Ip rs may be used as collateral to raise funds

1. IPRs May be Used as
Collateral to Raise Funds
Policy also suggests financial support for developing IP assets through
banks, venture capital, angel funds and crowdfunding mechanisms

2. Contd…
In a potentially big boost to innovation, the country's first Intellectual
Property Rights (IPR) policy has proposed securiti sation of innova tion rights,
allowing them to be used as collateral to raise funds for their commercial
development. The policy also suggests financial support for developing
intellectual property assets through banks, venture capital and angel funds
and crowdfunding mechanisms, a government official said.
The national IPR policy , drafted by the Department of Industrial Policy &
Promotion, is likely to be taken up for cabinet approval soon. Securitisation is
a process by which various assets are consolidated into an instrument that
can be issued to investors. “Countries such as the US and Japan do allow
mortgaging of intellectual property assets,“ said R Saha, senior advisor with
the Confederation of Indian Industry , backing the idea.

3. Contd…
Intellectual property could be in the form of patents, trademarks and
copyrights. The valuation of IPRs could still be an issue.
Experts said the valuation of IP can be done by a company or an ex ternal
body by analysing the cost incurred in acquiring it and assessing the amount
it can fetch over the next five years.
“Unless there is a system that makes registration mandatory , securitisation
will be very difficult in the Indian scenario. Any prior user who has not
registered his trademark can challenge the claim of a registered IP owner as
per current laws,“ said Ajay Sahni, a senior IPR lawyer. “As a banker, I would
never be sure of an IP's worth.“ The policy suggested setting up of an IP
exchange to bring investors and IP owners on one platform. The government
will extend financial support and easy loans to farmers, weavers and artisans
through rural and cooperative banks under the proposed policy .

4. Contd…
The DIPP will assist IPR owners in getting on to ecommerce platforms and also
create brand equity for their products. The policy proposes a slogan, “Creative
India, Innovative India,“ for an across-media campaign and linking it with other
initiatives such as Make in India, Start Up India and Skill India.
A key objective of the policy is “to create public awareness about the economic,
social and cultural benefits of IPRs.“
The government plans to create cells in agricultural universities, technology and
management institutes and design and fashion technology institutes to expand its
human resource pool of IPR professionals and experts. The focus of the policy will
be to enhance access to sectors of social, economic and technological importance
such as healthcare, food security and environmental protection.“The IPR policy will
promote a holistic and conducive ecosystem to catalyse the full potential of
intellectual property for India's economic growth and socio-cultural development,“
the draft policy stated.

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