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
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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