1. Researching IP Implications on SMEs
WIPO Expert Group on Internationally Agreed Scope and Methodology for Undertaking National Surveys and/Studies on IP and SMEs
Researching IP Implications on SMEs
A. Damodaran
Indian Institute of Management Bangalore

2. SMEs in India: A Profile
In India, SME sector is the second largest manpower employer, after agriculture
Nearly 13 million units, employing 31 million people
The output from the SSI sector alone constitutes 40 percent share of the value added in the manufacturing sector
39% of country’s Industrial Production and 1/3rd of country’s exports
Very Traditional to High Tech
Source: MSME, Government of India

3. Policy Framework Source: MSME, Government of India
GOI enacted the Micro Small and Medium Enterprise Development Act, 2006 to address issues of the sector
GOI to do away with 24% ceiling prescribed for equity holdings in MSME
Expected Legislation on Limited Liability Partnership to encourage corporatization of SME in India
National Manufacturing Competitiveness Council (NMCC) was set up to energize and sustain the growth of the manufacturing industry.
New Promotional Packages for SMEs, and focus on development of clusters.
Steps to enhance access to equity and other funds from the markets for SME’s
Source: MSME, Government of India

4. Promotional Schemes of MSME
Revised strategy of lending and introduction of newer measures, such as the scheme to establish Small Enterprises Financial Centres (SEFC) for strategic alliance between branches of banks and SIDBI located in 388 clusters identified by ministry of SSI.
SME Fund of US$ 2.27 billion operationalised.
Proposal for doubling the credit flow to MSME sector in next 5 Yrs.
Promotion and financial support for Credit-cum-Performance Rating in MSME sector in India, to facilitate greater and easier flow of credit from the banking sector to SMEs.
Guarantee coverage under Credit Guarantee Fund for Small Enterprises expanded substantially
Credit Linked Capital Subsidy Scheme for Technological Upgradation
Source: MSME, Government of India

5. Policy
NMCC has recommended a 5year programme for enhancing competitiveness in SME’s
Programme aimed at improving awareness on IPR for SME’s
Hopes to target units and 30 MSE clusters at a target cost of 55 crores with a private contribution of 5 crores
Source: MSME, Government of India

6. Geographical Indications
Tea,West Bengal,Darjeeling Tea (word & logo)
Handicrafts,Kerala,Aranmula Kannadi
Textiles- Andhra Pradesh Pochampalli Ikat
Textiles,Tamil Nadu, Salem Fabric
Textiles, Madhya Pradesh, Chanderi Fabric
Textiles, Maharashtra, Solapur Chaddar
Textiles, Maharashtra,Solapur Terry Towel
Textiles, Orrissa, Kotpad Handloom fabric
Textiles,Karnataka,Mysore Silk
Textiles,Rajasthan,Kota Doria

7. Geographical Indications
Incense Sticks, Karnataka,Mysore Agarbathi
Textiles, Tamil Nadu, Kancheepuram Silk
Textiles, Carpets, Tamil Nadu, Bhavani Jamakkalam
Textiles, Himachal Pradesh, Kullu Shawl
Handicrafts, Karnataka, Bidriware
Textiles, Tamil Nadu, Madurai Sungudi
Textiles, Orissa, Orissa Ikat
Handicrafts, Karnataka, Channapatna Toys & Dolls
Handicrafts, Karnataka, Mysore Rosewood Inlay
Tea, Himachal Pradesh, Kangra Tea

8. GIs Wet Grinder, Tamil Nadu, Coimbatore Wet Grinder
Textiles, Andhra Pradesh, Srikalahasthi Kalamkari
Essential Oil, Karnataka Mysore Sandalwood Oil
Soap, Karnataka Mysore Sandal soap
Embroidery (Textiles), Karnataka Kasuti Embroidery
Paintings, Karnataka Mysore Traditional Paintings
Horticulture Products, Karnataka Coorg Orange
Horticulture Products, Karnataka, Mysore Betel leaf
Horticulture Products, Karnataka Nanjanagud Banana
Paintings, Bihar Madhubani Paintings

9. GIs Handicrafts, Andhra Pradesh, Kondapalli Bommallu
Paintings, Tamil Nadu, Thanjavur Paintings
Handicrafts, Andhra Pradesh, Silver Filigree of Karimnagar
Coir Products, Kerala, Alleppey Coir
Textiles, Assam Muga Silk
Handicrafts, Tamil Nadu, Temple Jewellery of Nagercoil
Horticulture, Karnataka Mysore Jasmine
Horticulture, Karnataka, Udupi Jasmine
Horticulture, Karnataka, Hadagali Jasmine
Agricultural Products,Kerala Navara Rice

