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2013
Indo-Japan Trade & Investment
Bulletin
July Issue
Japan Desk, Corporate Professionals
Indo-Japan Trade & Investment Highlights
India to become the Third Largest Auto Market by 2016
Japan’s Imaging Solutions P...
India to become the Third Largest Auto Market by 2016
The Indian Auto Market is all set to overtake Germany, Brazil and Ja...
India’s free trade agreement with the European Union is a cause of concern for the Japanese
firms.
Instant Messaging Apps ...
Nissan exports its vehicles from India to more than 100 countries in Africa, Middle East and
Europe. The step has been tak...
Consumer Electronics players in India complain against Sony
The major consumer electronic players in India, LG, Samsung an...
Japan’s Royals to make an India Trip in November
Japan’s Emperor Akihito and Empress Michiko will be visiting India for th...
first of its kind by an Indian entity. The bonds carrying coupon rate of 3.5% - 4% and having
maturity of 2 years will be ...
India amends Trade Marks Law (Effective 8th
July 2013)
The notice issued by the CGPDTM also makes effective, the amendment...
Thus, under the system now, an international registration may be obtained by simply filing a
single application with the I...
CONTACT US
PANKAJ SINGLA
Japan Desk, Corporate Professionals
NEW DELHI (Head Office)
D-28, South Extension Part - I, New
D...
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Indo Japan Trade & Investment Bulletin July-2013

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India and Japan Trade and Investment Bulletin published by Japan Desk of Corporate Professionals---
Highlights:::
1. India to become 3rd largest Auto Market by 2016,
2. Japan's Imaging Solutions Provider keeps its top line aims robust
3. Honda targeting a greater presence in India
4. Instant Messaging Apps make it big in India

Knowledge Center: Trade Mark Law - Madrid Protocol Becomes Effective in India

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Transcript of "Indo Japan Trade & Investment Bulletin July-2013"

  1. 1. 2013 Indo-Japan Trade & Investment Bulletin July Issue Japan Desk, Corporate Professionals
  2. 2. Indo-Japan Trade & Investment Highlights India to become the Third Largest Auto Market by 2016 Japan’s Imaging Solutions Provider keeps its Top-Line Aims Robust Former Japanese Ambassador becomes Adviser to Sri City SEZ Toyota Kirloskar to delay launch of Lexus Instant Messaging Apps make it big in India Honda Targeting a Greater Presence in India Japanese PM Abe to schedule an India visit later this year Panasonic turns to Other Businesses to Achieve Bigger Presence in India Nissan Renews its Export Agreement for a period of Ten Years Renault – Nissan increase investment in India by USD 2.5 Billion Japanese Cosmetic Maker to enter India Nissan launches its First Datsun Car after Three Decades Japanese Restaurant Chain Inakaya to be brought to India Consumer Electronics players in India complain against Sony Japanese Agricultural Equipment Maker Plans to Set a Manufacturing Unit in India Japan’s Tsubamex enters into Joint Venture with Indian Auto Component Maker Panasonic hopes to Make it Big in the Indian Smartphone Market Japanese Agricultural Machinery Major launches a New Tractor Japan’s Royals to make an India Trip in November Titan Industries and Japan’s Seiko Expand their Strategic Partnership Defiance Technologies of the Hinduja group working with Nissan on a Car Japanese Gift exhibition proves Fruitful for Indian Exhibitors ICICI Bank to raise funds through Yen Bonds Knowledge Centre Trade Mark Law: Madrid Protocol Becomes Effective In India INDEX
