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A. DamodaranIndian 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
SMEs in India: A Profile In India, SME sector is the second largest manpower
employer, after agricultureNearly 13 million units, employing 31 million peopleThe 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 TechSource: MSME, Government of India
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
SME’s
Source: MSME, Government of India
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
PolicyNMCC has recommended a 5year programme for
enhancing competitiveness in SME’sProgramme aimed at improving awareness on IPR for
SME’sHopes to target 12000 units and 30 MSE clusters at a
target cost of 55 crores with a private contribution of 5 crores
Source: MSME, Government of India
Geographical Indications 1. Tea,West Bengal,Darjeeling Tea (word & logo)2. Handicrafts,Kerala,Aranmula Kannadi3. Textiles- Andhra Pradesh Pochampalli Ikat4. Textiles,Tamil Nadu, Salem Fabric5. Textiles, Madhya Pradesh, Chanderi Fabric6. Textiles, Maharashtra, Solapur Chaddar7. Textiles, Maharashtra,Solapur Terry Towel8. Textiles, Orrissa, Kotpad Handloom fabric9. Textiles,Karnataka,Mysore Silk10. Textiles,Rajasthan,Kota Doria
Geographical Indications11. 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
GIs21. Wet Grinder, Tamil Nadu, Coimbatore Wet Grinder22. Textiles, Andhra Pradesh, Srikalahasthi Kalamkari23. Essential Oil, Karnataka Mysore Sandalwood Oil24. Soap, Karnataka Mysore Sandal soap25. Embroidery (Textiles), Karnataka Kasuti Embroidery26. Paintings, Karnataka Mysore Traditional Paintings27. Horticulture Products, Karnataka Coorg Orange28. Horticulture Products, Karnataka, Mysore Betel leaf29. Horticulture Products, Karnataka Nanjanagud Banana30. Paintings, Bihar Madhubani Paintings
GIs31. Handicrafts, Andhra Pradesh, Kondapalli Bommallu32. Paintings, Tamil Nadu, Thanjavur Paintings33. Handicrafts, Andhra Pradesh, Silver Filigree of
Karimnagar34. Coir Products, Kerala, Alleppey Coir35. Textiles, Assam Muga Silk36. Handicrafts, Tamil Nadu, Temple Jewellery of Nagercoil37. Horticulture, Karnataka Mysore Jasmine38. Horticulture, Karnataka, Udupi Jasmine39. Horticulture, Karnataka, Hadagali Jasmine40. Agricultural Products,Kerala Navara Rice
GIs41. Agricultural Products, Kerala Palakkadan Matta Rice42. Handicrafts,Tamil Nadu,Thanjavur Art Plate43. Textiles, Karnataka Ilkal Sarees44. Handicrafts, Bihar Applique - Khatwa Patch Work of
Bihar45. Handicrafts, Bihar, Sujini Embroidery Work of Bihar46. Handicrafts, Bihar, Sikki Grass Work of Bihar47. Agricultural Products, Kerala Malabar Pepper48. Guava,Uttar Pradesh, Allahabad Surkha49. Textiles, New Delhi, Nakshi Kantha50. Handicrafts, Karnataka, Ganjifa cards of Mysore
(Karnataka)
GIs51. Textiles, Karnataka, Navalgund Durries52. Handicrafts,Karnataka,Karnataka Bronze Ware53. Textiles,Karnataka,Molakalmuru Sarees54. Coffee, Karnataka Monsooned Malabar Arabica Coffee55. Coffee Karnataka Monsooned Malabar Robusta Coffee56. Agricultural Products, Kerala Spices - Alleppey Green
Cardamom57. Agricultural Products, Karnataka Coorg Green Cardamom58. E. I. Leather, Tamil Nadu, E. I. Leather59. Textiles and Textile Goods, Tamil Nadu, Salem Silk60. Textiles and Textile Goods, Tamil Nadu, Kovai Cora Cotton61. Textiles and Textile Goods, Tamil Nadu, Arani Silk
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 1986. 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
Knowledge Intensive SectorsBiotech including plant biotech , traditional
medicines and bioinformaticsIT SoftwareAgri-enterprises associated with export
based products
Innovation Systems
Informal – Protected as Trade Secrets or Confidential Information
Formal – IPRs FiledWell Springs of InnovationStart up Innovation Firms: Vendor of
Innovations : BioinformaticsInnovations by Learning by doing FirmsCluster Generated Joint InnovationsPublic-Private Innovations
Typology of InnovationsDesignsNew ProcessesProductsDevices
Access To Patents: Transaction CostsPrior Art Data Base is Difficult to AccessPatent processes are too costly for SMEs to
accessTransaction Costs of Filing and Getting
Patents highPCT applications are excessively costly
Defending PatentsProbability of Infringement AssessmentCost of DefendingDamage Compensation
Self Assessment Capacity for Self Assessment of Innovation
Quality not thereSelf 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 EffectsAssessment of Competitive Advantage
afforded by innovations
Standards and SMEs
SMEs role in Standard setting very limitedCosts of Compliance with Standards highThis in turn affects Competitiveness
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 iinovationSuch Models have not been designed
Cluster InnovationsCluster based Innovations are economically
viable (by promising external economies) and achieve innovations that give greater leverage power to companies concerned
Cases to be documented
Research IssuesNew IP laws – like Petty PatentsTransaction Costs of filing and defending
Patents and other IPsCluster InnovationsEconomic Analysis of Business ModelsFinance early bird innovations that are
promisingFacilitate Self Assessments through
Capacity BuildingFinancial Mechanisms
Thank You