A new and stronger intellectual property law in Nepal is in the offing.

Nepal’s Ministry of Industry, Commerce and Supplies has drafted the Industrial Property Bill, which will replace the Patent, Design and Trademark Act of 1965, and submitted it to the Cabinet in January 2025. The bill is now under review.

“It represents a landmark legislative initiative for Nepal. This new bill is significantly more comprehensive and modern, reflecting developments in international intellectual property law and Nepal’s commitments, [such as those] under the WTO TRIPS Agreement,” said Ram Chandra Subedi, founding and managing partner at Apex Law Chamber in Kathmandu.

Among the Industrial Property Bill’s main features and new provisions are the following:

• Chapter 3, Sections 23-26 – provides a new form of protection for minor inventions or technical improvements that may not be patentable.
• Chapter 6, Sections 60-72 – provides a framework for geographical indications (GI). GIs protect goods originating from a specific geographical area, where local environmental conditions and skills contribute significantly in producing goods with the level of quality they are known for.
• Chapter 7, Sections 73-80 – offers protection for the three-dimensional configuration of electronic circuits. According to Subedi, this is a completely new area of IP protection in Nepal.
• Chapter 8, Section 81 – provides for the protection of commercially valuable confidential information or trade secrets. “The old act had no specific provisions,” said Subedi.
• Chapter 9, Section 82 – contains provisions for the prevention of acts of competition contrary to honest practices in industrial or commercial matters.
•  Chapter 10, Sections 83-84 – introduces mechanisms for the identification, documentation, protection and benefit-sharing related to Traditional Knowledge and Traditional Cultural Expressions. “This is a major addition reflecting contemporary global discussions,” shared Subedi.
• Chapter 11, Section 85 – includes provisions relating to the use of genetic resources in inventions and requirements for disclosure of origin.

“[The bill] empowers businesses, innovators and local communities promoting economic dynamism and ensuring the preservation of Nepals rich intellectual and cultural assets. The bill lays the groundwork for a stronger innovation ecosystem, contributing to the country’s future prosperity and global position,” said Subedi.

- Espie Angelica A. de Leon