Economy
Strengthening IP policies will fuel India's growth, development
India's modest improvement in the World Bank's "Doing Business Index" this year, along with the Bank's projection that the economy will continue to experience merely moderate growth, were not the boosts that Indian officials hoped for. The Bank's assessment, however, highlights several persistent shortcomings that continue to dampen investment, perhaps most notably the need to improve India's intellectual property (IP) regime.
 
IP rights provide the foundation for innovation and the investments that drive it, which economists have long recognized as most important factors that can raise a country's trend growth rate. Robust IP rights and enforcement protect individuals and companies willing to risk their sweat and capital to develop next technologies and products by ensuring that they can enjoy the returns from those labours. And in the advanced industries that drive a country's modernization, a strong IP regime protects the revenue streams that support continuing R&D investments, creating the virtuous circle that characterizes the world's most successful economies today. In the end, nations that provide an environment that promotes substantial R&D, starting with a strong IP regime, generate more growth and more productivity gains, which ultimately produces higher incomes.
 
Robust IP rights and enforcement also help countries like India attract more foreign direct investment (FDI) and the advanced technologies and business methods which accompany those investments. A strong IP regime also encourages those foreign direct investors to undertake their own R&D in the developing economies that host those investments. In so doing, strong IP rights provide a path to more rapid economic modernization. Moreover, without such protections, foreign companies will look elsewhere to invest.
 
Recently, along with my colleague Dr. Aparna Mathur, I analyzed India's IP rights regime and projected how improvements in those rights and protections could stimulate growth and employment, as well as FDI, in India's most advanced and R&D intensive industries.
 
First, we assessed the strength of India's IP regime based on a range of international indicators, and found that India trails not only countries such as the United States, Germany, France and the Netherlands but also China, Chile, and Singapore.
 
Next, we built an economic model that projected the consequences for India's most advanced industries if India were to upgrade its IP rights and enforcement to the level of China, Asia's other large economy at roughly the same stage of development as India. The results were notable. For example, in India's IT industry, R&D investments were estimated to grow by nearly 80 percent. Furthermore, FDI inflows were projected to increase by 43 percent in the automobile industry and by 33 percent in the drugs and pharmaceutical sector.
 
Over five-to-10 years, the value added per-employee in the auto and truck industries would be expected to increase by as much as 22 percent.
 
We also analyzed the effects of India upgrading its IP regime to the level of the United States, the global standard for IP rights and enforcement and, by most measures, the world's most successful large economy. We estimate that US-level IP protections in India would lead to increases of nearly 200 percent in R&D investments in the IT industry as well as dramatic gains in the R&D investments by Indian companies in the country's scientific instruments industry, transportation sector, and in drugs and pharmaceuticals.
 
Similarly, if India adopted an IP regime equivalent to America's, FDI inflows to India would grow by more than 100 percent in the country's automobile industry and by 83 percent in India's drugs and pharmaceuticals sector. Over five-to-10 years, the value-added per-employee would jump by more than half in India's transportation sector, by about one-third in the scientific instruments industry and by about 25 percent in pharmaceuticals and biotech. Ultimately, these changes would boost wages in India's IT industry by nearly 10 percent and the workers in India's other advanced industries would also see rising compensation.
 
Our analysis shows clearly the potential to spur faster growth and development in India, especially in its most advanced industries, by strengthening IP rights and protections; and that progress would quickly produce more jobs and higher wages. By so doing, India could finally see dramatic improvements in both its rankings by the World Bank and its investment rate. 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

User

With 1.55 bn users, Facebook's earnings rise in third quarter
Buoyed by its mobile-advertising efforts, the social networking site Facebook has posted 11.3 percent profit in its third quarter results - at $4.5 billion in revenue from $4.04 billion last quarter with a significant increase in the number of its active users.
 
Facebook's mobile advertising revenue represented approximately 78 percent of advertising revenue for the third quarter of 2015 - up from 66 percent of advertising revenue in the third quarter of 2014, the California-based company said in a statement on Wednesday.
 
While the 11-year-old company registered 1.55 billion monthly active users (MAUs) - an increase of 14 percent year-over-year-- Mobile MAUs were 1.39 billion as of September 30 - an increase of 23 percent year-over-year.
 
There are now 1.01 billion daily active users sharing status updates and checking on other people.
 
"We had a good quarter and got a lot done. We are focused on innovating and investing for the long term to serve our community and connect the entire world," said Mark Zuckerberg, Facebook founder and CEO.
 
Facebook’s GAAP net income for the last three months -- its real profit - was $896 million compared to $719 million last quarter.
 
While capital expenditures for the third quarter of 2015 were $780 million, cash and cash equivalents and marketable securities were $15.83 billion at the end of the third quarter of 2015, the statement read.
 
