According to Report of the Prime Minister’s Task Force on Micro Small and Medium Enterprises, they contribute the 8 % of country’s GDP, 45% of the manufactured output and 40% of its export. MSME generally do not have millions of budget to be spend on research and development but what is popularly called in Indian ” Jugaad System” is the only system which drive innovation. Jugard means arrangement or work around which has to be used because of lack of resources.

Technically we can say jugard are inventions which are less complex, make minor improvements or adaptations to existing products.These innovations may meet the novelty test, but may not meet the inventive step test and thus be ineligible for protection under the patent law.Such inventions are recognized by TRIPS, Paris Convention and many countries like Japan as utility patents.

Features of utility model system

Can be used as competitive tool by all firms.
Registration is quick, simple, and cost effective.
Higher demand from small and medium enterprises
Cost effective tool for bigger firms
Granted for electrical engineering, motor industry and optics.
Pharma products are excluded.

Patent vs Utility Model

PatentUtility Model
Inventive step required.Inventive step not required.
Term 20 yearsGenerally granted for 10 years
Costly and complex process of registration.Cheap and quick process of registration.

Clay Refrigerator (Mitticool): This clay fridge which does not require electricity and keeps food fresh, works on the principle of evaporation. Water from the upper chambers drips down the sides and evaporates, leaving the chambers cool. This keeps food, vegetables and milk fresh naturally for more than two days

Current Status in India

In India, introduction of utility model is still in discussion phase. There are lots of issues to be answered like scope of protection under such law, invention threshold, novelty criteria, legislative routes to be adopted and many more.