Enforcing Intellectual Property Rights: An Imperative Need for India to be a Success
There is great brand equity associated with company intellectual property. It gives investors, customers and other stakeholders great confidence in the company. Each type of IPR has its own meaning for startups, as shown below.
Today, almost a third of all funded technology companies have a patent application filed, while almost 19% of these startups applied for a patent even before receiving funding. There are several examples that show how intellectual property has played a crucial role in some businesses. The recent acquisition of Sprout Pharmaceuticals by Canadian drugmaker Valeant Pharmaceuticals was primarily based on Sprout Pharmaceuticals’ single drug patent (FLIBANSERIN). Just days after FDA approval, Valeant Pharmaceuticals paid out the $1 billion cash jackpot to purchase Sprout Pharmaceuticals.
A startup’s negligence to secure the invention could end up as a costly lesson for its business. For example, Xerox PARC did not patent its computer mouse or graphical user interface, and later companies like Apple Computer Inc. basically built their companies on its innovative technologies, without paying Xerox a single penny.
Obstacle for start-up company in IP investment
The main obstacle faced by a new company to invest in intellectual property is: the lengthy court processes and the weak enforcement mechanism for intellectual property in India. The delay in processing applications and other actions at IP offices is one of the main reasons why patent holders in India have little time to enjoy patent rights. It takes 6-7 years to receive a patent grant, which drastically shortens the life of a patent. Considering that the limitation of the patent term for 20 years from the date of filing of the patent application, regardless of any delay in processing, this greatly reduces the term of the patent and leaves applicants at a loss. Although the Indian Patent Office has taken initiatives to modernize the infrastructure and boost e-filing in the recent past, all efforts will be of little help if the registration process is not completed on time.
On top of that, an equally strong enforcement mechanism is required to support strong intellectual property laws. Poor enforcement of IP rights provides no relief against copycats and freeloaders, thus acting as a major barrier to trade, R&D investment and the overall growth of a country’s economy. On the contrary, a fair, strong and non-discriminatory application of IPRs creates economic incentives that foster innovation and help attract new investment. Despite complying with the international standards provided by the TRIPS Agreement, India’s IP policy is often alleged to be weak and ineffective, particularly with respect to patent protection. According to the latest GIPC Index published by the US Chamber of Commerce in 2015, India occupies the penultimate position in the ranking. “India’s patent law enforcement is very disappointing and is damaging India’s global image as an investment climate.”
Government initiatives
Recently, the concept of patent protection has drawn a lot of attention with the announcement of the Indian government’s commissioning action plan which also recognized the role of IPRs. “India’s future lies in innovation and creativity.” Indian Prime Minister Narendra Modi said while addressing the Start-up India event. To encourage the creation of new companies, new rules have been introduced to accelerate innovations, including accelerated examination, the appointment of a legal facilitator, the financing of patents and intellectual property rights, and the reduction of patent fees. The Indian government has also taken initiatives to enhance bilateral cooperation with other countries to improve the efficiency of the Indian patent office. This initiative could entice Indian investors and creators to create IP assets in India and use them in manufacturing, but that being said, a new company cannot reap the benefits of IPR by simply creating intellectual assets.
How to combat the weak application of IP?
Some of the recommendations could be:
Expedited judicial process
Specialized IP Training for Judges, Customs Officers and Police
Expand the number of IPR cells that prioritize enforcement
Increase the number of independent IPR investigations
Adopt statutory damages in civil case
Give political priority to crimes against IPRs
Raise awareness: It is important to raise IP awareness among stakeholders and the general public regarding IP rights and their enforcement. It would not only help IP holders fully enjoy their rights, but also encourage others to create more and discourage infringers from violating the rights of others.
conclusion
An invention or creation of an entrepreneur only has value if it is duly protected and safeguarded. Then only foreign companies will be encouraged to invest in their IP-protected inventions and establish their manufacturing, R&D and outsourcing bases in India. Startup India is a welcome step in fostering innovation and credibility in global markets, but if India wants to project itself as a global superpower, we must not only modernize the patent offices, but also have a strong, fair IPR enforcement mechanism. and non-discriminatory.
