The State of IP protection, Exploitation and Valuation: Evidence from Select Indian Micro, Small and Medium Enterprises (MSMEs)

Abstract

There is a plethora of literature to support the significance of intellectual property rights (IPRs) in modern organisations in deterring potential infringement of new ideas and in turning them into productive business value. Larger-sized firms attach tremendous value to their intellectual property (IP), whereas in the case of the micro, small and medium enterprise (MSME) sector, much more than a value game, IP rights have strategic importance, as this sector requires constant creativity and innovation to adapt to fast-changing market conditions, short product life cycles and intense market competition. Many of the Indian MSME units rely heavily on their in-house R&D laboratories/personnel, complex designs, unique methods, artistic work, distinctive brand names and innovation ability. They create and use IP assets which range from patents to trademarks, copyrights and industrial designs. Therefore, proper protection, exploitation and valuation of these assets have become more and more critical for the success of Indian MSMEs in the global economy. In this light, the present study aims to examine the practices used by a selected group of Indian MSMEs with regard to IP usage, protection, and exploitation and valuation aspect. In this process, the study also investigates the problems or constraints that resist these firms to exercise such IP management-related practices.