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IPR: Where SMEs stand
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Bikky Khosla | 06 May, 2014
The Indo-US ties have been strained for some time now and the recent bone of contention between the two sides is the Intellectual Property Rights (IPR) issue. The Obama administration, under pressure from trade lobbies of the country in general and the pharmaceutical sector in particular, is not happy with India's IPR regime while the latter has been constantly claiming to abide by the WTO framework. However, in a major relief to India, the US, in its recent Special 301 report, has kept India out of the Priority Foreign Country list, a worse classification that may amount to sanctions.
While the issue is still being debated by policy makers and experts, the question that is striking me is how much aware the Indian SME sector is of protecting their intellectual property rights. Recently, I met a patent official who lamented the poor rate of applications from the Indian industry. According to an estimate, in 2010 only 39,400 patent applications were filed in India against nearly 5 lakh applications in the US, 4 lakh in China, 2 lakh in S Korea and 1.5 lakh in Europe. I don't think the situation has improved much since then, particularly with regards to applications from the SME sector.
Since 2005, there has been an increased level of government effort to spread IPR awareness among small enterprises. Today, most of the states have patent facilitation centres. Small industry association FISME has also set up some such centres in a few cities. In addition, the National Manufacturing Competitiveness Council set up for growth of manufacturing sector has a programme to enhance SME awareness of IPR. These developments are encouraging but still we can't help but admit that India is still at a nascent stage as far as IPR awareness among SMEs is concerned. The sector needs more information as well as facilities.
At the same time, I feel that IP rights require more attention from the small enterprises. In today's market economy protecting one's relevant intellectual property rights is not an option but a way of doing business. If a firm fails to do so it may soon find another business encroaching on the original idea. The situation can be even worse when a copycat registers the right in its name and claims infringement by the originator of the idea, invention or design. Exporters not registering a trademark of their brand in overseas markets may easily fall prey to counterfeiting.
However, registering IP rights in India is not an easy task for SMEs -- it is often pointed out. Some complain about high costs. Is it really so? According to some industry experts, IPR registration usually turns out more beneficial than costly in the long run. A more serious issue pointed out by some entrepreneurs is of difficulty in protecting even a registered brand. A single logo or brand name is registered for two or more parties! Bureaucratic hurdle is also viewed as a big challenge. In fact, many SMEs have accepted the inevitability of being copied and they simply prefer to keep inventing continually to remain competitive, without giving any thought to intellectual rights and their violation.
I invite your feedback -- this will help our readers get to the core of what's going on and have a better insight into the problem.
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R Saha | Thu May 8 15:03:33 2014
It is incorrect to say that it is difficult for SMEs to protect their IP rights. We do have a problem of enforcement in our country. However, the key area is creating awareness among MSMEs about IPR and their importance to their business. I prepared a report for the World Intellectual Property Organization (WIPO) on this subject only. You can search R Saha-PDF-WIPO to access the report ( National Study on Intellectual Property and Small and Medium Enterprises-India) prepared under the WIPO Development Agenda.
Under estimating IPR
K.Srikanth | Thu May 8 08:45:03 2014
Undoubtedly, number of filing patent applications is lower when compared to other mentioned countries. But,hike in patent filing trend (year to year) in India shows improved awareness on IPR among them.
But, still India is at a nascent stage as far as IPR awareness among SMEs is concerned. Reasons are as follows:
Moreover than providing awareness and improving facilities, people here has to believe in power of patent rights and utilizing it in a right phenomenal way (For eg. Marketing, Litigations and Licensing). Even though they have awareness, People here even offer their invention free to the society rather than to spend money on protecting them. Not only in patent, even they are not ready to spend money of just $30 to $40 in protecting their trademark (Brand name). Thus, now, losing their brand value in market as others copy their brand name and sell their inferior quality product.
But now, Indian companies is in the stage of feeling their mistake and loss acquired rendered due to underestimating the value of IPR. Well, in not more evolving period, everyone in India keep focus on protecting their unique brand and inventions with respect to the commercial value (Innovative strategy) in the International market (Knowledge based economy).
IPR Issue- what we do not know
S.B.Sinha | Thu May 8 05:29:33 2014
We are npt aware of how pathetic the state of affairs is with our patent office. The RULE says that within 6 months of the date of examination the patent will be granted or and objection raised.
But the RULE also says subject to the availability of Examiner.
The patent office is busy only in Pharma patents and we have examiners only for Pharma patents. All other patents it takes 2- 3 years. In fact I was told in one of the representations that cases of 2010 are pending.
Our patent office is busy only for Pharma and the stories they tell as if the Patent office is doing a great thing.
Our Patent office is in shambles. Shocking that as per Rules it should take 6 months to get a patent examined it takes almost 4 years to get a patent.
Do you still feel govt is promoting a patent culture. They are doing only 5 star meetings and lecturing big.
Relatively new concept for SMEs
D Saravanan | Thu May 8 03:29:32 2014
Concept of claiming Intellectual Property Rights is relatively new for SME sector in India. SMEs of India and other countries cannot be compared on account of many differences. However, having understood the limitations of the SMEs by themselves, we should look for other avenues which are available with us for promoting IPR culture and claiming different property rights. Patent Attorneys are also slowly emerging due to lukewarm response in this segment. One area that is largely under utilized in our country is education sector where we have tremendous potential to get the required work done. Sorting out the issues related to confidentiality or secrecy related to the invention is relatively easier task rather than fighting with giants of their own fields. Also by involving the teaching institutions / nearby colleges to address these issues, will help the colleges to understand the needs of the industry and address the employability issues.
Cumbersome process
Rasesh | Wed May 7 05:09:13 2014
The legal process of protecting our rights is so cumbersome and expensive that we simply choose not to register a patent/trademark.
The rot in the judicial system has to be cleaned up first before we can even consider registering patents, etc.
Costly, time consuming
J Chandrasekaran | Wed May 7 03:45:07 2014
What is important is the IP registration, but the sad part is if it is an individual the fee is some where around 3000. if it is a company we need to pay 11K. How can the SME protect, or a SME who is also a private limited company with shoe string budgets shell out Rs. 11000. More worse the patent is given after almost 3 years and by the time of publishing, if some one copy and proliferate the product in the market, the IP holder can sue them only after 6 years. By the time the copycat would have amassed money!
IPR is very costly affair in India
Rupanagudi Ravi Shankar | Tue May 6 22:59:27 2014
What is pointed in the editorial is certainly true. We SMEs need to protect our rights without any doubt or delay. But in the same breath, what is pointed out at the end of the article is more than true. IPR is very costly affair in India now a days. Also once we get the Patent to protect it is also a costly affair, legal issues, local Police(?) issues, the copycat having contacts politically etc., saps the very little energy the Patent holder has in reserve.
Government is not really bothered to help out the SMEs in this regard. They have their own daily fires to fight and put off. They spend all their time and energy to be in power and we SMEs are left to the elements of market and its forces to fight it out.
Entrepreneurs are not looked up on by Governments as people who put their life at stake to make an enterprise without leaning on Govt for Jobs. Govt merely makes noises at various fora and records them all for archives.
Everyone should say Hats off to the SMEs in India for their grit to be in the business.
Patents must be protected and Govt MUST do something in this regard. There should be an easy and cheaper way to file for them, and after getting them for Protection of the Patents.
Let the Govt to be, listen to silent voices like these and help SMEs to survive in this harsh and cut throat market place.
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