1. Joint Development Commissioner
Innovation based Enterprises, Intellectual Property and competitiveness of start-ups, spin-offs and MSMEs in knowledge driven economy of 21st Century: Are Indian MSMEs ready to compete *****
Presented by:
Dharmendra Prakash
Joint Development Commissioner
Ministry of MSME, GOI

2. What constitues MSMEs As per MSME Development Act, 2006 Category
(All figure in Rupees in lakh)
Category
Services
Manufacturing
Micro
Upto 10
Upto 25
Small
10-200
25-500
Medium

3. An Overview of MSMEs 26.1 million units 59.7 million persons
45% contribution in manufacturing output
40% contribution in total exports
More than 6000 products
8% contribution in GDP
Higher growth rate than industrial sector

4. Characteristics of MSMEs
Low investment
Indigenous Technology
Decentralized growth
Low in technology
R&D issue
Intellectual Property Rights(IPR)
Labour laws

5. Intellectual Property
IPR gives rights to the creator to prevent others from using their invention, designs or other creation and also to use that right to negotiate payment in return of others using them
Legal rights - which result from intellectual activities in industrial, scientific, literacy & artistic fields.
Intellectual Property (IP) Laws - safeguard creators and other producers of intellectual goods & services by granting them certain time-limited rights to control their use.
Protected IP like other Property - can be a matter of trade, which can be owned, sold or bought.
Major Distinguishing Feature - intangible and non-exhausted consumption.

6. Tools of Intellectual Property Rights
Patents : Statutory monopoly right granted for an invention
Copyrights and related rights: Protects original literary, dramatic, artistic and musical works.
Trademark: Distinctive sign which identify and distinguish the source of goods.
Industrial Design: Protects the features of shape, configuration, pattern etc.
Trade Secrets: Confidential business information.
Geographical Indications:
Protection of New Plant Variety: Protect the New Plant Variety.
Layout designs of Integrated Circuits (IC): Protection for layout designs for semi conductor IC.

7. Scheme of the Ministry of MSME
Building Awareness on IPRs in MSMEs in India under NMCP during 11th Five year plan
Total budget allocation Rupees 50 crores
The scheme became operational in
Implementation as per PPP mode

8. Main Activities Sl. No. Activity Max. grant (Rs. in lakh)–per proposal
Awareness/ Sensitization Programmes
1.00
(b)
Pilot Studies.
2.50
(c).
Interactive Seminars/ Workshops.
2.00
(d)
Specialized Training.
(i) Short term (ST)
(ii) Long term (LT)
(i) ST- 6.00
(ii) LT-45.00
(e)
Grant on Patent/ GI Registration.
(i) Domestic Patent
(ii) Foreign Patent
(iii) GI Registration
(i) 0.25
(ii) 2.00
(iii) 1.00
(f)
Setting up of ‘IP Facilitation
Center for MSME’.
65.00
(g)
Interaction with International Agencies.
(i) Domestic Intervention
(ii) International Exchange Programme
5.00
7.50

9. IPR Legislations in India
Patents Act 1970 as amended in 2005
Industrial Designs Act-2000
Trade Marks Act 1999
Geographical Indication Act1999
Copy Right Act 1999
Protection of Plant Varieties & Farmers’ Rights Act 2001
The Biological Diversity Act,2002

10. Competitiveness and IP protection
Preventing competitors from copying or closely imitating
Avoiding wasteful investment in R&D and marketing
Creating corporate identity,branding strategy
Increasing marketing value of the company
Acquiring venture capital and enhancing access to finance
Negotiating licensing ,franchising

11. The Present Status
Very poor/ Limited IP penetration except in few sector like Drug & Pharmaceuticals, Publication Industries etc.
Multiple agencies (MSME, DIPP, DST, MoA, MOEF etc.)
Complex web of Attorneys, Granting agencies, Transaction Time, Prohibitive Costs etc.
Role of Industry Associations
Export Promotion Councils
The Watch List (USTR)-adequacy & effectiveness of IPRs
Patent Centric IPRs
Commercialization
Food Chains

12. Tasks ahead Co-ordination amongst various agencies
Awareness Programmes/Dissemination of information
Simplified procedures
Marketing strategy- Brand consciousness
Need to study contemporary practices
CDIP

13. THANK YOU