

All this and more has made it very necessary to bring in police reforms in India – to free them from political interference, make them accountable to an independent body and enable dispassionate enquiries to be conducted against their abuse of power and violations of human rights.

Directives for reform and the states' responses

On 22nd September 2006, the Supreme Court of India delivered a historic judgment, in Prakash Singh and Others Vs Union of India and Others, laying down six practical directives to kick-start the police reform process. The Court’s directives are binding on all state governments to frame appropriate legislation. The most important directives of the Supreme Court are Directives 1 and 6 on setting up State Security Commissions and Police Complaints Authorities. “These two directives constitute the most important and significant steps towards bringing a more reliable, functional and responsible police force,” says Shobha Sharma of the Commonwealth Human Rights Initiative (CHRI), which is conducting an awareness campaign on the reforms process.

Separate from the push coming from the Supreme Court, the Manmohan Singh government had set up a Police Act Drafting Committee (PADC) to draft a new Model Police Act, commonly known as the Soli Sorabjee Committee. The committee's work and its model Act also provides a sound legislative guide for state governments to follow in forming their own Acts.

According to analyses made by CHRI, Gujarat and Nagaland have questioned the need for a State Security Commission (SSC) as they claim that political interference in police administration is minimal and there is no unwarranted influence over the police.


Many states are under the process of drafting new Police Acts while some have already passed them. Many states have made statements that they support the spirit of reform behind the Court’s directives, but have made several arguments against immediate implementation of the apex court's directives, particularly in their current form. A point to note is the complete lack of transparency, community consultation or civil society input in this process by most states. In many states, members of the public are completely unaware that their state government is in the process of reforming the police laws.

The first directive of the Supreme Court on the police reform process is that States should constitute a State Security Commission to ensure that the State government does not exercise unwarranted influence or pressure on the police. The State Security Commission is also expected to lay down broad policy guidelines and evaluate the performance of the state police. In determining the composition of this Commission, governments may choose from any of the models recommended by the National Human Rights Commission, the Ribeiro Committee or the Sorabjee Committee.

According to analyses made by CHRI, Gujarat and Nagaland have questioned the need for a State Security Commission (SSC) as they claim that political interference in police administration is minimal and there is no unwarranted influence over the police. Andhra Pradesh, Gujarat and Uttar Pradesh have opined that setting up an SSC and giving it binding powers is likely to undermine the power of a constitutionally-elected government over the State police, lead to the creation of a parallel body which is not accountable to the people of the state and would infringe the rights of the state.

In an affidavit filed before the Supreme Court of India on 4 April 2007, the Chief Secretary of Karnataka State has mentioned that the state is in the process of bringing out its own Amendment Bill based on the Soli Sorabjee Model Police Act with certain changes and has filed a review petition before the Supreme Court requesting certain modifications in its directives.

The Amendment Bill of Karnataka has proposed the following composition of the State Security Commission: the Home Minister as Chairperson, and as members: the leader of the Opposition in the Legislative Assembly, the Chief Secretary to Government, the Principal Secretary, Home Department, a retired Judge of the High Court nominated by the Government, and two non-official members of known integrity nominated by the Government, out of whom one shall be a woman. The Director-General of Police is to be the Member-Secretary.

Shobha Sharma of the CHRI says that the Soli Sorabjee MPAD recommended five independent members in the SSC which have been reduced to two in the State's affidavit. The two non-official members are to be nominated by the government instead of getting nominated through an independent selection panel. The tenure of the non-official members is neither specified nor guaranteed. The retired judge in the committee’s formulation is to be nominated by the Chief Justice of the High Court in the Soli Sorabjee Model, but here the nomination is to be done by the government. There is a provision in the Soli Sorabjee Model, but no provision in the State Bill, to include the minorities, Dalits and backward classes as non-official members of the SSC. There is also no provision in the State Bill to have non-official members from NGOs.

"This is a point to be seriously noted by NGOs and other organisations and taken up with the State government. The Government needs to be pressed to increase the number of non-official members, fix their tenure and bring about a wider representation of various classes and categories in the formation of the State Security Commission," says S Akbar, Treasurer, Forum for Democracy and Communal Amity – Karnataka (FDCA), which is lobbying for a better Bill in Karnataka.

The second and third directives require the Director-General of Police to be appointed through a merit-based, transparent process. He and some other police officers are also to have a minimum tenure of two years. Andhra Pradesh, Uttar Pradesh, Gujarat and Nagaland have argued that a fixed two-year tenure for the DGPs, irrespective of their superannuation date, will block opportunities for other eligible senior officers, who will be demoralised. Further, the directives take away the right of the government to transfer police officers to meet administrative exigencies, they feel. Fixed tenure is not important for good performance and short tenure does not result in inefficient functioning feels Andhra Pradesh.

The fourth directive is that investigation and law and order functions of the police should be separated. The fifth directive stipulates that a Police Establishment Board be set up, which will decide all transfers, postings, promotions and other service-related matters of police officers of and below the rank of Deputy Superintendent of Police and make recommendations on postings and transfers of officers above the rank of Deputy Superintendent of Police. A Police Establishment Board will duplicate existing systems, would run contrary to the democratic functions of the government and result in the creation of a separate power centre, comprising bureaucrats who are not answerable to the people, say Gujarat and Uttar Pradesh.

States don't want Police Complaints Authorities

The sixth and last directive is very significant as it calls for the setting up of independent Police Complaints Authorities (PCA) at the State and district levels to look into public complaints against police officers in cases of serious misconduct, including custodial death, grievous hurt or rape in police custody. It is necessary especially to look into the role of the police during communal and religious violence. According to the Soli Sorabjee Model, the State-level PCA is to be chaired by a retired judge of the High Court or Supreme Court, to be chosen by the State government out of a panel of names proposed by the Chief Justice. It must also have three to five other members (depending on the volume of complaints) selected by the State government out of a panel of names prepared by the State Human Rights Commission, the Lok Ayukta and the State Public Service Commission. Members of the PCA may include members of civil society, retired civil servants or police officers or officers from any other department. Similar authorities are to be constituted at the district-level to be chaired by a retired district judge.

