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IPR

IPR

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Published by: api-3764597 on Oct 16, 2008
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03/18/2014

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Intellectual Property Rights
Paper on
Intellectual Property Rights :
Ensuring protection in India
By
Ms. Anuradha Goswami
Confederation of Indian Industry

Plot No 249 F Sector 18
Udyog Vihar, Phase IV, Gurgaon (Haryana)
Phone: 91-0124-4014060-67
Fax: 91-0124-4014080
Email: anuradha@ciionline.org

Compiled by : Anuradha Mazumdar, Tech/IPR Div., CII
1
Intellectual Property Rights
IPR in India
Background

Since independence till 1990s, the Indian industry faced limited competition from within and outside the country. There were little incentives or pressures to innovate. Similarly, national research laboratories and academia had freedom to select their own research areas, which often turned out to be open-ended. Added to this, the protected market, centralized Government supported science and technology systems and administrative controls inhibiting changes made the development process slower.

In the post-GATT environment, there is a new ball game \u2013 industries need to successfully compete in the global market and consolidate on economic security. The message that without world class technologies, the profit margins of industries would shrink, if not disappear, has been well received by Indian industry & Government as well and suitable corrective measures are being taken by them to face global challenges. Now Indian organisations have slowly started realising the fact that R&D and protection of Intellectual property is indispensable for survival. There has been a step up in the R&D spending by Public and private enterprises and the aggregate expenditure of top 50 companies has grown by an annual compound rate of 11.2%. The national investment on R&D activities attained a level of Rs 17660.21 crores in 2000-01.

India indeed has some inherent advantages in the area of science and
technology.

\u2663Powerful engineering, S&T & multidisciplinary professional talent base
\u2663World-class institutions
\u2663Cost-effective manpower & research facilities/infrastructure
\u2663Increased Industry-Institute partnerships
\u2663Government\u2019s investment in R&D and technological leadership
\u2663High tech industries becoming IP savvy
\u2663Good legal and administration infrastructure in the cities, and a democratic,

liberal and stable polity & a great business ambience.
\u2663Growing awareness of IP protection & its valorisation all across
\u2663Imaginative legislative measures \u2013 balancing national interest & international
obligations
\u2663Emergence as a Global research design & development platform
Emerging National Scenario
\u2022Compulsions of Global Trade

The multilateral trading system and WTO regime is rapidly changing the way business is being conducted. Geographical barriers to trade are fast disappearing. Reduction in import barriers, increase in entry barriers to export

Compiled by : Anuradha Mazumdar, Tech/IPR Div., CII
2
Intellectual Property Rights

markets coupled with stringent quality and technology demands are posing enormous challenges & threats to India and India is bringing in adequate reforms and measures to excel in the world market.

\u2022Intellectual Property Rights (IPR) Challenges

The ownership of Intellectual property is a crucial issue that impacts market position and profitability of industries. India is realising this fact and this is evident from India\u2019s position of no. 3 in PCT filings and its highest growth rate of 50 % in the segment of developing countries. The changes in the IPR regime have necessitated technological self-reliance, as borrowing of technology from developed will no longer be economically viable.

\u2022Innovation \u2013 key requirement for competitiveness

Though Indian industries and R&D institutes have not really excelled in the area of innovation due to various factors coupled with the past regime that did not encourage innovation, the broad technology base and infrastructure for industrial growth coupled with natural resources, low R&D costs and a vast pool of scientists/experts give India a unique advantage of generating world class technologies and IP. A nation-wide drive on Innovation is taking place with the vision of President of India & Indian companies are also embarking Innovation top priority.

\u2022Industry-Institute Linkage

A significant amount of Industry-Institute partnership is happening in the country in varied sectors and areas. Partnerships between technology generators/developers, market/business developers and financiers and government policy makers are emerging in order to translate knowledge into profitable commercial ventures.

\u2022Investing in R&D
Giant corporations from all over the world have set up research and development
(R&D) centres in different parts of India. In the last three years, a total of77
global firms have established their R&D centres in India as direct subsidiaries,

according to a study done by the Administrative Staff College of India (ASCI) including GE, Delphi, Eli Lilly, Hewlett-Packard, Heinz, Honeywell, DaimlerChrysler and even McDonald\u2019s. For some, such as the US$12.6 billion Akzo Nobel's car-refinishes business, the center came even before the company began selling its products in India. Together with the laboratories set up before 1997, the total number of R&D facilities owned by MNCs in India today is nudging the 100 mark.

India provides a weighted tax reduction of 150% for R&D establishments which makes it a very congenial environment for R&D. Budget 2003-04 encourages research by extending tax holiday to R&D companies established upto March 31, 2004. Also public spending in R&D has gone up to 30.6% last year.

Compiled by : Anuradha Mazumdar, Tech/IPR Div., CII
3

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