A powerful instrument of foreign market protection market protection for products, is the patent.

To secure foreign markets, there is a need to patent not only the process or manufacturing technology, but the product itself. But owing to the lack of knowledge and guidance in intellectual property law, the industry, particularly the small and medium scale units, universities, Govt. Departments, R&D Organisations and R&D Institute have not adequately safeguarded their protectable intellectual property, particularly abroad.

NRDC'S  Foreign Patent Protection scheme renders financial, technical and legal assistance by meeting 50% of the cost of foreign patenting. In return, industry/ universities/ R&D Institutes/ R&D Organisation/ Govt. Department is required to pay to NRDC a royalty of 2.5-5% on the FOB  value of the products exported to those countries for which NRDC has provided  the technical, legal and financial assistance to file  patents. Further, the patent would be assigned to NRDC by the industry/ universities/ R&D Institutes/ R&D Organisation/ Govt. Department and royalty shall be paid as long as the patent is in force.

The industry/ universities/ R&D Institutes/ R&D Organisation/ Govt. Department is generally free to decide the country / countries where they would like to file the patents. What is more the Industry is free to export the products directly. However, if there is any possibility of licensing  of the patented knowhow, the same shall be carried out by NRDC in consultation with the industry/ universities/ R&D Institutes/ R&D Organisation/ Govt. Department on mutually agreed terms. The technology fees earned by NRDC by way of lumpsum premium and royalty shall be shared equally between NRDC and the industry/ universities/ R&D Institutes/ R&D Organisation/ Govt. Department.

The industry/ universities/ R&D Institutes/ R&D Organisation/ Govt. Department would benefit considerably under this  scheme as NRDC bears up from the enormous cost of foreign patenting before the products exportability has been established. Further, the industry/ universities/ R&D Institutes/ R&D Organisation/ Govt. Department has all the freedom to export on their own, to the markets of their choice and at the best prices.

NRDC offers a half-share to the inventors of the technology licensing fees received by it, when the patent/know-how is licensed by the Corporation to foreign parties.