Nagaland initially maintained that the commission of excesses by the police is a very rare occurrence. Andhra Pradesh has opined that the establishment of Complaints Authorities may lead to the police being demoralised, failing to implement various laws and becoming ineffective out of a fear of being prosecuted by yet another agency. Gujarat, Uttar Pradesh, Andhra Pradesh, Karnataka and Tamilnadu feel that creating new District and State Complaints Authorities would duplicate the work of existing fora and would be a financial burden. It would cost over Rs.40 crores to the exchequer, says Karnataka.

Karnataka also states that there are five different independent institutions like the Lok Ayukta, SC & ST Commission, Backward Classes Commission, Women’s Commission and the Minorities Commission, which look into the grievances against the police personnel apart from the departmental committees headed by an IGP (Human Rights & Grievances) and that these state institutions “effectively and fully meet the sprit behind the directives issued by the Hon’ble Court regarding police complaints” and the government has already initiated steps for constituting the State Human Rights Commission. Never mind that all these existing bodies are toothless with only recommendatory and no binding powers.

In total negation of Directive 6 on the State-Level Complaints Authority, Karnataka has submitted that it shall consist of only currently serving officers, namely: the Chief Secretary to the Government as Chairperson, the Principal Secretary, Home Department, the Director General of Police, and a police officer nominated by the Government not below the rank of Inspector-General of Police as members and the Inspector-General of Police (Grievance Cell) as the Member-Secretary.

Status of compliance
Compliant: States reporting to the Supreme Court that they are taking steps to implement all directives.
Sikkim, Assam, Meghalaya, Arunachal Pradesh, Uttarkhand, Nagaland, Tripura.

Partially Compliant: States taking steps to comply with one or more directives, may have registered objections to some directives, and may have implemented some directives only partly. For example, set up a State Security Commission as per directive but altered the functions or composition somewhat.
Himachal Pradesh, Daman & Diu, Rajasthan, Punjab, Lakshdweep, Assam, Andaman & Nicobar, Bihar, Haryana, Orissa, Chandigarh, Jharkand, Karnataka, Kerala, Dadra & Nagar Haveli, Manipur, Mizoram, Pondicherry.

Non-compliant: States have registered strong objections to some or all of the directives and do not indicate any steps for implementing, have sought extensions of time with no details on concrete steps towards implementing or have said they are drafting new legislation therefore no steps have been taken to implement directives or are Union Territories reliant upon the central government for compliance.
West Bengal, Chhattisgarh, Andhra Pradesh, Delhi, Gujarat, Jammu & Kashmir, Maharashtra, Madhya Pradesh, Uttar Pradesh, Tamilnadu.

Source: CHRI


“As one can see, this is a total negation of the directive of the Supreme Court. The very basis of constituting an Independent Police Complaints Authority has been nullified,” says Shobha Sharma of CHRI.

On the proposal of Karnataka on Directive 6, members of the FDCA-Karnataka feel, that various organisations need to immediately approach the Supreme Court to oppose the review of this directive sought by Karnataka and compel the state government to form an independent Police Complaints Authority. “It is also necessary to implore the Supreme Court to issue a directive that no State government can deny an independent investigation into police action citing a national security operation or any other excuse. The orders of the independent PCA will have to be binding on the State government,” says Rafi Ahmed, General Secretary, FDCA.

Civil society groups recommend that the independent PCA should be manned by retired judges of the High Court/Supreme Court/ and members of NGOs. “It is also important to impress upon the Supreme Court to direct the State Government to either replicate the oversight agency in England called the Independent Police Complaint Commission, or establish a better one,” says Sheema Mohsin, Secretary, FDCA.

“Communities are the main beneficiaries of good policing and the main victims of bad policing - community and civil society participation in the process is essential if the police are going to be efficient, effective and accountable,” says Shobha Sharma of the CHRI.

Silver lining

The Supreme Court has recently dismissed petitions from five states that sought to review its directives. It has hence maintained its earlier firm stance on the states implementing police reforms. Furthermore, earlier in April this year, Nagaland changed its original stance significantly. The state had said in its first affidavit to the apex court that police excesses are minimal and it also queried the rationale for setting up a State Security Commission. In its most recent affidavit of 10 April 2007, Nagaland attached copies of government orders on implementing every single one of the directives

chances of data theft in outsourcing....,

India has successfully claimed a significant share of the offshore business process outsourcing (BPO) market, but recently, there have been allegations that call center employees there have stolen data entrusted to their employers. As a result, concerns have risen about the security of data held by Indian service providers, and companies that outsource to India are seeking out the remedies that are available to them to deal with and prevent the misuse of data in India.

Preventative Measures

The National Association of Software and Service Companies (Nasscom), one of the most recognized and vocal trade organizations in the IT software and services industry in India, has established several measures to address data security concerns regarding service-provider employees. Earlier this year, Nasscom launched a National Skills Registry for IT professionals to help employers conduct background checks by tracking certain information about employees, such as employment history. More recently, Nasscom announced plans to set up an independent, self-regulatory organization to set and monitor data security and privacy best practices by outsourcing service providers in India.

Service providers in India are also increasingly adopting compliance programs and comprehensive security audits, including personnel and equipment audits to prevent misuse of sensitive information and data. Compliance programs include training of employees to enhance awareness of confidentiality and of managers with regard to securing computer systems, common threats to information security, access-control techniques, risk assessment and management, intrusion detection, authentication and other issues. Enforcement agencies in India also work with business process outsourcers to conduct workshops aimed at improving employees’ knowledge and skills in the area of the misuse of data.

However, despite the preventative measures, non-Indian companies should still be aware of their remedies in the event of a data security breach in India.

