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Thursday, December 02, 2010

Has Babbar wrecked its case for army orders on Light Recovery Vehicles?

Post in SPICY IP by Prashant Reddy (without going into legal aspects) are narrative of problems faced by SMEs in developing products for government agencies.

Babbar Wrecker is a manufacturer of car/ truck recovery units (LRV). Army came with a requirement for 7.5 ton LRV and small firm Babbar and large firm Ashok Leyland (AL) were among those that responded. Army suggested a combination using AL Chassis and Babbars  super structure. The product submitted by AL-Babbar combination was accepted and orders started pouring in. Initially Babbar got a part of the cake and later it dried up with AL placing orders on others. These type of  problems crop up for SME due to purchase practices such as:

1. Govt taking ownership of IP without created it. 
2. Insistence on dealing with large firms to meet eligibility conditions.
3.Enforcing multiple vendor rule, forcing innovator to license to competitors.

  Any views?

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