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Idea imbibed from the intellectual
capacity of human brain that is manifested having recognised legal claim
to ownership is Intellectual Property Right. The word intellectual
property right alludes contentious and would be a misnomer to associate
the same with elite and the intellectuals. Inadequate knowledge on the
subject in the developing nations ventilates such thoughts to the common
mass. However the scenario is changing with the consistent efforts by
governments of various nations across the globe to harmonize the laws
relating thereto. This would facilitate to outline altogether different
concept. WTO framing rules to keep the pace with the developing
technology (a never ceasing process) promises new hopes to these
nations. For instant the product patent regime in India for
pharmaceutical products from January 1, 2005 is one example.
The nomenclatures such as patent,
trade mark, copyright, industrial design, integrated circuit are well
known and is conceived as masters on the same by the elite and the
intellectuals but the irony is, till date major local globe in India are
concerned only with the prosecution of the IP assets. Illuminating IPR
beyond prosecution, the commercial exploitation of the procured IP
assets is the core success. This commercialization of IP assets is no
longer new concept for MNC's in countries like USA, Japan, Germany, etc
but the local globe in India are yet to make their maiden voyage. At
this juncture WTO re-framing rules making FDI procedure flexible, Indian
manufacturers are sensing the current scenario, only as threat from the
MNC entering India, making them impaired. Hence the drive for filling
patent is at mad rush!! not worried, in-fact unaware of the repercussion
after the grant of patents. It may not be a big problem for large
manufacturers but the cost of maintaining the patents without commercial
exploitation might be a nightmare at later stage. Manufacturers are of
the notion that the patent laws are of superficial legal in reality
technology driven, which to an extent is correct but viewing patent
beyond prosecution is definitely legal affair.
Yet another misconceived notion is
depicting the IP asset on the balance sheet. The practice in India is
almost non existing, if at all few companies are making efforts it is
only to the extent of showing the cost incurred in procurement of the IP
and not on the commercial success of the product. The Income Tax Act
1961 of India, in the year 1998 has already incorporated the evaluation
of intangibles. Unlike in US the same is reflected on the balance sheet
only when IP is acquired either as a goodwill or intangible property
(Prior to FAS on going into effect). Once the value is depicted on the
balance sheet, the value is revalued yearly to see whether the value has
been raise, lowered or is constant and accordingly the same is
reflected. This probe one to contemplate upon why value IP? The repartee
is clear there would be many reasons to value IP such as for sale,
license to other party, for tax planning, for accounting transactions,
for determining overall value of technology with or with out protection,
for valuing brand or trade marks, to identify items that may be more
valuable to other part than to yourself and may more. The intrinsic
purpose of valuation of IP is specific as per the requisition of the
organization.
The IPR cult in India is still at
embryotic stage and the same is misconstrued and misinterpreted. IPR
poses very potential revenue generating weapon if explored to the
fullest but currently local Globe view IPR as cost incurring and
requiring very high maintenance cost hence compromise on hiring
competent personnel in the field. The IPR statutes interpreted by such
personnel are adding altogether negative value to the organisation at
times even resulting into incorrect decision. The damage is irreparable
but who cares!! and when it is time to face the repercussion the
scapegoat would be "we learn from our mistakes!!"
Apt management of Intellectual
property might appear little difficult task at this inchoate stage but
not impossible. The pre-requisition is channelised knowledge on the
subject, more importantly the IPR activities to be treated as primary
and not secondary level irrespective of the industrial type. Further
in-house IPM cell comprising of qualified and competent personnel,
seeking constant advise on how to monitor and manage the most important
wealth of an organisation which is gone unrecognised so far particularly
in India.
Copyright Anumoni Joshi 2004 @ The
views on the article are personalized and not to be taken as advise
prior consulting the author. No portion of this article to be copied,
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