INTELLECTUAL PROPERTY RIGHTS

The term Intellectual Property (IP) reflects the idea that its subject matter is the product of the mind or the intellect. These could be in the form of Patents, Trademarks, Geographical Indications, Industrial Designs, Layout-Designs (Topographies) of Integrated Circuits, Plant Variety Protection and Copyrights.

India is a member of two major Treaties, namely,

→Paris Convention for the Protection of Industrial Property (relating to Patents, Trademarks, Designs, etc.)

→The Berne Convention for the Protection of Literary and Artistic Works (relating to copyright)

Apart from these, India is also a member of the Patent Cooperation Treaty (PCT) which facilitates obtaining of Patents in several countries by filing a single application.

Intellectual Property is divided into two categories:

Industrial Property – Patents, Trademarks including service marks, Industrial Designs, Layout Designs of ICs, Undisclosed Information including Trade Secrets and Geographic indications of source.


Copyrights – Literary and artistic work such as novels, poems, plays, films and musical works, etc.

India is a member of the World Trade Organization (WTO). The WTO agreement, inter-alias, contains an agreement on IP, namely, the Agreement on Trade Related Aspects of Intellectual Property (TRIPS). This Agreement made protection of Intellectual Property an enforceable obligation of the Member States. TRIPS Agreement sets out minimum standards of intellectual property protection for Member States. India has complied with the obligations contained in the TRIPS Agreement and amended/enacted IP laws.

THE INDIAN ACTS

The Patents Act, 1970, as amended, in 2005

The Designs Act, 2000

The Trade Marks Act, 1999

The Geographical Indications of Goods (Registration and Protection) Act, 1999

Copy Rights Act 1957, as amended in 1999

Semi-conductor IC Layout Design Act,2000

Protection of Plant Varieties and Farmers’ Rights act,2001

TRIPS AGREEMENTS

According to the TRIPS Agreements, the intellectual property has been classified into:

Patents

Industrial Designs

Trade Marks

Copyrights

Geographical Indications

Layout Designs of Integrated Circuits

Protection of Undisclosed Information/ Trade Secrets

IPR is a part of Enterprise Development. In the production department many enterprises introduce innovative processes and develop new products. We, do not give much importance to IPRs. These processes/ Products can be protected through Patents. Similarly Every Enterprise can have its own BRAND. This brand can be protected through Trade Mark Registration.

ENTERPRISE DEVELOPMENT

STEPS TO START AN ENTERPRISE – Part VI

MARKETING OF MSME PRODUCTS

I do not want to go here on the fundamentals of Marketing Management as it is a vast subject to discuss here. The strategy of Marketing depends up on the type of products manufactured or the type of Services provided. What I mean to say is the strategy for FMCG is different to the strategy for marketing Industrial Products. It is pertinent to mention here that the rural demand has emerged as a vital market. Even the corporate giants are now focusing on Rural Markets. The consumer behavior has totally changed in Rural India and the people’s expectations have shown a sea change when compared to late nineties or early 2K.

There is a need to go for a detailed Market Research before introducing a product in to a particular Market Segment. The Demographics, Demand and supply Gap, Competition, Product Pricing, Distribution Channels, Publicity requirements etc., have to be thoroughly analyzed.

GOVT.SCHEMES

The following are some of the Central Govt. schemes.

Purchase Preference Policy is administered through the Single Point Registration Scheme of NSIC. Under this, 358 items are reserved for exclusive purchase from MSME by Central Government including Public Sector Undertakings. Other facilities include providing tender documents free of cost, exemption from earnest money and security deposit and 15% price preference in Central Government purchases - for individual MSMEs

MSME-MDA Scheme

The scheme offers funding up to 90% in respect of to and fro air fare for participation by MSME Entrepreneurs in overseas fairs/trade delegations. The scheme also provide for funding for producing publicity material (up to 25% of costs) Sector specific studies (upto Rs. 2 lakhs) and for contesting anti-dumping cases (50% up to Rs. 1 lakh) - for individual MSMEs & Associations.

Bar Coding

In order to enhance the marketing competitiveness of MSEs in domestic as well as international market, Office of Development Commissioner (MSME), Ministry of MSME, provides the financial assistance for reimbursement of 75% of one-time registration fee w.e.f. 1st January,2002 and 75% of annual recurring fee (for first three years) w.e.f. 1st June,2007 paid by MSEs to GS1 India for using of Bar Coding.The work of reimbursement has been decentralized and transferred to field offices i.e. MSME-Development Institutes located in each state w.e.f. 1st April, 2009 with a view to ensure speedy & timely and extensive implementation of the scheme.

Similarly every state Govt. has their purchase policies for the benefit of MSME Sector


With this I am concluding my blog posts on this subject.

I would be happy to answer any querries on Enterprise Development.