  3. 3. India to become the Third Largest Auto Market by 2016 The Indian Auto Market is all set to overtake Germany, Brazil and Japan by 2016, falling behind only China and the US. As per senior principal economist with the IHS, the auto industry world over is shifting high on focus on growing nations owing to high fuel costs, urban driving restrictions and effects of global recession in mature markets. It has been said that India’s Light Vehicle Production will reach 7 million by 2020 with Indian citizens’ purchasing power acting in favour of the auto makers. Japan’s Imaging Solutions Provider keeps its Top-Line Aims Robust Imaging solutions provider Ricoh India, a subsidiary of Japan’s Ricoh Company Limited is keeping its aims high by targeting a turnover of INR 1000 Crore1 by the end of this fiscal compared to an INR 633 Crore turnover at the end of FY 2013. The Company is also going to concentrate on its IT services business which was started by it a couple of years back and has now become a 25 percent contributor to the Company’s revenue. The Company has just launched three new printers and plans to launch digital cameras later this year. Former Japanese Ambassador becomes Adviser to Sri City SEZ Yasukuni Enoki, the Japanese Ambassador to India from 2003-2007, has been taken in as an adviser to the Sri City Special Economic Zone in Andhra Pradesh. The induction has been done keeping in mind the increasing Japanese investment in India. Toyota Kirloskar to delay launch of Lexus Owing to the heavy import duty and sluggish market, Toyota Kirloskar Motor may further delay the launch of its premium brand – Lexus in India. Though the Company was very keen on this launch, it seems that the challenges in the Indian economy will cause the management to re- evaluate the feasibility of the project. Apart from this, it is being said that the ongoing talks about 1 1 Crore = 10 million Indo-Japan Trade & Investment Highlights
  4. 4. India’s free trade agreement with the European Union is a cause of concern for the Japanese firms. Instant Messaging Apps make it big in India A number of global instant messaging applications have entered the promising market of India, thanks to the constantly declining tariffs and increasing penetration of smartphones in India. In past one year for example, China’s Tencent and Japan’s Naver have launched their IM applications, WeChat and LINE respectively, with LINE achieving five million users in India in just three weeks of its launch in India. Honda Targeting a Greater Presence in India Honda Cars India, the Indian arm of Japanese automaker Honda is aiming to achieve a greater presence in India on the basis of volume and also plans to increase its offering in the diesel segment. Honda Cars India is targeting an optimistic fifty percent share in the Indian market in two years time, jumping high above its current ten percent presence. To achieve this, Honda is planning to start manufacturing at its Rajasthan plant and assembling at its Greater Noida facility apart from preparing for the launch of three new models. Japanese PM Abe to schedule an India visit later this year Japanese premier Shinzo Abe’s victory in the Upper House Elections has painted a picture of him as one of the most powerful political leaders in Japan’s history. The Indo-Japan relationship reached another notch when Indian Prime Minister visited Abe after his success. Abe has hinted at visiting India if the negotiations regarding the nuclear agreement succeed. Panasonic turns to Other Businesses to Achieve Bigger Presence in India To beat the ever weakening rupee and to earn more profits, Panasonic India, a subsidiary of Japanese electronics giant Panasonic, is contemplating deviating from the B2C segment and focus on the B2B segment instead. This move is definitely quite a prominent one especially because 85 percent of Panasonic’s global revenues have come from the B2B segment whereas in India it was the B2C segment that contributed close to 95 percent to the profit it derived from India. Nissan Renews its Export Agreement for a period of Ten Years The Indian arm of the Japanese car maker Nissan has renewed its agreement with Ennore Port Limited to export vehicles for the next 10 years and the Company has committed to export a minimum of 60,000 units a year, a target that doesn’t sound unachievable especially because