Laws Relating to Data Security in India

The Indian legal system is substantially based on the British common law system. While there is no omnibus Indian data security law, there are several laws that apply to data theft or misuse in India. Typically, when an incident involving data occurs, a complaint is filed for theft, cheating, criminal breach of trust, dishonest misappropriation of data and/or criminal conspiracy under the provisions of the Indian Penal Code (IPC) of 1846 and for hacking under the Information Technology Act (ITA) of 2000. Many of these offenses under the IPC and the ITA allow for an arrest without a warrant, are nonbailable and carry penalties that range from one year to life imprisonment, as well as fines.

Moreover, certain offenses carry higher penalties when the offender is an employee, a public servant, a merchant, an attorney or an agent. For example, misappropriation of data by criminal breach of trust could lead to imprisonment for up to three years. However, when the criminal breach of trust is carried out by an employee -- i.e., if the data is dishonestly misappropriated and converted by an employee for his own use -- the penalty increases to imprisonment for up to seven years. Further, when the offender is a public servant, merchant, attorney or agent, the penalty can be as high as life imprisonment.

In addition to these criminal affairs, civil proceedings for copyright infringement under the provisions of the Copyright Act (CA) of 1957 and the Specific Relief Act (SRA) of 1963 are also typically initiated to prevent the misuse and dissemination of data. The penalties under the CA and the SRA can range from hefty fines and damages to temporary and permanent injunctions.

Over and above the laws currently in place, the Indian government is in the process of amending the ITA to deal with data privacy and security issues. The proposed amendments are currently being reviewed by the Ministry of Law, Justice and Company Affairs before being presented to the Indian Parliament. They include provisions that would empower the central government to make rules concerning control processes and procedures to ensure adequate integrity, security and confidentiality of electronic records and rules prescribing modes of encryption for data security.

Enforcement Procedures

There are several options open to a company that is dealing with a data misuse or theft incident in India. Generally, a criminal complaint under the provisions of the ITA, the IPC and the CA for theft, misappropriation or misuse of data and infringement of copyright is filed with the police station that has jurisdiction over the area where the security breach occurred. The local police officers, however, may not be in a position to properly investigate a data security incident, since not all officers are adequately trained to deal with cybercrime cases.

Thus, in the alternative, the criminal complaint can be made to Anti Cyber-Crime Cells set up by the state police departments. These Anti Cyber-Crime Cells have been established to investigate and prosecute cases of data theft and copyright infringement, as well as other cybercrime cases. Anti Cyber-Crime Cells of several state police departments organize training programs for investigators concerning data protection and use of advanced equipment to investigate data security incidents. In fact, the U.S. Department of State recently trained Indian cybercrime investigators on investigating techniques. The officers at Anti Cyber-Crime Cells have the power to seize infringing or stolen data by conducting searches and raids on the premises of the alleged offenders and can also prosecute the offenders in the criminal court that has jurisdiction over the police station where the complaint was registered. The law enforcement agencies also have the power to arrest offenders and keep them in custody during the course of the investigation and prosecution unless bail is granted to the offenders by the court.

If a company believes that the local police station and/or the Anti Cyber-Crime Cell do not have the requisite expertise to investigate a data security incident, the company may make a formal complaint with the Central Bureau of Investigations (the CBI) of the government of India under the provisions of the ITA, the IPC and the CA. The CBI is an autonomous agency and has professionally trained the Anti Cyber-Crime Units in various states to investigate data security incidents. If the officer investigating the complaint determines that a prima facie offense has been committed, he can register the complaint and file a charge sheet with the criminal court.

In addition, complaints alleging offenses under provisions of the ITA can also be made to the controller of certifying authorities. Upon receipt of a complaint, the controller of certifying authorities investigates allegations and can order punishment of an offender under the provisions of the ITA. Since the controller of certifying authorities is a quasi judicial authority, an appeal against its orders can be made only in the State High Court.

Finally, in addition to or in lieu of a criminal complaint, a civil suit seeking damages and an injunction to restrain the misuse and misapplication of data can be filed under the provisions of the CA and the SRA. A civil court can issue an interim temporary injunction pending final adjudication of the civil suit.

Issues in the Indian Legal System

While several measures have been put in place to deal with data security issues, some concerns still remain regarding the Indian legal system. Indian courts are overburdened – in 2005, the lower courts had over 20 million pending cases, while the high courts had over 3 million. Delays in the system are common, and an average case can take several years to be resolved. However, things are changing. Several measures are under way, and the prime minister and chief justice of the Indian Supreme Court have committed to dealing with the issues facing the Indian courts. Further, the system itself, while slow, works. More importantly, as previously discussed, several preventative measures are being put into place by the service providers themselves to deal with data security and privacy issues.

Conclusion

Unfortunately, data breaches have occurred and will probably continue to occur in many parts of the world. Fortunately for companies that have sent data to India -- whether via an offshore outsourcing or otherwise -- the government of India has responded to the concerns raised about data security issues, and proven methodologies have been used and refined to minimize the damage, punish the offender and deter the tempted. Obviously, there are many steps that a non-Indian company can and should undertake to minimize its risk. For example, it can conduct due diligence and risk assessments when choosing service providers, implement appropriate contractual measures designed to meet its objectives, monitor the service provider’s compliance and make adjustments to reflect modified risks. A combination of all these measures should go a long way toward minimizing both the incidence and consequences of data theft and misuse incidents in India.

India to impose severe penalties for human trafficking

India will impose "severe and exemplary" penalties on those indulging in human trafficking and launch a nationwide awareness campaign on the risks of illegal migration, Minister for Overseas Indian Affairs Vayalar Ravi said Tuesday.

Major amendments would be effected to the Emigration Act of 1983 to introduce a provision to prevent "human smuggling", Ravi said here.

"We are going to make the penalties for those who indulge in such crime severe and exemplary," he said while delivering the inaugural address at the consultation meeting of the National Media Coalition against trafficking.

