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 PrakashJoint Development Commissioner

Ministry of MSME, GOI

What constitues MSMEs

• As per MSME Development Act, 2006

(All figure in Rupees in lakh)

Category Services Manufacturing

Micro Upto 10 Upto 25

Small 10-200 25-500

Medium 200-500 500-1000

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

Characteristics of MSMEs

• Low investment

• Indigenous Technology

• Decentralized growth

• Low in technology

• R&D issue

• Intellectual Property Rights(IPR)

• Labour laws

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.

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.

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 2008-09

• Implementation as per PPP mode

Main ActivitiesSl.

No.

Activity Max. grant (Rs. in lakh)–per proposal

(a) 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

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

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

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

Tasks ahead

• Co-ordination amongst various agencies

• Awareness Programmes/Dissemination of information

• Simplified procedures

• Marketing strategy- Brand consciousness

• Need to study contemporary practices

• CDIP

THANK YOU