All students at SMS Varanasi are expected to stay updated with the latest news and developments that can impact the business world. Whether you are doing MBA or B.Com, it is important to learn about Intellectual Property (IP) and the various ways of leveraging this for better business opportunities.

India ranks at #42 in the International Intellectual Property (IP) Index 2023.

India has been ranked 42nd among 55 leading global economies in the 2023 International IP Index released by the US Chambers of Commerce. However, the report says that India has immense potential to become a leader among emerging markets by driving innovation through intellectual property.

As India’s size and economic influence continue to expand on the global stage, it has the potential to emerge as a leader for emerging markets looking to revolutionize its economy through innovation driven by intellectual property.

The report highlights India’s noteworthy endeavours in combating copyright infringement through the use of ‘dynamic injunction orders’. The dynamic injunction means that any platform found to be infringing on copyright laws may see its content taken down without prior notice.

Our nation also offers significant R&D and IP-related tax benefits and has implemented effective awareness-raising campaigns to educate people about the adverse consequences of piracy and counterfeiting. We are proud to say that India is a world leader in providing tailored administrative incentives to facilitate the creation and utilization of intellectual property assets by small and medium-sized enterprises (SMEs).

India is making trailblazing efforts to enhance the crackdown on copyright infringement and 

establish a remarkable structure to encourage better comprehension and utilization of intellectual property assets. However, we still need to bridge the persistent gaps in India’s intellectual property framework to set a new paradigm for the region and sustain India’s economic growth.

At SMS Varanasi, our students, researchers and faculty members are proud of our country’s achievements and pledge to continue paving the way for innovation and growth through intellectual property.

Who publishes International IP Index? 

The U.S. Chamber of Commerce, the world’s largest business organization with a diverse range of members, publishes the International IP Index which evaluates the strength and efficiency of intellectual property (IP) systems globally. It serves as a guide for countries seeking to improve their innovation and creativity environment through more effective IP standards.

The 2023 Index analyzed 55 economies across 50 indicators across nine categories:

1. Patents,

2. Copyrights,

3. Trademarks,

4. Design Rights,

5. Trade Secrets and the Protection of Confidential Information,

6. Commercialization of IP Assets and Market Access,

7. Enforcement,

8. Systemic Efficiency, and

9. Membership and Ratification of International Treaties

How is International Intellectual Property (IP) Index calculated?

The eleventh edition of the International IP Index for 2023 has been released. This Index uses a cumulative score ranging from 0 to 50, with each indicator scoring values between 0 and 1. Indicators are scored through one of three methods: binary, numerical, or mixed.

Binary indicators are assigned a score of 0 if the particular IP component does not exist in the economy or a score of 1 if it does.

Numerical indicators measure terms of exclusivity or are based on a quantitative source. The copyright term has a standard baseline of 95 years provided in the US for orphan works. If the economy has a copyright term of 95 years, it scores 1. Scores less than 1 are given for copyright terms shorter than 95 years. Details on baselines used for different types of IP rights are provided.

For indicators with no adequate baselines, mixed scores are given based on primary and/or secondary legislation in place and its actual application and enforcement. A mixed indicator score ranges from 0 to 1, with five possible scores: 0, 0.25, 0.5, 0.75, and 1.

Economies can receive partial scores for indicators to better reflect their reality. Some mixed indicators are split between two separate elements, such as Category 9: Membership and Ratification of International Treaties, which measures signature and ratification/accession to a given international treaty.

Indicator 7, Patent term restoration for pharmaceutical products, consists of two variables: the existence of a term of patent restoration for pharmaceutical products, and the existence of any exemptions or carve-outs. The score for this indicator is based on the existing term of protection compared to the current baseline rate of five years in the US, EU, and Japan. An additional score is given for exemptions or carve-outs.

Who are the leaders in the International IP Index 2023?

