European drugmaker GlaxoSmithKline called on Britain to use its presidency of the G7 to ensure the world's emerging economic powerhouses respect patents and combat counterfeiting.
"Globally, the UK must work to deliver a level playing field by demanding respect for intellectual property rights in the countries that benefit the most from globalisation - India, China, Brazil," chief executive Mr Jean-Pierre Garnier said.
Speaking at a conference hosted by British Chancellor of the Exchequer Mr Gordon Brown, Mr Garnier said India and China had both made progress in introducing legislation protecting intellectual property but there was a long way to go.
China's patent process still took too long, enforcement was a problem and counterfeiting widespread, he said. India has made more progress by introducing a patent regime from the start of this year.
However, Garnier said western drug companies wanted more assurances concerning the exclusivity of data generated in developing new drugs.
"If India brings in data exclusivity provisions and a world class regulatory environment, it has the potential to become a major centre for pharmaceutical R&D," he said.
GSK has already signed a research collaboration deal with leading Indian pharmaceutical group Ranbaxy Laboratories Ltd and other global drugmakers are also stepping up their activities in the country.
In future, more and more work is likely to be out-sourced to countries such as India and China, where labour costs are low but the skill base is high, Mr Garnier predicted.