My Mail ID -krishnaar8@gmail.com
cell.9849392925

ENTERPRISE DEVELOPMENT

STEPS TO START AN ENTERPRISE – Part V

INCENTIVES & PROMOTIONAL SCHEMES

Government accords the highest preference for the Promotion & Development of MSMEs by framing and implementing suitable policies and promotional Programs/schemes. Besides providing developed land and sheds to the entrepreneurs on actual cost basis with appropriate infrastructure, special schemes have been designed for specific purposes like quality up gradation, common facilities, entrepreneurship development and consultancy services.

Credit to micro, small and medium scale sector has been covered under priority sector lending by banks. Small Industries Development Bank of India (SIDBI) has been established as the apex institution for financing the MSMEs. Specific schemes have been designed for implementation through SIDBI, State Finance Corporations (SFC), Scheduled Banks, SIDCs and NSIC.

Under the Reserve Bank Guidelines loans up to Rs. 5 lakhs are made available by the Banks without insisting on collaterals.

Credit Guarantee Fund for micro, small and medium enterprises has been set up by Govt. of India to provide guarantee for loans to MSEs up to Rs.100 lakhs extended by Scheduled Commercial Banks and some Regional Rural Bank ( up to Rs.50 lakhs). Under CGTMSE Scheme collateral free loan will be provided where ever the Entrepreneur can not provide the necessary security. The Entrepreneur has to put a request to the Financial Institute at the time of submitting the Project Report. For details kindly visit www.cgtsi.org.in.

Under the National Equity Fund Scheme seed capital to the extent of 25% will be provided by Govt. of India with nominal service charges to meet the Equity (Promoter Contribution) in case the Entrepreneur can not raise the required funds. The Scheme is operated by SIDBI and is provided to under re-finance scheme to Financial Institutions.

Similarly Mahila Udyama Nidhi Scheme is avialbel under the above guidelines, exclusively for Women Enterprises. SIDBI and all the Nationalized Banks operate this scheme. An Enterprise with more than 51% of equity is designated as Women Enterprise.

Credit Linked Capital Subsidy scheme aims at facilitating technology up gradation by providing 15 per cent upfront capital subsidy to MSEs units, including tiny, khadi, village and coir industrial units, on institutional finance availed of by them for induction of well established and improved technologies in the specified sub-sectors / products approved under the scheme. The revised ceiling on loan amount for availing the benefit under this scheme is Rs. 100. You may please visit www.laghu-udyog.com and www.msme.gov.in

Under Prime Minister’s Employment Generation Program (PMEGP) covers loans up to Rs.25 Lakhs for manufacturing Sector and Rs.10 Lakhs for Service sector with a subsidy component. Khadi & Village Industries Commission is the implementing agency

Min. of Food Processing Scheme for Technology Up Gradation / Establishment /Modernization of Food Processing Industries. The scheme will provide 25% of cost of plant & Machinery and Technical Civil works subject to a maximum of Rs.50 lakhs. Web site: www. mofpi.nic.in

Government of India has been executing the incentive scheme for providing reimbursement of charges for acquiring ISO 9000/14000 accreditation to the extent of 75% of the cost subject to a maximum of Rs. 75,000/- in each case.

There are many more schemes operated by Min.of Agriculture, Science& Technology etc.

State Government provides technical and other support services to MSMEs through the Directorate of Industries and District Industries Centers. Although the details of the scheme vary from state to state, the following are the common areas of support.

• Development and management of industrial estates

• Suspension/deferment of Sales Tax

• Power subsidies

• Capital Investment subsidies for New Enterprises

• Seed Capital/Margin Money Assistance Scheme

• Priority in allotment of power connection, water connection.

• Consultancy and technical support

Note: These are the salient features of the schemes only.For more details kindly visit the respective web sites.

ENTERPRISE DEVELOPMENT

STEPS TO START AN ENTERPRISE – Part IV

FINANCIAL ASSISTANCE

l Financial assistance is available from institutions such as Nationalized Banks,Rural Banks, Small Industries Development Bank of India (SIDBI), NABARD, Regional Rural Banks, National Small Industries Corporation (NSIC), State Financial Corporations etc. depending upon the project requirement and promoters background.

2. Financial assistance has two components. Loan for fixed capital to acquire Plant and Machinery, Land and Building. Working capital loan is used to meet day to day operational cost of the production.

3. Financial Institutions provide composite loans covering Buildings,plant and machinery and working capital.

4. Any one of the financial institutions can be approached to get funds keeping in view their specific schemes.

5. Evaluate and compare the terms and conditions, including rate of interest and repayment period of loan offered by the different financial institutions.

6. Select the financial institution, which offers funds at minimum interest rate as per your repayment plan to suit the project.

