IMPACT OF PATENT REGIME ON SME SECTOR - ENGINEERING AREA

Patent is a monopoly right conferred to the inventor who has invented a new product or process through his intellectual efforts which is capable of industrial application. Patents are granted on the fulfillment of certain requirements such as novelty, inventive step, industrial application and written description. Patents are granted to a new product or process on demonstration of inventive step that is of commercial significance. Patent grants an exclusive right for a period of twenty years to the inventor to use and exploit the invention. Except the owner no other person is authorized to use and exploit invention. However, the owner can assign or license the invention to any interested person. Once the duration of the patent expires the invention falls into the public domain and any one can use it. The Paris convention on industrial property, which is probably the first international attempt to protect inventions postulates for the protection of novel inventions in order to encourage scientific and technological development. The European patent convention (EPC) also provides for the protection of inventions by making patents available. The TRIPS agreement mandates patent protection both product patents and process patents for all eligible inventions in all fields of technology irrespective of place of origin. In India only process patents were granted under the original patent Act of 1970.However with the com ing into being of the TRIPS agreement, India amended the Patent Act to give effect to the provisions of the agreement including product patents. The changes in the Patent system were brought at three different intervals between 1995 to2005.With the enactment of Patents (Amendment) Act 2005 the amending process of Indian Patents Act 1970 to bring it in line with the TRIPS agreement has been completed. The earlier two amendments were enacted by the Parliament during 1999 and 2002.In the amending process some safeguard provisions have been incorporated in the form of exceptions to patent monopoly in the public interest. These exceptions empower the government of India to acquire any patented product or process or grant compulsory license of such patent in the publish interest. Considerable changes have been brought in the patenting procedure through the introduction of Patent Rules 2003, which were further amended in 2005 and 2006.resulting in new practices and procedures. In the changing global scenario, the issues of IPR have gained special importance for the Micro, Small & Medium Enterprise (MSME) sector. IPR protection plays a key role in gaining competitive advantage in terms of technological gains for achieving higher Economic growth in a market driven economy. It is felt that IPR requires greater understanding and attention by the industry, particularly the MSME sector in India. The Indian MSME sector needs more information, orientation and facilities for protecting their intellectual powers. While majority of the countries have adopted strategies for implementing strong IPR protection for strengthening their industries and trades. Indian Industries, particularly the MSME are lagging behind in recognizing the importance of IPR and adopting IPR as a business strategy for enhancing competitiveness.