In yet another remarkable development in fostering innovation, creativity and intellectual property protection in India, the Government has announced that an Intellectual Property Exchange will be developed under the Ministry of Science and Technology through the National Research Development Corporation (NRDC). The Exchange will enable the individuals and/or corporate entities to buy and sell IP rights across various sectors.
The said move by the Government of India is welcomed by the inventors and the industrial houses alike, the same would facilitate monetization of IP, benefiting the inventors and resulting in manufacturing and availability of better technologies to the public at large. The said exchange would not only be limited to inventions or patents but may also include facilitating monetization or commercialization of copyrights, designs, trademarks, geographical indication, etc.
As per news reports, the idea of setting up a patent exchange similar to those in Hong Kong and the UK was floated in the Government Ministry around two months ago. The project has already got in-principle approval from the Ministry of Science and Technology. "We have been mandated with the task of creation of the proposed IP exchange and the process will take around 8-9 months for collecting data and setting up the exchange. We are already undertaking exercise of collecting necessary data and information on patents filed worldwide on multiple technologies, predominantly on agriculture and allied sectors," said the NRDC Chairman and Managing Director- H. Purushotham3.
The Annual Report by Controller General of Patents, Designs and Trademarks (CGPDTM) of 2015-16, India stated that there is about 30% increase in filing of intellectual property applications compared to previous years. In the years 2015-16, about 3,41,086 applications were filed for IP rights as against 2,35,306 in the years 2011-12. Accordingly, while there has been a continuous increase in filing of intellectual property, a need is felt for a viable platform supported by the Government for commercialization of registered intellectual property. This requirement of commercializing the IP would be catered by the Intellectual Property Exchange of India. The effectiveness of the said move to setup the Exchange would certainly depend upon execution of the proposals on paper to be effected by the Government functionaries.
The challenge would be to keep the process and working of the Exchange transparent with accountability on the Executives of the Exchange. The processes and/or protocols to be adopted for the same would be crucial in the functioning and success of the said Exchange. One of the salient objectives and benefit for such a centralized IP Exchange would be to monitor and reduce the arbitrary negotiations amongst the parties and to facilitate constructive talks so as to result in reasonable benefits to both the parties. The IP Exchange would also act as a centralized library or market wherein the patent or right holders would showcase their IP and the interested parties can approach the said IP right holders for licenses or purchase of the same.
According to India Brand Equity Foundation's Innovation and Patents Report4 of June 2017: India's research and development spend is estimated to reach $71.5 billion by 2016 from $66.49 billion in 2015; In 2015, India became the world's sixth largest annual research and development spending country, accounting for 3.53% of global R&D expenditure; The R&D spending in India is anticipated to grow from 0.9% to 2.4% of the country's GDP from 2014 to 2034 respectively; The number of multinational corporations with R&D Centres in India has grown at a CAGR of 4.57% from 721 in 2010 to 943 in 2016; During 2010-16, the workforce in MNC R&D Centres increased at a CAGR of 10.08% and reached 363,000, which is estimated to further increase to 387,000 by 2017 in India.
In view of the promising numbers in terms of growth of innovation and patents in India, the Exchange would certainly propel the country's agenda of providing equitable and transparent platform for reaping benefits out of the intellectual property creations/registrations in India.
Footnotes
4 https://www.ibef.org/industry/indian-innovation-and-patent-industry-analysis-presentation
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