The top 5 rank holders in the IP index are:

• United States: The United States takes the top spot in the Intellectual Property Index for several compelling reasons. The pragmatic approach of the US government towards intellectual property rights fosters innovation and creativity across various industries.

The robust legal framework and enforcement mechanisms in place protect the rights of inventors, creators, and innovators, encouraging them to bring their groundbreaking ideas to life without fear of infringement.

Additionally, the didactic nature of the US intellectual property system promotes knowledge sharing and collaboration through patents, copyrights, and trademarks, providing individuals and businesses with a solid foundation for economic growth and development.

The country’s commitment to fostering a thriving environment for intellectual property protection has positioned the United States as a global leader in innovation and creativity, driving progress and shaping industries worldwide.

• UK: The United Kingdom secures a prominent position as the second-ranked country in the Intellectual Property Index for several notable reasons. It values intellectual property rights and has the legal framework and enforcement mechanisms in place to prove it. 

The UK laws protect the interests of creators, innovators, and businesses, which incentivizes investment in research and development. The country’s strong patent system, copyright laws, and trademark protection mechanisms ensure that innovative ideas and creative works are legally safeguarded, leading to a conducive environment for entrepreneurship and innovation. 

Additionally, the UK actively adapts its intellectual property policies to emerging technologies, contributing to its high ranking. By recognizing the value of intellectual property and providing a supportive ecosystem, the UK cultivates a thriving environment for innovation, attracting global talent and investment, and bolstering its position as a hub for creative and technological advancements.

• France: France secures a prominent position as the third-ranked country in the Intellectual Property Index due to its strong commitment to intellectual property protection. The country has implemented a robust legal framework that effectively safeguards the rights of creators, innovators, and businesses.

France’s intellectual property laws provide comprehensive protection across various domains, including patents, copyrights, trademarks, and industrial designs. The country also boasts a well-established and efficient enforcement system, ensuring that intellectual property rights are upheld and infringements are promptly addressed.

Furthermore, France actively promotes and supports innovation and creativity through various initiatives, grants, and incentives. Its emphasis on research and development, coupled with favourable policies, encourages businesses and individuals to invest in groundbreaking ideas and creative endeavours.

France’s commitment to robust intellectual property protection and extensive supportive resources has attracted innovation and investment. As a result, France has emerged as a global leader in intellectual property rights.

• Germany: Germany is a leader in intellectual property protection, securing the fourth spot on the Intellectual Property Index. Its robust legal system provides strong safeguards for intellectual property rights, encouraging innovation and creativity. 

The efficient patent system grants inventors strong protection, while copyright laws safeguard creative works, promoting a thriving cultural and artistic scene. Combined with rigorous enforcement mechanisms, Germany’s commitment to IP protection attracts investment and promotes innovation, reinforcing its position as a hub for technological advancements and creative industries.

• Sweden: Sweden is a leading country in protecting intellectual property, securing the fifth-ranked position in the Intellectual Property Index. Their comprehensive legal framework effectively safeguards the rights of creators, innovators, and businesses in various domains, including patents, copyrights, trademarks, and industrial designs. 

Their efficient and transparent patent system encourages technological advancements and innovation while their well-established copyright regime promotes artistic expression and protection of creative works. Their proactive approach to intellectual property enforcement further reinforces Sweden’s reputation as a leader in this field. 

Sweden’s culture of valuing innovation and its supportive ecosystem for research and development creates an environment conducive to the growth of creative industries and technological advancements. With their robust intellectual property protection framework, Sweden continues to attract investments, stimulate innovation, and maintain their position as a global leader in intellectual property rights.

Other countries that rank in the Top 10 of the Index are Japan, The Netherlands, Ireland, Spain, and Switzerland.

Who are intellectuals?

Intellectuals are individuals with advanced knowledge and understanding of specific academic fields. They push the boundaries of their discipline and contribute new ideas and theories that benefit the world’s collective knowledge. These creative thinkers use critical reasoning and analysis to make informed decisions or conclusions about a specific subject. 

