Why in news?
- The Ministry of Science and Technology has given approval for an intellectual property (IP) exchange.
- It will create platform for buying, selling & licensing IPRs.
What is the Intellectual property exchange?
- It will be a global platform for trading IPR between people and commercial entities.
- These are platforms where IPRs such as patents, trademarks, copyright and industrial designs are bought, sold or licensed.
- People and commercial entities from India and abroad would trade on the proposed IP exchange.
- It will provide arrangements for users so that they can meet and trade online and use additional services provided by the platform.
What can be the advantages of the platforms?
- It will be a global platform for trading IPR between people and commercial entities.
- It will bring economic gains for rights holders by commercialising their assets.
- It will open the way for entrepreneurs and start-ups and help address unemployment.
- It can also spread a culture of innovation among students.
- It would help companies wishing to expand their IPR portfolio.
- IPR can have social benefits by listing IPRs, such as a patented safety device for women.
- By listing eco-friendly devices, this platform can further the environmental cause.
What are the challenges?
- The authenticity of a listed IP may be an issue, as platforms often don’t take responsibility.
- IPR valuation may pose hurdle of upholding confidentiality of IPRs.
How Indian exchange can be modelled?
- Allowing only legally protected IPRs to be listed and barring potentially infringing items will address the issue of authenticity.
- It can get parties to sign confidentiality agreements before IP disclosure.
- It can also provide a dispute resolution mechanism, including ADR.
Source: Business Standard
