WIPO Expert Group on Internationally Agreed Scope and
Methodology for Undertaking National Surveys and/Studies on IP
and SMEs
Researching IP Implications on SMEs
A. Damodaran
Indian Institute of Management
Bangalore
SMEs in India: A Profile
 In India, SME sector is the second largest manpower
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employer, after agriculture
Nearly 13 million units, employing 31 million people
The output from the SSI sector alone constitutes 40
percent share of the value added in the manufacturing
sector
39% of country’s Industrial Production and 1/3rd of
country’s exports
Very Traditional to High Tech
Source: MSME, Government of India
Policy Framework
 GOI enacted the Micro Small and Medium Enterprise Development
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Act, 2006 to address issues of the sector
GOI to do away with 24% ceiling prescribed for equity holdings in
MSME
Expected Legislation on Limited Liability Partnership to encourage
corporatization of SME in India
National Manufacturing Competitiveness Council (NMCC) was set up
to energize and sustain the growth of the manufacturing industry.
New Promotional Packages for SMEs, and focus on development of
clusters.
Steps to enhance access to equity and other funds from the markets for
SME’s
Source: MSME, Government of India
Promotional Schemes of MSME
 Revised strategy of lending and introduction of newer measures,
such as the scheme to establish Small Enterprises Financial
Centres (SEFC) for strategic alliance between branches of banks
and SIDBI located in 388 clusters identified by ministry of SSI.
 SME Fund of US$ 2.27 billion operationalised.
 Proposal for doubling the credit flow to MSME sector in next 5
Yrs.
 Promotion and financial support for Credit-cum-Performance
Rating in MSME sector in India, to facilitate greater and easier
flow of credit from the banking sector to SMEs.
 Guarantee coverage under Credit Guarantee Fund for Small
Enterprises expanded substantially
 Credit Linked Capital Subsidy Scheme for Technological
Upgradation
Source: MSME, Government of India
Policy
 NMCC
has recommended a 5year programme for
enhancing competitiveness in SME’s
 Programme aimed at improving awareness on IPR for
SME’s
 Hopes to target 12000 units and 30 MSE clusters at a target
cost of 55 crores with a private contribution of 5 crores
 Source: MSME, Government of India
Geographical Indications
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Tea,West Bengal,Darjeeling Tea (word & logo)
Handicrafts,Kerala,Aranmula Kannadi
Textiles- Andhra Pradesh Pochampalli Ikat
Textiles,Tamil Nadu, Salem Fabric
Textiles, Madhya Pradesh, Chanderi Fabric
Textiles, Maharashtra, Solapur Chaddar
Textiles, Maharashtra,Solapur Terry Towel
Textiles, Orrissa, Kotpad Handloom fabric
Textiles,Karnataka,Mysore Silk
Textiles,Rajasthan,Kota Doria
Geographical Indications
11. Incense Sticks, Karnataka,Mysore Agarbathi
12. Textiles, Tamil Nadu, Kancheepuram Silk
13. Textiles, Carpets, Tamil Nadu, Bhavani Jamakkalam
14. Textiles, Himachal Pradesh, Kullu Shawl
15. Handicrafts, Karnataka, Bidriware
16. Textiles, Tamil Nadu, Madurai Sungudi
17. Textiles, Orissa, Orissa Ikat
Handicrafts, Karnataka, Channapatna Toys & Dolls
19. Handicrafts, Karnataka, Mysore Rosewood Inlay
20. Tea, Himachal Pradesh, Kangra Tea
18.
GIs
21. Wet Grinder, Tamil Nadu, Coimbatore Wet Grinder
22. Textiles, Andhra Pradesh, Srikalahasthi Kalamkari
23.
24.
25.
26.
27.
28.
29.
30.
Essential Oil, Karnataka Mysore Sandalwood Oil
Soap, Karnataka Mysore Sandal soap
Embroidery (Textiles), Karnataka Kasuti Embroidery
Paintings, Karnataka Mysore Traditional Paintings
Horticulture Products, Karnataka Coorg Orange
Horticulture Products, Karnataka, Mysore Betel leaf
Horticulture Products, Karnataka Nanjanagud Banana
Paintings, Bihar Madhubani Paintings
GIs
31. Handicrafts, Andhra Pradesh, Kondapalli Bommallu
32. Paintings, Tamil Nadu, Thanjavur Paintings
33. Handicrafts,
34.
35.
36.
37.
38.
39.
40.
