Government to Start Electronics Repair Pilot Project; Will Test Easing Rules to Lure Manufacturers

India will start a pilot project this week to establish itself as an electronics repair hub by relaxing cumbersome import-export rules, a move that could draw tech majors such as Flex to expand such operations in the country.

Prime Minister Narendra Modi has promoted electronics manufacturing in India and attracted the likes of Apple and Xiaomi, but the country still lacks an industry for repair outsourcing which is estimated to be worth $100 billion (roughly Rs. 8.2 lakh crore) globally and currently dominated by China and Malaysia.

Following a push by an industry group for IT and electronics manufacturers, MAIT, the Indian government will test changes to lower the time required for necessary approvals for imports and exports to a day from as much as 10 days.

MAIT Director General Ali Akhtar Jafri said the government has agreed to ease the approval process for timely clearances with the tax authorities so that devices can easily enter India for repairs and then be shipped back quickly.

Bottlenecks in India also include an e-waste mandate that bans companies from locally disposing non-repairable products – adding to their logistics costs as they have to be sent back. The government will now allow recycling of 5 percent of imported goods domestically on a trial basis.

In the pilot phase, which will see participation from companies including Lenovo and Cisco, India will also permit re-export of the imported electronics goods to countries different from the original one – currently it is banned under foreign trade rules.

Flex, Lenovo and Cisco did not immediately respond to Reuters’ requests for comment. India’s IT ministry also did not immediately respond.

“Repair outsourcing will incentivise electronic manufacturers to further expand their production capabilities in India. This is a critical step towards ensuring resilience to supply chain shocks,” said Jafri, who estimated the repair industry in India to be worth $20 billion (roughly Rs. 1.6 lakh crore) in five years.

High repair costs in regions such as Europe and the United States are compelling companies to send goods overseas, Jafri said. He added that cheaper labour costs in India give it a total cost advantage of 57 percent over China and 26 percent over Malaysia – some of the biggest hubs for repairs at present.

© Thomson Reuters 2023


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Apple, Google Can Challenge US Patent-Review System, Court Rules

Apple, Google, Cisco Systems and others can sue the US Patent and Trademark Office to challenge a rule that reduced the number of patent-validity proceedings at a USPTO tribunal, a US appeals court said Monday.

The US Court of Appeals for the Federal Circuit reversed a California federal court’s decision to dismiss the companies’ lawsuit and said the agency may have failed to go through a required public notice-and-comment rulemaking process.

The PTO declined to comment on the ruling.

Google spokesperson José Castañeda said the company appreciates the decision and looks forward to making its case at the lower court. A Cisco spokesperson said the ruling reinforces that the PTO’s patent review proceedings are “an important vehicle to preserve a balanced patent system, protect innovation, and assure patent quality in the United States.”

Representatives for the other plaintiffs did not immediately respond to requests for comment.

The PTO’s Patent Trial and Appeal Board is popular with big tech companies that are often targeted with patent lawsuits and that use the board’s “inter partes review” process to contest patents they are accused of infringing. An internal rule that gave the agency’s judges greater discretion to deny inter partes review petitions “dramatically reduced access” to the process, the companies told the appeals court.

Apple, Google, Cisco, Intel and Edwards Lifesciences sued the PTO in the California federal court in 2020 over the rule. They argued it undermined the role inter partes review plays in “protecting a strong patent system” and violated federal law.

Companies including Tesla, Honda, Comcast and Dell filed briefs at the Federal Circuit in support of the plaintiffs.

The California court dismissed the case in 2021, citing US Supreme Court rulings that Patent Trial and Appeal Board decisions on whether to review inter partes review petitions cannot be appealed.

The Federal Circuit also rejected the companies’ arguments that the rule was arbitrary and violated US patent law. But the three-judge panel said the PTO may have been required to hold a period of public notice and comment before making the rule, and that it could be challenged based on that argument.

The case is Apple v. Vidal, US Court of Appeals for the Federal Circuit, No. 22-1249.

© Thomson Reuters 2023


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Global Tech Industry Body Seeks Revision in India’s Directive on Reporting of Cybersecurity Breach

US-based technology industry body ITI, having global tech firms such as Google, Facebook, IBM and Cisco as its members, has sought a revision in the Indian government’s directive on reporting of cyber security breach incidents. ITI said that the provisions under the new mandate may adversely impact organisations and undermine cybersecurity in the country.

ITI country manager for India Kumar Deep, in a letter to CERT-In chief Sanjay Bahl dated May 5, asked for a wider stakeholder consultation with the industry before finalising on the directive.

“The directive has the potential to improve India’s cybersecurity posture if appropriately developed and implemented, however, certain provisions in the bill, including counterproductive incident reporting requirements, may negatively impact Indian and global enterprises and undermine cybersecurity,” Deep said.

Indian Computer Emergency Response Team (CERT-In) on April 28 issued a directive asking all government and private agencies, including internet service providers, social media platforms and data centres, to mandatorily report cybersecurity breach incidents to it within six hours of noticing them.

The new circular issued by the CERT-In mandates all service providers, intermediaries, data centres, corporates and government organisations to mandatorily enable logs of all their ICT (Information and Communication Technology) systems and maintain them securely for a rolling period of 180 days and the same shall be maintained within the Indian jurisdiction.

ITI has raised concerns over the mandatory reporting of breach incidents within six hours of noticing, to enable logs of all ICT systems and maintain them within Indian jurisdiction for 180 days, the overbroad definition of reportable incidents and the requirement that companies connect to the servers of Indian government entities.

Deep, in the letter, said that the organisations must be given 72 hours to report an incident in line with global best practices and not just six hours.

ITI said that the government’s mandate to enable logs of all covered entities’ information and communications technology systems, maintain logs “securely for a rolling period of 180 days” within India and make them available to the Indian government upon request is not a best practice.

“It would make such repositories of logged information a target for global threat actors, in addition to requiring significant resources (both human and technical) to implement,” Deep said.

ITI also raised concern on the requirement that “all service providers, intermediaries, data centres, body corporate and government organisations shall connect to the NTP servers of Indian labs and other entities for synchronisation of all their ICT systems clocks”.

The global body said that the provisions could negatively affect companies’ security operations as well as the functionality of their systems, networks and applications.

ITI said that the government’s current definition of reportable incident to include activities such as probing and scanning is far too broad given probes and scans are everyday occurrences.

“It would not be useful for companies or CERT-In to spend time gathering, transmitting, receiving and storing such a large volume of insignificant information that arguably will not be followed up on,” Deep said.

ITI has asked the government to defer timeline for implementation of the new directive and launch a wider consultation with all stakeholders for its effective implementation.

ITI demanded CERT-In to “revise the directive to address the concerning provisions with regard to incident reporting obligations, including related to the reporting timeline, scope of covered incidents and logging data localisation requirements”.


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