  5. 5. Nissan exports its vehicles from India to more than 100 countries in Africa, Middle East and Europe. The step has been taken in lines with Nissan’s objective of establishing India as an export hub. Renault – Nissan increase investment in India by USD 2.5 Billion Renault SA and Nissan Motor Co Ltd will jointly invest USD 2.5 Billion in India over next five years to work towards increasing their market share by launching new cars. Renault – Nissan have together already made investments worth USD 2.5 Billion earlier in India and utilized them on a technology centre and development of cheap car platform. Despite a cooling demand in India, car makers continue to remain big on investment in the economy as some experts expect India to become the third largest car market by 2020. Japanese Cosmetic Maker to enter India Japan’s prime cosmetics maker, Shiseido Co is looking to turn to India to improve its penetration in the emerging markets and to recover from the brunt it bore in China owing to political tensions. The Company which will be setting up a wholly owned subsidiary in the country plans to target the fastest growing middle income group. Shiseido has been in the Indian market since 2001 but only through a local distributor and has been focused on high end consumers only. Nissan launches its First Datsun Car after Three Decades Nissan has reached another milestone in the Indian auto market by launching its latest 5 – seater Nissan Datsun GO. The brand Datsun has been used by Nissan after a break of 30 years. The car which has a modern shape will be available in funky colours in early next year for a price of around INR 4 Lakhs2 . Japanese Restaurant Chain Inakaya to be brought to India The JSM Corporation Private Limited, a leading Indian franchise running US food & beverage chains like Hard Rock Cafe and California Pizza Kitchen, is soon going to launch a popular Japanese restaurant chain: Inakaya. First opened in Tokyo in 1970, Inakaya serves traditional Japanese grilled food. The Company, a closely held Company has 22 percent equity stake owned by the prestigious PremjiInvest, the private equity arm of Azim Premji whereas the founders hold 60 percent of the stake together. 2 1 Lakh = 100,000
  6. 6. Consumer Electronics players in India complain against Sony The major consumer electronic players in India, LG, Samsung and Videocon under the aegis of the Consumer Electronics and Appliances Manufacturers Association have made representations to the ministries of commerce, finance, communications and IT contending that the Japanese companies like Sony and Toshiba enjoy nil or concessional duties despite not fulfilling the value addition norms specified under the Free Trade Agreements. This according to them is disrupting a level playing field for consumer electronics companies. Sony on the other hand has dismissed the situation as corporate rivalry and has strongly claimed itself to follow the best form of corporate citizenship. Japanese Agricultural Equipment Maker Plans to Set a Manufacturing Unit in India The Indian arm of Kubota Corporation, Japan’s largest agricultural equipment manufacturer is planning to set up a manufacturing facility in Pune, India to tap the rising demand of agricultural machinery in the country. The company which has been growing at a rate of 30-35 percent over the last three years, hopes to set up this plant in less than five years. Japan’s Tsubamex enters into Joint Venture with Indian Auto Component Maker Japan’s Tsubamex Co. Ltd. and India’s auto components and bicycles maker Tube Investments of India Ltd. have signed a Joint Venture Agreement to make sheet metal dies for the Indian automobile industry and the white goods sector. The venture will be formed with an initial capital outlay of INR 7 Crores. Panasonic hopes to Make it Big in the Indian Smartphone Market Japanese electronics giant Panasonic hopes to receive the majority of its revenue of its upcoming smart phone business that kick-started only a month ago from the Indian market. India’s smartphone market, barely two and a half to three years old, is one of the largest in the World. The Company is aiming to more than double its top-line by 2015-16. Panasonic will also focus on batteries and UPS business in India. Japanese Agricultural Machinery Major launches a New Tractor The Japanese agricultural machinery major Kubota has announced the launch of narrowest tractor in India’s largest cotton producing state, Gujarat and a simultaneous launch in the states of Maharashtra and Madhya Pradesh. The new tractor is touted to help farmers deal with labour shortage, weeding and inter-cultivation of a wide variety of crops.
