India: IP Exchange To Begin In India?

Last Updated: 14 August 2017
Article by S.S. Rana & Co. Advocates

If recent news reports are to be taken as in indication of what India has in store for Intellectual Property Rights, then the Intellectual Property sector of the Company is about to be taken over by a storm. It has been reported that an Intellectual Property Exchange may be established in India, where individuals, inventors, large corporations, small businesses, entrepreneurs in India as well as around the world will be able to sell, purchase, license or cross license intellectual property.

The exchange is reported to be established and developed under the guidance of the Ministry of Science and Technology through the National Research Development Corporation (hereinafter referred to as the NRDC). Though no official announcement has been made regarding the same, it has been reported that an in-principle agreement has been arrived at in the Ministry of Science and Technology regarding the setting up of the Intellectual Property Exchange.

Make no mistake, India is on the developmental speedway when it comes to Intellectual Property. As per the Annual Reports released by the Office of the Controller General of Patents, Designs, Trademarks and Geographical Indications, the Country saw an estimated 30% increase in filing of intellectual property applications, with the number rising from 2,62,638 applications filed in the year of 2014-15, to 3,41,086 applications filed in the year 2015-16. The trend of applications filed for registration of intellectual property in India since 2011-12 to 2015-16, taken directly from the Annual Report as mentioned above is given below:

(Source: Pg. 05, Annual Reports released by the Office of the Controller General of Patents, Designs, Trademarks and Geographical Indications, 2015-16)

The Managing Director of the NRDC, Mr. H. Purushotham was reported to have being said that the NRDC is in the process of collecting data and setting up the exchange in the next 8- 9 months. He was also reported to have said that the NRDC has already begun collecting necessary data and information on patents filed worldwide covering multiple technologies, but primarily focusing on Agriculture and allied sectors.

It is reported that the main reason for setting up the Intellectual Property Exchange was to help patents in India reach their full potential with respect to commercialization, especially the patents which do not get a platform to be sold on.

To grasp a better understanding of the implications of an IP Exchange being set-up in India, it is pertinent to understand how an IP Exchange typically functions. An IP Exchange provides a marketplace to facilitate sale, licensing and cross licensing transactions of intellectual property between two parties in a speedy, cost-efficient and streamlined manner.

Theoretically, the IP Exchange would facilitate transactions between inventors and large corporations by providing a market place which is not only legally sound, but also has certain rules that shall govern the sale, purchase and/or hedging of intellectual property rights. If done correctly, an IP Exchange may just as well be the next best thing to happen our country, creating jobs, ensuring optimum market growth and in turn resulting in economic development of not only the parties involved but the entire country as well. An IP Exchange would provide a speedy, efficient and cost effective process for licensing of Intellectual Property, and theoretically, it shall provide an alternative to tedious paperwork, litigation and save both time and money for both the inventor and the corporation/purchaser. Another aspect of establishing an IP Exchange would be the benefits it would present to inventors who do not have a means to showcase their invention, research laboratories as well as universities. These inventors/institutions do not show up on the radar generally unless an invention is groundbreaking, and contribute to one of the largest sources of patent registrations in our country. This fact can be supported by the Annual Report from the Controller General's office for the year 2015-16, which describes the top 5 patentees in India as follows:

(Source: Pg. 07, Annual Reports released by the Office of the Controller General of Patents, Designs, Trademarks and Geographical Indications, 2015-16)

Ideally, the setting up of such an IP Exchange in our country will not only bolster the market and create job opportunities, but it should also increase the competition in the market. Usually, competition in the marketplace between sellers usually leads to benefit of the public at large, but the same cannot be assuredly said for the IP Exchange.

In fact, all the above advantages that have been detailed above are merely theoretical. In due time, it is possible that reality would enter the frame and render some of the above advantages moot. There are many factors which ruin the idealistic scenario that has been painted above.

An aspect of the IP Exchange which might prove somewhat problematic is who would have the power to decide and regulate the price of an intellectual property right being sold in the IP Exchange? Will it be determined by the Licensee/Creator/Inventor who is selling his intellectual property, and if so, what is to stop the Licensee/Creator/Inventor from fluctuating the price to whatever he/she deems fit while selling the rights to different parties?

If the fluctuation of prices are to be determined by the market value, the principle of demand and supply, will a private agency be appointed to set the base prices or will the NRDC itself be overlooking this aspect? What safeguards will be put in place to ensure there are no market crashes or artificial price rigging? If the IP Exchange is to function in a manner analogous to the share market, then the base price would anyhow be decided by the inventor/creator if the intellectual property, and in view thereof, will there be guidelines as to how the price is determined?

There might as well arise a situation where one Licensee has paid more than another Licensee for the same rights, and in such a case, where can the Licensee go for redressal of their grievances? Will there be a separate redressal agency set up solely for the purpose of governing the IP Exchange? Or will the parties subject to such a transaction have to approach the Competition Commission claiming anti-competitive practices are being undertaken? Which judicial authority shall have the jurisdiction with regard to disputes arising out of such transactions?

It does not inspire much confidence that despite having signed a contract, there are so many variables present, making the entire transaction vulnerable to a protracted litigation battle, thereby defeating the very purpose of the IP Exchange being set up. It is evident that there is absolutely no legislative foundation to facilitate the start of an IP Exchange. Whether the legislation is introduced at a later point of time to streamline the process of building an IP Exchange is still yet to be seen.

However, one thing is certain, there is a lot of groundwork that needs to be covered with regard to the establishment of an IP Exchange before it can be deemed feasible in any manner. But if the same is done in a diligent and timely manner, it can be assured that the advantages and benefits that would be offered by an IP Exchange may potentially outweigh the disadvantages, ensuring that every inventor/creator receives the recognition, exposure and incentive that they deserve. In fact, if done right, it can safely be assumed that the IP Exchange would be considered as an incentive for such creators/inventors to use this funding to further their research and development and thereby come up with new, better inventions/intellectual property.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
S.S. Rana & Co. Advocates
Similar Articles
Relevancy Powered by MondaqAI
 
In association with
Related Topics
 
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions