In a potentially big boost to innovation, the country's first Intellectual Property Rights (IPR) policy has proposed securitisation of innovation rights, allowing them to be used as collateral to raise funds for their commercial development.
The policy also suggests financial support for developing intellectual property assets through banks, venture capital and angel funds and crowdfunding mechanisms, a government official said.
The national IPR policy, drafted by the Department of Industrial Policy & Promotion, is likely to be taken up for cabinet approval soon. Securitisation is a process by which various assets are consolidated into an instrument that can be issued to investors. "Countries such as the US and Japan do allow mortgaging of intellectual property assets," said R Saha, senior advisor with the Confederation of Indian Industry, backing the idea.
Intellectual property could be in the form of patents, trademarks and copyrights. The Department of Industrial Policy & Promotion, is likely to be taken up for cabinet approval soon. Securitisation is a process by which various assets are consolidated into an instrument that can be issued to investors. "Countries such as the US and Japan do allow mortgaging of intellectual property assets," said R Saha, senior advisor with the Confederation of Indian Industry, backing the idea.
Intellectual property could be in the form of patents, trademarks and copyrights. The valuation of IPRs could still be an issue.
Experts said the valuation of IP can be done by a company or an external body by analysing the cost incurred in acquiring it and assessing the amount it can fetch over the next five years.
"Unless there is a system that makes registration mandatory, securitisation will be very difficult in the Indian scenario. Any prior user who has not registered his trademark can challenge the claim of a registered IP owner as per current laws," said Ajay Sahni, a senior IPR lawyer. "As a banker, I would never be sure of an IP's worth."
The policy suggested setting up of an IP exchange to bring investors and IP owners on one platform. The government will extend financial support and easy loans to farmers, weavers and artisans through rural and cooperative banks under the proposed policy. The DIPP will assist IPR owners in getting on to ecommerce platforms and also create brand equity for their products.
The policy proposes a slogan, "Creative India, Innovative India," for an across-media campaign and linking it with other initiatives such as Make in India, Start Up India and Skill India.
A key objective of the policy is "to create public awareness about the economic, social and cultural benefits of IPRs."
The government plans to create cells in agricultural universities, technology and management institutes and design and fashion technology institutes to expand its human resource pool of IPR professionals and experts. The focus of the policy will be to enhance access to sectors of social, economic and technological importance such as healthcare, food security and environmental protection. "The IPR policy will promote a holistic and conducive ecosystem to catalyse the full potential of intellectual property for India's economic growth and socio-cultural development," the draft policy stated.
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