Facebook has added four million users in its money-making core market of the US and Canada.
 
The company has rolled out several aggressive features in last few months.
 
If you use Facebook on iPhone, you can now read thousands of Instant Articles every day in your News Feed.
 
Instant Articles are simply articles already in your Facebook News Feed, made faster and richer.
 
Users will see a lightning bolt on the top right corner of some stories shared in News Feed. The lightning bolt indicates it is an Instant Article. When you tap the story, it will load 10 times faster than a standard mobile web article, the company said in a statement.
 
"Instant Articles not only connect readers to stories faster; they also provide a richer reading experience than standard mobile web articles, with dynamic features that make the content more fluid, interactive and immersive,” Facebook product manager Michael Reckhow said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

User

Will Your Will Be Willed Away?
Normally, the country where the Will is executed is the country the laws of which apply to the method of execution
 
We have had multiple sessions on “Understanding Wills” at Moneylife Foundation; all rather entertaining and instructive for everyone, including the conductors. The question & answers dealt with immediate personal problems. That is normal. Only a few had questions about multinational assets; but, with the growing diaspora, laws relating to other countries become important.
 
Ruled, as we are, by the system left behind by our colonial past, the clash of different laws with relation to the UK and the USA is minimal. Drawing up of Wills is not that intricate, if these two countries are involved. But Indians are moving far a field and different countries present different kettles of fish. This is more so in the case of rather isolated states, smaller kingdoms, fiefdoms, theocratic states and those removed from the Roman traditions.
 
Normally, the country where the Will is executed is the country the laws of which apply to the method of execution. For example, in India, a holographic Will, one written by hand in the testator’s own writing, needs two witnesses. The same is true in the UK. But, in the USA, which follows a system very similar to that of the other two nations, a holographic Will, not witnessed by even a single witness, is accepted as a valid document. Seems pretty reasonable, if the handwriting can be matched with another valid document. Consider a man, alone and dying, wishing his assets away. Where does he get his witnesses? To each his own.
 
Poland was recently in the news for such a conflict of laws. A man made his Will in England. Perfect in all respects; as per English laws. What was not foreseen was that inheritance laws are different in different countries, especially when it comes to land—immovable property, something that one cannot put in one’s pocket and walk away with. The issue at hand was a thousand acres. Not chickenfeed by any stretch of imagination; neither can it be simply be laughed at nor given away. 
 
You be the judge. 
 
The Will was made in England. It was perfectly executed. The English court had no difficulty in granting the probate. Reference was also made to the large estate in Poland, received lawfully by the testator from his father. The son of the testator, whom the testator obviously did not like, was left out. Would you give anything to the son?
 
This is where the conflict of laws steps in, a conflict invariably connected with land. If the land were in India, the son would have got none of it. He would have been left high and dry. Indian courts would have rejected his claims. But Poland is another country, another jurisdiction, another set of intricate laws. How does it work there?
 
Polish law takes into account the validity of the overseas probate but puts other conditions on the transfer of land. It insists that all the beneficiaries under the Will be made parties to the proceedings. To add to the goulash, it calls for ‘potential beneficiaries’ to be added. 
‘Potential beneficiaries’ is a scary term. Where does the definition of ‘potential’ end? Brothers, sisters, parents, cousins, second cousins, spouses, children, et al? What if the ‘potential’ ones are known to exist, but cannot be traced? Will public notices be sufficient? Must one employ town criers in remote areas? Is there a waiting period? And will the wait not run afoul of natural justice that calls for immediate resolution, so that no land lies fallow?
 
This is an interesting contrast to the very country where the Will was executed. England has always been against division of ancestral property. It believes that fragmented holdings are uneconomical. Poland, on the other hand, believes in the adage, ‘the-more-the merrier’.
 
We will leave it at that and hope for another time to dissect the conundrum. Should one be confronted with such a situation, there is a simple recourse. Make two Wills, one for each country. Or more, one for each other country. By the way, the ‘disinherited son’ was entitled to a third of the property! 

 

(Bapoo Malcolm is a practising lawyer in Mumbai. Please email your comments to [email protected])

User

COMMENTS

Shirish Sadanand Shanbhag

1 year ago

Quite interesting article on Will, by Adv. Bapoo Malcolm.
In India, depending on situation & circumstances, oral wills are allowed and valid. Will written by the testator in his own hand writing, need not be witnessed by two persons.
However, after the demise of the testator, when probate has to be obtained for such special wills, it becomes a tedious process. Even when a testator has landed property or house in different states of India, his probated will from one state goes to the High Court of another state, and after it goes to District Court of that state, where that real estate is situated, will's probate is checked by that court, and court orders to transfer the said property in the name of legatee. A tedious time consuming and costly process.

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)