Over 100 journalists from across the country, besides civil society activists and UN agencies participated in the meeting.

"In the next few weeks, we will launch a nationwide awareness campaign on the risks of illegal immigration," Ravi said, adding: "It must be remembered that illegal immigrants are most vulnerable to exploitation and abuse."

In this context, Ravi pointed out that his ministry's effort "has been to transform international migration into an efficient, transparent, orderly and humane process and at the same time to actively discourage and prevent illegal migration".

He also contended that a more equitable global development process will help combat the scourge of human trafficking and other associated trans-national crimes.

"We need to make globalisation and its benefits more inclusive. This simply means giving millions of people around the globe the hope that they have an opportunity to improve their quality of life," Ravi said.

"At the heart of the discourse on combating the scourge of human trafficking and other associated trans-national crimes is the need to make the global development process more equitable," he added.

Ravi noted that despite recent prospects of rapid economic growth in some of the highly populated developing countries, "the economic divergence between the rich and the poor countries is wider today than at any time in human history.

"Quite simply, we need to address the problem of a world profoundly divided between the haves and the have-nots. Indeed, those of us in government as also those in civil society must meet the challenge of inclusive development by which all people have access to a better quality of life - the challenge of the greater good of the greater numbers," the minister maintained.

Wanted to expand ur customer base ?

7 Marketing Ideas to Expand Your Customer Base and Profits

How do you grab people's attention, arouse their interest, trigger their desire, and motivate them to take action? Answer that four-part question correctly and you've identified the secret to achieving tremendous sales and marketing success in your chosen business or field. To complicate matters, however, the potential answers are as numerous and multi-faceted as the growing number of niche markets, products and services, and marketing trends in our culture. While not all inclusive, the following list of priorities and small business marketing tips can help put your small business on a faster track to growth.

Marketing Tip #1: Gain Customer Confidence. Customer indecisiveness, skepticism, indifference, or confusion are among the top sales killers in the business world. It's up to you to project an image of experience, quality, dependability, excellent customer service, and/or value to your prospective customers in order to win their confidence. If you haven't clearly communicated the advantages and solid reasons for them to do business with you, then they'll be hesitant to commit, and the sale will go to your competitor.

Marketing Tip #2: Penetrate awareness of your target audience by using some form of integrated marketing. In other words, the more ways the public hears about you, the better your chances are for achieving brand recognition, credibility, and greater market share. Effective marketing is partly the result of exposing your target group to your name and your selling points (unique selling proposition) as often as possible(frequency), in as many ways as possible, and as cost-effectively as possible.

Marketing Tip #3: Enthusiasm, in both print and in person, is contagious (and I'm not talking about using multiple exclamation points after sentences!!! That detracts from your credibility.) If you deeply believe in your products, services, your company, and yourself, then your prospects will pick up on that passionate attitude and feel confident and optimistic about doing business with you.

Marketing Tip #4: Purchasing is an emotional decision. Instill in your prospects good feelings about your company, your business relationship with them, and how you can improve their lives or solve their problem. Accomplishing that is at least as important in the sales process as focusing attention on product features and benefits.

Marketing Tip #5: Dispel distrust. Gain customer confidence and overcome potential feelings of distrust by offering written guarantees of satisfaction, customer testimonials, references, and by joining respected and well-known professional organizations, such as the Better Business Bureau, Chambers of Commerce, and industry associations.

Marketing Tip #6: Impose a deadline. Counteract one of the biggest obstacles to closing a sale known to mankind: procrastination. To overcome the natural human tendency to deliberate, postpone, and delay, it's often necessary to inject a sense of urgency into your ads, sales presentations, and marketing messages. Whether supplies are limited or prices are going up at the end of the month, some prospects need to have a deadline or an incentive to motivate them to take action now.

Marketing Tip #7: Create a business marketing plan to identify and capitalize on your strengths and opportunities. Your strategic plan should also take into account factors such as your weaknesses (and possible remedies), external threats (competition, economic factors, etc.), your marketing mix strategy (products/services, promotional goals, pricing strategy, and distribution decisions), media strategy, sales and expense budgets, and target market analysis (know your customers).

Joel N. Sussman, an upstate New York business writer, newsletter publisher, and Internet marketer, has created an online small business resource, called “Marketing Survival Kit.com”. Get access to hundreds of free and affordable business marketing ideas, strategies, and tools by visiting www.marketingsurvivalkit.com


Implimenting is also an important factor int his.., more than reading implimenting is a better one.

cheers
sumi

WTO

INTELLECTUAL PROPERTY


WTO: Impact on IT Sector
By Justice Yatindra Singh
Cite as : (2003) PL WebJour 9


WTO

It was around the middle of the last century (1945), Germany was losing, and World War II was coming to an end, that some economists held a conference in Breton Woods, Hampshire, USA to improve economic order. They thought the world would be a better place if there were three international bodies, namely,

(i) to solve monetary/currency problems,

(ii) for reconstruction and development of nations, and

(iii) to harmonise tariffs and international trade.

The first and the second were established and are loosely known as the International Monetary Fund (IMF) and the World Bank, but the third one to be known as the International Trade Organisation (ITO) never took off. US Congress did not approve it and without their support it was not possible to establish it. But all was not lost; representatives of 56 countries again met in Havana (1948) to formulate principles to be followed by nations to improve international trade. This formed the basis for signing up a General Agreement on Tariff and Trade (GATT) in Geneva by the end of the same year. The contracting nations also resolved to form a Board of Trade with a Secretary General to look after its further revision and implementation; thus ended the first round of GATT. Legally, GATT was not a formal organisation, but an agreement entered into by contracting nations.

