Globalisation: Outsourcing-Emerging Opportunities for IPR
Interactive Conference on Interactive Conference on Doing LPO Business in IndiaDoing LPO Business in India
2222ndnd April 2007 April 2007Le Meridian, Andheri East, MumbaiLe Meridian, Andheri East, Mumbai
Dr. D. R. AGARWAL (Director)
ITAG Business Solutions Ltd.
04/20/23 2
WHAT IS GLOBALISATION?
The first era of globalisation (1850 – 1945) was Pax Britannica under ‘gold standard’ and the second phase (post second World War) is Pax Americana under
‘Bretton Wood System’
GLOBALISATION
FREE MOVEMENT OF SERVICES
FREE MOVEMENT OF GOODS
FREE MOVEMENT
OF TECHNOLOGY
FREE MOVEMENT
OF CAPITAL
Globalisation is an ‘Umbrella’ term defined precisely by IMF as the
growing economic interdependence of countries worldwide through
increasing volume and variety of ‘cross-border’ transactions in goods and services, ‘free international capital flows’ and more rapid and
widespread diffusion of technology.
04/20/23 3
WTO AGREEMENTS
ANNEX IA TRADE IN GOODS
GATT 1994+
TWELVE AGREEMENTS
ANNEX IBTRADE INSERVICES
ANNEC ICTRADE IN
INTELLECTUALPROPERTY RIGHTS
AGREEMENTESTABLISHING
WTO
Final Act
04/20/23 4
World Population & GDP 2005 (Unequal World)
3433 1.77 78517.131103India
391110.15 45061.99 128Japan
8182 5.02 222920.301307China
11724 30.29134467.15 460EU-25
11190 28.06124554.61 297USA
55167100.044385100.06438World
GNI-$ (PPP)
GDP
(%)
GDP – US$ Bn
Population (in %)
Population in Million
Source: World Development Report 2007,World Bank and World Fact Book, 2005 USA
04/20/23 5
Sectoral Analysis Of GDP (2004)
Source: World Development Report 2007
5341687768SERVICES
19 13114AGRICULTURE
2846312228MANUFACTURE
INDIACHINAJAPANUSWORLD
04/20/23 6
World Trade In Goods And Services (2005)
100.012535Total
19.32415Trade in Services
80.710120Trade in Goods
PercentageUS$(Million)
Source: World Trade Report 2006
Why Globalisation
New opportunities to developing countries
Greater access to developed country markets
Technology transfer lead to improved productivity
Higher living standard
04/20/23 8
Tools of Globalisation
04/20/23 9
• Consumers are the king, they drive the business.
• Globalisation is a win-win situation for all countries involved• Comparative advantage is a driver of globalisation
• No country is self-sufficient in a resource• In-house in-capabilities is one of the causes for outsourcing
• Lack of highly skilled domestic engineering and technology labour
Genesis of Outsourcing
04/20/23 10
04/20/23 11
Supplier Presence Other Criteria Mode
Service supplier not present within the territory of the Service Consumer
Service delivered within the territory of the Member from the territory of another Member (e- Commerce,BPO)
MODE 1 - CROSS-BORDERSUPPLY
Service delivered outside the territory of the Member, in the territory of another Member, to a service consumer of the Member
MODE 2 - CONSUMPTION ABROAD
Service supplier present within the territory of the Service Consumer
Service delivered within the territory of the Member, through the commercial presence Branch Office etc.
MODE 3 - COMMERCIAL PRESENCE
Service delivered within the territory of the Member, with supplier present as a natural person on temporary basis
MODE 4 - MOVEMENT OF NATURAL PERSON
Mode of Services under GATS
04/20/23 12
Economic Resources
20
16
64
Human ResourceNatural ResourceCapital Resource
04/20/23 13
04/20/23 14
MERITS FOR OUTSOURCER
04/20/23 15
MERITS FOR OUTSOURCEE
04/20/23 16
India’s position in outsourcing
04/20/23 17
04/20/23 18
04/20/23 19
Emerging Opportunities for
IPR
04/20/23 20
Total Wealth, 2000- $ per capita & percentage shares
Source: World Bank Study
04/20/23 21
Various types of IPRsMinimum standards as per TRIPs
Type of IPRs Subject Matter Duration of Protection
Patent (Paris Convention,1883 refers to Stockholm Act of 14.7.1967). Patent Law Treaty & Patent Cooporation Treaty
New, Non-Obvious (Invention) & Industrial Applicability
20 Years from the date of Filing
Copyrights & Related Rights (Berne Convention,1886, Paris Act of 24.7.1971) (Rome Convention recognised on 26.10.1961)
Authorship, Artistic Performance, Phonogram & Broadcasting
Life of the Author plus 50 Years(India 60 yrs)
Trade/Service Marks Signs or Symbols to Identify Goods & Services
7 Years from Initial Recognition & for each Renewal (Indefinite)
Industrial Designs Ornamental, designs for Clothing, Automobiles, Electronics etc
10 Years
Integrated Circuits & Layout Design (Washington Treaty recognised on 26.5.1989)
Original Layout Designs
10 Years
04/20/23 22
IPR Services• Mergers & Acquisition – IPR Audit• IPR Valuation• Inventory of the Company’s IPR• Portfolio Analysis• Financial Reporting• Diligence of Investors• IP Watch• Patent Claim Mappings• R & D Taxation Credit Support• Document Writing• Prior Art Search• Patentability• Patent Application Drafting & Filing• Licensing of IPR
04/20/23 23
04/20/23 24
WORLDWIDE PATENT FILINGS
04/20/23 25
PATENTS GRANTED WORLDWIDE
04/20/23 26
TOP 20 OFFICES OF FILING
04/20/23 27
RESIDENT PATENT FILINGS PER MILLION POPULATION
04/20/23 28
PATENTS GRANTED BY OFFICE
04/20/23 29
Investments in R&D by American Companies as a Percent of GDP, 1953-2000
04/20/23 30
Source: Intellectual Property in a Global Economy – Michele Boldrin, David K. Levine
Challenges in
IP IndustryIncreasing market
size & specialisationAttrition
Assuming IP Protection constant
– Increase in rents of IP protected labor
– Decrease in the rate of innovation
Scarcity ofPatent Agents Corruption
Growing protectionism
In outsourcing companies
Lack of Coverage for
liability and risk
04/20/23 31
Future is Outsourcing• A new way to leverage skills and markets
• Win-win situation: for DCs and ICs: productivity, competitiveness, higher employment, faster economic growth– every dollar of outsourcing creates $1-45-1-47 of value of which
the US captures $1.12-1.15 while India gets only 33 cents• Outsourcing ‘industry’: to exceed $1 trillion by 2006
• Total savings from global outsourcing:– to grow from $6.7 bn (2003) to $20.9 bn (2008)
Developing countries’ gains: $60 billion in ITES by 2008
04/20/23 32
Tomorrow’s slogans
• Tomorrow’s societies will be knowledge societies. • Tomorrow’s markets will be knowledge markets. • Tomorrow’s wars will be fought with the new
thermonuclear weapons called information and knowledge.
Every Indian trying to be a Knowledge worker
04/20/23 33
Business Opportunities…
Strong potential….there is need for visibility
Only the tip of the ice berg can be seen …there lies a huge potent mass to be explored
Visibility !!!
04/20/23 34
“It is not the strongest of the species who survive, nor the most intelligent, but thosewho are most adaptive to change…”
-Charles Darwin
Darwinism
Who will Survive?Who will Survive?
04/20/23 35THE JOURNEY NEVER ENDS
THANK YOU