Written by: Ananya Sharma, Associate, JusIP
The Micro, Small and Medium Enterprises (MSMEs) today represent a dynamic sector of the Indian economy. They contribute significantly to the economy and accordingly, require proper incentives in the form of financial aid, schemes, technological and infrastructure development, market assistance and ways to enhance not only competition but also innovation.
Challenges Faced by MSMEs
MSMEs contribute 30% percentage1 to the Indian Economy while playing a significant role in generating employment for the citizenry. However, they face many hurdles when it comes to ensuring protection of their Intellectual Property (IP). Some of the key challenged faces by MSMEs in India include, inter alia, ignoring innovation while focusing on production and lack of business and product technical information.
On the occasion of the 21st World Intellectual Property Day, we elucidate upon the Flagship Programme of the Ministry of Micro, Small and Medium Industries which focuses on the objective of making things simpler for MSMEs in these times to facilitate better IP protection and innovation.
Synopsis of the Scheme
As a part of the National Manufacturing Competitiveness Programme, the Ministry of Micro, Small and Medium Enterprises in their Annual Report of 2020-20212 have highlighted a Scheme for “Building Awareness on Intellectual Property Rights” for MSMEs. The objective of this scheme is four-fold.
Firstly, to spread awareness about the law pertaining to Intellectual Property Rights; secondly, to undertake measures for protection of business strategies and ideas; thirdly, to assist MSMEs enhance competitiveness by utilisation of IPR Tools and up-gradation of technology; fourthly, to fulfil the aforementioned objectives by way of “conducting awareness programmes, seminars workshops, reimbursements for registration of IP, international co-operation and setting up IP Facilitation Centres across India”.
Eligibility
While the eligibility for each of the activities under the scheme varies from one to the next, broadly the following entities will be eligible under the Scheme:
A. Competent Agencies such as Consultancy and research organisations or individuals or agencies with at least five years of experience into conducting studies or capability to conduct the same.
B. Expert Agencies such as WIPO, IITs, Indian Patent Office, TIFAC, NRDC etc.
C. IPR facilitating Agencies such as quasi-judicial or government aided bodies and private units sponsored by MSME Industry Associations.
D. MSME Organisations such as Industry Associations, Societies and Cooperatives including Trusts etc.
E. MSME Units which are registered or have EM credentials.
As per the above Scheme, the activities under this Scheme would be divided into seven parts. These alongside the financial grant for the activities are:
| S.No. | Activity | Grant per Application/Proposal (Lakhs)
|
| 1. | AWARENESS PROGRAMMES ON IPR | 1.00 |
| 2. | STUDIES ON CLUSTERS/GROUPS OF INDUSTRIES | 2.00 |
| 3. | SEMINARS AND WORKSHOPS | 2.00 |
| 4. | SPECIALISED TRAINING (i) Short Term (ii) Long Term | 6.00 45.00 |
| 5. | ASSISSTANCE FOR GRANT OF PATENT/GI REGISTRATION (i) Domestic Patent (ii) Foreign Patent (iii) GI Registration |
0.25 2.00 1.00 |
| 6. | SETTING UP ‘IP FACILITATION CENTRE’ FOR MSME | 65.0 |
| 7. | INTERACTION WITH INTERNATIONAL AGENCIES: (i) Domestic (ii) International Exchange | 5.0 7.50 |
Objectives of the above activities
An effective way to determine how the activities listed under the Schemes will benefit various stakeholders is by analysing the objective that the Ministry wishes to achieve from them. The following table aims to apprise you with the information pertinent for each activity:
| S.No. | Activity | Objective |
| 1. | Awareness Programmes on IPR |
|
| 2. | Pilot studies for Group of Industries or Clusters |
|
| 3. | Seminars/ Workshops |
|
| 4. | Specialised Training |
|
| 5. | Financial Assistance for Grant of Patent and GI |
|
| 6. | Setting up IP Facilitation Centres |
|
| 7. | Activities with International agencies |
|
Refrences
1 The Economic Times, “MSME sector contributes 30% to GDP, 48% to exports: Nitin Gadkari” 30th October, 2020, visited on 25.04.2020.
2 Read the Scheme on https://msme.gov.in/sites/default/files/Revised_IPR_Guidelines.pdf