Broadly, GATT dealt with reducing tariffs and improving trade among the nations, though there wasn't any dispute settlement mechanism. A few more rounds were held and it was the eighth round (started in 1986 with the meeting in Uruguay) that led to creation of the World Trade Organisation (WTO). It was in this round that US sought inclusion of a few other items, among others, *

Trade related to intellectual property rights. *

Trade related to investment measures. *

Trade related to service. *

Agricultural subsidy. *

Dispute settlement mechanism.

The eighth round continued for seven-and-a-half years and it often appeared that agreement would not be reached. But ultimately a draft of proposals was prepared under Secretary General Mr Arthur Dunkel and came to be known as Dunkel Draft. It was debated and most of it was approved in December 1994 by 125 countries in the meeting held in Marrakech (Morocco). Among the others it meant, *

Establishment of WTO, trade policy review body and dispute settlement body, and *

Accepting the agreements forming the basis for international trade.

Thus WTO came into existence on 1-1-1995.

All the WTO agreements (except for a few plurilateral agreements) apply to all WTO members i.e. a member has to accept all of them; it cannot choose. These agreements provide with certain minimum standards to be observed by members and keep trade policies of the members within agreed limits. Among the other agreements, two are:

(i) General Agreement on Trade in Services (GATS).

(ii) Agreement on Trade Related Aspect of Intellectual Property Rights (TRIPS).

Information technology depends upon hardware and software and it provides services relating to information. Any changes in these areas would have impact on IT sector:

(i) In 1996 some member countries of WTO also entered into Information Technology Agreement to reduce tariffs to zero on items related to information technology. India is also one of the signatories to Information Technology Agreement and is to reduce tariffs on it by 2005. This will affect the hardware sector.

(ii) GATS relates to services; much is to be done in this area. This will have impact on IT sector, as services are its main forte.

(iii) The third aspect relates to intellectual property rights (IPR) and is covered by TRIPS.

We will discuss the third aspect in some detail.

Intellectual property rights (IPR)

"What is worth copying is prima facie worth protecting"1 is the genesis for the intellectual property rights. These rights refer to the property that is a creation of the mind. It is broadly divided into two categories: *

Copyright, which includes literary and artistic works such as novels, poems and plays, films, musical works, drawings, paintings, photographs, sculptures and architectural designs. *

Industrial property, which includes inventions (patents), trademarks, industrial designs and geographic indications of source.

In India intellectual property is protected under five different Acts, namely, *

The Copyright Act, 1957; *

The Patents Act, 1970; *

The Trade Marks Act, 1999; *

The Design Act, 1911; and *

The Geographical Indications of Goods (Registration and Protection) Act, 1999.

One more Act titled "The Biological Diversity Bill, 2000" is in the pipeline. There is another area of intellectual property known as "trade secret" but as the name suggests, it is a secret formula or process known to certain individuals that is not registered under any intellectual property law. It does not prohibit anyone else to find it out or develop it who did not know the secret. Nevertheless an employee who has gained knowledge may be prohibited in using it on the ground of breach of confidence, or trust. This is still a part of common law and is so protected under Section 16 of the Copyright Act. It is also so provided in Article 39 of TRIPS. Among different areas of intellectual property two, namely, copyright and patents have impact on software industry.

Computer Program and Copyright

Source code and object code

Computers do not understand our language. They only understand "machine language" or "machine code" i.e. instructions which consist of a series of 0s and 1s. A suitably trained or skilled programmer can write a program in machine code for a computer. But the process is slow and tedious and the program, although intelligible to the computer, will be virtually unintelligible to anyone except an equally skilled programmer. From the early days of computers, an alternative language for writing programs, known as "assembler language", was devised. While assembler language had advantages over writing a programme in machine code, it still required many instructions to be written in order to achieve the simplest tasks. A number of high-level languages such as BASIC, Fortran, COBOL, Pascal etc. have been devised in order to simplify the work of a programmer. The use of these high-level languages enables a programmer to write a program in terms, which nearly resembles ordinary English than those used in lower-level languages. They also permit complex operations for the computer to be directed by a relatively compact command. The programs as written by a programmer are known as the source code. When an assembler or a compiler converts them into machine code, they are known as the object code. This conversion is one-way. It is not possible to convert object code into source code.

The question, whether source code and object code both are protected by copyrights or not, has troubled the courts and has been differently answered by them. The Australian High Court in 1986 held that the source code is a literary work and is protected as a copyright. But no such protection was given to the object code. The majority held2:

"I have not found anything ... that has persuaded me that (the object code) a sequence of electrical impulses in a silicon chip not capable itself of communicating anything directly to a human recipient, and designed only to operate a computer, is itself a literary work, or is the translation of a literary work within the Copyright Act."

Amendments in the Copyright Act

The Berne Convention, 1986 (for protection of literary and artistic works) provided that computer software (object code and source code) and compilation of data be protected under the Copyright Acts. TRIPS has proceeded from the Berne Convention and Article 10 of TRIPS requires members to amend the laws accordingly. Since then, we have amended the Copyright Act by two amending Acts, namely, Act 38 of 1994 and Act 49 of 1999. These amending Acts amended Section 2(o) of the Copyright Act to change the definition of the words "literary work". It now includes computer programme as well as computer database. The result is that not only the computer programs (subject code as well as object code) are protected but computer database is also protected as a copyright. In India infringement of a copyright is a penal offence and civil remedies (injunction, damages etc.) are also available (TRIPS Articles 41 to 50, 61). By the two amending Acts consequential amendments were also made in other sections to make enforcement more realistic.

Article 11 of TRIPS mandates members to provide authors with right to authorise or to prohibit commercial rental of at least computer programs and cinematographic works. This has also been so provided under Section 14(b) of the Copyright Act.

Some are using copyrights so that no one may have any rights in software; they copyleft it. In open-source software or free software, source code and object code are freely available to be used, modified and improved. In order to copyleft it, the owner first states that it is copyrighted and then adds distribution term that gives everyone the right to use, modify and redistribute (original or modified programme) only if the distribution terms are unchanged: modified version (source code and object code) are freely available and could be further modified and distributed only on the same terms. Not all open-source software is copylefted; it could be non-copylefted. This depends on the terms of the licence of the software. There are different kinds of licences. General Public Licence (GPL) contains a condition that copylefts software. Such software, under GPL licence, is also known as GPLed software.

Business Methods, Computer Programs and Patent
Patent rights are stronger rights than copyrights and like copyright laws, differ from country to country. Article 27 of TRIPS, read along with the footnote, provides that patents may be granted for inventions (process or end product) that are new and useful: they should not be obvious or frivolous. Laws of member countries are similar. If a patent is for a process for a known result then any other person may take out patent for another process for arriving at the same result. But if it is for the end result and describes a process then the patent is entitled to protection against other processes for arriving at the same result. In India, unlike copyright, only civil remedies of injunction and damages are available for infringement of a patent. TRIPS mandates members to provide criminal procedures and penalties in case of wilful trademark counterfeiting or copyright piracy on commercial scale but not for violation of patents (Article 61).



Section 3 of the Indian Patents Act explains those that are not inventions. There is no such limitation in the US law as the Congress intended to include anything under the sun that is made by man but the US Supreme Court in Diamond v. Chakarbarty3 held:

"This is not to suggest that ... law has no limits or that it embraces every discovery. The laws of nature, physical phenomena, and abstract ideas have been held not patentable. Thus a new mineral discovered in the earth or a new plant found in the wild is not patentable subject-matter. Likewise, Einstein could not patent his celebrated law that E=mc2; nor could Newton have patented the law of gravity. Such discoveries are manifestation of nature free to all men and reserved exclusively to none."

The US Supreme Court in Parkar v. Flook4 also held that a method for updating alarm limits during catalytic conversion, which is a mathematical formula, is not patentable.

The Patents Act in India or in US neither specifically refers to programs for computers nor to the business methods. The US Supreme Court in Gottschalk v. Benson5 held that a method for programming any type of general purpose digital computer to convert binary-coded decimal numerals into pure binary numerals—not being limited to any art or technology or to any particular machinery or to a particular end use—is not a process, capable of being patented: algorithm itself can not be patented. The result is that computer software may not be patented in its own right but what would be the position if it were a part of an industrial or business process?

Industrial process

Diamond v. Diehr6 (the Diehr case) was a case involving a process for curing rubber that included a computer program.7 The court by a 5:4 decision held that a patentable claim does not become unpatentable merely because it uses a mathematical formula, computer program or a computer. In short, a computer program may not be patentable as such but may be patentable as a part of an industrial process.

Business methods

Traditionally, the only kinds of processes that could be patented were those concerned with technology. Many other activities including business methods or data analysis which one would consider processes were excluded from patents. But since the Diehr case there has been a shift in US. US Patent and Trade Office (USPTO) has issued Manual of Patent Examining Procedures containing guidelines for patenting inventions. Its earlier policy for computer-related inventions para 706.03(a) was as follows8:

"Though seemingly within the category of process or method, a method of doing business can be rejected as not being within the statutory clauses."

This was deleted and a new paragraph para 706.03(a) was added:

"Office personnel have had difficulty in properly treating claims directed to methods of doing business. Claims should not be categorized as methods of doing business. Instead such claims should be treated like any other process claims."

This was noticed by the Court of Appeals in US in State Street Bank v. Signature Financial Group (the State Street case)9 and the Court held that:

"Whether the claims are (patentable or not) should not turn on whether the claimed subject-matter does 'business' instead of something else."

The Court also held that:

"To be patentable an algorithm must be applied in a 'useful' way. ... We hold that the transformation of data, representing discrete dollar amounts, by a machine through a series of mathematical calculations into a final share price, constitutes a practical application of a mathematical algorithm, formula, or calculation, because it produces a useful, concrete and tangible result."

In short, the law in US is that, "an abstract idea by itself never satisfies the requirements of patent law. However, an abstract idea when practically applied to produce a useful, concrete and tangible result satisfies it". Today, USPTO has one chapter on patent business methods and is granting patents to software techniques for business methods and data analysis if they are useful. Australia and Japan have also followed suit. Some examples of patents of business methods are: single click to order goods in an online transaction; an online system of accounting; online rewards incentive system; online frequent buyer program; and programs letting customers setting their own prices for hotel bookings etc.

The European Patent Convention, 1973 specifically states that "schemes, rules and methods for performing mental acts, playing games or doing business, and programs for computers" will not be regarded as inventions Article 52(2)(c). This is also the law of member countries of the European Patent Convention and computer programs and business methods cannot be patented there. However, in practice, the approach has changed. The applications for patents are now considered if presented as producing technical effects (i.e. programme for speeding up image enhancement) rather than as claiming abstract programs or business methods.

The European Commission in February 2002 unveiled a new approach to software patents, which may draw US criticism, as it would set tougher criteria in Europe for granting of a patent. The proposal, which aims to standardise a variety of software patent rules across the fifteen-member EC bloc, requires that software contain new ideas to qualify for patent protection. In addition, patents would apply only to software loaded on a machine or connected to an operating system. It is different than US patent rules, which permit patents for software independent of machines and which do not necessarily require innovation. These proposals have yet to be approved by European Parliament and EC member States.

The law whether computer programs are patentable per se or in conjunction of business methods is still in a flux. In US "the Business Method Patent Improvement Act of 2000"10 was introduced in the Congress on 3-10-2000 and would apply to all pending applications as well as to all patents issued. It will restrict the ability of USPTO to issue business method patents and among others would create a presumption of obviousness where a computer has been used primarily to implement a known business method. It is not yet passed and many feel that it may never be passed. Perhaps this could be one of the points of discussion in WTO.

Conclusion

In 1999, Michael Lewis wrote a book on the success story of the Silicon Valley entitled The New New Thing: a Silicon Valley Story. The most quoted line from this book is: "The definitive smell inside a Silicon Valley start-up was of curry." Let's hope—with better understanding of WTO and its impact on IT sector—not only inside a Silicon Valley start-up but also the operating system of e-commerce will smell of curry.

