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Case study · Erode

The day India won back its haldi: a ₹5 lakh case against a US patent

In 1995 an American medical centre was granted a US patent for healing wounds with turmeric. India challenged it, and in 1997 it was revoked. The lesson reached Erode’s turmeric merchants.

3 min read · 2 sources · Public information only

1995

A patent on grandmother’s remedy

In March 1995 the US Patent Office granted the University of Mississippi Medical Center a patent for using turmeric powder to help wounds heal. In Indian homes this had been done for generations: a pinch of manjal on a cut.

1997

The challenge

India’s Council of Scientific and Industrial Research (CSIR) filed an objection. Its lawyers showed that turmeric’s use in healing wounds was part of India’s traditional knowledge, long known and used, so it could not be a new invention. On 13 August 1997 the patent was revoked. CSIR had spent about ₹5 lakh.

CSIR’s chief, R. A. Mashelkar, said it appeared to be the first time a developing country had successfully challenged a US patent on its traditional knowledge.

Traditional knowledge cannot be taken away, if the case is argued well.
2011–19

Erode protects its own name

The lesson was clear: if you do not protect what is yours, someone else may claim it. The Erode Turmeric Merchants Association applied for a geographical indication, and after an eight-year process, in March 2019, “Erode turmeric” became a GI. Only turmeric from this region may now be sold under that name.

Points for a finance reader

  • Write down what you know. The patent fell because India could show the knowledge was old. Know-how nobody has recorded is easier for someone else to claim.
  • Protection costs little next to loss. ₹5 lakh defended a remedy used by crores of people.
  • A name is an asset. A GI tag lets a region charge for its reputation.

Sources

  1. Business Standard: US revokes haldi patent (25 Aug 1997) ↗
  2. Wikipedia: Erode turmeric ↗

Figures are as published by these sources on the dates shown. They are not our estimates. Where a figure is old, it is the latest we could find from a public source.

Written by Boovaraghavan & Co., Cost Accountants, as part of our notes on Tamil Nadu industry. Write to us if you spot an error or have a question about costing in Erode.