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July 9, 2021

Comment: Has the Intellectual Property Legal Regime Enabled Wealth Creation?

Author: Intern - Mannika Gupta

India has evolved as a robust financial market and there now exists a comprehensive IPR regime here. It may be credited for considerable economic development. For understanding, IP rights are a set of private rights through which corporations and individuals gain comprehensive control over intangible creations where certain limitations define rights. India, member of WTO, made sweeping changes in its IP law to meet standards of TRIPS within reasonable limits.

Under its patent regime, India has developed cost-effective processes for life-saving drugs. This not only benefits India, but numerous third-world countries. Research and innovation leads to technical prowess which in turn has improved the affordability. The industry has now transformed into a net foreign exchange earner. Author believes that Trademark has transformed the attitude of companies towards their “Brands”. Instead of a lackadaisical approach, anyone with trademark, now seeks to create a brand to capture imagination and draw consumers. The companies have now started investing heavily in protecting their Trademarks and prevent counterfeiting. In India, since sales of these goods occurs in informal markets, it often fails to generate income tax and corporate income. This not only negatively effects consumers but growth of the Indian economy too. Hence, it becomes all the more important to prevent illegal copying, counterfeiting and generate growth. With respect to Copyrights, publishing industry and media industry engage the most with this concept and contribute considerably towards the economic growth. Also, GI is one such type of IPR which has safeguarded the livelihoods of hundreds of indigenous and traditional communities in India. Since the ‘knowledge’ remains in community, there is no monopolistic control. Feni, an alcohol produced by locals in Goa has this tag and ensures their income which the author thinks is excellent.

It is now evident that IPR regime has been a blessing for start-ups and MSMEs as an IP creates excellent value, acts as a USP, rewards creativity and risk-taking among entrepreneurs. Companies like Flipkart, Oyo, Zomato etc. were once start-ups who successfully took advantage of regime. Furthermore, by strengthening the IPR regime, the country has attracted inflows of technology through channels like FDI within multinational enterprises, contractual licensing and trade in goods.

Tangible assets such as land, labour and capital were once considered the only yardsticks to showcase economic health. The author is of the opinion that this is no longer the unique case. Instead, knowledge-based assets part of IPR are now the front-runners that create wealth in almost all industries in India.

Disclaimer: Views, opinions, interpretations are solely those of the author, not of the firm (ALG India Law Offices LLP) nor reflective thereof. Author submissions are not checked for plagiarism or any other aspect before being posted.

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