Disclosing of caste is no more a compulsion during school admissions...

Whenever people talk about India they really wonder about the numerous culture that prevail together with multi caste and community, and i would proudly propound that India is a country with Unity in Diversity.

But many times i use to wonder why government use to ask about caste and community in many application forms that we use to fill. Though i understand that sometimes backward people do need to get more privilages.School is the first place where we learn that there is no caste and all men are equal but i ve always had this question then why do they have caste colomn in the application form. I Know that many people have the same kind of question ?.., now in a recent supreme court judgement this was answere.


The Supreme Court observed that no school in the country can compel a child to disclose his caste at the time of admission.

A bench headed by Chief Justice K.G. Balakrishnan made the observation, saying the disclosure of one's caste could only be optional and not mandatory.

The bench dismissed a plea by an 81-year-old Gandhian from Tamil Nadu, Salemvelu Gandhi alias Velu, while yet terming the petition as having "laudable objectives".

The Gandhian had sought the court's direction to schools against seeking information about a child's caste at the time of admission, and pleaded this perpetuated casteism in the society.

The court said it was constrained to dismiss the petition owing to the practical difficulties in issuing the directions as several castes, including the Schedule Castes and Tribes and the Other Backward Classes, depend on the caste certificate issued by schools to avail the benefits of various affirmative actions of the state.

The bench said it cannot pass any direction on the issue as it would create problems for those who want to avail free scholarships and other benefits.

This is a very good step towards the justice.

cheers
sumi

From when u started using a Deo .., ?

Have u ever wondered from when u started using a body spray or deodrant?.., a haircolor, fairness cream or a hair gel instead of hair oil...., think..., and u ll find that more than 70 to 80% of individuals get influenced by the advertisements.
In this modern world advertisements influence people a lot especially between the age group 16 to 30. As i told earlier deodrants started to sell in a very huge numbers and the companies never expected that, behind that huge sales there were lots of things to be considered and market researches etc. A detailed market study will be taken about every single product before and after the lauch of that product. Now let us see a detailed case study about the growth of deodrant market and how advertisements palyed a major role in it.



An impossible task
No one could have imagined that deodorants would become a 1000 tonne market in India by the millennium. Not because the need was not strong, but because it has always been a monumental marketing task, converting people from an old to a new way to meet a primary human need.
In this case the need was to smell good. India being a high-perspiration market and one where body odour (BO) sensibilities have always been sharp. Camouflage products have always done well and for several decades a ritualised Indian existence included the usage of a perfumed soap and talcum powder combination. So when Hindustan Lever (HLL) decided to create a market for specialised deodorants with the launch of Rexona in the mid 90’s, there was much scepticism.
However, the marketing pundits were proved wrong when the market itself grew from nearly nothing in 1995 to 308 tonnes in 1997 and was 616 tonnes in 1998. Other brands joined in, but the market creator’s share stood at 57% in the initial years.

What did Lever’s do right?
HLL understood the Indian market. It had a gut-level understanding of the precise coordinates of the target consumer on a two variable map (conservative-liberal scale on one axis, monetary tightfistedness on the other). They also had a feel of how quickly this was changing, how the transformation could be hastened and what could play the catalyst. That they had the marketing acumen, no one doubted, because back in the mid 90’s Rexona was not the first deo to be launched. Baccorose was selling it’s Copper for men, with sensual ads that went ‘Before you get close, get Copper.’ This was an aerosol spray deo, priced at Rs 200 for a 150 ml can. Fa, aimed at women, was the other brand in the fray. Neither of these had made a splash.
HLL realised that Copper and Fa were aiming for those who understood the deodorant as being distinct from a perfume, and also the product’s advantage over the old soap-talc combination. Those who already knew the function of a deo. They aimed the product at a market which already knew that that a deo delivers lasting BO freedom (all through the day) because it doesn’t merely mask BO, but it actually prevents it.
But the majority of Indian consumers couldn’t guess it at the time, and that was why the two pioneers remained insignificant, even as the Indian talcum powder market stood firm at a huge 24,764 tonnes.

Market creation
HLL understood that selling a deo would require market creation and it was important to disseminate information. So HLL’s market approach was different. Research had shown that only 10 per cent of the target population had any awareness of deodorants, and a few felt that BO was their own private business!
HLL understood that pitching a deo on a high-sensuality platform at this stage could botch up it’s chances for a wide consumption base. And that was what the company wanted: to enter the bathroom cabinet of the relatively conservative Indian household.
So that was why the advertising had a good, clean, family setting - to sell the primary benefit. They knew that the time to do a ‘close-up’ of the product benefits would come only later, once it had achieved a multi-generation approval.

Developing a mass market
HLL was keen on ‘step-up ladder pricing’. It wanted to attract people beyond the Indian elite. The latter in any case were already tuned in to using products like Old Spice, Denim, and other foreign brands. Thus it was the uninitiated Indian consumer that HLL wanted to target, a consumer who was contentedly using the soap/talc combination, a consumer who used perfume only occasionally. Fragrance sensitivity was an important factor as this was often a matter of consensus between the husband and wife. That was why it chose the brand: Rexona. Rexona was known in India as a soap although globally it was an anti-per spirant brand.
Actually that was what HLL wanted to launch first…the Rexona anti-perspirant. But they realised that an anti-perspirant would baffle people even more than a deo. Besides, an anti-perspirant doesn’t really stop all perspiration, and in a hot sweaty environment that India had, there was a risk that it would be labeled as a non-performer.

