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Compliance Pertaining To Commercialization Of Electronic Devices

In these modern times, as we all know that the electronics sector is considered to be the most essential part of the world's economy. In India the electronic device having the most demand as per the report of 2020 it was about 400USD billion. It also important to form an R&D program in the field of electronics through which the technology could get developed and IP content of design and development can come to an increasing rate.
There are some main initiatives which are taken by the R&D was the national mission on power electronics technology, the intelligent transportation system, the automation system technology center.

The electronics devices or products compliance which goes beyond listing the safety standard and all the paperwork. Ensuring the compliance when importing exporting devices start at the drawing board.

Electronic industry is the one of the world's largest growing industries and it is increasingly finding in all the sectors. The government has also attached the high priority to electronic hardware manufacturing which is most important i.e., Digital India and Make in India programs of government of India.

India is having building capacity in core technology development in which they need IP which requires deeper consideration. In the case of building IP based technology companies, it must need the largest investment with established MNC i.e., a significant barrier.

According to the IBEF, the consumer electronics market has reached to 10.93 billion US dollar in 2019 and which is expected to double of it in future by 2025.

As government also doing all their work through the internet which need the electronics devices and with increased investment in electronics, broadband so that it can provide govt. services. Consumers devices are likely to be witness an increased manufacturing and sale of the electronics product in the coming times.

In the times of pandemic i.e., in COVID-19 the sale of the electronics devices is quite high because people using the internet, broadband connectivity, work from home, etc.

Commercialization can be done, and the firm must be able to finance the latest technology and hire and train manager and worker in production.

There must be able to protect their innovation from the impressionist and their product must get accepted by the market.

There must have access to the complementary skills through which they can make their innovation useful for the others.

Using these standards, the regulatory bodies enable the firm to commercialize their innovation.

Challenges which can be faced while doing the commercialization of the electronic products:

  1. The challenge for the commercialization is the small market size because the market size is really very important for any devices, and it takes time to build large market in particular electronic devices.
  2. It is really very difficult for the innovation to form a supply chain because the device is new for both the consumers and suppliers. To find the right suppliers it is very tough.
  3. The most essential challenges which is faced for the commercialization of the device in the making of the new technology validated and gaining the certificate.
  4. If the is not a proper infrastructure available to supply the technology, then it leads to most of the electronics devices that are not able to commercialize.
  5. This is the vital step while commercialization of the technology i.e., after sale services it has been identified that the sale of the product is much easier than maintain it after the sold of the product.

There are various scheme/incentives which are taken by the government of India for the growth of electronic industry in India:

Make in India: in this scheme in which it is clearly said that approx. 74% investment proposals were about INR 173 billion and were related to the electronics manufacturing sector.
Smart cities: this scheme is with collaboration of the union ministry of urban development implemented the smart cities with the state government of the cities.
Digital India: This program has introduced with the vision of transforming the country into digitally empowered society and a knowledge-based economy.
National knowledge network: The program is to introduce to connect the knowledge throughout the country with the help of high-speed data communication network, so the people are enabled to share the resources.

Need of legal compliance for the commercialization of electronics devices:

The bureau of international standards (BIS) is the standard for all electronic devices which are manufactured and stored for sale, imported and distributed in India have to comply with the BIS.
The BIS is the standard which checks the quality of the products from the point of health, safety, environment, consumer security, etc. Akin to CE marking that indicated conformity with standards for products sold within European economic area and BIS issue ISI mark.
The BIS carries out the various activity like certification of product, hallmarking, standard formulation, training services etc. The primary and recognized objective of BIS is to formulate and prescribed for their certification.
BIS ensures the development of activities of standardization, marking and the quality certification of the products.

The procedure for obtain the registration electronic device:

  1. The electronics devices are falling under the category of compulsory registration scheme for self-declaration of conformity which means the list of electronics and IT goods as they are fall under this category which need to be self-declare that they are following the standards.
  2. The electronic device which are tested under the lab then the report must be submitted online or offline. Then the BIS grants the license to use or apply mark with unique R number.
  3. After obtaining the registration BIS mark displayed on the device and packaging.

