Thousands of small and medium enterprises (SMEs) in India are reported to be losing millions in revenues due to lack of awareness about IPRs (intellectual property rights).
About 40,000 IP applications are filed in India annually and 85 per cent of these are filed by multinational corporations, leaving a sizable number filed by SMEs. D R Agarwal, director, ITAG (Innovation Technology Advancement Gateway) Business Solutions Ltd, Kolkata, said most innovations across the world are done by SMEs.
In the developed world, owing to high awareness levels, small entrepreneurs approach venture capital and private equity funds to meet the expenses incurred on cost of protection, enforcement and commercialisation of IPRs. In India, the lack of awareness among small players effectively denies them the fruits of the intellectual property they create.
According to K S Kardam, deputy controller of patents and designs, and head, Patent Office Delhi, Union ministry of commerce and industry, "India is way behind in IP applications globally. In 2010, about 490,226 patent applications were filed in the USA; 391,177 in China; 344,598 in Japan; 170,101 in Korea; 150,961 in the European Patent Office, and 59,254 in Germany, compared with a mere 39,400 in India along with 7,589 design applications."
About 80 per cent of China's patent applications are filed by small companies. This is the reason for China's global competitive advantage, said Agarwal.
Exporters have to register a trademark of their brand in overseas markets to prevent competitors from copying these and selling counterfeit products. Various chambers of commerce and industry are now coming forward to disseminate awareness among Indian companies about the benefits of creating intellectual property and applying for patents.
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Many small players refrain from seeking patents owing to limited financial resources. But if they do a cost-benefit analysis they will find that it yields lucrative returns, Agarwal added.
The patent laws came into full force in India after 2005. All states in India now have patent facilitation centres and SMEs should consult them to find out how they can benefit from them, he said.
The Federation of Indian Micro, Small and Medium Enterprises (FISME) has also set up intellectual property facilitation centres in Delhi, Bangalore and Hyderabad.
The National Manufacturing Competitiveness Council has a programme to enhance the competitiveness of the SME sector, and building SMEs' awareness on IPRs is one of the components of this programme.
The IP facilitation centres specifically aim to build greater awareness among SMEs about IPR issues and provide insights to them on the creation, ownership and protection of intellectual property.