7. Choose the Institution which is in close proximity to the project site if other terms and conditions are similar.

8. The major eligibility criteria are return on the investment and profitability of the project proposed to be set up.

9. Any financial institution will support the project if repayment is assured.

10. 20-25% of Total Investment has to be contributed as margin money by the promoter.

11. Care should be taken to have good cushion of Working capital. The Financial Institutions in most of the cases don’t finance full Working capital. One should keep back up for at least 6 months W.C and at times 12 Months

12. Financial Institutions insist margin money depending upon the category of the entrepreneur, risk factor and existing scheme under which the project will be financed.

13. The amount of loan can be used to cover all types of investments required in the project, such as machinery & equipment, working capital, land and buildings etc.

The general conditions for getting financial assistance are:

* Technical /Economic/Market viability

* Promoters contribution

* Capacity to repay loan

* Collateral Securities/Guarantee

ENTERPRISE DEVELOPMENT-PartIII

STEPS TO START AN ENTERPRISE – Part III



PROJECT REPORT

The project report is a document, which gives an account of the project proposal to ascertain the prospects of the proposed plan/activity. The project report,(sometimes known as Bankable Project Report) should contain detailed information about:

a) Land & building required

b)Manufacturing/Production Capacity per annum

c)Manufacturing Process, Technology

d) Machinery & equipment along with their prices and specifications

e) Requirements of raw materials

f) Power & Water required.

g)Manpower needs

h)Marketing

i)Cost of the project and production.

j)Financial analysis & Techno-economic viability of the project.

* Model project profiles are available with the MSMEDIs (formerly SISIs) & DIC's for the guidance of entrepreneurs. However, these project profiles have to be recast in accordance with specific needs of the entrepreneurs and the current prices of inputs.

*MSMEDIs, National Small Industries Corpn., and State Govt. agencies viz. DICs, State Finance Corpn.,KVIC, etc., can help in preparing the Project Report. It can also be prepared by collecting detailed information on various inputs.

*Information in detail is required about the technical process, requirements of plant and machinery, raw materials, manpower requirement, market information and statutory obligations (like pollution control, Licenses, if needed, and public safety) etc. The details of power and water tariff, land/shed/building and selling prices etc. needs to be collected as prevalent in the market.

*Micro, Small & Medium Enterprises Development Institute’s (formerly Small Industries Service Institutes), Design and Development Centers like MSME Technology Development Center’s (formerly PPDC's) /Tool Room's, Research and Developmental agencies such as NRDC,CSIR Labs, Regional Research Laboratories etc., can help the entrepreneur in selecting the product, process technology, suitable equipments etc.

Filing of Entrepreneur Memorandum (EM)

l Filing of memorandum is optional for all Micro, Small & Service Sector Medium Enterprises. However to get incentives from Govt. it is mandatory

2 Filing of memorandum optional for Filing of memorandum mandatory for manufacturing sector Medium Enterprises.

3 EM has to be filed with General Manager, DIC, of the concerned district.

The EM is a document containing the details of the Enterprise to be set up.

The Entrepreneur has to fill up the EM in quadruplicate and submit to the concerned DIC in his/her district and obtain one copy duly signed by the competent authority at the District Industries Centre. The EM is required at all stages like Power connection, Tax Registration, etc.

ERTERPRISE DEVELOPMENT

STEPS TO START AN ENTERPRISE – Part II


e) IMPORTANT TASKS

*Identification of suitable project/product/enterprise and prepare bankable project report

*Creation of proprietorship/partnership firm/Company/Society/Self-Help Group (SHG), etc

*Filing of Memorandum (EM) with DIC

*Accessing to Bank Loans, Admissible capital subsidy/assistance under various schemes of the central/state Govt. and other agencies/organizations/FIs/Banks

*Establishment of Factory Buildings/Office

*Obtaining Sanction of Power connection

*Selection of Appropriate Technology, installation of Plant &Machinery/office equipment.

*Obtaining various registrations/ licenses/ clearances/ NOCs etc. from concerned regulatory agencies/Govt. Departments/Local Bodies/Municipal Authorities, etc.

*Allotment of PAN no. /Service Tax/Sales Tax/VAT Registration, etc.

