Building Awareness on Intellectual Property Rights IPR for
Building Awareness on Intellectual Property Rights (IPR) for MSME in India WIPO-KIPA Asian Regional Meet on IPR December 13 -14, 2007 Venue : Jeju Island, Republic of Korea
MSE Sector in India – An Overview • Micro & Small Enterprises (MSE) Sector - vibrant sector of the Indian economy. • 12. 8 million units (over 90 per cent of total industrial units) in this Sector employing nearly 31 million people. • Contributes nearly 39 per cent of the industrial production and 33 per cent of the exports. • Registered higher growth rate than the rest of the industrial sector. 2
MSE Sector in India – An Overview (contd. ) • 6500 products ranging from traditional to high-tech items. • After agriculture, MSEs sector provides the maximum employment opportunities in the country. • Holds great potential for further expansion and growth in the future. 3
Challenges of Liberalisation & Globalisation • Government of India fully aware of the challenges of Globalisation • Several measures for preparing (MSEs) to meet the challenges. • Ministry of Micro, Small & Medium Enterprises (MSME) implementing Schemes /programmes for : v technology upgradation; v development of clusters of such industries; v making available collateral free bank credit; v creating awareness regarding export-related issues, etc. • Also conducting workshops on various aspects of WTO, Anti-dumping seminars, IPR, etc. 4
Challenges of Liberalisation & Globalisation (contd. ) • Enactment of Micro Small and Medium Enterprises Development (MSMED) Act, 2006 to, inter alia, address : v the long-standing demand of the MSEs sector, v address the developmental concerns of what is globally known as “small and medium enterprises”. • To do away with the restrictive 24 per cent ceiling prescribed for equity holdings in MSME. • Coupled with an expected legislation on Limited Liability Partnership - to pave way for corporatisation of SME in India. • These steps to enhance SMEs access to equity and other funds from the markets. 5
Need for a National IPR Programme • Limitation of direct interventions in a market driven economy- especially in short run. • Need for an indirect approach –to support SME in the long run at lower cost. • This, inter alia, includes putting well defined institutional and legal mechanism to facilitate equal access to global resources. • National Manufacturing Competitive Council (NMCC)set up in India as a continuing forum for policy dialogue for manufacturing sector. • NMCC has recommended a 5 year Programme for enhancing the competitiveness , particularly for SME in India. 6
Background of the proposal • India ratified the agreement establishing WTO- which inter-alia contains agreement on TRIPS. • Objective - to reduce distortions and impediments to international trade. • IPR Protection - key role in gaining competitive advantage in terms of technological gains. • Majority of the countries have adopted strategy for implementing strong IPR. • India in general, enjoys large assets of R&D personals and research facilities. • However, Indian industries, particularly SME not coming forward to adopt IPR as a business strategy. . 7
Background of the proposal • Widespread lack of awareness about IPR - as a means for creating a competitive edge in the trade and technology market for value addition. • Indian SME needs more information, orientation and facilities for protecting their IPR. • Need for them to develop a positive approach towards creation, protection and management of IPR. • Improving awareness on IPR amongst SME-to make informed decisions. • Knowledge driven Indian industries should increasingly attempt to embrace a network of innovation and R & Dthrough collaborative approach. • Need support & encouragement. 8
Building Awareness on IPR for MSMEs OBJECTIVES : • Enhancing awareness about IPR to make informed decisions about strategies to protect ideas. • Use of IPR tools to develop, protect and leverage innovative and technological potential. • Access to technical facilities & expertise for value addition to business. 9
Building Awareness on IPR for SME Strategies: • • • Generating awareness on IPR systems / management. Encourage Participation in Research & Technological Dev. Enhancing Brand Strategy using IPR tools. Leveraging Strengths of Institutions to deliver. Promoting Innovation - Share Patenting cost. Targets: • 12, 000 Units/Entrepreneurs/Persons. • 30 MSE Clusters. 10
