National policy suggests use of IPR as collateral to raise funds

India’s first Intellectual Property Rights (IPR) policy has proposed securitization of innovation rights by allowing them to be used as collateral to raise funds for their commercial development. The national IPR policy, drafted by the Department of Industrial Policy & Promotion (DIPP) is likely to be taken up for cabinet approval soon.  Securitization is a process by which various assets are consolidated into an instrument that can be issued to investors. Intellectual property could be in the form of patents, trademarks and copyrights. The policy proposed a slogan, 'Creative India, Innovative India,' for an across-media campaign and linking it with other initiatives such as Make in India, Start Up India and Skill India. A key objective of the policy is 'to create public awareness about the economic, social and cultural benefits of IPRs.'

The policy suggested financial support for developing intellectual property assets through banks, venture capital and angel funds and crowd funding mechanisms. Moreover, it suggested setting up of an IP exchange to bring investors and IP owners on one platform. The government will extend financial support and easy loans to farmers, weavers and artisans through rural and cooperative banks under the proposed policy. The DIPP will assist IPR owners in getting on to ecommerce platforms and also create brand equity for their products.

The draft policy stated “The IPR policy will promote a holistic and favorable ecosystem to catalyze the full potential of intellectual property for India's economic growth and socio-cultural development”. The focus of the policy will be to enhance access to sectors of social, economic and technological importance such as healthcare, food security and environmental protection.