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.