10. GIs Agricultural Products, Kerala Palakkadan Matta Rice
Handicrafts,Tamil Nadu,Thanjavur Art Plate
Textiles, Karnataka Ilkal Sarees
Handicrafts, Bihar Applique - Khatwa Patch Work of Bihar
Handicrafts, Bihar, Sujini Embroidery Work of Bihar
Handicrafts, Bihar, Sikki Grass Work of Bihar
Agricultural Products, Kerala Malabar Pepper
Guava,Uttar Pradesh, Allahabad Surkha
Textiles, New Delhi, Nakshi Kantha
Handicrafts, Karnataka, Ganjifa cards of Mysore (Karnataka)

11. GIs Textiles, Karnataka, Navalgund Durries
Handicrafts,Karnataka,Karnataka Bronze Ware
Textiles,Karnataka,Molakalmuru Sarees
Coffee, Karnataka Monsooned Malabar Arabica Coffee
Coffee Karnataka Monsooned Malabar Robusta Coffee
Agricultural Products, Kerala Spices - Alleppey Green Cardamom
Agricultural Products, Karnataka Coorg Green Cardamom
E. I. Leather, Tamil Nadu, E. I. Leather
Textiles and Textile Goods, Tamil Nadu, Salem Silk
Textiles and Textile Goods, Tamil Nadu, Kovai Cora Cotton
Textiles and Textile Goods, Tamil Nadu, Arani Silk

12. Darjeeling Tea
The first attempt on the part of the Tea Board of India towards protection of the ‘Darjeeling’ brand was undertaken way back in , when the ‘Darjeeling’ logo was created.
The Tea Board obtained home protection for the Darjeeling logo as a certification trade mark under the Indian Trade and Merchandise Marks Act 1958 (now the Trade Marks Act, 1999). The registration was granted in class 30 in the name of the Tea Board in In the same year, the logo was registered as a trademark in several other countries
In the absence of a separate law dedicated exclusively to GI’s in India during that time, the word ‘Darjeeling’ was also registered under the Trade and Merchandise Marks Act 1958 in class 30 in the name of Tea Board in 1998.
Source: Government of India

13. Knowledge Intensive Sectors
Biotech including plant biotech , traditional medicines and bioinformatics
IT Software
Agri-enterprises associated with export based products

14. Innovation Systems
Informal – Protected as Trade Secrets or Confidential Information
Formal – IPRs Filed
Well Springs of Innovation
Start up Innovation Firms: Vendor of Innovations : Bioinformatics
Innovations by Learning by doing Firms
Cluster Generated Joint Innovations
Public-Private Innovations

15. Typology of Innovations
Designs
New Processes
Products
Devices

16. Access To Patents: Transaction Costs
Prior Art Data Base is Difficult to Access
Patent processes are too costly for SMEs to access
Transaction Costs of Filing and Getting Patents high
PCT applications are excessively costly

17. Defending Patents Probability of Infringement Assessment
Cost of Defending
Damage Compensation

18. Self Assessment
Capacity for Self Assessment of Innovation Quality not there
Self Assessment involves:
- Determination of Quality of Innovation in terms of Prior Art
- The Depth of the Inventive Step
- IPR-ability of the Innovation
- Ramification of the Innovations in terms of Applicability and Multiplier Effects
Assessment of Competitive Advantage afforded by innovations

19. Standards and SMEs SMEs role in Standard setting very limited
Costs of Compliance with Standards high
This in turn affects Competitiveness

20. Business Models for Technology Transfer
Business Models that are appropriate to SMEs can facilitate transfer of technology and enable optimum revenue realization
This in turn can facilitate iinovation
Such Models have not been designed

21. Cluster Innovations
Cluster based Innovations are economically viable (by promising external economies) and achieve innovations that give greater leverage power to companies concerned
Cases to be documented

22. Research Issues New IP laws – like Petty Patents
Transaction Costs of filing and defending Patents and other IPs
Cluster Innovations
Economic Analysis of Business Models
Finance early bird innovations that are promising
Facilitate Self Assessments through Capacity Building
Financial Mechanisms

23. Thank You