  7. 7. Japan’s Royals to make an India Trip in November Japan’s Emperor Akihito and Empress Michiko will be visiting India for the first time from November 30th to December 05th this year. It is hoped that through this visit, the countries will be able to further strengthen their relations of goodwill and friendship between each other. The Emperor and the Empress will be spending the majority of their time in Delhi and will later visit Chennai. Titan Industries and Japan’s Seiko Expand their Strategic Partnership Titan Industries, an Indian lifestyle giant leading the market for watches and jewellery among other products, is soon going to expand its strategic partnership with Japanese conglomerate Seiko Epson Corporation. The partnership was born last year when the two entities had signed a strategic pact for the purpose of manufacturing high-end stainless steel cases for watches. Through the pact, Titan can make use of Seiko’s knowhow through a technical services agreement while it is setting up the Coimbatore manufacturing plant. With this partnership expanding, Titan will now supply stainless steel cases to Seiko to meet their global demand. Defiance Technologies of the Hinduja group working with Nissan on a Car Defiance Technologies, a company of India’s Hinduja Group is currently working with Nissan to help develop a small car although the Company, a truck and bus maker, plans to keep distance from the car business. The group which focuses mainly on commercial vehicles is open to acquisition of entities in the commercial vehicle segment as it moves on its path to become one of the top five bus companies and one of the top ten truck makers in the world. The final product of this Joint Venture between Hinduja and Nissan may be exported in a shared manner. Japanese Gift exhibition proves Fruitful for Indian Exhibitors A three day exhibition GIFTEX WORLD 2013 held in Tokyo had Indian handicrafts companies participating for the first time and in huge numbers. The Indian participants had a very positive experience as they brought back business of worth over USD three million. The exhibition which saw participation of around 1800 exhibitors attracted nearly 70,000 trade buyers. Handicrafts sector holds a very important place in the Indian economy for various reasons like foreign earnings, employment of economically and socially backward classes and promotion of Indian culture. ICICI Bank to raise funds through Yen Bonds ICICI Bank of India is looking to exploit the opportunities of raising institutional investment from Japan by issuance of bonds to the tune of Yen 50 billion. The issue of Yen bonds will be
  8. 8. first of its kind by an Indian entity. The bonds carrying coupon rate of 3.5% - 4% and having maturity of 2 years will be issued in tranches as the first trache of Yen 10 billion will help the Indian bank determine investor confidence and appetite. ICICI has appointed Barclays Securities Japan and Mizuho Financial Group Inc. to manage the issue in Japan. Trade Mark Law: Madrid Protocol Becomes Effective In India Marking a significant progress of the Indian subcontinent in the area of trademark law, India acceded to the Madrid Protocol on 8th April 2013, making the same effective in India beginning 8th July 2013, as per the Information Notice No. 15/2013 dated 29th May, 2013 issued by WIPO and Public Notice issued by the Controller General of Patents, Designs and Trade Marks (CGPDTM) on 8th July 2013. A notification dated 5th July 2013, issued by the Ministry of Commerce and Industry, DIPP, also notified that the Trade Marks (Amendment) Rules, 2013 which incorporate provisions relating to international registration of trademarks as under the Madrid Protocol, and brings in some amendments to the existing Act, have also come into force from the 8th of July 2013. The accession to the Madrid Protocol comes as a major advantage to the domestic applicants of India, as it gives the applicant an ability to file international application on the basis of a pending application in a Contracting Party to the Protocol or for a registered mark in the jurisdiction of the Contracting Party. What is the Madrid Protocol? The Madrid Protocol is a treaty that provides for the international registration of trademarks, by filing of a single application in one language, for ensuring registration in several countries. The Madrid Protocol, along with the international treaty called the Madrid Agreement, governs the Madrid system (as it is known), for the international registration of trademarks. The system is administered by the International Bureau of the World Intellectual Property Organization (WIPO), which maintains the International Register of marks. The Protocol is an offshoot of the Madrid Agreement, and came into existence in the year 1989, and came into force on 1st April 1996. Knowledge Center