*Sanction of Working Capital Loan from Bank

*Arranging tie-up with raw material suppliers

*Preparation and implementation of marketing strategy for the product/service and market development

*Establishment of linkage with a mentor(s) for providing guidance in future

*Creation of web page and e-mail

*Trial Production & Test marketing

*Regular Production & Marketing

*Loan repayment

f) Micro, Small& Medium Enterprises

Enterprises have been broadly classified into: As per MSME Act 2006

i) Enterprises engaged in the manufacture/production of goods pertaining

to any industry

ii) Enterprises engaged in providing/rendering of services

Manufacturing enterprises have been defined in terms of investment in plant & machinery (Excluding Land & Buildings) and further classified into :

Micro Enterprises - Investment upto Rs. 25 Lakhs

Small Enterprises - Investment above Rs.25 lakhs
& up to Rs.5 crores

Medium Enterprise - Investment above Rs.5 crores
& up to Rs. 10 crores

Service enterprises have been defined in terms of their investment in Equipment (Excluding Land & Buildings) and further classified into:

Micro Enterprises - Investment up to Rs. 10 Lakhs

Small Enterprises - Investment above Rs.10
Lakhs & up to Rs.2 crores

Medium Enterprise - Investment above Rs.2 crores
and up to Rs.5 Crores

ENTERPRISE DEVELOPMENT

ENTERPRISE DEVELOPMENT

I am posting a series of Posts on Enterprise Management. This is the First Part

STEPS TO START AN ENTERPRISE – Part I

a) Decision to become an entrepreneur- Most important.

b) Select an Activity –Service or Product manufacture-


A preliminary market study of products or services

Where do you want to promote the enterprise?

What resources are available near the location of the enterprise?

What kind of market or consumer pattern exists near the site of enterprise?

What kind of contacts you have to exploit to your advantage for marketing of the product?

What infrastructure is available at the location of your enterprise?

How much capital is available?

c) Major inputs required for setting up an enterprise: Availability of-

Land, building or shed

Machinery and equipments

Raw Materials

Technology

Power and Water

Skilled manpower

Capital

d) Project Report Preparation containing detailed information about:

Land & building required, Manufacturing Capacity per annum

Manufacturing Process, Technology,

Machinery & equipment along with their prices and specifications,

Requirements of raw materials, Power & Water required,

Manpower needs, Marketing, Cost of the project and production,

Financial analysis & economic viability of the project.

..to be continued.

ENTERPRISE DEVELOPMENT

CUSTOMER FOCUS THROUGH VALUE CREATION


In the present day situation of consumer driven market, it is necessary to focus on the expectations of the customer.As an entrepreneur one must concentrate on the value created in a product or service. A customer buys a product only when he/she gets its real usefulness,quality and reliability and the service provided after sales. When sincerely adhered to these parameters it not only helps the entrepreneur in cost cutting but also retain the customer. In a buyer’s market it is the customer who defines the value. That means your values created by external means only through the customer/consumer. Evidently, we must focus on customers by providing good service to them and retain them almost valued partners in the supply chain/value chain.

The value chain includes the suppliers, the employees, the customers, the consumers and the share holders.In order to keep the quality one must focus on the quality of a supplier; in other words the quality of the materials, the price and just in time supply. The true value of the product or service depends on the quality of the in-puts. The consumer should satisfy with the product/service. This will result in repeat orders. A repeat order is a sign of the value created.

The most important input is the human contribution. The efficiency of the employees determines the quality of the output and thus creates the value. The efficiency is not only the skill but also the commitment of the employee for the work assigned to him/her. A satisfied worker is an asset to the company. The satisfaction comes through good pay package, welfare measures, job security, job satisfaction, status(position), etc. The shareholders look the value in financial terms and security for the money invested.

In order to achieve the goal we have to look all the above parameters through a process approach. Efficiency means doing things in the right way. An Entrepreneur, as a leader, shall do things differently.It means he/she must always focus on innovative approach. There must be continuous effort to put new ideas in the process to improve efficiency. The ultimate target shall be the customer satisfaction. In the supply chain every element plays its own role and each role is important in creating the value chain.

WE SHOULD ALWAYS REMEMBER THAT CUSTOMER IS GOD FOR THE ENTERPRISE

DECISION MAKING THROUGH PROBLEM SOLVING

DECISION MAKING THROUGH PROBLEM SOLVING

The decision making process often involve problem solving in a given situation.Planning, organizing, leading and coordinating are the key elements in a decision making process. At times decisions are to be taken at very short time,particularly when a crisis arises. In order to have a better understanding the actions shall be taken considering the following elements. There should be an organized approach to solve a problem and take appropriate decision. It must be noted that all problems cannot be solved at a time and some problem remain unsolved also .In order to make correct decisions it is necessary to understand and analyze the pros and cons .
· Define the problem
· Look at potential causes for the problem
· Identify alternatives for approaches to resolve the problem
· Select an approach to resolve the problem
· Plan the implementation of the best alternative/Action Plan
· Monitor implementation of the plan
· Verify if the problem has been resolved or not

In defining a problem it is necessary to know When, where, how, when and by whom the problem happened. Based on this information further actions shall be initiated.It is very important to note that the actions initiated may affect certain people who might have made certain mistakes unknowingly. Hence strict confidentiality should be maintained and the team involved in the decision making process must be very loyal to the company and preferably from the top management.