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Indian Defense-Tech Startups & Transfer of Technology (ToT)

 > Business Laws  > Indian Defense-Tech Startups & Transfer of Technology (ToT)

Indian Defense-Tech Startups & Transfer of Technology (ToT)

The Make in India initiative by the Modi Government in India and especially in the defense sector has laid down the process of complete homogenisation of all the #defense products which includes the Transfer of Technology (ToT) not only from the Foreign Corporations but also from the Indian Defense Research Organisations like the DRDO and other allied organisations and research facilities respectively. The focus has know shifted from “know how” to “know why” whereby endeavours are being made to either develop critical technologies and/or get the critical technologies under direct Transfer of Technology (ToT) from the Foreign Corporation to their Indian Counterpart.

The Transfer of Technology (ToT) happens in two ways and the Defense-Tech Startups can opt for the following i.e.

  1. Transfer of Technology (ToT) from a Foreign Corporation
  2. Transfer of Technology (ToT) from an Indian Government Research Agency or Laboratory or a Defense Public Sector Undertaking (PSU)

Under the Transfer of Technology (ToT) from a Foreign Corporation, the transfer of #technologies can be obtained, however, the same comes with a lot more restrictions with respect to not only their usage but also with respect to further development. The Foreign Corporation usually executes an agreement and/or contract with the Startup which are one sided and favours the Foreign Corporation and carries severe and strict penal clauses which further causes unnecessary hassles.

On the other hand, under the Make in India initiative of the Government of India the Public Private Partnership (PPP) Model, the Government of India and the Ministry of Defense has made serious considerations for the Private Sector and the Startups whereby the arrangements are being made that the defense sector seeks equal participation of the Private players. The Government of India has allowed “Incubation Centers” to be opened for the Startups inside the campus of the Defense Research Agencies & Facilities respectively. Furthermore, emphasis is being given to include #Research & Development (R&D) facilities in the campuses of premier engineering colleges like the Indian Institute of Technology (IIT) to promote innovation. To strengthen and deepen the bond between the Government research Agencies and the Private players, the Defense Research & Development Organisation (DRDO) grants license for using the Patents, owned by DRDO, at zero license fee and zero royalty cost. Further, the DRDO has adopted Intellectual Property Rights Policy, 2016 to create an environment that encourages creativity and innovation amongst the Private players while recognizing contribution of the creators of innovation and creativity appropriately vis a vis adopting a flexible approach in considering options for ownership and management of IP taking into account needs of the country. The private organizations are allowed to avail various forms of IPR to protect their intellectual creation. To encourage in-house #Research and Development (R&D) and to boost IP culture Intellectual Property Rights (IPR) Facilitation Cell has been set up in the Department of Defense Production which enables the organizations to understand, identify and use Intellectual Property (IP). The Cell provides various services including IP protection, IP awareness, patent drafting and patent prosecution, facilitation in commercialization of inventions, #trademark prosecution matters, training, counseling and other advisory services. The Government has included 194 Defense Tech Startups under the Startup India initiative while the Defense Research & Development Organisation (DRDO) has launched the Technology Development Fund under the Make in India initiative.

Related Links for detailed Government Policies are mentioned herein below:

https://www.drdo.gov.in/sites/default/files/inline-files/DRDO_POLICY_Final.pdf

https://www.drdo.gov.in/sites/default/files/inline-files/DRDO_IPR_Policy_0.pdf
https://www.makeinindiadefence.gov.in/admin/writereaddata/upload/files/OO%20on%20IPF%20Cell%204.4.18_6.pdf
Authored By: Adv. Anant Sharma & Sanskriti Taori


https://www.makeinindiadefence.gov.in/admin/writereaddata/upload/files/OO%20on%20IPF%20Cell%204.4.18_6.pdf
Authored By: Adv. Anant Sharma & Sanskriti Taori

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