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A. Damodaran Indian Institute of Management Bangalore Researching IP Implications on SMEs WIPO Expert Group on Internationally Agreed Scope and Methodology.

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Presentation on theme: "A. Damodaran Indian Institute of Management Bangalore Researching IP Implications on SMEs WIPO Expert Group on Internationally Agreed Scope and Methodology."— Presentation transcript:

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

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 countrys Industrial Production and 1/3 rd of countrys exports Very Traditional to High Tech Source: MSME, Government of India

3 Policy Framework 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 SMEs 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 SMEs Programme aimed at improving awareness on IPR for SMEs 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 1. Tea,West Bengal,Darjeeling Tea (word & logo) 2. Handicrafts,Kerala,Aranmula Kannadi 3. Textiles- Andhra Pradesh Pochampalli Ikat 4. Textiles,Tamil Nadu, Salem Fabric 5. Textiles, Madhya Pradesh, Chanderi Fabric 6. Textiles, Maharashtra, Solapur Chaddar 7. Textiles, Maharashtra,Solapur Terry Towel 8. Textiles, Orrissa, Kotpad Handloom fabric 9. Textiles,Karnataka,Mysore Silk 10. Textiles,Rajasthan,Kota Doria

7 Geographical Indications 11. Incense Sticks, Karnataka,Mysore Agarbathi 12. Textiles, Tamil Nadu, Kancheepuram Silk 13. Textiles, Carpets, Tamil Nadu, Bhavani Jamakkalam 14. Textiles, Himachal Pradesh, Kullu Shawl 15. Handicrafts, Karnataka, Bidriware 16. Textiles, Tamil Nadu, Madurai Sungudi 17. Textiles, Orissa, Orissa Ikat 18. Handicrafts, Karnataka, Channapatna Toys & Dolls 19. Handicrafts, Karnataka, Mysore Rosewood Inlay 20. Tea, Himachal Pradesh, Kangra Tea

8 GIs 21. Wet Grinder, Tamil Nadu, Coimbatore Wet Grinder 22. Textiles, Andhra Pradesh, Srikalahasthi Kalamkari 23. Essential Oil, Karnataka Mysore Sandalwood Oil 24. Soap, Karnataka Mysore Sandal soap 25. Embroidery (Textiles), Karnataka Kasuti Embroidery 26. Paintings, Karnataka Mysore Traditional Paintings 27. Horticulture Products, Karnataka Coorg Orange 28. Horticulture Products, Karnataka, Mysore Betel leaf 29. Horticulture Products, Karnataka Nanjanagud Banana 30. Paintings, Bihar Madhubani Paintings

9 GIs 31. Handicrafts, Andhra Pradesh, Kondapalli Bommallu 32. Paintings, Tamil Nadu, Thanjavur Paintings 33. Handicrafts, Andhra Pradesh, Silver Filigree of Karimnagar 34. Coir Products, Kerala, Alleppey Coir 35. Textiles, Assam Muga Silk 36. Handicrafts, Tamil Nadu, Temple Jewellery of Nagercoil 37. Horticulture, Karnataka Mysore Jasmine 38. Horticulture, Karnataka, Udupi Jasmine 39. Horticulture, Karnataka, Hadagali Jasmine 40. Agricultural Products,Kerala Navara Rice

10 GIs 41. Agricultural Products, Kerala Palakkadan Matta Rice 42. Handicrafts,Tamil Nadu,Thanjavur Art Plate 43. Textiles, Karnataka Ilkal Sarees 44. Handicrafts, Bihar Applique - Khatwa Patch Work of Bihar 45. Handicrafts, Bihar, Sujini Embroidery Work of Bihar 46. Handicrafts, Bihar, Sikki Grass Work of Bihar 47. Agricultural Products, Kerala Malabar Pepper 48. Guava,Uttar Pradesh, Allahabad Surkha 49. Textiles, New Delhi, Nakshi Kantha 50. Handicrafts, Karnataka, Ganjifa cards of Mysore (Karnataka)

11 GIs 51. Textiles, Karnataka, Navalgund Durries 52. Handicrafts,Karnataka,Karnataka Bronze Ware 53. Textiles,Karnataka,Molakalmuru Sarees 54. Coffee, Karnataka Monsooned Malabar Arabica Coffee 55. Coffee Karnataka Monsooned Malabar Robusta Coffee 56. Agricultural Products, Kerala Spices - Alleppey Green Cardamom 57. Agricultural Products, Karnataka Coorg Green Cardamom 58. E. I. Leather, Tamil Nadu, E. I. Leather 59. Textiles and Textile Goods, Tamil Nadu, Salem Silk 60. Textiles and Textile Goods, Tamil Nadu, Kovai Cora Cotton 61. 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 1983, 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 GIs 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 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

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