Typically, well-educated and specialized in their field of expertise, intellectuals work in roles that involve research, teaching and public policy analysis. They also use their knowledge and experience to shape public opinion, inform decision-making and drive progress forward. With their influential writings and public speaking engagements, intellectuals play a pivotal role in the development of society and the advancement of human knowledge.

What do we mean by intellectual capital?

Also known as intellectual property, it’s the intangible assets that come from people and organizations. This includes everything from innovative ideas and inventions to artistic works like music and literature, as well as trademarks and brand names. Anything that is created by the mind rather than physical labour is considered intellectual capital, and it’s highly valuable in today’s knowledge-based economy.

Companies harness intellectual capital to create value for their customers, develop new products and services, differentiate themselves from competitors, expand into new markets, and gain a foothold in existing ones.

Improving intellectual capital requires organizations to invest in research and development, identify areas of improvement and innovation potential, protect their assets through effective legal protection strategies, properly market their ideas or innovations to the right audience, and properly manage their assets.

Why India should have a better ranking as the youngest country?

India is the world’s youngest country, with over 65% of its population under the age of 35. As such, India has tremendous potential to become a global powerhouse in intellectual capital and a leader in innovation. To boost its ranking in the Global Property Index, India needs to on developing an environment that encourages investment and innovation.

The government should create policies and incentives that attract foreign investments, stimulate research and development, promote the protection of intellectual property rights, and facilitate the establishment of companies focused on creating new products, services, and technologies.

Additionally, India needs to invest in its education system to ensure that its young population has access to high-quality educational opportunities. This will equip the nation’s youth with the knowledge and skills needed to develop innovative ideas and new technologies that can potentially lead to great economic growth for India.

Why do intellectuals of India want to settle abroad?

India’s potential for innovation and intellectual capital is hindered by insufficient investment in education and research. Consequently, Indian intellectuals are seeking more promising prospects abroad.

The lack of economic growth in India and the high demand for skilled workers in other countries have created numerous opportunities for young Indian professionals. These opportunities include higher salaries, increased job prospects, access to cutting-edge technology, and exposure to global markets. Additionally, expatriate Indians in countries like the US, Canada, and Australia provide a ready-made social network that can aid in their transition. 

Nevertheless, with India’s recent economic growth, it is anticipated that the country’s youth will have more chances to remain and work in India.

What do we need to do to boost our ranking?

In India, the National Intellectual Property Rights (IPR) Policy was adopted in May 2016 with the clarion call: ‘Creative India; Innovative India’. Some of the major IPR issues we are facing are:

• Enforcement: Piracy and counterfeiting are some of the major problems in India. Our enforcement agencies lack the expertise and resources to combat these issues, which means that prosecution and conviction are low.

It is important to improve coordination between different agencies and stakeholders and streamline legal procedures related to IP disputes.

• Patent Backlog: There’s a huge backlog of patent applications in India which leads to delays in granting patents. Hence, innovators find it difficult to protect their inventions.

Streamlining the IPR regulatory environment and increasing transparency in IP registration and enforcement procedures can reduce administrative burdens successfully.

• Lack of Awareness: Not many individuals or businesses understand their IPR. They feel uncertain about how to protect their intellectual property rights.

We need to help by educating and empowering you on the best ways to enforce your IP rights and handle potential infringements. Additionally, we believe in incentivizing innovation through funding for research and development, as well as providing tax incentives. 

By fostering collaboration between academia, industry, and government, we can create a culture that values and respects intellectual property.

Transforming India into a hub for intellectual capital and innovation is within reach. By implementing strategies that address key concerns, we can elevate our standing on the International Property Index and draw more foreign investment. 

With a focus on research and development and safeguarding Intellectual Property Rights, we can unleash the potential of the next generation and build a thriving economy. Let’s take action now to make it happen.