Test Launch and National Launch
The first task was to ensure that Rexona deo was not mistaken for a light fragrance. Secondly the company had to break the price barrier and ensure widespread trials. Thus Rexona deo was test-launched in April 1995, in Tamil Nadu, a state reckoned to have a large number of early-adaptors. It was launched as a push-up stick and a pump spray. An aerosol, being an alcohol-based can, was thought to prove expensive.
Post-launch research showed that while the concept had sunk in, the benefit-delivery package needed –re-tuning. The pump spray, which was priced at Rs 85 for a 50 ml container was not seen as value-for-money. HLL decided to phase it out and replace it with an aerosol can, which was convenient and only slightly more expensive.
For the national launch, HLL also came up with some packaging innovations that brought the prices down. The push-up stick was able to attain the magic price of Rs 1/- per gm and the 20 gm pack was priced at an affordable Rs 20. This was as open-armed that a deo could get!

Advertising problems
The television commercials, which went on air in 1996, centered around the acceptance-rejection (of a person) theme, in an attempt to sell the need to fight BO through means more effective than the regular soap/talc combination. Reminiscent of what Colgate had initiated in the Indian market for toothpaste (wife turns face away from husband because of his bad breath), the commercials had someone turning away from a someone with BO. However while bad breath was acknowledged to be a problem, BO was not considered such a bugaboo. Market Research showed that the consumer found it impolite to turn away in the manner depicted. So while awareness of BO was growing, Rexona’s sales were not!
Rexona’s communication approach needed fixing. As market research had indicated that most people were reluctant to acknowledge that they had a BO problem, and HLL decided to tackle this head on. The new ads showed that it was nothing to be ashamed of, that even the most charming, well-dressed an sophisticated people could have BO, without realising it! This was because the nose picks up only new, unfamiliar smells. However the BO could lead to considerable sniggering behind the person’s back.
The first TV spot showed someone sneaking up behind a small boy and clasping her hands over his eyes. He guesses her to ‘Shilpa Aunty,’ only because of the small from her armpits. In the second commercial, a boss overhears his junior wanting to buy a deo for him as a gift. In the third, a young girl is horrified on overhearing colleagues talk about BO. Result: awareness of BO started spreading amongst the youth like wildfire and there were collegians who even became anxious about how they smelt. It was interesting the way the commercials drew attention to BO without having to show the boy-girl situation.

The Applicator strategy was revamped too.
HLL wanted to deliver Rexona’s benefit as affordably and conveniently as possible. As mentioned earlier in April 1997 when Rexona was launched the roll-on was at Rs 35 for 40ml, and the original 20gm stick was just Rs 21. The roll- on and the stick, while cheaper, did fine with young males but these products were not fully able to overcome the female consumers innate aversion to a product that touched the body. What HLL did was launch in aerosol cans, priced at Rs 65 for 75ml and Rs 95 for 150ml ( less than half of Copper). This price was a coup as sorts for the company, since rivals were not able to match it. HLL attributes the price mainly to economies of scale, HLL being a big buyer of aerosol applicators. The big trial-getting move however was a simultaneous launch of a 5gm stick for just Rs 5. This was designed to get all and sundry into giving the deo a shot. It was test-marketed in Tamil Nadu and Kerala. And it worked.
And once it was launched nationally the deodorant category started growing feverishly. Within the year the stick form accounted for as much as 40% of Rexona deos volumes!

Some more hiccups
By the end of 1997 HLL deo team was sure that the market was well on it’s way. However the team rapidly realised that while it was working hard to spread the BO message, other products were hitching along for the ride. While the market volumes grew as the advertisement campaign converted deo non-users to users, Rexona’s market share stagnated. Light perfumes started flooding the market under the garb was ‘body sprays’, hoping to cash in on the growing demand for BO –fighters.
HLL wasn’t terribly worried since the market was still miniscule (308 tons in 1997) by global standards. The real fight was against age-old talcs and that was the market HLL was eyeing. They knew that a sharper strategy was needed.

Re- launch
The market for talcs operated on fairly sophisticated segmentation principles. Some brands sold a set of general fragrance values ( Ponds Dreamflower, Old Spice) and others operated on a partnership with bathing soaps such as Liril and Cinthol. These products had gone far beyond the reason-why stage and were selling on the basis of higher order intangible benefits as well. The volume base was large enough for such refined consumer-targeting.
Thus, in May 1998 HLL re-launched Rexona deo, splitting the range into two variants – Fresh Green and Cool Blue. This time the communication took a step ahead. It played down the social cost of BO and spoke specifically of the Deo’s advantage over talc: durability. Rexona was effective throughout the day, while talc was not. The net benefit : body appeal confidence.
A series of 6 second commercials showed a boy and a girl sitting in the pavilion watching a cricket match. As the day progresses, Rexona is shown to be ‘still working’. The voiceover : ‘talcum ka asar char ghanto mein gayab. Rexona, ghanto tak suraksha de’. The new advertising also brought out the value-for-money equation. The pitch: a deo that lasts long is worth more per application than a talc.

Re-crafting strategy
The brand also re-crafted it’s strategy to focus more sharply on a young target – the 16-20-year old. This ‘magic age’ (since everyone wants to be here) is also considered the one that’s most conscious of the benefits of smelling good. Best of all, the post-adolescent, pre-marriage gender interaction in this age group is quite cool, unlike a generation or two earlier. This holds out immense potential for deos.
The secondary target audience ofcourse goes all the way upto 35, since people stay vanity-conscious well into their 30’s. People older than that, went the reasoning, wouldn’t be adopters of a new concept. They wouldn’t suddenly grow conscious of BO and seek any better remedy than what they’ve been using all these years.
HLL re-designed the pack to look suitably vibrant as this audience gets put off by fuddy-duddy products rather too soon.
HLL realises that talcs would not easy to edge out. In fact that may never happen in India – the land of a million co-existences! In fact, it is believed that talc is likely to survive even with the ‘happening’ crowd.

Targeting the youth
An increasing number of products are being aimed at the youth these days and that’s natural as a quarter of India is currently in the 16-24 age group, and this fraction is projected to rise rapidly.