Project Cost : 5 Yrs Total Project Cost USD 13. 75 Million Go. I Contribution USD 12. 50 Million Share of Private Partners (on a cost sharing basis) USD 1. 25 Million
Activities • Awareness / Sensitisation programmes; • Pilot Studies ; • Interactive Seminar; • Specialised Training (Short/Long term); • Set- up IP Advisory Office/Cells/ Create IP tools. • Financial Assistance on Grant of Patent. • Activities with International Agencies 12
IP Awareness Programme • Objective : Different aspects of IPRs require greater understanding and attention by the industry. MSMEs by protecting their intellectual property. • 1 -2 days Sensitization/ Awareness Programmes. • Organise with different Ministries/Departments of Government, Universities, Industry Associations/ Chambers, Provincial Government, WIPO, EU-TIDP, etc. • Partner’s contribution –Expertise/ Resource Persons or Infrastructure. 13
Pilot Studies • Studies on IP needs of Clusters taken up / Other Needbased Sectors. • Sectors to be covered – Biotechnology, Automobile, Chemicals, Leather, Drugs & Pharma, Sports, Toys, Hand Tools, Foundries, etc. • Associations/ Chambers, Cluster Actors to share the cost of study. 14
Interactive Seminars/ Workshops • Objectives : To train SME representatives to understand the product specific/sector specific issues in view of changing environment. • Tailor-made Seminars/ Workshops for IP needs of Identified Clusters/ Industries. • To discuss Pilot Study, Report. • To Focus on Industry/ Cluster specific IP Adoption. • Seminars/ Workshops- Partners to Provide Expertise/ Resource. 15
Specialised Training (Long/Short-Term) • Cadre of IP Specialist required for SME. • Professional (Govt. & Pvt. ), R&D persons, etc. to be selected • Duration: 6 months (long-term) & 2 -3 weeks (short-term) • Long Term at Specialised Institutes e. g. NIIPM, TIFAC, IITs, Universities, Law Schools, etc. • Short-Term –Need Based, at Various Locations. • Partners / Participants to Contribute 10 %. • Course Module- to be finalised on the basis of : v Specific requirements of Indian SME. v Institutes running specialised courses on IPR in India; v IP for Business Course using IP Panorama developed by WIPO for SME, etc. ; 16
IT Enabled IP Advisory Offices • SME overawed by IP Process. • Advisory Offices/ Cells Required. • To develop IPR data-base for SME (IT– based). • Patent Mapping/Patent Search (through IT). • Facilitate Filing of Applications for Patents, Designs, Trade Marks, Copyrights, GI, etc. Industrial • To be implemented by SPVs under PPP Mode- Go. I to fund Hardware/Software, Licensing Fees etc. • IP Offices/ Cells to be set up in SME Clusters, Research, Management & Engineering Institutes, Universities etc. 17
Patents Assistance • Very Low Patenting among MSMEs. • Making SMEs globally competitive through Patenting. • Encourage SMEs for Innovation, R&D & Protection. • Financial assistance only on Grant of Patents.
Activities with International Agencies • Opening of avenues for interaction in areas leading to acquisition of knowledge available globally. • Capacity building in high-tech areas through training and exchange programmes. • Study International Best Practices for Adopting locally. • Capacity Building Programme. Through training & Exchange • Opening avenues for interaction in areas leading to acquisition of knowledge available globally. 19
Outputs and Outcomes • Gains made through this project - in terms of higher exports, import containment and making Indian Industry more competitive. • Project to adopt a pro-active approach-to augment the export potential of the SME sector • Assist in keeping a state of preparedness to meet the emerging challenges in the post-WTO world. • Indian SME sector : v to further improve its technology and competitiveness through worldclass technological tie-ups, v protect them from infringement of their IPR, and v enhance its share in the total exports of the country. 20
List of the Stakeholders • Indian Industry Associations, Chambers & Product Group. • International Agencies, Offices, etc. like WIPO, EU, Overseas Patent • Unit holders [Cluster-based, MSME entrepreneurs]. • Ministry of MSME/ other Ministries / Offices. • State Governments Organisations / PSUs. (Provincial)/their Autonomous/ • Research Institutes, Management / Engineering Institutes. 21
Thanks 22
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