  9. 9. India amends Trade Marks Law (Effective 8th July 2013) The notice issued by the CGPDTM also makes effective, the amendments to the existing Trade Marks Rules. The registration of a trademark under the Madrid Protocol would require adherence to a number of procedural formalities laid down in Chapter IVA of the Trademark Amendment Act, 2010 and the corresponding Trademark Rules, 2013 (The Trade Marks (Amendment) Rules, 2013 introduces Chapter III A to the existing Trade Marks Rules, 2002 relating to ‘Special Provisions relating to Protection of Trademarks through the International Registration under Madrid Protocol’.) By virtue of these amendments, India has brought about the necessary amendments and changes in its existing trademark law to be in harmony with the Madrid Protocol. Madrid Protocol comes into force in India from 8th July 2013 On 8th April 2013, India became the 90th member of the Madrid Protocol (and not the Madrid Agreement). By virtue of this, India has now become a party to the Protocol, and as agreed, the Protocol is effective in India with effect from 8th July 2013. This comes as a cost effective step for any natural persons and legal entities established in, domiciled in, or a national of India, having a registered trademark or a pending application for registration of trademark in India, as this system will allow an applicant to make online application for the international registration of the trademark in the member parties to the Protocol. Thus, an Indian applicant can make an application for registration in as many as 89 member countries to the Protocol, apart from India through a single application. Simultaneously, this also implies that trademark owners can get their trademarks protected in the Indian jurisdiction, as well as in the jurisdiction of the 88 other member countries plus the European Union, through a single application. A list of the Contracting Parties to the Protocol can be found at http://www.wipo.int/treaties/en/ShowResults.jsp?lang=en&treaty_id=8. The Protocol Advantageous.. The system is advantageous to an applicant as it cuts short the requirement of filing many national applications in several or all countries of interest, in several different languages, and understanding the several procedural laws of the countries the mark is intended to be registered in. To some extent, it also saves the separate filing fees to be paid for registration in each jurisdiction.
  10. 10. Thus, under the system now, an international registration may be obtained by simply filing a single application with the International Bureau of the WIPO, in a single language (English in case of India), and on payment of single set of fees, though the application has to be made through the Office of Origin. These advantages also exist for renewals, and for recording of transactions such as assignments, etc, where such recordings can be made at one place itself. What must be understood though, is that registering through the Madrid Protocol does not create an international right per se, it only creates a bunch of national rights, administered centrally. Registering trademarks across 90 countries, by filing of a single application will be a very attractive solution for corporate and individuals alike. Though what remains to be seen is the challenge that this will be for its implementation in India, given the requirement of processing of the application by the Registrar of Trademarks within time limits, and the known backlogs in the processing of these applications in India. Nonetheless, the Protocol becoming effective does increase the international protection and opens up avenues for growth and recognition in newer business markets. DISCLAIMER: The document has been prepared and produced only for the information purpose only and is not to be construed as an advertisement, solicitation, invitation, personal communication or inducement of any kind by the Firm, the author or any of its Partner or associates. The entire content of this document has been developed on the basis of relevant statutory provisions and as per the information available at the time of the preparation. Though the author has made utmost efforts to provide authentic information, however, the material contained in this document does not constitute/substitute professional advice that may be required before acting on any matter. The author and the firm expressly disclaim all and any liability to any person who has read this document, or otherwise, in respect of anything, and of consequences of anything done, or omitted to be done by any such person in reliance upon the contents of this document.
  11. 11. CONTACT US PANKAJ SINGLA Japan Desk, Corporate Professionals NEW DELHI (Head Office) D-28, South Extension Part - I, New Delhi – 110049 Tel: +91-11-40622200 Dir: +91-11-40622293 Fax: +91-11-40622201 Mob:+91-99715-08320 Email: pankaj@indiacp.com MUMBAI: Mastermind- I, Royal Palms Estate, Aarey Colony, Goregaon (East), Mumbai -400065 Tel: +91 9820079664 Fax: +91 9810037390 FARIDABAD (DELHI NCR): 565, Sector-7B, Faridabad, Haryana-121006 Tel: +91 129 4061130 Fax: +91 129 2241017 Bedford (UK) 2-4 Mill Street, Bedford MK40 3HD U.K. Tel: +44 (0) 2030063240 Fax: +44 (0) 2030063241

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