Download Globalisation: Outsourcing Emerging

Globalisation: Outsourcing-Emerging
Opportunities for IPR
Interactive Conference on
Doing LPO Business in India
22nd April 2007
Le Meridian, Andheri East, Mumbai
Dr. D. R. AGARWAL (Director)
ITAG Business Solutions Ltd.
WHAT IS GLOBALISATION?
Globalisation is an ‘Umbrella’ term
defined precisely by IMF as the
The first
era interdependence
of globalisation
growing
economic
of
FREE MOVEMENT OF GOODS
(1850
– 1945)
was Paxthrough
Britannica
countries
worldwide
increasing
volume
and variety
under ‘gold
standard’
and of
the
FREE
FREE
‘cross-border’
transactions
in World
goods
second phase
(post second
MOVEMENT
MOVEMENT
GLOBALISATION
OF
OF
and
services,
‘free
international
War)
is
Pax
Americana
under
CAPITAL
capital flows’ and more rapid TECHNOLOGY
and
‘Bretton Wood System’
widespread diffusion of technology.
FREE MOVEMENT OF
SERVICES
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Final Act
WTO AGREEMENTS
AGREEMENT
ESTABLISHING
WTO
ANNEX IA
TRADE IN
GOODS
GATT 1994
+
TWELVE
AGREEMENTS
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ANNEX IB
TRADE IN
SERVICES
ANNEC IC
TRADE IN
INTELLECTUAL
PROPERTY
RIGHTS
3
World Population & GDP 2005
(Unequal World)
Population Population
in Million
(in %)
World
USA
EU-25
China
Japan
India
6438
297
460
1307
128
1103
100.0
4.61
7.15
20.30
1.99
17.13
GDP –
US$ Bn
GDP
(%)
GNI-$
(PPP)
44385
12455
13446
2229
4506
785
100.0
28.06
30.29
5.02
10.15
1.77
55167
11190
11724
8182
3911
3433
Source: World Development Report 2007,World Bank and World Fact Book, 2005 USA
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Sectoral Analysis Of GDP
(2004)
WORLD
US
JAPAN
CHINA
INDIA
MANUFACTURE
28
22
31
46
28
AGRICULTURE
4
1
1
13
19
68
77
68
41
53
SERVICES
Source:
World Development Report 2007
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World Trade In Goods And
Services (2005)
US$(Million)
Percentage
Trade in Goods
10120
80.7
Trade in Services
2415
19.3
Total
12535
100.0
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Source:
World Trade Report 2006
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Why Globalisation
New opportunities to developing countries
Greater access to developed country markets
Technology transfer lead to improved productivity
Higher living standard
Tools of Globalisation
Outsourcing
Globalisat
ion
IT
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Genesis of Outsourcing
• 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
• 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
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Innovation
Outsourcing
Services
Outsourcing
Production
Outsourcing
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Mode of Services under GATS
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 - CROSSBORDER
SUPPLY
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 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
Service supplier present
within the territory of the
Service Consumer
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Economic Resources
16
20
64
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Human Resource
Natural Resource
Capital Resource
12
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MERITS FOR OUTSOURCER
Progeny of savings and
efficiency
Streamlines the business
Increases insourcing within the
country
Conducts business across
multiple time zones
The key to global village
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MERITS FOR OUTSOURCEE
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Job
Opportunities
Increased
Wages
Education
Quality of
Life
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India’s position in outsourcing
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Know exactly
which process
to outsource
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Determine
least strategic
value process
Stock taking
before
implementing
Gear up for
long term
commitment
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Challenges
• Data Security
• Attrition
• Training Staff
• Infrastructure
Investments • Recruiting staff
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Emerging
Opportunities for
IPR
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Total Wealth, 2000
- $ per capita & percentage shares
Source: World Bank Study
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Various types of IPRs
Minimum standards as per TRIPs
Type of IPRs
Subject Matter
Duration of Protection
Patent (Paris Convention,1883 refers to New, Non-Obvious
Stockholm Act of 14.7.1967). Patent
(Invention) &
Law Treaty & Patent Cooporation Treaty 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
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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
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Licensing of IPR
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Transfer of
IP
IP
Securitisation
Opportunities
in IPR?
IP in Tax
Planning
IP Insurance
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WORLDWIDE PATENT FILINGS
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PATENTS GRANTED WORLDWIDE
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TOP 20 OFFICES OF FILING
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RESIDENT PATENT FILINGS PER MILLION
POPULATION
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PATENTS GRANTED BY OFFICE
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Investments in R&D by American Companies
as a Percent of GDP, 1953-2000
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Assuming IP Protection constant
– Increase in rents of IP protected labor
– Decrease in the rate of innovation
Scarcity of
Patent Agents
Increasing market
size & specialisation
Corruption
Challenges
in
IP Industry
Growing
protectionism
In outsourcing
companies
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Attrition
Lack of
Coverage for
liability and risk
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Source: Intellectual Property in a Global Economy – Michele Boldrin, David K. Levine
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
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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
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Business Opportunities…
Visibility !!!
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
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Who will Survive?
Darwinism
“It is not the strongest of the species who
survive, nor the most intelligent, but those
who are most adaptive to change…”
-Charles Darwin
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THANK YOU
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THE JOURNEY NEVER ENDS
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