Andhra
Pradesh,
Silver
Filigree
of
Karimnagar
Coir Products, Kerala, Alleppey Coir
Textiles, Assam Muga Silk
Handicrafts, Tamil Nadu, Temple Jewellery of Nagercoil
Horticulture, Karnataka Mysore Jasmine
Horticulture, Karnataka, Udupi Jasmine
Horticulture, Karnataka, Hadagali Jasmine
Agricultural Products,Kerala Navara Rice
GIs
41. Agricultural Products, Kerala Palakkadan Matta Rice
42. Handicrafts,Tamil Nadu,Thanjavur Art Plate
43. Textiles, Karnataka Ilkal Sarees
44. Handicrafts, Bihar Applique - Khatwa Patch Work of
45.
46.
47.
48.
49.
50.
Bihar
Handicrafts, Bihar, Sujini Embroidery Work of Bihar
Handicrafts, Bihar, Sikki Grass Work of Bihar
Agricultural Products, Kerala Malabar Pepper
Guava,Uttar Pradesh, Allahabad Surkha
Textiles, New Delhi, Nakshi Kantha
Handicrafts, Karnataka, Ganjifa cards of Mysore
(Karnataka)
GIs
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
Textiles, Karnataka, Navalgund Durries
Handicrafts,Karnataka,Karnataka Bronze Ware
Textiles,Karnataka,Molakalmuru Sarees
Coffee, Karnataka Monsooned Malabar Arabica Coffee
Coffee Karnataka Monsooned Malabar Robusta Coffee
Agricultural Products, Kerala Spices - Alleppey Green
Cardamom
Agricultural Products, Karnataka Coorg Green Cardamom
E. I. Leather, Tamil Nadu, E. I. Leather
Textiles and Textile Goods, Tamil Nadu, Salem Silk
Textiles and Textile Goods, Tamil Nadu, Kovai Cora Cotton
Textiles and Textile Goods, Tamil Nadu, Arani Silk
Darjeeling Tea
 The first attempt on the part of the Tea Board of India towards
protection of the ‘Darjeeling’ brand was undertaken way back in
1983, when the ‘Darjeeling’ logo was created.
 The Tea Board obtained home protection for the Darjeeling logo
as a certification trade mark under the Indian Trade and
Merchandise Marks Act 1958 (now the Trade Marks Act, 1999).
The registration was granted in class 30 in the name of the Tea
Board in 1986. In the same year, the logo was registered as a
trademark in several other countries
 In the absence of a separate law dedicated exclusively to GI’s in
India during that time, the word ‘Darjeeling’ was also registered
under the Trade and Merchandise Marks Act 1958 in class 30 in
the name of Tea Board in 1998.
Source: Government of India
Knowledge Intensive Sectors
 Biotech including plant biotech , traditional medicines and
bioinformatics
 IT Software
 Agri-enterprises associated with export based products
Innovation Systems
 Informal – Protected as Trade Secrets or Confidential
Information
 Formal – IPRs Filed
Well Springs of Innovation
 Start up Innovation Firms: Vendor of Innovations :
Bioinformatics
 Innovations by Learning by doing Firms
 Cluster Generated Joint Innovations
 Public-Private Innovations
Typology of Innovations
 Designs
 New Processes
 Products
 Devices
Access To Patents: Transaction Costs
 Prior Art Data Base is Difficult to Access
 Patent processes are too costly for SMEs to access
 Transaction Costs of Filing and Getting Patents high
 PCT applications are excessively costly
Defending Patents
 Probability of Infringement Assessment
 Cost of Defending
 Damage Compensation
Self Assessment
 Capacity for Self Assessment of Innovation Quality not there
 Self Assessment involves:
- Determination of Quality of Innovation in terms of Prior
Art
- The Depth of the Inventive Step
- IPR-ability of the Innovation
- Ramification of the Innovations in terms of Applicability and
Multiplier Effects
 Assessment of Competitive Advantage afforded by
innovations
Standards and SMEs
 SMEs role in Standard setting very limited
 Costs of Compliance with Standards high
 This in turn affects Competitiveness
Business Models for Technology
Transfer
 Business Models that are appropriate to SMEs can facilitate
transfer of technology and enable optimum revenue
realization
 This in turn can facilitate iinovation
 Such Models have not been designed
Cluster Innovations
 Cluster based Innovations are economically viable (by
promising external economies) and achieve innovations that
give greater leverage power to companies concerned
 Cases to be documented
Research Issues
 New IP laws – like Petty Patents
 Transaction Costs of filing and defending Patents and other
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IPs
Cluster Innovations
Economic Analysis of Business Models
Finance early bird innovations that are promising
Facilitate Self Assessments through Capacity Building
Financial Mechanisms
Thank You