Innovation, Intellectual Proper ty Rights and Indian Railways

State of play and a case for a policy on Innovation and Intellectual Property Promotion and Protection (2i3p)

Presentation before Financial Commissioner (Railways) and IRAS fraternity 20 December 2012

Railway Board

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Programme for the session

• Different forms of IPRs • Relation to innovation Introduction to IPRs

• Role of IPRs in Railway Systems • State of play on IR Indian Railways and

IPRs

• Need for a cogent policy on Innovation and IPRs on IR

• 2i3p Policy for IR Conclusion

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Introduction To IPRs Different forms of IPRs

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Copyrights

Patents

Trademarks

Geographical Indications

Industrial Designs

Integrated Circuits

Trade Secrets

Forms of IPRs

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Conventionally 7 forms of IPRs recognised

Aesthetics of a product

Semi-conductor based designs

May be too functional for CR

and ID Too little

inventive step for P

Undisclosed Information

Artistic and Literary works and the way they are

communicated to the public

Link to the place of origin of a product by

quality or by reputation

To distinguish between the enterprises

producing the product

Products or processes which are new, show innovation and have industrial application

For Product

Differentiation

Classification of IPRs

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Copyrights

Patents

Trademarks

Geographical Indications

Industrial Designs

Integrated Circuits

Trade Secrets

Conditions for protection

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Registration

Registration

Demonstrated effort for secrecy

Automatic

Rgistration

Prior Use and Registration

Registration

Introduction To IPRs Relation to Innovation

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Relation to Innovation

Innovation is a process, natural or planned, in any organisation

Creation and assertion of IP Rights is a deliberate legal process

IPRs are innovations protected by law

All innovations do not result in creation of IPRs

Failure to assert ownership of IP may fritter away advantage of Innovation

Once IP is created it needs to be recognised and protected

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Indian Railways and IPRs Role of IPRs in Railway Systems

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IPRs on Railways

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Designs Patents

Copyrights

ICs

Trademarks

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Designs

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Designs

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Patents

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Copyrights

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ICs

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Trademarks

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Trademarks

IPRs on Railway Systems

Technology being developed, in-house or outsourced, as well as procured Patents

Aesthetics being introduced on coaches, workplaces, public interface places, locomotives Designs

Signalling now a semi-conductor based solid-state technology ICs

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IPRs on Railway Systems

Effective use of Logo Trademarks

Promotional materials being created Technical drawings

Copyrights On the job innovations

Utility models

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Indian Railways and IPRs State of play on IR

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State of Play on IR ré Innovation and IPRs

RDSO and other organisations

Create new products and designs

Give out development orders

Is there a policy regarding formal creation or ownership of IP?

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State of Play on IR ré Innovation and IPRs

On the job innovations

Grassroots level innovation take place daily on IR

In processes

In products

In expressions

Is there a policy to capture and disseminate the same?

Need examine the success of the “Suggestion Scheme” of 2002

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State of Play on IR ré Innovation and IPRs

Development orders

IR funds research and gives out development orders for new products

No contractual assertions of ownership of the IR created

Recipient institution or vendor under no obligation to transfer ownership to IR

Recipient institution can vend the same technology in the market and not pay royalty to the IR

Why is IR not asserting ownership?

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State of Play on IR ré Innovation and IPRs

Working designs being given to vendors to manufacture for IR

Two types of designs

Developed in-house

Acquired under ToT contracts

No assertion of ownership of in-house designs

Vendor under no obligation not to vend products based on same designs to other customers – some may be markets for the IR

Need to examine IP content and ownership issues and create hardball clauses

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State of Play on IR ré Innovation and IPRs

ToT contracts Technology being procured can have two types of IP content

Patents, Designs and Copyrights Know-how

First group is time-limited Second variety is tacit knowledge and if a maintained as Trade Secret can be

in perpetuity We may be paying for both

Are we acquiring only one? Are our payments commensurate to the value of one or both?

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State of Play on IR ré Innovation and IPRs

Rampant misuse of IR logo

No formal system of encouraging creation of artistic and literary works on the subject of IR

Need for public art beyond placing steam locomotives

Innovation in business processes Case of successful PRS not being vended by IR/ CRIS

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Conclusion Need for a cogent policy on Innovation and IPRs on IR

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Need for a cogent policy on Innovation and IPRs on IR

IR has offensive and defensive interests on Innovation and IP

Offensive interests relate to such areas where the IR needs to utilise new IP and benefit from it

Defensive interest relates to IP being owned by IR requires protection from possible misappropriation and misuse

Need for a policy on both dimensions

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Conclusion 2i3p Policy for IR

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2i3p Policy for IR

Intent of the 2i3p Policy Promoting innovation on IR

Formal and informal innovation takes place in business processes, production processes and development of new products by Railwaymen

Incentivising Innovation

Institute a reward-based ‘benefit sharing’ mechanism

Capturing and disseminating innovation taking place on IR

Make the dissemination aspect of the “Suggestion Policy” more effective Fair Use exception claimed on copyright

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2i3p Policy for IR

Intent of the 2i3p Policy

An Institutional Method to seek solutions to problems related to business

processes, technical processes and other technical issues through a system of

reward based competition within the Railways

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2i3p Policy for IR

Intent of the 2i3p Policy Protecting IP being created on IR

Have a policy on patents, designs, copyrights and trademarks

Make aggressive protection of Intellectual Property Rights already owned by the Railways a priority

Assert ownership of contractually developed IP and seek royalty share for downstream use and derivative products

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2i3p Policy for IR

Intent of the 2i3p Policy Getting appropriate value for money for acquired IP

Institution of a system of IP audit of all ToT contracts

Adopt methods of IP valuation

Negotiate contracts on the basis of know-how and IP content

Renegotiate contracts where IP content has decreased

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2i3p Policy for IR

Intent of the 2i3p Policy Ensuring markets for IR are not usurped using IP of the IR

All vendors to be prevented from ‘passing on’ benefits to downstream clients

Royalty-based licensing contracts

Where no IP exists, include ‘hardball’ non-compete clauses

(need to identify risk of anti-competitive behaviour and side-step)

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Innovation takes place regularly on the IR Need to institute systems to benefit from such Innovation

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Thank you

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