Intellectual Property Exchange

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