There are different electronic policies/incentives made by the ministry of electronics & information technology, Government of India:

  1. Foreign investment policy: In this policy the nation welcomes all the investors in electronics and IT sectors and government of India is striving to bring the transparency in policies and the procedure to provide the friendly platform
  2. FDI policy: The policy is to be introduced that if there is need of electronics in defense then the policy permits up to 49% which will happen under the government approval.
  3. Merchandise exports from India scheme: It is introduced to increase the exports of the India and the nation globally bigger. This scheme was extended to large no. of products which includes electronics.
  4. Electronic development funds: It is introduced for the promotion of the IP, innovation and R&D and the commercialization of the products.
  5.  Safety standards: This scheme is mandatory as for the compulsory registration scheme of the department of consumer affairs of the 15 categories of electronic device so that they can comply with Indian safety standards.

Ministry of electronic & information technology has notified that electronics and IT goods order 2012 i.e., registration for the compulsory registration. The order would be suppressed by the electronics and IT goods in order 2021.

As the order said that no person shall manufacture and store for sale, import or distribute goods which do not conform the Indian standard specified in the order. There manufacture is required to apply for the registration from the BIS and after the BIS tested the product in the recognized labs.

After the registration from the BIS, manufacturer is allowed to use the standard mark which is notified by the BIS.

MEITY and BIS took its big leap in 2012 to introduce the compulsory registration scheme (CRS) for the safety of electrical devices.

Protection of IP in the electronics industry:

The IP laws is protected in which it includes the patents, copyrights, design and the trademark. With the help of these laws people are provided with the right to earn recognition or receive a financial benefit from the product.

The designs and patent have the huge recognition in the consumer electronic industry. As day by day there are new technology which introduced but that technology must be latest and novel so that it can protected by the patent.

If the patent gets leaked and comes in public domine then it can be devastating. As there is one example i.e., apple and Samsung where there is lawsuit among them about the phones and tablet design.
There is a huge effect of non-commercialization of the patent which the valuable as well as the complicated invention because if a person gets a patent still there is no guarantee that they will get success.
The proper IP strategy which will be perfectly aligned with the business objective and the structure of the organization. The organization need to be formed their IP strategy which should be different from the traditional IP strategy.

With the help of these strategies the commercialization of the electronics devices can be successfully implemented in the markets in India.

There are some issues which is solved with the help of IP strategy such as proper access or the awareness about the IP laws through which the electronics device is commercialized can be successfully.

This research paper concludes that due to the factors and there is a difficulty in the commercialization of the electronic devices in India which even it includes various market related issues.

Conclusion:
The paper concludes that the government of India has started providing the stimulus to electronic industry sector with most prominent scheme like production linked incentives, scheme for promotion of manufacturing of components and EMC 2.0 is to attract the investors.

With the help of various stakeholder like MEITY, DOT, TEC, IESA it will help for the electronic manufacturing sector and for the commercialization of the electronics devices.

There are various challenges which can be faced that are mentioned in the paper in commercialization of the electronic devices. Also, the IP strategy can help for the successful commercialization.

The government of India as well as the industry are trying and working hard for finding the solution for the need and the challenges which they faced in the society.

References:
  1. Ministry of electronic & information technology, government of India. Referred from the website i.e., http://www.meity.gov.in
  2. Compliance of electronic product, which is referred from the website i.e., http://www.compliancegate.com.
  3. Standards and the policies which are referred from the website of government regulation and product compliance i.e., http://www.electronicsb2b.com.
  4. BIS and MEITY which referred from the website i.e., http://www.bis.gov/index/productcertification/scheme-registration/registrationofthedeviceunderthebis.gov.in
  5. Aggarwal, raj, "business strategies for mnc ip protection". Thunderbird international business review. (November 1st, 2010)

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