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

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 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 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

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