Sovereign Patent Fund

• 05 Mar 2019

Why is it in news?

The National Electronics Policy 2019 aims to create a Sovereign Patent Fund (SPF) that will acquire Intellectual Property (IP) assets important to national economic objectives.

Sovereign Patent Fund (SPF):

SPFs are state-led investment funds that seek to acquire intellectual property resources deemed strategically valuable in the pursuit of national economic objectives.

Breaking down the Concept of SPF:

Most of the MSME sector can’t afford the costly software or hardware as they need to pay hefty amount to the IP owners; in such cases, government will purchase the IP rights and will give it to MSME sector and other groups at a minimal price. This way government will plug the knowledge gap and will do the handholding to these sectors.

How did the Concept of SPF originate?

This concept of SPF is not new; it was first implemented by South Korea, then France and Japan. This idea of SPF has converted those economies into a powerhouse of manufacturing exports.

Source: Hindu Business Line