Globalisation: Outsourcing-Emerging Opportunities for IPR

1. Interactive Conference on Doing LPO Business in India 22nd April 2007 Le Meridian, Andheri East, Mumbai Globalisation: Outsourcing-Emerging Opportunities for IPR Dr. D. R. AGARWAL (Director) ITAG Business Solutions Ltd.

2. FREE MOVEMENT OF GOODS FREE MOVEMENT OF CAPITAL FREE MOVEMENT OF TECHNOLOGY GLOBALISATION FREE MOVEMENT OF SERVICES WHAT IS GLOBALISATION? Globalisation is an ‘Umbrella’ term defined precisely by IMF as the growing economic interdependence of countries worldwide through increasing volume and variety of ‘cross-border’ transactions in goods and services, ‘free international capital flows’ and more rapid and widespread diffusion of technology. The first era of globalisation (1850 – 1945) was Pax Britannica under ‘gold standard’ and the second phase (post second World War) is Pax Americana under ‘Bretton Wood System’

3. ANNEX IB TRADE IN SERVICES ANNEC IC TRADE IN INTELLECTUAL PROPERTY RIGHTS ANNEX IA TRADE IN GOODS GATT 1994 + TWELVE AGREEMENTS Final Act WTO AGREEMENTS AGREEMENT ESTABLISHING WTO

4. Population in Million Population (in %) GDP – US$ Bn GDP (%) GNI-$ (PPP) World 6438 100.0 44385 100.0 55167 USA 297 4.61 12455 28.06 11190 EU-25 460 7.15 13446 30.29 11724 China 1307 20.30 2229 5.02 8182 Japan 128 1.99 4506 10.15 3911 India 1103 17.13 785 1.77 3433 World Population & GDP 2005 (Unequal World) Source: World Development Report 2007,World Bank and World Fact Book, 2005 USA

5. WORLD US JAPAN CHINA INDIA MANUFACTURE 28 22 31 46 28 AGRICULTURE 4 1 1 13 19 SERVICES 68 77 68 41 53 Sectoral Analysis Of GDP (2004) Source: World Development Report 2007

6. US$(Million) Percentage Trade in Goods 10120 80.7 Trade in Services 2415 19.3 Total 12535 100.0 World Trade In Goods And Services (2005) Source: World Trade Report 2006

7. Why Globalisation New opportunities to developing countries Greater access to developed country markets Technology transfer lead to improved productivity Higher living standard

8. Tools of Globalisation

9. Consumers are the king, they drive the business. Genesis of Outsourcing • Globalisation is a win-win situation for all countries involved • Comparative advantage is a driver of globalisation • 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

11. 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 - CROSS-BORDER 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 supplier present within the territory of the Service Consumer 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

12. Economic Resources

13. Siblings of Outsourcing

14. MERITS FOR OUTSOURCER

15. MERITS FOR OUTSOURCEE

16. India’s position in outsourcing

17. Decision Making Model for Outsourcing

19. Emerging Opportunities for IPR

20. Total Wealth, 2000- $ per capita & percentage shares Source: World Bank Study

21. Various types of IPRsMinimum standards as per TRIPs

22. 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 • Licensing of IPR

24. WORLDWIDE PATENT FILINGS

25. PATENTS GRANTED WORLDWIDE

26. TOP 20 OFFICES OF FILING

27. RESIDENT PATENT FILINGS PER MILLION POPULATION

28. PATENTS GRANTED BY OFFICE

29. Investments in R&D by American Companies as a Percent of GDP, 1953-2000

30. Challenges in IP Industry Increasing market size & specialisation Attrition Scarcity of Patent Agents Corruption Assuming IP Protection constant • Increase in rents of IP protected labor • Decrease in the rate of innovation Lack of Coverage for liability and risk Growing protectionism In outsourcing companies Source: Intellectual Property in a Global Economy – Michele Boldrin, David K. Levine

31. 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

32. 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

33. 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 Business Opportunities…

34. 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

35. THANK YOU THE JOURNEY NEVER ENDS