SMEs refers to the Small and Medium Size Enterprises which needs a low amount of capital investment and which makes easy to start a business at small scale. It is very important that the product to be innovative and what kind of benefits it provides the buyers so that the buyers should buy the product. India is ranked 81thamong the 141 countries in the Global Innovative Index which reflects low innovation capacity of the Indian firms and India Small and Medium Sized Enterprises(SMEs) in particular.
The products which are manufactured under the SMEs in India need to be patient so that no other rival enterprises try to copy the idea. Most of the times due to lack of knowledge the Indian SMEs suffer due to the fact they are not aware of patent registration and some think that it is useless to work.
The following points show the challenges faced by Indian SMEs by not filing protection for innovation:
• Risk of getting the idea copied
The efforts and the hard work put on by the team on to work out about the idea for the organization about the product regarding its innovative design, taste, texture but not patent means registered chances are there that the original idea being copied and in such situation, they cannot even complain.
• Lacking Innovation
The information regarding the product is not patent then at that point suffers from a low rate of development and innovation as the patents provide finance support and sell when needed. Low contribution to the GDP hindering the development of the country.
As the owners who are not aware of patents licensed the points below will help you to understand the patent license and its benefits:
• Offer Patents for sale
Patents are intangible assets and it can be sold or bought just like tangible assets. If your running a small business is in need of financial back up then the best way is to transfer the patent rights and this can be done with the help of a broker.
• License the Patent
If you want to continue to own patent rights then license the patent and the companies’ interest will pay you a royalty for the patent 3%-20%.The higher the technical value, higher the monetary value of the patent.
• Donating the Patent
If you want to be kind and generous, donating your patent to an organization, reduce tax liabilities.