The National Association of Software and Service Companies (NASSCOM) has proposed a new scheme to provide financial support for small and medium-sized enterprises' (SMEs) filing of information technology-related patents.

India is known for its software expertise and many SMEs are involved in software development. However, it is usually only large technology companies that are in a position to obtain formal protection to secure their research and development investment, as the patent process is too expensive for most SMEs. In addition, SMEs face further difficulties in filing patent applications, including:

• the overlap between national and international procedures;
  
  
• the need to file patents in foreign languages; and
  
  
• poor access to published patents.

The NASSCOM scheme proposes that the government provide loans to SMEs to enable them to file patent applications, with the loan being converted into a grant if the application is successful. A forum would be set up to decide the extent of assistance available to each SME.

There are already various schemes to increase Indian SMEs' intellectual property (IP) awareness. NASSCOM has established a patent forum that is designed to (i) familiarize SMEs with patent-related issues, and (ii) encourage interaction with venture capitalists to obtain funding. In addition, the Small Industries Development Organization (the government agency responsible for SME development) has set up an IP rights agency to disseminate information to SMEs, in order to give them a better understanding of how IP affects business strategy and success in the marketplace.

NASSCOM is currently discussing its proposals with the government.

Vivek Kathpalia, Nishith Desai Associates, Mumbai