Dr.K.S.Kardam Assistant Controller of Patents and Designs Indian Patent Office, New Delhi INDIA

1. Research Report Presentation UTILITY MODEL –A TOOL FOR ECONOMIC & TECHNOLOGICAL DEVLOPMENT A CASE STUDY OF JAPAN Dr.K.S.Kardam Assistant Controller of Patents and Designs Indian Patent Office, New Delhi INDIA A STUDY UNDER WIPO LONG TERM RESEARCH CUM FELLOWSHIP PROGRAM

2. OUTLINES • Introductory background • Research study • Summary and Conclusions • Proposals and Recommendations

3. Background-1 Some indicators IP Activities are very low India also has more than 10 millions SMEs SMEs Second largest in providing employment Contributing to 40% of gross industrial value SMEs responsible for about 45% of export India's economy is growing with rapid pace

4. Background-2Comparative IP Statistics

5. Background-3IP activities

6. Background-4 Lack of awareness About IP Protection ? Low R & D Activities? What factors responsible? Low R&D Expenditure ? Current IP Laws sufficient ? Need for Another law?

7. R&D Expenditure in India R&D Expenditure Only 0.8% to 0.9% of GDP Lack of investment in R&D By Private Sector Central Govt.- 62.0% State Govt.- 8.5% Public Sector- 4.5% Higher Education Sector- 4.7% Private Sector- 20.3%

8. Research Study

9. Research Theme-Objectives UTILITY MODEL SYSTEM Valuable tool for the economic and technological development Alternative system for the promotion and protection of IPRs Economical and faster system for protecting small innovations More options for encouraging and protecting IP Creativity specially for SMEs More Useful for promoting and protecting Small inventions in developing countries

10. Hypothesis UTILITY MODEL SYSTEM INVESTIGATE AND FIND OUT • Is it an another tool for economic and technological development • Would it be useful for domestic innovators in encouraging more IP activities in India • Would it Stimulate Small innovators and SMMEs in India`

11. Review of documents , Law & Regulations Methodology Visits and Personal Interviews with Companies, IP Firms And JPO Dispatching questionnaire to Companies, IP Firms And JPO in Japan And to IP Firms in India

12. Research Study • Chapter-I Introduction • Chapter-II Industrialization and evolution of IP system in Japan • Chapter-III Current Utility Model Law in Japan • Chapter-IV UM in Developed Countries • Germany, Australia and proposals by EC • Chapter-V UM in Developing Countries • Republic of China, South Korea, Brazil and some Asian countries including Taiwan China • Chapter-VI Existing IP Laws in India • Chapter-VII Research methodology-Analysis • Chapter-VIII Summary and Recommendations

13. Research analysis

14. Trend of IP applications in Japan Utility model and Industrialization High Technological advancements More by patents so decline in the UM applications and lost the relevance Technology up-gradation Diffusion and adaptation of technologies by minor modifications

15. Utility model system in Japan • Utility model system, in the past, has played very important role in economic and technological development • Encouraged domestic innovators • Japanese Corporation's R&D activities are now more focused on patents than Utility Models • Japan now Technology exporter than importer • Currently, although not many applications as compared to patents are filed but IP fraternity not in favour of the abolition of the law • One of the most important features of the law is the convertibility of the UM application to patent or vice versa • One of the weakest features is the lack of legal authority in the enforcement of the rights

16. Reasons for loss of Interest • Amendment in the law • Non substantive examination and reduction of term • Lack of legal authority in execution of the rights • Patent and industrial design are more stronger rights • Higher level of research out put and therefore opt for patents • Limited scope of protection under UM • Backlog in the examination

17. Utility model system in other Countries • Very successful in Germany, Republic of China, South Korea and Even Taiwan China • Reasonably successful in Australia • Does not appear to be very successful in Brazil • Proposals for Community Utility model proposed by EC withdrawn, not because it is not important and relevant but because of legislative process due to difference among the member countries, although most of them already have the system in their national except UK, Sweden and Luxembourg.

18. Comparison table-Utility model Provisions

19. Utility Model System in Some Asian Countries* *The information is based on the discussion with IP practitioners IPR/JPO Trainees

20. Conclusion • UM is also good and valuable alternative tool for economic and technological development • It is supplementary to other IP Laws • Economical, Simple, flexible and faster system • Encourage and protect specially domestic innovators • Useful for developing countries particularly SMEs and individual innovators • useful for India to promote and enhance IP activities

21. Policy options for India • Amendments in existing Patent law. • Amendments in the Design law • An independent sui-generis system

22. Proposals and Recommendations-If so considered • Legislative proposals • Subject matter • Exclusions • Novelty and inventiveness • Examination • Conversion of application but no dual protection • No pre-registration opposition • Post registration technical evaluation or search report • Invalidation or cancellation, Grace period and priority rights • Compulsory licenses • Other proposals • R&D Expenditure to be increased • IP Policy and Strategy • Enhanced IP awareness

23. Thanks for your kind attention !